Understanding Media Markets in the Digital Age: Economics and Methodology

26 Pages Posted: 16 Nov 2013  

Brett Danaher

Chapman University - The George L. Argyros School of Business & Economics

Samita Dhanasobhon

Carnegie Mellon University

Michael D. Smith

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Rahul Telang

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Date Written: November 2013

Abstract

Digitization raises a variety of important academic and managerial questions around firm strategies and public policies for the content industries, with many of these questions influenced by the erosion of copyright caused by Internet file-sharing. At the same time, digitization has created many new opportunities to empirically analyze these questions by leveraging new data sources and abundant natural experiments in media markets. In this chapter we describe the open "big picture" questions related to digitization and the copyright industries, and discuss methodological approaches to leverage the new data and natural experiments in digital markets to address these questions. We close our chapter with a specific proof of concept research study that analyzes an important academic and managerial question -- the impact of legitimate streaming services on the demand for piracy. We use ABC's decision to add its content to Hulu.com as a natural experiment and show that it resulted in an economically and statistically significant drop in piracy of that content.

Suggested Citation

Danaher, Brett and Dhanasobhon, Samita and Smith, Michael D. and Telang, Rahul, Understanding Media Markets in the Digital Age: Economics and Methodology (November 2013). NBER Working Paper No. w19634. Available at SSRN: https://ssrn.com/abstract=2355640

Brett Danaher (Contact Author)

Chapman University - The George L. Argyros School of Business & Economics ( email )

333 N. Glassell
Orange, CA 92866
United States

Samita Dhanasobhon

Carnegie Mellon University ( email )

Pittsburgh, PA 15213-3890
United States

Michael D. Smith

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

HOME PAGE: http://www.heinz.cmu.edu/~mds

Rahul Telang

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

4800 Forbes Ave
Pittsburgh, PA 15213-3890
United States
412-268-1155 (Phone)

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