The Effect of Internet Piracy on CD Sales: Cross-Section Evidence

25 Pages Posted: 2 Mar 2004  

Martin Peitz

University of Mannheim - Department of Economics

Patrick Waelbroeck

Telecom ParisTech

Date Written: January 2004

Abstract

We analyze the role of music downloading on the current downturn in CD sales. We provide 2000-2001 cross-country evidence in support of the claim of losses due to internet piracy made by the music industry. For the U.S. we also assess the potential loss from internet piracy using detailed survey data. We conclude the empirical analysis by forecasting CD sales for 2002. The results suggest that internet piracy played a significant role in the decline in CD sales in 2001, but can hardly account for the subsequent drop in 2002.

Keywords: piracy, music, peer-to-peer, internet, survey data, cross-country regressions

JEL Classification: D12, L82

Suggested Citation

Peitz, Martin and Waelbroeck, Patrick, The Effect of Internet Piracy on CD Sales: Cross-Section Evidence (January 2004). CESifo Working Paper Series No. 1122. Available at SSRN: https://ssrn.com/abstract=511763

Martin Peitz (Contact Author)

University of Mannheim - Department of Economics ( email )

D-68131 Mannheim
Germany
+49 621 181-1835 (Phone)

HOME PAGE: http://peitz.vwl.uni-mannheim.de/

Patrick Waelbroeck

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

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