An economic analysis of online streaming music services

Elvis Is Returning to the Building: Understanding a Decline in Unauthorized File Sharing

“…Although it is often claimed that online services, such as iTunes, Spotify, and Netflix, can help to combat file sharing, 4 empirical academic literature on this matter is scarce. In a theoretical article, Thomes (2013) concluded that a free, ad-sponsored music streaming service can be effective against file sharing, given a certain level of copyright enforcement. Another theoretical article by Halmenschlager and Waelbroeck (2014) concluded that the freemium model can help fight piracy without a need for stricter enforcement, as long as restrictions on the free version are limited.…”

Catch Me If You Can: Effectiveness and Consequences of Online Copyright Enforcement

“…An emerging literature suggests that the appeal of piracy may decrease over time, mainly due to improvements in licensed alternatives. Theoretical work shows that content services where consumers can choose between fee based or free and ad-supported subscriptions (a model that is mostly offered in the music market, much less in the video market) can reduce the demand for piracy (Thomes, 2013). Recent evidence in Aguiar and Waldfogel (forthcoming) suggests that the licensed streaming platform Spotify -which operates a freemium business model -has had a negative and significant impact on recorded music piracy.…”

Internet Radio Adopts a Human Touch: A Study of 12 Streaming Music Services

“…In fact, streaming music may be "the last remaining hope of beleaguered media executives everywhere" (Stone, 2009). More precisely, the music industry has expressed hope that streaming services would displace illegal downloading practices as listeners' preferred means of acquiring music (Thomes, 2013). Accordingly, the industry has become increasingly competitive, characterized by numerous mergers and acquisitions (Chen, 2015;Crook, 2014).…”