Supply Responses to Digital Distribution: Recorded Music and Live Performances

Digital copying and the supply of sound recordings

“…Another explanation would be additional income to creators/rights holders from related markets, such as live music, music licensing or merchandising (e.g. Mortimer et al, 2012). Suppliers could be adapting in order to mitigate adverse impacts of digital copying.…”

Music piracy: A case of “The Rich Get Richer and the Poor Get Poorer”

“…While publishers may be harmed by piracy, artists may benefit from the increased recognition of their music that piracy brings about. The notion that piracy may increase concert revenues also has some empirical support (Oberholzer-Gee and Strumpf, 2010;Mortimer et al, 2012).…”

Online sales, Internet use, file sharing, and the decline of retail music specialty stores

“…Liebowitz (2008) uses sales of music and Internet connectedness across US cities and concludes that file sharing induces a decline on sales of a magnitude that is at least of the size of the observed decline. Oberholzer and Strumpf (2007) and Blackburn (2004) use album sales and the number of illegal downloads. Both papers use shocks in the supply of albums in peer-to-peer systems to address simultaneity.…”