2006
DOI: 10.2202/1538-0653.1549
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The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis

Abstract: The first file-sharing software, Napster, was shut down in 2001, but the copying technology’s impact on the music industry is still passionately debated. This paper uses micro-level data from the Consumer Expenditure Survey to examine the impact of Internet file sharing on music sales. Music industry representatives argue that the practice decreases CD sales, while supporters of file-sharing allege the practice could actually increase sales. Using household-level data from the Consumer Expenditure Survey, w… Show more

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Cited by 76 publications
(48 citation statements)
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“…Rob and Waldfogel [16], interviewed college students in the United States, nding this impact close to 9%. Michel [17] and Hong [18], based on data from the Consumer Expenditure Survey (CEX), found a drop in sales of 13% and 7.6% respectively. Using data from the European Consumer Technographics survey, Zentner [19] concludes that le-sharing reduces the probability of buying music by 30%, and music sales by 7.8%.…”
Section: Eects Of Sampling On Sales: Theoretical and Empirical Resultsmentioning
confidence: 99%
“…Rob and Waldfogel [16], interviewed college students in the United States, nding this impact close to 9%. Michel [17] and Hong [18], based on data from the Consumer Expenditure Survey (CEX), found a drop in sales of 13% and 7.6% respectively. Using data from the European Consumer Technographics survey, Zentner [19] concludes that le-sharing reduces the probability of buying music by 30%, and music sales by 7.8%.…”
Section: Eects Of Sampling On Sales: Theoretical and Empirical Resultsmentioning
confidence: 99%
“…(2004), Huygens and al. (2001), Knopper (2009), Lampel and, Lopes (1992), Molteni and Ordanini (2003), Michel (2005), Michel (2006), Spitz and Hunter (2005) and Tschmuck (2006). Then seventeen semi-directive interviews were then conducted with experts 3 from the field who have been confronted with change in French and Canadian music market.…”
Section: Methodsmentioning
confidence: 99%
“…I n the last decade, the advent of disruptive innovations such as digital technologies and the Internet has unleashed a revolution in the music industry transforming consumer behavior, business models and the competition structure (Alderman, 2001;Hensmans, 2003;Michel, 2005;Michel, 2006, Tschmuck, 2006. While new entrants like Napster or Apple considered these changes a great opportunity, incumbents, and mainly the major companies 1 , were more pessimistic about the future.…”
mentioning
confidence: 99%
“…Michel (2006) also found considerable empirical evidence to show that file-sharing has led to a decrease in music sales. However, this is in contrast to Oberholzer-Gee and Strumpf (2010) also observed that the current price levels of music are too high.…”
Section: The Bad (Record Industry Dies Slowly)mentioning
confidence: 99%