Video Killed the Radio Star? Online Music Videos and Recorded Music Sales

Tobias Kretschmer and Christian Peukert ()

No 14038, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study the heterogeneous effects of online video platforms on the sales volume and sales distribution of recorded music. Identification comes from two natural experiments in Germany. In 2009, virtually all music videos were blocked from YouTube due to a legal dispute. In 2013, the dedicated platform VEVO entered the market, making videos of a large number of artists available overnight. Our estimates suggest that restricting (enabling) access to online videos decreases (increases) recorded music sales on average by about 5-10%. We show that the effect operates independently of the nature of video content, suggesting that user-generated content is as effective as official content. Moreover, we highlight heterogeneity in this effect: Online music video disproportionally benefits sales of new artists and sales of mainstream music.

Keywords: Digital distribution platforms; User-generated content; Natural experiment (search for similar items in EconPapers)
JEL-codes: L15 L82 (search for similar items in EconPapers)
Date: 2019-10
New Economics Papers: this item is included in nep-com, nep-cul and nep-pay
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Citations: View citations in EconPapers (2)

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Journal Article: Video Killed the Radio Star? Online Music Videos and Recorded Music Sales (2020)
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