Supply responses to digital distribution: Recorded music and live performances

Julie Mortimer, Chris Nosko and Alan Sorensen

Information Economics and Policy, 2012, vol. 24, issue 1, 3-14

Abstract: Technologies that enable free redistribution of digital goods (e.g., music, movies, software, books) can undermine sellers’ ability to profitably sell such goods, which raises concerns about the future development of socially valuable digital products. In this paper we explore the possibility that broad, illegitimate distribution of a digital good might have offsetting effects on the demand for complementary non-digital goods. We examine the impact of file-sharing on sales of recorded music and on the demand for live concert performances. We provide evidence suggesting that while file-sharing reduced album sales, it simultaneously increased demand for concerts. This effect is most pronounced for small artists, perhaps because file-sharing boosts awareness of such artists. The impact of file-sharing on large, well-known artists’ live performances is negligible.

Keywords: Media economics; Digital distribution; Piracy (search for similar items in EconPapers)
JEL-codes: L10 L82 L86 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (80)

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Related works:
Working Paper: Supply Responses to Digital Distribution: Recorded Music and Live Performances (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:iepoli:v:24:y:2012:i:1:p:3-14

DOI: 10.1016/j.infoecopol.2012.01.007

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