On File Sharing With Indirect Network Effects Between Concert Ticket Sales and Music Recordings

Ralf Dewenter, Justus Haucap and Tobias Wenzel

Journal of Media Economics, 2012, vol. 25, issue 3, 168-178

Abstract: This article analyzes the interdependency between the market for music recordings on the one side and the market for concert tickets on the other side, assuming that there are positive indirect network effects both from the record market to ticket sales for live performances and vice versa. In a model with two interrelated Hotelling lines, prices in both markets are corrected downward when compared to the standard Hotelling model. In the integrated business model, file sharing has an ambiguous effect on firms' profitability. As file sharing can indirectly increase demand for live performances, overall profits can either increase or decrease, depending on the strength of indirect network effects. Finally, file sharing may induce firms to switch from the traditional business model with two separate firms to an integrated business model where one agency markets both records and concerts (so-called 360° deals).

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://hdl.handle.net/10.1080/08997764.2012.700974 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: On file sharing with indirect Network effects between concert ticket sales and music recordings (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jmedec:v:25:y:2012:i:3:p:168-178

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/HMEC20

DOI: 10.1080/08997764.2012.700974

Access Statistics for this article

Journal of Media Economics is currently edited by Nodir Adilov

More articles in Journal of Media Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().