Music Piracy: Bad for Record Sales but Good for the iPod?

Tin Cheuk Leung ()

MPRA Paper from University Library of Munich, Germany

Abstract: Music piracy is a double-edged sword for the music industry. On the one hand, it hurts record sales. On the other hand, it increases sales of its complements. To quantify the effect of music piracy, I construct a unique survey data set and use a Bayesian method to estimate the demand for music and iPods, and find three things. First, music piracy decreases music sales by 24% to 42%. Second, music piracy contributes 12% to iPod sales. Finally, counterfactual experiments show that Apple's revenue could increase by $36 per student if music were free.

Keywords: demand estimation; iPod; music piracy (search for similar items in EconPapers)
JEL-codes: K42 L14 L82 O34 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cul, nep-ipr, nep-pr~, nep-iue, nep-law and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/45772/1/MPRA_paper_45772.pdf original version (application/pdf)

Related works:
Journal Article: Music piracy: Bad for record sales but good for the iPod? (2015)
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:pra:mprapa:45772

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().