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    The impact of music downloads and P2P file-sharing on the purchase of music in Canada

    Andersen, Birgitte and Frenz, Marion (2008) The impact of music downloads and P2P file-sharing on the purchase of music in Canada. Working Paper. Dynamics of Institutions of Markets in Europe.

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    Abstract

    This study measures the extent to which free music downloads, including the use of P2P file sharing networks, act as substitutes or complements to music purchase in markets for CDs and electronic delivered music (such as MP3). The analysis uses representative micro-data from the Canadian population. We find that those who participate in free music downloading and P2P file-sharing do not purchase more or less music compared with those who do not engaged in such activities, but that, indeed, very active file-sharers purchase more music relative to file-sharers who download fewer songs. Thus, the market substitution effect between freely acquired music and purchased music is smaller than the market creation and market segmentation effect from free music downloading. In essence, the behavioural incentives underpinning free music downloading are the effects of ‘unwilling to pay’ (market substitution), ‘hear before buying’ (market creation), ‘not wanting to buy whole album’ (market segmentation), ‘not available in the CD format or on electronic pay-sites (market creation)’.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: Series on intellectual property rights. Number 82
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Research Centre: Innovation Management Research, Birkbeck Centre for
    Depositing User: Sarah Hall
    Date Deposited: 11 Sep 2014 15:21
    Last Modified: 06 Dec 2016 10:08
    URI: http://eprints.bbk.ac.uk/id/eprint/10508

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