[personal profile] aphar
illegal music downloads have had no noticeable effects on the sale of music, contrary to the claims of the recording industry.
http://citeseer.ist.psu.edu/695354.html
http://www.unc.edu/~cigar/papers/FileSharing_March2004.pdf
We find that file sharing has only had a limited effect on record sales. OLS estimates indicate a positive effect on downloads on sales, though this estimate has a positive bias since popular albums have higher sales and downloads. After instrumenting for downloads, most of the impact disappears. This estimated effect is statistically indistinguishable from zero despite a narrow standard error. The economic effect is also small. Even in the most pessimistic specification, five thousand downloads are needed to displace a single album sale. We also find that file sharing has a differential impact across sales categories. For example, high selling albums actually benefit from file sharing. In total the estimates indicate that the sales decline over 2000-2002 was not primarily due to file sharing.
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