The Effect of File Sharing on Record Sales: An Empirical Analysis
This report, which was published in 2004, was written by Felix Oberholzer-Gee (Harvard Business School, Massachusetts) and Koleman Strumpf (University of North Carolina).
Biodata of Koleman Strumpf
Both links were sourced from a New Scientist report.
According to a New Scientist report,
Oberholzer-Gee and Strumpf monitored 680 albums, chosen from a range of musical genres, downloaded over 17 weeks in the second half of 2002. They used computer programs to automatically monitor downloads and compared this data to changes in album sales over the same period to see if a link could be established.
The 54-page report highlights that
- For albums with more than 600 000 copies sold, each 150 downloads corresponded to one more album sale.
- For least popular music, there is only a slight decline in sales when the music was downloaded.
The two concluded, “Downloads have an effect on sales which is statistically indistinguishable from zero.”Back to top
Music pirates spend four-and-a-half times more on legitimate music downloads than average fans
In 2005, digital music research film The Leading Question surveyed 600 music fans in Britain to find out their illegal and legal downloading habits. The report found that music fans who download? or share illegal copies of music and the average fan spent £5.52 and £1.27 respectively on legal music downloads.
The press release shows that at least in Britain, people who engage in DCI do consume legal music as well, four-and-a-half times more than the average music consumer does. By this count, the music industry has actually gained profits from this group of people who consume unlicensed music, but at the same time also consume licensed music.