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Illegal Music Downloading And Its Impact On Legitimate Sales: Australian Empirical Evidence

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  • JORDI McKENZIE

Abstract

This paper explores illegal music file‐sharing activity and its effect on Australian sales of singles in the physical and digital retail markets. Using fifteen weeks of Australian Recording Industry Association weekly chart rankings of physical and digital sales, combined with a proxy for download activity derived from the popular peer‐to‐peer (P2P) network Limewire, the evidence suggests no discernible impact of download activity on legitimate sales. Whilst significant negative correlation between chart rank and download activity is observed in the digital market, once download endogeneity is purged from the model and song heterogeneity is controlled for no significant relationship remains.

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  • JORDI McKENZIE, 2009. "Illegal Music Downloading And Its Impact On Legitimate Sales: Australian Empirical Evidence," Australian Economic Papers, Wiley Blackwell, vol. 48(4), pages 296-307, December.
    • Handle: RePEc:bla:ausecp:v:48:y:2009:i:4:p:296-307
    DOI: 10.1111/j.1467-8454.2009.00377.x
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    References listed on IDEAS

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    Cited by:

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    2. Joëlle Farchy & Mathilde Gansemer & Jessica Petrou, 2013. "E-book and book publishing," Chapters, in: Ruth Towse & Christian Handke (ed.), Handbook on the Digital Creative Economy, chapter 31, pages 353-364, Edward Elgar Publishing.
    3. Romeu, Andrés & Martinez-Sanchez, Francisco, 2015. "Technological Development and Software Piracy," UMUFAE Economics Working Papers 43702, DIGITUM. Universidad de Murcia.
    4. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    5. Martínez-Sánchez, Francisco & Romeu, Andrés, 2018. "Development and software piracy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-21.

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