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[d@DCC] Fwd: The Effect of File Sharing on Album Sales (paper by Jonathan Lee at QueensU)

From: krishna e bera <keb _-at-_>
To: discuss (at)
Date: Sun, 14 Feb 2016 10:43:18 -0500
References: <>

Purchase, Pirate, Publicize: The Effect of File Sharing on Album Sales

Jonathan Lee ( (Queen's University)

This paper quantifies the relationship between private-network file
sharing activity and music sales in the BitTorrent era. Using a panel
dataset of 2,251 albums' U.S. sales and file sharing downloads on a
private network during 2008, I estimate the effect of file sharing on
album sales. Exogenous shocks to file sharing capacity address the
simultaneity problem. In theory, piracy could crowd out legitimate sales
by building file sharing capacity, but could also increase sales through
word-of-mouth. I find evidence that additional file sharing decreases
physical sales but increases digital sales for top-tier artists, though
the effects are modest. I also find that file sharing may help mid-tier
artists and substantially harms bottom-tier artists, suggesting that
file sharing enables consumers to better discern quality among
lesser-known artists.

You can get the paper at

TorrentFreak blog article

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