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Licensed Unlicensed Requires Authentication Published by De Gruyter September 10, 2006

The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis

  • Norbert J Michel

Abstract

The first file-sharing software, Napster, was shut down in 2001, but the copying technology’s impact on the music industry is still passionately debated. This paper uses micro-level data from the Consumer Expenditure Survey to examine the impact of Internet file sharing on music sales. Music industry representatives argue that the practice decreases CD sales, while supporters of file-sharing allege the practice could actually increase sales. Using household-level data from the Consumer Expenditure Survey, we find support for the claim that file-sharing has decreased sales.

Published Online: 2006-9-10

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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