Oberholzer-Gee and Strumpf (2010)
Contents
Source Details
Oberholzer-Gee and Strumpf (2010) | |
Title: | File Sharing and Copyright |
Author(s): | Oberholzer-Gee, F., Strumpf, K. |
Year: | 2010 |
Citation: | Oberholzer-Gee, F., & Strumpf, K. (2010). File sharing and copyright. In Innovation Policy and the Economy, Volume 10 (pp. 19-55). University of Chicago Press. |
Link(s): | Definitive , Open Access |
Key Related Studies: | |
Discipline: | |
Linked by: | Liu (2014) |
About the Data | |
Data Description: | This study draws on numerous secondary sources. This mainly comprises sales data derived from numerous music industries sources and empirical research by other authors.
The authors perform a survey of existing empirical literature scrutinising the effect of file-sharing on the copyright industries with particular focus on the music industries. The study also draws on survey data conducted by the authors in 2002 featured in their earlier work (Oberholzer-Gee & Strumpf 2007). |
Data Type: | Secondary data |
Secondary Data Sources: | |
Data Collection Methods: | |
Data Analysis Methods: | |
Industry(ies): | |
Country(ies): | |
Cross Country Study?: | No |
Comparative Study?: | No |
Literature review?: | No |
Government or policy study?: | No |
Time Period(s) of Collection: |
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Funder(s): |
Abstract
The advent of file sharing has considerably weakened effective copyright protection. Today, more than 60% of Internet traffic consists of consumers sharing music, movies, books, and games. Yet, despite the popularity of the new technology, file sharing has not undermined the incentives of authors to produce new works. We argue that the effect of file sharing has been muted for three reasons. (1) The cannibalization of sales that is due to file sharing is more modest than many observers assume. Empirical work suggests that in music, no more than 20% of the recent decline in sales is due to sharing. (2) File sharing increases the demand for complements to protected works, raising, for instance, the demand for concerts and concert prices. The sale of more expensive complements has added to artists’ incomes. (3) In many creative industries, monetary incentives play a reduced role in motivating authors to remain creative. Data on the supply of new works are consistent with the argument that file sharing did not discourage authors and publishers. Since the advent of file sharing, the production of music, books, and movies has increased sharply.
Main Results of the Study
The main results of this study are that the impact of file sharing on teh creation of new works has been muted for three reasons:1: The cannibalization of sales that is due to file sharing is more modest than many observers assume. Empirical work suggests that in music, no more than 20% of the recent decline in sales is due to sharing. 2: File sharing increases the demand for complements to protected works, raising, for instance, the demand for concerts and concert prices. The sale of more expensive complements has added to artists’ incomes. 3: In many creative industries, monetary incentives play a reduced role in motivating authors to remain creative. Data on the supply of new works are consistent with the argument that file sharing did not discourage authors and publishers. Since the advent of file sharing, the production of music, books, and movies has increased sharply.
Policy Implications as Stated By Author
The authors state that it is, "difficult to argue that weaker copyright protection has had a negative impact on artists’ incentives to be creative."
Coverage of Study
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