Evidence supports claim that yes, file-sharing does hurt music sales

Though the methodology is complex, the results are straightforward: some US music consumers “could have decreased their CD purchases (prior to 2004) by about 13 percent due to Internet file sharing.”The paper, titled “The Impact of Digital File Sharing on the Music Industry: An Empirical Analysis,” is the first to use the fine-grained data gathered by the Consumer Expenditure Survey (CEX). The Survey is run by the Bureau of Labor Statistics, which tracks nearly all household expenses for selected families in order to calculate numbers like the Consumer Price Index.

Abstract (free guest access available) from Topics in Economics Analysis and Policy with commentary from Ars

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Filed under AI, P2P (Peer to Peer)

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