Cookies?
Library Header Image
LSE Research Online LSE Library Services

Video killed the radio star? Online music videos and digital music sales

Kretschmer, Tobias and Peukert, Christian (2014) Video killed the radio star? Online music videos and digital music sales. CEP Discussion Papers, CEPDP1265. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

[img]
Preview
PDF - Published Version
Download (429kB) | Preview

Identification Number: CEPDP1265

Abstract

Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement effect). We study this trade-o_ in the market for digital music where consumers can sample the quality of songs by watching free music videos online. Identification comes from a natural experiment in Germany, where virtually all videos that contain music are blocked on a popular video platform due to a legal dispute with representatives of the rights-holders. We show that promotional and displacement effects cancel out in the sales performance of individual songs, whereas online music videos trigger sales of albums.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information: © 2014 The Authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
M Music and Books on Music > M Music
Q Science > QA Mathematics > QA75 Electronic computers. Computer science
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Series: Working Papers > CEP Discussion Papers
Date Deposited: 26 Nov 2014 15:18
Last Modified: 26 Nov 2014 15:18
Funders: Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/60276

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics