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Digital music consumption on the Internet: Evidence from clickstream data


Aguiar, Luis; Martens, Bertin (2016). Digital music consumption on the Internet: Evidence from clickstream data. Information Economics and Policy, 34:27-43.

Abstract

We use clickstream data on a panel of more than 16,500 European consumers to analyze the relationship between different online music consumption channels. In particular, we revisit the question of sales displacement in the digital era, and analyze how licensed online music streaming affects digital music purchasing behavior. Our results show no evidence of digital music sales displacement by unlicensed downloading and present, for some countries in our sample, a rather small but positive elasticity of up to 0.04 between these two channels. We also find a positive relationship between the use of licensed streaming websites and licensed websites selling digital music, suggesting a stimulating effect of music streaming on digital music sales. Our results present important cross country differences in these effects, with elasticities ranging between 0.09 and 0.01. Finally, we find heterogeneous effects according to individuals’ profiles. For both unlicensed downloading and licensed streaming alike, our results suggest that consumers with higher interest in music view these channels as complements to licensed digital purchases to a larger extent.

Abstract

We use clickstream data on a panel of more than 16,500 European consumers to analyze the relationship between different online music consumption channels. In particular, we revisit the question of sales displacement in the digital era, and analyze how licensed online music streaming affects digital music purchasing behavior. Our results show no evidence of digital music sales displacement by unlicensed downloading and present, for some countries in our sample, a rather small but positive elasticity of up to 0.04 between these two channels. We also find a positive relationship between the use of licensed streaming websites and licensed websites selling digital music, suggesting a stimulating effect of music streaming on digital music sales. Our results present important cross country differences in these effects, with elasticities ranging between 0.09 and 0.01. Finally, we find heterogeneous effects according to individuals’ profiles. For both unlicensed downloading and licensed streaming alike, our results suggest that consumers with higher interest in music view these channels as complements to licensed digital purchases to a larger extent.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > Economics and Econometrics
Physical Sciences > Management, Monitoring, Policy and Law
Scope:Discipline-based scholarship (basic research)
Language:English
Date:2016
Deposited On:07 Dec 2023 14:41
Last Modified:29 Jun 2024 01:41
Publisher:Elsevier
ISSN:0167-6245
OA Status:Hybrid
Publisher DOI:https://doi.org/10.1016/j.infoecopol.2016.01.003
Other Identification Number:merlin-id:18295
  • Content: Published Version
  • Language: English
  • Licence: Creative Commons: Attribution 4.0 International (CC BY 4.0)