On the complementarity between online and offline music consumption: the case of free streaming
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From a representative survey of 2,000 individuals, we study whether consumption of music through streaming services, like Spotify or YouTube, is a substitute or a complement to physical music consumption modes, such as CDs and live music. Controlling for the taste for music, various socio-demographic characteristics and the usual determinants of music consumption either offline (radio, TV, friends/relatives) or online (online recommendations, social networks), our results show that free music streaming (where the consumer does not possess the music but only has access to it) has no significant effect on CD sales and affects positively live music attendance, but only for national or international artists who are more likely to be available on streaming services.
KeywordsMusic consumption Streaming Substitutability
JEL ClassificationL2 L86 Z1
We thank two anonymous reviewers as well as the participants at the 2012 ACEI Conference and the 10th ZEW Conference on the Economics of Information and Communication Technologies for their comments and suggestions.
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