There is a new study about the effect of music downloads on actual sales. This seems to corroborate that the actual effect of music downloads on sales is much less stronger thant the music industry would like to make us think. The summary of the study states that:

Each album download reduces purchases by about 0.2 in our sample, although possibly much more. Our valuation data allow us to measure the effects of downloading on welfare as well as expenditure in a subsample of Penn undergraduates, and we find that downloading reduces their per capita expenditure (on hit albums released 1999-2003) from $126 to $100 but raises per capita consumer welfare by $70.”

Categories: P2P

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