Location: Home > NEWS > Detail

Spotify helps to beat music piracy, European commission finds When Spotify launched its first beta in the fall of 2008 we branded it “an alternative to music piracy.”

wechatimg24
admin 2015-10-29 Collect

New research published by the European Commission’s Joint Research Centre shows that Spotify is helping to beat piracy. The researchers examined the effects of legal streaming on torrent downloads and found that Spotify displaces piracy. However, the overall impact on revenue is neutral as streaming also cuts legal track sales.

When Spotify launched its first beta in the fall of 2008 we branded it “an alternative to music piracy.”

With the option to stream millions of tracks supported by an occasional ad, or free of ads for a small subscription fee, Spotify appeared to be a serious competitor to unauthorized downloading.

While there has been plenty of anecdotal support for this claim, actual research on the topic has been lacking. A new study published by the European Commission’s Joint Research Centre aims to fill this gap.

In the study researchers Luis Aguiar (IPTS) and Joel Waldfogel (NBER) compare Spotify streaming data to download numbers from the 8,000 pirated artists on torrent sites, as well as legal digital track sales.

Based on this data the researchers conclude that Spotify has a clear displacement effect on piracy. For every 47 streams the number of illegal downloads decreases by one.

This is in line with comments from Spotify’s Daniel Ek, who previously argued that the streaming service helps to convert pirates into paying customers.

“According to these results, an additional 47 streams reduces by one the number of tracks obtained without payment,” the paper reads.

“This piracy displacement is consistent with Ek’s claim that Spotify’s bundled offering harvests revenue from consumers who – or at least from consumption instances – were previously not generating revenue,” the researchers add.

While that’s good news for the music industry, it doesn’t necessarily mean that more revenue is being generated. In addition to piracy, streaming services also impact legal track sales on iTunes and other platforms.

According to the researchers, 137 Spotify streams reduce the number of individual digital track sales by one. Factoring in the revenue per stream and download, the overall impact is relatively neutral.

“Given the current industry’s revenue from track sales ($0.82 per sale) and the average payment received per stream ($0.007 per stream), our sales displacement estimates show that the losses from displaced sales are roughly outweighed by the gains in streaming revenue.”

“In other words, our analysis shows that interactive streaming appears to be revenue-neutral for the recorded music industry,” the researchers add.

More studies are needed to see how streaming services impact the music industry in the long run, but for now it’s safe to conclude that they do indeed help to beat online piracy, as often suggested.

Review ( 1Article ) Log In

必填

必填,绝不公开

  1. Fats : 回复

    An acqniantauce of mine was in the Peace Corps after a mission and college. He was looking at a job in govt and spending some time in the Peace Corps moved his priority up for getting the job he wanted. He was married and he and his wife remember their experience as one of the best times of their life. Then they were expecting their first child and had to leave the Peace Corps (govt policy, not their choice). I don’t know if things are still that way now.

Related

  • newsoftheweek_%e7%94%bb%e6%9d%bf-1
    News of the Week 2/8

    Financing  Canxing Media Failed to IPO On February 2nd, ChiNext (创业板), the NASDAQ-style subsidiary of Shenzhen Stock Exchange de

    2021-02-22
  • newsoftheweek_%e7%94%bb%e6%9d%bf-1
    News of the Week 1/25

    Financing  Changba's Affiliated Company Invested in Beijing Golden Apple Education  According to the news on January 18th, Beiji

    2021-02-01
  • newsoftheweek_%e7%94%bb%e6%9d%bf-1
    News of the Week 1/18

    Financing  Kuke Music Successfully Listed on NYSE On January 12th, Kuke Music (NYSE: KUKE) successfully listed on the New York S

    2021-01-25
Share Article
Review
  • Jackson Wang Talks About Music, Hip-Hop, and His Insecurities
    Admin:Hi Hazel, thank you for liking
  • Jackson Wang Talks About Music, Hip-Hop, and His Insecurities
    Hazel:I am a huge fan of Jackson. So
  • Expo | How was the Good Meimei’s Private Song Project born?
    Dong lucy:Plz add our website to your bo
  • Expo | How was the Good Meimei’s Private Song Project born?
    Am ho:Oh mmy goodness! Impressive ar
  • Expo | How was the Good Meimei’s Private Song Project born?
    Dong lucy:You can add us to your bookmar
  • Expo | How was the Good Meimei’s Private Song Project born?
    Dong lucy:Thanks. Our website digs news
  • Expo | How was the Good Meimei’s Private Song Project born?
    Dong lucy:Thanks for adding us to your b
  • Expo | How was the Good Meimei’s Private Song Project born?
    Dong lucy:Music is always the cool, cool
  • Expo | How was the Good Meimei’s Private Song Project born?
    keo bong da online:Hi there, I discovered your we
  • Expo | How was the Good Meimei’s Private Song Project born?
    Thu hep Am dao:I blog frequently and I genuin
  • Copyright © 2015 China Music Business News

    京ICP备14034174号-6

    Have An Account, Login Now