Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Note that this applies to the Dutch market only.

Here is a translation of table 5-3:

"Possible effects of downloading on the purchase of cd's, films and related merchandise."

Positive:

1. Downloading brings consumers in touch with content (music, films, games) which creates (more) demand; the so-called "sampling-effect" (Shapiro & Varian 1999; Liebowitz 2006)

2. File sharing (the technique) enables consumer to bundle their demands and this increases their demands.

3. Downloading increases the willingness to pay for and the demand for concerts and related merchandise (complementary demand).

4. Downloading increases popularity of products and creates demand with willingness to pay. (network effect).

Neutral:

5. Downloading supplies consumers which were unwilling to pay (would not have payed).

6. Downloading supplies consumers who where not met in their demands by producers. (e.g. movies for the iPod)

Negative:

7. Downloading replaces purchase of music, dvd's, games or theater tickets. (substitution)

8. Downloading delays purchase, resulting in a lower price for content.

9. Sampling leads to loss of demand by preventing bad buys.



It's not clear that "preventing bad buys" leads to lower music spending. How do they know that the money that I don't spend on {insert something} because I hear it and discover that I don't like it isn't money that I do spend on some other music? (I'm not saying that they can't know the answer. I'm asking whether they do know the answer.)

Preventing bad buys certainly leads to greater satisfaction with the music purchased. The happier that I am with a product, the more that I buy. Then again, I'm not Dutch.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: