Working Paper

An Economist’s Guide to Digital Music

Martin Peitz, Patrick Waelbroeck
CESifo, Munich, 2004

CESifo Working Paper No. 1333

In this guide, we discuss the impact of digitalization on the music industry. We rely on market and survey data at the international level as well as expert statements from the industry. The guide investigates recent developments in legal and technological protection of digital music and describes new business models as well as consumers' attitude towards music downloads and audio-streaming. We conclude the guide by a discussion of the evolution of the music industry.

Keywords: music, internet, file-sharing, peer-to-peer, piracy, digital rights management, copyright, e-commerce