So how does this sound? The more a music album is illegally downloaded for free, the more money the artist makes. …yeah, it’s an odd thing to envision. But according to a 2012 study from North Carolina State University, albums that are “leaked” tend to sell slightly more than those actually sold. One would think that prereleased sharing would cause the artist to lose more money than gain, but it has been proving the opposite. A theory as to why this is is because the people pirating are able to listen and figure out if they like the songs before they officially buy them. In return this provides the artist with more public exposure to their content, kind of like free samples given out at a grocery store before the customer knows if they want to buy the product. It was also found that artists who were well known benefited from the predownloads than lesser-known artists. This is a rare case where piracy may actually be beneficial.
The reason I spotlighted this article is because I knew that with more opportunities to get free content nowadays, it’s nearly impossible to get around piracy. So, I was curious to see if there were any ways that we could benefit from it since people would do it anyway.
This article was taken from a study conducted by Robert G. Hammond, an Assistant Professor of Economics at North Carolina State University, about how the existence of a black market aﬀects outcomes in the formal market”.
KOEBLER, JASON. “Report: Album Piracy May Help Musicians Sell.” U.S. News. (2012): n. page. Web. 20 Jan. 2014. <http://www.usnews.com/news/articles/2012/05/29/report-album-piracy-may-help-musicians-sell>.