Sunday, 19 September 2010

Piracy and Profit

An extensive study into the effect of digitalization on the music industry in Norway has shed an interesting light on the position of artists today, compared to 1999. While the music industry often talks about artists being on the brink of bankruptcy due to illicit file-sharing, the study found that the number of artists as well as their average income has seen a major increase in the last decade.

Every other month a new study addressing the link between music piracy and music revenues surfaces, but only a few really stand out. One of the most elaborate and complete studies conducted in recent times is the master thesis of Norwegian School of Management students Anders Sørbo and Richard Bjerkøe.

In their thesis, the students take a detailed look at the different revenue streams of the music industry between 1999 and 2009. By doing so, they aim to answer the question of how the digitization of music – and the most common side-effect, piracy – have changed the economic position of the Norwegian music industry and Norwegian artists. The results are striking.


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