Who’d have thunk it, that when people get things for free they’re less likely to pay for them, how odd.
In 2009, Warner blocked videos on YouTube by not only their artists but by anybody using bits of their music. This period gave researchers a chunk of data to compare and after doing their statistical magic on all other causes, found that the “blackout had both statistically and economically signiﬁcant positive eﬀects on album sales, speciﬁcally the best-selling albums in a week.”
The paper is available for free:
“Online Music, Sales Displacement, and Internet Search: Evidence from YouTube”
The key point seems to be that for top-selling albums by artists with which listeners are already familiar, YouTube’s free listening acts as direct competition to sales of such albums. In fact, they seem to claim that not having videos on YouTube increased sales by “on average 10,000 units per week for top albums.”
READ THE FULL STORY AT HYPEBOT: