New Article by Ambre Nicolle: "Displacement and complementarity in the recorded music industry: evidence from France"

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How do digital channels change the way individuals consume cultural goods?

Here at ISTO, we have been particularly interested in this question for years. Our researchers have been studying the effect of digitization on consumption in the film industry (Peukert, Claussen and Kretschmer, 2017), but also the music industry (Kretschmer and Peukert, 2020).

Our most recent publication on the topic is “Displacement and complementarity in the recorded music industry: evidence from France” published in the Journal of Cultural Economics, by Ambre Nicolle, Assistant Professor here at ISTO, and her co-authors Marc Ivaldi, from Toulouse School of Economics, Frank Verboven, from KU Leuven, and Jiekai Zhang, from Hanken School of Economics.

In this paper, Ambre Nicolle and her co-authors exploited an extensive dataset of sales and streams observed at the product level in France and estimated various econometric models relying on instrumental variables approaches. They find robust evidence that consumptions across channel are both substitutes (what has been often shown in the prior literature) and complements. In particular, their analyses highlight that audio and video streaming stimulates physical sales, in particular for the main genres (Pop and Variety), what is in line with the findings from Kretschmer and Peukert (2020).

This project has mainly been funded by the French Ministry of Culture and the open access publication was enabled by Projekt DEAL.

Congratulations to Ambre and the whole team!

The paper is available in open access. You can read the full article here.