Intellectual Property Strategy and the Long Tail:
Evidence from the Recorded Music Industry [PDF], a new working paper from University of Toronto Strategic Management PhD candidate Laurina Zhang documents the rise in sales experienced by the music industry following the abandonment of DRM in digital music offerings.
The paper compares sales of 5,864 albums from 634 artists from before and after the music industry eliminated DRM, and finds an average rise of 10 percent in overall sales (though back-catalog experienced more of a lift compared to front-list titles). As TorrentFreak reports, "This effect holds up after controlling for factors such as album release dates, music genre and regular sales variations over time."
“Relaxing sharing restrictions does not impact all albums equally; it increases the sales of lower-selling albums (the “long tail”) significantly by 30% but does not benefit top-selling albums. My results are consistent with theory that shows lowering search costs can facilitate the discovery of niche products.”
According to Zhang, the 30% sales increase for lower-selling albums can be explained by the fact that DRM-free music makes it easier for consumers to share files and discover new music. The finding that removing DRM from top-selling albums has no effect on sales makes sense in this regard, since the discovery element is less important for well promoted musicians.
While DRM is still prevalent in the book industry and elsewhere, most of the major labels are now in agreement that it’s not a good fit for music.
What Piracy? Removing DRM Boosts Music Sales by 10 Percent
Securelist’s report on the security vulnerabilities in Android-based “connected cars” describes how custom Android apps could be used to find out where the car is, follow it around, unlock its doors, start its engine, and drive it away.
Motherboard says a source told them that “an Apple representative, staffer, or lobbyist will testify” against the state’s Right to Repair bill, which requires companies to make it easy for their customers to choose from a variety of repair options, from official channels to third parties to DIY.
Jessica Leigh Clark-Bojin (aka @ThePieous) (previously) writes, “Happy Valentines Day! If your readers are looking for a last-minute gift idea for their significant others, they may want to check out my new pie tutorial. It’s a Queen of Hearts cherry pie baked in a heart shaped cake pan.”
Python is immensely popular in the data science world for the same reason it is in most other areas of computing—it has highly readable syntax and is suitable for anything from short scripts to massive web services. One of its most exciting, newest applications, however, is in machine learning. You can dive into this booming […]
Learning new skills is a great way to improve your resume and stand out from other candidates. Especially in a workforce in which many job-seekers have a wide variety of qualifications. With lifetime access to Virtual Training Company, you won’t have to choose a specific focus. You can pick up new expertise whenever you deem it […]
Instead of throwing out all the empties after your next party, why not transform them into some new DIY glassware? Cut back on waste and add some home ambiance with the Kinkajou Bottle Cutter and Candle Making Kit.The Kinkajou is designed as a clamp-on scoring blade to make precise cuts. Just slide a bottle in, tighten […]