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
The Electronic Frontier Foundation has just filed a lawsuit that challenges the Constitutionality of Section 1201 of the DMCA, the “Digital Rights Management” provision of the law, a notoriously overbroad law that bans activities that bypass or weaken copyright access-control systems, including reconfiguring software-enabled devices (making sure your IoT light-socket will accept third-party lightbulbs; tapping […]
In spring, 2015, American farmers started to spread the word that John Deere claimed that a notorious copyright law gave the company exclusive dominion over repairs to Deere farm-equipment, making it a felony (punishable by 5 years in prison and a $500K fine for a first offense) to fix your own tractor.
The Bookworm Rug (100% woven polyester) come in 2′ x 3′ ($28), 3′ x 5′ ($58) and 4′ x 6′ ($79), and feature a selection of spines from some rather good books, including Iain Banks’s debut “The Wasp Factory” some Virginia Woolf, Charles Bukowksi and Haruki Murakami. (via Bookshelf)
Having to pack and drag your stuff through security can put quite the damper on your vacation plans. Thankfully, we’ve got your back with one way to make traveling more painless: the Jumper Overnighter Travel Bag.This compact bag is so lightweight that you can effortlessly carry it, and fit it into any overhead compartment. But just […]
Learning is a 24/7/365 proposition, and it never ends. And if you’re truly serious about leveling up your skill sets and career prospects, get a subscription to Stone River Academy’s massive course collection. This offer normally is worth over $1,400, but is now available for just $89 in the Boing Boing Store.A respected name in information technology […]
Home audio has taken some big leaps forward in recent years–not just in terms of sound quality, but also in the style department. The FRESHeBAR Leather Soundbar, now 56% off in the Boing Boing Store, is proof.The FRESHeBAR comes packing almost all the options you’d ever need for a home sound system, including Bluetooth streaming capabilities.The unit’s 90 […]