@article{JRC79605, number = {LF-NA-25851-EN-N}, address = {Luxembourg (Luxembourg)}, issn = {1831-9424}, year = {2013}, author = {Aguiar Wicht L and Martens B}, isbn = {978-92-79-28901-9}, publisher = {Publications Office of the European Union}, abstract = {The goal of this paper is to analyze the behavior of digital music consumers on the Internet. Using clickstream data on a panel of more than 16,000 European consumers, we estimate the e ects of illegal downloading and legal streaming on the legal purchases of digital music. Our results suggest that Internet users do not view illegal downloading as a substitute to legal digital music. Although positive and signi cant, our estimated elasticities are essentially zero: a 10% increase in clicks on illegal downloading websites leads to a 0.2% increase in clicks on legal purchases websites. Online music streaming services are found to have a somewhat larger (but still small) e ect on the purchases of digital sound recordings, suggesting complementarities between these two modes of music consumption. According to our results, a 10% increase in clicks on legal streaming websites lead to up to a 0.7% increase in clicks on legal digital purchases websites. We nd important cross country di erence in these e ects. }, title = {Digital music consumption on the Internet: Evidence from clickstream data}, url = {http://ipts.jrc.ec.europa.eu/publications/pub.cfm?id=6084}, doi = {10.2791/83798} }