THE IMPACT OF DIGITAL PIRACY ON MUSIC SALES: A CROSS-COUNTRY ANALYSIS.

In this article the authors discuss the impact of digital music piracy on music sales worldwide. They note that the Recording Industry Association of America (RIAA) estimates that six percent of the U.S. gross domestic product (GDP) is generated by the entertainment industry. They conclude that a one percent increase in the music piracy rate results in a 0.6 percent decrease in music sales and that a one percent increase in the Internet penetration rate results in more than a one percent decrease in music sales.