We study the heterogeneous effects of online video platforms on the sales volume and sales distribution of recorded music. Identification comes from two natural experiments in Germany. In , virtually all music videos were blocked from YouTube as a result of a legal dispute. In , the dedicated platform Vevo entered the market, making videos of a large number of artists available overnight. We show that the effect operates independently of the nature of video content, suggesting that user-generated content is as effective as official content. Moreover, we highlight heterogeneity in this effect: online music videos disproportionally benefit sales of new artists and sales of mainstream music.
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With streaming platforms, you can listen to any song, anytime, anywhere, as often as you want. Beyond music videos, fans are watching everything from dance choreography to band interviews. To find out more about how music consumption has evolved, we spoke to both fans 1 and creators. When MTV burst onto the airwaves, it showed how powerful it can be to pair visuals with music.
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