Bootlegging in the Music Industry: A Note

This paper analyzes bootlegging of music, i.e. the unauthorized recording and distribution of previously unreleased music (e.g. a live concert). In particular, we investigate whether, and if so, how this illegal activity may hurt bands and record companies. Bootlegging is different from pirating, where legal releases are illegally copied and sold, because it adds to the product variety. It turns out that welfare implications of bootlegging are decisively different from those of pirating—bootlegged music does not crowd out legal sales.