Piracy, Music and Movies: A Natural Experiment
AbstractThis paper investigates the effects of illegal file sharing (piracy) on music and movie sales. The Swedish implementation of the European Union directive IPRED on April 1, 2009 suddenly increased the risk of being caught and prosecuted for file sharing. We investigate the subsequent drop in piracy as approximated by the drop in Swedish Internet traffic and the effects on music and movie sales in Sweden. We find that the reform decreased Internet traffic by 18 percent during the subsequent six months. It also increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 854.
Length: 23 pages
Date of creation: 28 Oct 2010
Date of revision:
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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Copyright protection; Piracy; File sharing; Music; Movies; IPRED; Natural experiment;
Other versions of this item:
- Adermon, Adrian & Liang, Che-Yuan, 2010. "Piracy, Music, And Movies: A Natural Experiment," Working Paper Series 2010:18, Uppsala University, Department of Economics.
- Adermon, Adrian & Liang, Che-Yuan, 2010. "Piracy, Music, and Movies: A Natural Experiment," Working Paper Series, Center for Fiscal Studies 2010:13, Uppsala University, Department of Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- K11 - Law and Economics - - Basic Areas of Law - - - Property Law
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- M48 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-06 (All new papers)
- NEP-CUL-2010-11-06 (Cultural Economics)
- NEP-ICT-2010-11-06 (Information & Communication Technologies)
- NEP-IPR-2010-11-06 (Intellectual Property Rights)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arthur Vany & W. Walls, 2007. "Estimating the Effects of Movie Piracy on Box-office Revenue," Review of Industrial Organization, Springer, vol. 30(4), pages 291-301, June.
- Brett Danaher & Michael D. Smith & Rahul Telang, 2013.
"Piracy and Copyright Enforcement Mechanisms,"
NBER Working Papers
19150, National Bureau of Economic Research, Inc.
- Michael Arnold & Eric Darmon & Sylvain Dejean & Thierry Penard, 2014.
"Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law,"
14-07, University of Delaware, Department of Economics.
- Michael Arnold & Éric Darmon & Sylvain Dejean & Thierry Pénard, 2014. "Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-strike (Hadopi) Law," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201401, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
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