Piracy, Music, And Movies: A Natural Experiment
AbstractAbstract: This 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 Uppsala University, Department of Economics in its series Working Paper Series with number 2010:18.
Length: 23 pages
Date of creation: 28 Oct 2010
Date of revision:
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
copyright protection; piracy; file sharing; music; movies; IPRE; natural experiment;
Other versions of this item:
- 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.
- Adermon, Adrian & Liang, Che-Yuan, 2010. "Piracy, Music and Movies: A Natural Experiment," Working Paper Series 854, Research Institute of Industrial Economics.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- 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
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,"
in: Innovation Policy and the Economy, Volume 14
National Bureau of Economic Research, Inc.
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