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Piracy, Music, And Movies: A Natural Experiment

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Author Info

  • Adermon, Adrian

    ()
    (Department of Economics)

  • Liang, Che-Yuan

    ()
    (Department of Economics)

Abstract

Abstract: 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 Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2010:18.

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Length: 23 pages
Date of creation: 28 Oct 2010
Date of revision:
Handle: RePEc:hhs:uunewp:2010_018

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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
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Web page: http://www.nek.uu.se/
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Related research

Keywords: copyright protection; piracy; file sharing; music; movies; IPRE; natural experiment;

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References

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  1. W. D. Walls & A. DeVany, 2007. "Estimating the effects of movie piracy on box-office revenue," Working Papers 2014-56, Department of Economics, University of Calgary, revised 23 Sep 2014.
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Cited by:
  1. 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," Working Papers 14-07, University of Delaware, Department of Economics.
  2. Brett Danaher & Michael D. Smith & Rahul Telang, 2013. "Piracy and Copyright Enforcement Mechanisms," NBER Working Papers 19150, National Bureau of Economic Research, Inc.
  3. Éric Darmon & Thomas Le Texier, 2014. "Private or Public Law Enforcement? The Case of Digital Piracy Policies with Non-monitored Illegal Behaviors," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201403, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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