IDEAS home Printed from https://ideas.repec.org/a/eee/iepoli/v38y2017icp1-11.html
   My bibliography  Save this article

Graduated response policies to digital piracy: Do they increase box office revenues of movies?

Author

Listed:
  • McKenzie, Jordi

Abstract

This study investigates the impact of six countries’ graduated response policies to digital piracy—sometimes referred to as ‘three-strike’ policies—on film-level theatrical box office revenues. Applying a quasi-three-way effects difference-in-difference model, no compelling evidence of increasing revenues is observed in any of the markets considered. This finding brings into question the efficacy of graduated response laws if one of the primary objectives is to increase sales in legitimate markets.

Suggested Citation

  • McKenzie, Jordi, 2017. "Graduated response policies to digital piracy: Do they increase box office revenues of movies?," Information Economics and Policy, Elsevier, vol. 38(C), pages 1-11.
  • Handle: RePEc:eee:iepoli:v:38:y:2017:i:c:p:1-11
    DOI: 10.1016/j.infoecopol.2016.12.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167624516301755
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rob, Rafael & Waldfogel, Joel, 2006. "Piracy on the High C's: Music Downloading, Sales Displacement, and Social Welfare in a Sample of College Students," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 29-62, April.
    2. Sylvain Dejean, 2009. "What Can We Learn from Empirical Studies About Piracy?," CESifo Economic Studies, CESifo, vol. 55(2), pages 326-352, June.
    3. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    4. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    5. 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.
    6. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    7. Brett Danaher & Michael D. Smith & Rahul Telang & Siwen Chen, 2014. "The Effect of Graduated Response Anti-Piracy Laws on Music Sales: Evidence from an Event Study in France," Journal of Industrial Economics, Wiley Blackwell, vol. 62(3), pages 541-553, September.
    8. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2007. "The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts," Management Science, INFORMS, vol. 53(9), pages 1359-1374, September.
    9. W. D. Walls & Jordi McKenzie, 2012. "The Changing Role of Hollywood in the Global Movie Market," Journal of Media Economics, Taylor & Francis Journals, vol. 25(4), pages 198-219, December.
    10. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769, November.
    11. Adermon, Adrian & Liang, Che-Yuan, 2014. "Piracy and music sales: The effects of an anti-piracy law," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 90-106.
    12. Tylor Orme, 2014. "The short- and long-term effectiveness of anti-piracy laws and enforcement actions," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(4), pages 351-368, November.
    13. Danaher, Brett & Smith, Michael D., 2014. "Gone in 60 Seconds: The Impact of the Megaupload Shutdown on Movie Sales," International Journal of Industrial Organization, Elsevier, vol. 33(C), pages 1-8.
    14. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115, pages 1-42.
    15. Rafael Rob & Joel Waldfogel, 2007. "PIRACY ON THE SILVER SCREEN -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 379-395, September.
    16. Liebowitz, Stan J, 2006. "File Sharing: Creative Destruction or Just Plain Destruction?," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 1-28, April.
    17. McKenzie Jordi & Walls W. David, 2016. "File Sharing and Film Revenues: Estimates of Sales Displacement at the Box Office," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 25-57, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Batikas, Michail & Claussen, Jörg & Peukert, Christian, 2017. "Follow The Money: Piracy and Online Advertising," 28th European Regional ITS Conference, Passau 2017 169448, International Telecommunications Society (ITS).
    2. Michail Batikas & Jörg Claussen & Christian Peukert, 2018. "Follow The Money: Online Piracy and Self-Regulation in the Advertising Industry," CESifo Working Paper Series 6852, CESifo Group Munich.

    More about this item

    Keywords

    Graduated response policy; Digital piracy; Movies;

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:38:y:2017:i:c:p:1-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/505549 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.