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Avengers assemble! When digital piracy increases box office demand

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  • Ackermann, Klaus
  • Bradley, Wendy A.
  • Cameron, Jack Francis

Abstract

We show how the content of information goods changes the substitutability or complementarity effects of copyright infringement. Leveraging the quasi-random timing of the appearance of a high-quality pirated movie after its release in-theaters, alongside an instrumental-variables approach, we find that digital piracy complements box-office revenue for “spectacle”-oriented films, where the value of the good is linked to in-theater viewing. For “story”-oriented films, where the value is inherent—unenhanced by in-theater viewing—piracy displaces sales. Our findings suggest the value of creative content is linked to its distribution context, with relevance for commercialization and value capture strategies in creative industries with experience-goods properties.

Suggested Citation

  • Ackermann, Klaus & Bradley, Wendy A. & Cameron, Jack Francis, 2025. "Avengers assemble! When digital piracy increases box office demand," Research Policy, Elsevier, vol. 54(8).
    • Handle: RePEc:eee:respol:v:54:y:2025:i:8:s0048733325000952
    DOI: 10.1016/j.respol.2025.105266
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    Keywords

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    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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