Piracy, Music, And Movies: A Natural Experiment
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.
|Date of creation:||28 Oct 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
References listed on IDEAS
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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:hhs:uunewp:2010_018. 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: (Katarina Grönvall)
If references are entirely missing, you can add them using this form.