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The redistributive effect of online piracy on the box office performance of American movies in foreign markets

Author

Listed:
  • C. BELLÉGO

    (Insee)

  • R. DE NIJS

    (École Polytechnique)

Abstract

Using the French anti-piracy law known as Hadopi, we study the effects of online piracy on movie sales in theaters. Applying four estimation strategies at different levels of observations (country, town, consumer, and movie), we find that the introduction of the law is associated with a 9% increase in the market share of American movies but no expansion of the total market. We exclude supply side reactions by distributors as an explanation for this displacement effect that benefits American movies. The increase in the box office performance of American movies is primarily explained by the behavior of younger consumers.

Suggested Citation

  • C. Bellégo & R. De Nijs, 2015. "The redistributive effect of online piracy on the box office performance of American movies in foreign markets," Documents de Travail de l'Insee - INSEE Working Papers g2015-17, Institut National de la Statistique et des Etudes Economiques.
  • Handle: RePEc:nse:doctra:g2015-17
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    More about this item

    Keywords

    Anti-piracy law; Property rights; Online piracy; Business stealing; Demand expansion; Movie;
    All these keywords.

    JEL classification:

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

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