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File-Sharing and Film Revenues: An Empirical Analysis

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  • McKenzie, Jordi
  • Walls, W. D.

Abstract

This study examines the impact of peer-to-peer (P2P) file-sharing on the Australian theatrical film industry. Using a large data set of torrent downloads observed on three popular P2P networks, we find evidence of a sales displacement effect on box office revenues. However, although statistically significant, the economic significance of this displacement appears relatively small. To establish causality, we make use of two precedent-setting Australian Federal Court case rulings, as well as observed levels of contemporaneous downloading in geographically separated markets within Australia. We observe that the release gap between the US and Australian markets is a key contributor to piracy early in a film's theatrical life; this finding provides a partial explanation for the industry's move toward coordinated worldwide rele ases.

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  • McKenzie, Jordi & Walls, W. D., 2013. "File-Sharing and Film Revenues: An Empirical Analysis," Working Papers 2013-14, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2123/9271
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    2. Wojciech Hardy & Michal Krawczyk & Joanna Tyrowicz, 2015. "Friends or foes? A meta-analysis of the link between "online piracy" and sales of cultural goods," Working Papers 2015-23, Faculty of Economic Sciences, University of Warsaw.
    3. Wojciech Hardy, 2018. "Pre-release leaks as one-time incentives for switching to unauthorised sources of cultural content," IBS Working Papers 03/2018, Instytut Badan Strukturalnych.
    4. Tyrowicz, Joanna & Krawczyk, Michal & Hardy, Wojciech, 2020. "Friends or foes? A meta-analysis of the relationship between “online piracy” and the sales of cultural goods," Information Economics and Policy, Elsevier, vol. 53(C).

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