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The Effect of Graduated Response Anti-Piracy Laws on Music Sales: Evidence from an Event Study in France

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  • Brett Danaher
  • Michael D. Smith
  • Rahul Telang
  • Siwen Chen

Abstract

type="main"> Despite the problem that filesharing poses to the creative industries, there is little research on the effectiveness of governmental anti-piracy policies. This study analyzes how the HADOPI graduated response law in France affected digital music sales. Using a panel of sales data from the four major labels, we applied a difference-in-difference approach, comparing sales trends in France to a control group of European countries. We find that increased consumer awareness of HADOPI caused French iTunes music sales to increase by 22-25%. The observed sales increase is larger in high piracy genres than low piracy ones, strengthening the causal interpretation of our results.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:jindec:v:62:y:2014:i:3:p:541-553
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    References listed on IDEAS

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