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Piracy, Music, and Movies: A Natural Experiment

Che-Yuan Liang

Uppsala University - Department of Economics; Research Institute of Industrial Economics (IFN)

Adrian Adermon

affiliation not provided to SSRN

January 31, 2011

IFN Working Paper No. 854

We investigate the effects of illegal file sharing (piracy) on music and movie sales. The implementation of a copyright protection reform in Sweden in April 2009 suddenly increased the risk of being caught and prosecuted for piracy. 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. We conclude that pirated music is a strong substitute for legal music whereas the substitutability is less for movies.

Number of Pages in PDF File: 23

Keywords: Copyright Protection, Piracy, File Sharing, Music, Movies, IPRED, Natural Experiment

JEL Classification: D04, D12, K11, K42, M48

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Date posted: February 2, 2011 ; Last revised: February 18, 2011

Suggested Citation

Liang, Che-Yuan and Adermon, Adrian, Piracy, Music, and Movies: A Natural Experiment (January 31, 2011). IFN Working Paper No. 854. Available at SSRN: http://ssrn.com/abstract=1752224 or http://dx.doi.org/10.2139/ssrn.1752224

Contact Information

Che-Yuan Liang (Contact Author)
Uppsala University - Department of Economics ( email )
Box 513
SE-75120 Uppsala
Research Institute of Industrial Economics (IFN)
Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Adrian Adermon
affiliation not provided to SSRN ( email )
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References:  35
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