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Piracy, Music, and Movies: A Natural ExperimentChe-Yuan LiangUppsala University - Department of Economics; Research Institute of Industrial Economics (IFN) Adrian Adermonaffiliation not provided to SSRN January 31, 2011 IFN Working Paper No. 854 Abstract: 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 working papers seriesDate posted: February 2, 2011 ; Last revised: February 18, 2011Suggested CitationContact Information
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