Piracy, Music, and Movies: A Natural Experiment
Uppsala University - Department of Economics; Research Institute of Industrial Economics (IFN)
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, M48working papers series
Date posted: February 2, 2011 ; Last revised: February 18, 2011
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