Abstract

http://ssrn.com/abstract=2229349
 
 

References (29)



 
 

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Gone in 60 Seconds: The Impact of the Megaupload Shutdown on Movie Sales


Brett Danaher


Wellesley College - Department of Economics

Michael D. Smith


Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

September 14, 2013


Abstract:     
The growth of Internet-based piracy has led to a wide-ranging debate over how copyright policy should be enforced in the digital era. In this paper we analyze the impact of the US government’s shutdown of a major piracy site — Megaupload.com — on digital sales and rentals of movies.

Exploiting cross-country variation in pre-shutdown usage of Megaupload, we find that the shutdown of Megaupload and its associated sites caused digital revenues for three major motion picture studios to increase by 6.5-8.5%. Our results suggest that some consumers will turn to legal channels when a major filesharing site is shut down, and by extension that illegal filesharing displaces digital movie sales.

Number of Pages in PDF File: 29

Keywords: Piracy, regulation, digitial distribution, copyright policy, motion picture industry, natural experiment

JEL Classification: K42, L82, O3, O34

working papers series


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Date posted: March 7, 2013 ; Last revised: November 20, 2013

Suggested Citation

Danaher, Brett and Smith, Michael D., Gone in 60 Seconds: The Impact of the Megaupload Shutdown on Movie Sales (September 14, 2013). Available at SSRN: http://ssrn.com/abstract=2229349 or http://dx.doi.org/10.2139/ssrn.2229349

Contact Information

Brett Danaher (Contact Author)
Wellesley College - Department of Economics ( email )
106 Central Street
Wellesley, MA 02181
United States
HOME PAGE: http://www.wellesley.edu/Economics/bdanaher/
Michael D. Smith
Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )
Pittsburgh, PA 15213-3890
United States
HOME PAGE: http://www.heinz.cmu.edu/~mds
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