Download This PaperAvengers Assemble! When Digital Piracy Increases Box Office Demand
39 Pages Posted: 24 Oct 2022
Date Written: June 30, 2020
Abstract
Using the film industry, we show how the content of information goods changes the substitutability or complementarity effects of copyright infringement. Leveraging the quasi-random timing of the appearance of a high-quality pirated movie after its release in-theaters, we find for “spectacle”-oriented films, where the value of the good is linked to in-theater viewing, piracy complements box-office sales. For “story”-oriented films, where the value of the good is inherent—unenhanced by in-theater viewing—piracy displaces sales. Our findings suggest the value of creative content is linked to its distribution context, with relevance for commercialization strategies of digital goods in creative industries.
Keywords: piracy, movies, box office, spectacle, information goods, release strategy
JEL Classification: L15, L82, K11, K42, O33, O34
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