The Effect of Graduated Response Anti‐Piracy Laws on Music Sales: Evidence from an Event Study in France

13 Pages Posted: 2 Sep 2014

See all articles by Brett Danaher

Brett Danaher

Chapman University - The George L. Argyros School of Business & Economics

Michael D. Smith

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

Rahul Telang

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

Siwen Chen

Marsh & McLennan Companies - Oliver Wyman

Multiple version iconThere are 2 versions of this paper

Date Written: September 2014

Abstract

Despite the problem that filesharing poses to the creative industries, there is little research on the effectiveness of governmental anti‐piracy policies. This study analyzes how the HADOPI graduated response law in France affected digital music sales. Using a panel of sales data from the four major labels, we applied a difference‐in‐difference approach, comparing sales trends in France to a control group of European countries. We find that increased consumer awareness of HADOPI caused French iTunes music sales to increase by 22‐25%. The observed sales increase is larger in high piracy genres than low piracy ones, strengthening the causal interpretation of our results.

Suggested Citation

Danaher, Brett and Smith, Michael D. and Telang, Rahul and Chen, Siwen, The Effect of Graduated Response Anti‐Piracy Laws on Music Sales: Evidence from an Event Study in France (September 2014). The Journal of Industrial Economics, Vol. 62, Issue 3, pp. 541-553, 2014, Available at SSRN: https://ssrn.com/abstract=2490196 or http://dx.doi.org/10.1111/joie.12056

Brett Danaher (Contact Author)

Chapman University - The George L. Argyros School of Business & Economics ( email )

333 N. Glassell
Orange, CA 92866
United States

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

Rahul Telang

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

4800 Forbes Ave
Pittsburgh, PA 15213-3890
United States
412-268-1155 (Phone)

Siwen Chen

Marsh & McLennan Companies - Oliver Wyman ( email )

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