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Movie Piracy and Displaced Sales in Europe: Evidence from Six Countries

24 Pages Posted: 28 Sep 2016 Last revised: 30 Sep 2016

Benedikt Herz

European Union - European Commission

Kamil Kiljański

European Union - European Commission

Date Written: September 22, 2016

Abstract

This paper presents estimates of lost movie sales due to unpaid movie consumption. We are the first to provide estimates that are recent, representative of the internet-using population, and cover multiple countries. Based on an online questionnaire with almost 30,000 respondents, we document that one unpaid (first) viewing of a movie displaces about 0.37 units of paid viewings. Using a back-of-the-envelope calculation, we show that this implies that unpaid movie viewings reduced movie sales in Europe by about 4.4% during the sample period. Lost sales differ substantially by country: they are in the range of 1.65% for Germany and 10.4% for Spain. We also find that 94% of lost sales are due to unpaid viewings by a small group of only 20% of consumers. Our findings have important implications for copyright policy.

Keywords: displacement rate, movies, copyright, lost sales, displaced sales

JEL Classification: O34

Suggested Citation

Herz, Benedikt and Kiljański, Kamil, Movie Piracy and Displaced Sales in Europe: Evidence from Six Countries (September 22, 2016). Available at SSRN: https://ssrn.com/abstract=2844167

Benedikt Herz (Contact Author)

European Union - European Commission ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

Kamil Kiljański

European Union - European Commission ( email )

Rue de la Loi 200
Brussels, B-1049
Belgium

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