Piracy and Demands for Films: Analysis of Piracy Behavior in French Universities

Telecom Paris Working Paper No. 06-12

30 Pages Posted: 10 Oct 2006

See all articles by David Bounie

David Bounie

Telecom ParisTech

Marc Bourreau

Telecom ParisTech

Patrick Waelbroeck

Telecom ParisTech

Date Written: October 2006

Abstract

The purpose of this article is to identify which, if any, segments of the movie business have suffered from digital piracy. We use a sample of 620 university-members including undergraduate students, graduate students and professors to assess the effect of digital piracy on legal demand. A large percentage of respondents get pirated movies from a variety of channels (on P2P networks, intranet, by physical means...). Surprisingly, approximately one third of the pirates declared that watching pirated movies increased their demand for films (for instance, it led them to rent or purchase videos that they would not have rented or purchased otherwise). Using regressions analysis, we find no impact of piracy on theater attendance, and a strong impact on video rentals and purchases. However, movie piracy has no impact on video rentals for respondents who use pre-paid pricing schemes at video-stores.

Keywords: piracy, movie industry, video

JEL Classification: C30, D12,K42, L82

Suggested Citation

Bounie, David and Bourreau, Marc and Waelbroeck, Patrick, Piracy and Demands for Films: Analysis of Piracy Behavior in French Universities (October 2006). Telecom Paris Working Paper No. 06-12. Available at SSRN: https://ssrn.com/abstract=936049 or http://dx.doi.org/10.2139/ssrn.936049

David Bounie (Contact Author)

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

Marc Bourreau

Telecom ParisTech ( email )

46, rue Barrault
Paris Cedex 13, F-75634
France

Patrick Waelbroeck

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

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