Megaupload Case Research from SSRN: Piracy and Movie Revenues: Evidence from Megaupload by Christian Peukert and Jörg Claussen
Piracy and Movie Revenues: Evidence from Megaupload
Christian Peukert: Ludwig-Maximilians-University Munich, Institute for Strategy, Technology and Organization
Jörg Claussen: Copenhagen Business School – Department of Innovation and Organizational Economics
October 22, 2012
In this paper we make use of a quasi-experiment in the market for illegal downloading to study movie box office revenues. Exogenous variation comes from the unexpected shutdown of the popular file hosting platform Megaupload.com on January 19, 2012. The estimation strategy is based on a quasi difference-in-differences approach. We compare box office revenues before and after the shutdown to a matched control group of movies unaffected by the shutdown. We find that the shutdown had a negative, yet insignificant effect on box office revenues.This counterintuitive result may suggest support for the theoretical perspective of (social) network effects where file-sharing acts as a mechanism to spread information about a good from consumers with zero or low willingness to pay to users with high willingness to pay.
Keywords: Piracy, Movie Revenues, Megaupload, Natural Experiment
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Peukert, Christian and Claussen, Jörg, Piracy and Movie Revenues: Evidence from Megaupload (October 22, 2012). Available at SSRN: http://ssrn.com/abstract=2176246 or http://dx.doi.org/10.2139/ssrn.2176246
Christian Peukert (Contact Author)
Ludwig-Maximilians-University Munich, Institute for Strategy, Technology and Organization ( email )
+49 89 2180 6066 (Phone)
HOME PAGE: http://www.christian-peukert.com
Copenhagen Business School – Department of Innovation and Organizational Economics ( email )