Bounie, Bourreau and Waelbroeck (2006)

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1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare 2. Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)? 3. Harmony of interest assumption between authors and publishers (creators and producers/investors) 4. Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption) 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

A. Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right) B. Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction) C. Mass digitisation/orphan works (non-use; extended collective licensing) D. Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability) E. Fair remuneration (levies; copyright contracts) F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Source Details

Bounie, Bourreau and Waelbroeck (2006)
Title: Piracy and the demand for films: Analysis of piracy behavior in french universities
Author(s): Bounie, D., Bourreau, M., Waelbroeck, P.
Year: 2006
Citation: Bounie, D., Bourreau, M., & Waelbroeck, P. (2006). Piracy and the demand for films: Analysis of piracy behavior in French universities. Review of Economic Research on Copyright Issues, 3(2), 15-27.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Danaher and Waldfogel (2012), Zentner (2010)
About the Data
Data Description: The study uses a sample of 620 university members across more than 30 French universities including undergraduate students, graduate students and professors to assess the effect of digital piracy on legal demand.
Data Type: Primary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: No
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 2005
Funder(s):
  • None

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.

Main Results of the Study

  • Contrary to what movie producers are claiming, internet piracy seems to have little negative effect on theater attendance in the examined sample of people from the university community.
  • The strongest effect of piracy is on video (VHS, DVD) purchases and rentals. However, for consumers who use pre-paid pricing schemes in video-stores, movie piracy seems to have a small impact.
  • The sample used for this study is very specific. However, if confirmed by other studies, results suggest that the video segment suffers the most from internet piracy and that on the contrary the movie theater segment could be able to generate stable or increasing revenues even in a world of illegal file-sharing.
  • New business models such as internet movie on demand could also be able to generate revenues from people who mainly rented videos in the past and who have switched to the convenience of watching pirated movies.

Policy Implications as Stated By Author

Subscription-based pricing could be a relevant strategy to compete with piracy, as a zero marginal cost for watching a movie legally reduces incentives to get pirated movies.

Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Green-tick.png
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Green-tick.png
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)
Green-tick.png
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Green-tick.png
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)
Green-tick.png

Datasets

Sample size: 620
Level of aggregation: Individual
Period of material under study: 2005