Fetscherin (2005)

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Advertising Architectural Publishing of books, periodicals and other publishing Programming and broadcasting Computer programming Computer consultancy Creative, arts and entertainment Cultural education

Film and motion pictures Sound recording and music publishing Photographic activities PR and communication Software publishing (including video games) Specialised design Television programmes Translation and interpretation

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

Fetscherin (2005)
Title: Movie piracy on peer-to-peer networks—the case of KaZaA
Author(s): Fetscherin, M.
Year: 2005
Citation: Fetscherin, M. (2005). Movie piracy on peer-to-peer networks—the case of KaZaA. Telematics and Informatics, 22(1), 57-70.
Link(s): Definitive
Key Related Studies:
Discipline:
Linked by: Papies and Clement (2008)
About the Data
Data Description: The dataset consists of chosen movies that were based on information provided by Exhibitor Relations Co, which is one of the oldest and most widely quoted film industry statistical research firm. The study is based on four blockbuster movies. The four selected movies were Lord of the Rings: The Two Towers, Analyze That, Minority Report and XXX (Triple X). Search requests were conducted several times a week at approximately the same time on the selected peer-to-peer network (the file-sharing program KaZaA) for the above mentioned movies.
Data Type: Secondary 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:
  • 2003
Funder(s):
  • None

Abstract

Content providers from the movie industry argue that peer-to-peer (P2P) networks such as KaZaA, Morpheus, or Audiogalaxy are an enormous threat to their business. They blame these networks for their recent decline in sales figures. However, this argument would only apply if consumers can access high quality copies easily and quickly on these networks. This paper presents a simple model outlining the consumers tradeoff between downloading the movie legally or acquiring it illegally through copying from such networks. The model shows that there are mainly two factors affecting consumer demand for copies: the probability of getting high quality copies and the risk associated with copying. The paper goes on to empirically estimate the probability of getting such high quality copies. To date, our results show that there is a very low probability of obtaining high quality movies. We further tested our model by conducting simulation analyses to better understand current and future consumer behavior. The first simulation shows that, with the current low probability of getting high quality copies, the majority of consumers would prefer to download movies legally. The results of the second simulation focusing on the future behavior of consumers showing that the most important factors are: the risk of being caught, the perceived value of the original, the availability (probability) of high quality copies and the price of the original. Our research findings not only offer insight into the consumer behavior, but also to what extent the movie industry faces piracy. These results may serve as a new impulse for copyright holders and policy makers, allowing them to make appropriate decisions and take targeted actions to fight piracy.

Main Results of the Study

This paper presents a simple model of consumers tradeoff between buying and copying. The paper goes on to measure the quantity and quality of movie copies available on such networks by taking the most known and used file-sharing system KaZaA as a proxy. More specifically, this paper shows that:

  • There is a very low probability of getting high quality movie copies.
  • The majority of consumers prefer to download movies legally.
  • File-sharing systems are having a minor effect on the movie industry.
  • The most important factor affecting consumer behaviour is the risk of being caught, followed by the price, the perceived value of the original, the availability of high quality copies.

Policy Implications as Stated By Author

Policy makers are better of focusing on the legal framework permitting the prosecution of pirates while content providers should focus on marketing in order to increase the perceived value of the legal download.



Coverage of Study

Coverage of Fundamental Issues
Issue Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
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)
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)
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: 4
Level of aggregation: Movie official sales
Period of material under study: 2003


Sample size: 4
Level of aggregation: Movie downloads
Period of material under study: 2003