Hennig-Thurau, Henning and Sattler (2007)

From Copyright EVIDENCE

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

Hennig-Thurau, Henning and Sattler (2007)
Title: Consumer File Sharing of Motion Pictures
Author(s): Hennig-Thurau, T., Henning, V., Sattler, H.
Year: 2007
Citation: Hennig-Thurau, T., Henning, V., & Sattler, H. (2007). Consumer file sharing of motion pictures. Journal of Marketing, 71(4), 1-18.
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Chen and Yen (2011), Shanahan and Hyman (2010), Sheehan, Tsao and Pokrywczynski (2012), Sheehan, Tsao and Yang (2010)
About the Data
Data Description: Study employed controlled longitudinal panel data from 770 to 813 consumers that encompass information on more than 10,000 movie file-sharing opportunities. Researchers collected information from a quota sample of 1075 German consumers using gender, age, and occupation as quota criteria to represent the key demographic variables of movie consumption. Respondents filled out three different Internet questionnaires over the course of eight months, for which they received 10 Euro.

Respondents were contacted in February 2006 and questioned as to whether or not they intended to watch between 10 to 15 new motion pictures out of a subset of 25 movies in a movie theater or as an illegal copy.

Respondents were contacted again in May 2005 to determine whether they had seen the previously surveyed movies in theaters and/or obtained illegal copies. 813 panel members responded, for a satisfactory retention rate of 76%.

A third questionnaire followed in October 2005, after 18 of the 25 movies had been available on DVD for at least for weeks. This survey primarily assessed respondents’ rentals and purchases of the surveyed movies on DVD. 770 respondents completed the questionnaire, a 94.6% response rate of the second questionnaire respondents.

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?:
Government or policy study?:
Time Period(s) of Collection:
  • February to October 2006
Funder(s):
  • Not Stated

Abstract

Illegal consumer file sharing of motion pictures is considered a major threat to the movie industry. Whereas industry advocates and some scholars postulate a cannibalistic effect on commercial forms of movie consumption, other researchers deny this effect, though sound evidence is lacking on both sides. Drawing on extant research and utility theory, the authors present hypotheses on the consequences and determinants of consumer file sharing and test them with data from a controlled longitudinal panel study of German consumers. The data contain information on the consumers' intentions toward and actual behavior in relation to the consumption of 25 new motion pictures, allowing the authors to study more than 10,000 individual file-sharing opportunities. The authors test the effect of file sharing on commercial movie consumption using a series of ReLogit regression analyses and apply partial least squares structural equation modeling to identify the determinants of consumer file sharing. They find evidence of substantial cannibalization of theater visits, DVD rentals, and DVD purchases responsible for annual revenue losses of $300 million in Germany. Five categories of file-sharing behavior drive file sharing and have a significant impact on how consumers obtain and watch illegal movie copies.

Main Results of the Study

  • Through the longitudinal study, the following statistics were produced:
    • Of the 25 movies in the sample, 136 respondents (17%) had obtained at least one illegal copy before the movies were released on DVD; 242 illegal movie copies had been obtained by that time and 165 of these copies had been watched.
    • Respondents intended to watch an illegal copy in 21.1% of cases before the theatrical release and 13.1% of cases before the DVD release.
    • After the movies were released to DVD, 141 respondents (18.5%) had obtained at least one copy of a surveyed movie; overall 342 illegal movie copies had been obtained by the time of the third survey, and 66% of those illegal copies had been watched. At this point, the maximum number of illegal copies that individual respondents obtained was 11.
  • Consumers’ intentions to view an illegal copy of a new movie reduce their propensity to attend theaters. This suggests that file-sharing intentions limit the consumer’s interest in legal channel consumption, which in turn leads him to forgo consumption in these channels, regardless of whether the consumer actually obtains an illegal copy of the movie or not.
  • Consumers’ intentions to watch a movie copy significantly reduce their number of DVD rentals and purchases.
  • Researchers calculated an overall annual industry loss of $300 million in Germany, which represents approximately 9.4% of the total industry revenues in 2005.


Policy Implications as Stated By Author

  • Although nationwide estimates represent bold numbers for the impact of file sharing, it is likely they are exaggerated.
  • Consumers’ intentions to engage in file sharing cause them to forego theater visits, legal DVD rentals and purchases. Therefore, decreasing consumers’ intentions to watch illegal movie copies may be the most powerful way to fight movie piracy.
  • Making movies available through new channels, such as video-on-demand that involve lower transaction costs than trips to the theater (including babysitters and concession prices, etc.), might be an appropriate way to win back transaction cost-sensitive consumers.


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)
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: 770
Level of aggregation: Individual
Period of material under study: February to October 2006


Sample size: 25
Level of aggregation: Film
Period of material under study: February to October 2006