Zentner (2010)

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

Zentner (2010)
Title: Measuring the impact of file sharing on the movie industry: An empirical analysis using a panel of countries
Author(s): Zentner, A.
Year: 2010
Citation: Zentner, A. (2010). Measuring the impact of file sharing on the movie industry: An empirical analysis using a panel of countries. Working Paper. Available at SSRN 1792615
Link(s): Definitive , Open Access
Key Related Studies:
Discipline:
Linked by: Watson, Zizzo and Fleming (2016)
About the Data
Data Description: The data is presented in three databases:

The first database is a panel for the years 1996 through 2008 containing information on theatrical revenues and the number of admission tickets sold for 36 countries, including most European countries, the US, and Japan. The second database is a panel for the years 2001 through 2008 containing information on the revenues from DVD sales (excluding VHS) for 24 countries, including many European countries, the US, and Japan. The third database is a panel for the years 2000 through 2008 with information on revenues from the retail and rental of videos (both DVDs and VHSs) for 18 countries, including once again several European countries and the US.

Data Type: Secondary data
Secondary Data Sources:
Data Collection Methods:
Data Analysis Methods:
Industry(ies):
Country(ies):
Cross Country Study?: Yes
Comparative Study?: No
Literature review?: No
Government or policy study?: No
Time Period(s) of Collection:
  • 1996-2008
Funder(s):

Abstract

The music industry has struggled during the past decade due to file sharing and movie business executives fear the same fate. This paper seeks to provide measurements of the effects of peer-to-peer file sharing on the movie industry. We use a long panel of data at the country level containing information on theatrical, video rental, and video retail movie commercial performances, as well as Internet and broadband penetration. We compare the impacts of increased high-speed online connectedness replacing slow-speed Internet connectedness before and after the introduction of the second-generation file sharing technology that has made movie file sharing feasible. This empirical strategy allows us to isolate the effects of file sharing from any other possible Internet impacts on the commercial performance of movies unrelated to file sharing. Our results indicate that the effect of peer-to-peer file sharing is negative and large on video sales, but we do not have confidence regarding the impacts of file sharing on either the theatrical commercial performance of movies or video rentals.

Main Results of the Study

- The study’s results indicate that in the absence of file sharing global video sales would have experienced an increase larger than that observed. The authors therefore provide some evidence that appears to substantiate the concerns of movie studios regarding file sharing's potential for diminishing their revenues.- However, this research does not find conclusive results for the file sharing effect on either the theatrical or video rental commercial performance of movies. The authors provide various reasons that seem to indicate that movie file sharing should be expected to displace video consumption to a greater extent than theatrical attendance (e.g. movie files on peer-to peer networks are usually of a better quality after the official release of the DVD than before this time).- The authors also argue that they would expect the effect of file sharing on video sales to be larger than the effect on rentals (consumers will be more inclined to either download or buy movies they plan to watch several times than movies they plan to watch only once). These factors might explain their finding that file sharing only affects video sales.

Policy Implications as Stated By Author

From a welfare standpoint, any increase in movie consumption caused by file sharing must be weighed against any reduction in movie creation attributed to the decline in the market due to file sharing. Complementary questions that future research will need to address are the extent to which a reduction in copyright value results in diminished artistic and cultural creations, and how file sharing affects the marketing of 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)
Coverage of Evidence Based Policies
Issue Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Green-tick.png
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)

Datasets

Sample size: 36
Level of aggregation: Country
Period of material under study: 1996-2008


Sample size: 24
Level of aggregation: Country
Period of material under study: 2001-2008


Sample size: 18
Level of aggregation: Country
Period of material under study: 2000-2008