Difference between revisions of "Adermon and Liang (2011)"
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|Source={{Source | |Source={{Source | ||
|Name of Study=Adermon and Liang (2010) | |Name of Study=Adermon and Liang (2010) | ||
| − | |Author=Adermon, A.;Liang, C. | + | |Author=Adermon, A.;Liang, C. Y. |
|Title=Piracy, Music, and Movies: A Natural Experiment | |Title=Piracy, Music, and Movies: A Natural Experiment | ||
|Year=2010 | |Year=2010 | ||
| − | |Full Citation=Adermon, | + | |Full Citation=Adermon, Adrian, Che-Yuan Liang. 2014. Piracy and Music Sales: The Effects of an Anti-Piracy Law. Journal of Economic Behavior and Organization, 105, 90-106. |
|Abstract=This paper investigates the effects of illegal file sharing (piracy) on music and movie sales. The Swedish implementation of the European Union directive IPRED on April 1, 2009 suddenly increased the risk of being caught and prosecuted for file sharing. We investigate the subsequent drop in piracy as approximated by the drop in Swedish Internet traffic and the effects on music and movie sales in Sweden. We find that the reform decreased Internet traffic by 18 percent during the subsequent six months. It also increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies. | |Abstract=This paper investigates the effects of illegal file sharing (piracy) on music and movie sales. The Swedish implementation of the European Union directive IPRED on April 1, 2009 suddenly increased the risk of being caught and prosecuted for file sharing. We investigate the subsequent drop in piracy as approximated by the drop in Swedish Internet traffic and the effects on music and movie sales in Sweden. We find that the reform decreased Internet traffic by 18 percent during the subsequent six months. It also increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies. | ||
| − | |Authentic Link= | + | |Authentic Link=https://www.researchgate.net/profile/Adrian_Adermon/publication/241258097_Piracy_Music_and_Movies_A_Natural_Experiment/links/00b7d51c84d5302a3f000000.pdf |
| − | |Link=http:// | + | |Link=http://www.diva-portal.org/smash/get/diva2:359528/FULLTEXT01.pdf |
| − | |Reference=Dee & Evans (2003); Bertrand et al. (2004); (Schultze & Mochalski 2009); | + | |Reference=Dee & Evans (2003);Bertrand et al. (2004);(Schultze & Mochalski 2009); |
| − | |Plain Text Proposition=This article empirically investigates the effects of copyright protection reform on Internet piracy and on sales of music and movies. More specifically, This article argues that: | + | |Plain Text Proposition=This article empirically investigates the effects of copyright protection reform on Internet piracy and on sales of music and movies. More specifically, This article argues that: *The Swedish implementation of the IPRED law on April 1, 2009 suddenly increased the risks of piracy. Piracy decreased and that music sales increased after the law reform.*Pirated music is a strong substitute to legal music, whereas the substitutability is less for movies. After six months, piracy recovered to a large extent, which resulted in a decrease in the demand for legal music and decreased physical as well as total sales.*This raises some doubts regarding the effectiveness of such law reforms in the long run, but it also points towards better legal alternatives to piracy as a possible way forward for the music industry. |
| − | + | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare,5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media) | |
| − | *The Swedish implementation of the IPRED law on April 1, 2009 suddenly increased the risks of piracy. Piracy decreased and that music sales increased after the law reform. | + | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness) |
| − | + | |Discipline=D12: Consumer Economics: Empirical Analysis, K11: Property Law, K42: Illegal Behavior and the Enforcement of Law, M48: Government Policy and Regulation | |
| − | *Pirated music is a strong substitute to legal music, whereas the substitutability is less for movies. After six months, piracy recovered to a large extent, which resulted in a decrease in the demand for legal music and decreased physical as well as total sales. | + | |Intervention-Response=- Law reform can be effective in preventing piracy and in increasing music sales for the first six months. Some of these effects must be attributed to a combination of the law and widespread public interest.- It is possible that convictions would restore an effect that is more long-lasting. |
| − | + | |Description of Data=Weekly and quarterly data taken from aggregate Internet traffic through Internet Exchange Points (IXPs) throughout 2009. For aggregate music sales, we use quarterly data from 2004 to 2009 for physical recorded music sales and from 2007 to 2009 for digital recorded music sales. Before 2007, digital sales were negligible. For aggregate movie sales, we use quarterly data from 2005 to 2009 for movie theater ticket sales and from 2007 to 2009 for DVD movie sales. | |
| − | *This raises some doubts regarding the effectiveness of such law reforms in the long run, but it also points towards better legal alternatives to piracy as a possible way forward for the music industry. | + | |Data Year=2004 to 2009 |
| − | |FundamentalIssue=1. Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare, 5. Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media) | ||
| − | |EvidenceBasedPolicy=F. Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness) | ||
| − | |Discipline= | ||
| − | |Intervention-Response=- Law reform can be effective in preventing piracy and in increasing music sales for the first six months. Some of these effects must be attributed to a combination of the law and widespread public interest. | ||
| − | - It is possible that convictions would restore an effect that is more long-lasting. | ||
| − | |Description of Data=Weekly and quarterly data taken from aggregate Internet traffic through Internet Exchange Points (IXPs). | ||
|Data Type=Secondary data | |Data Type=Secondary data | ||
| − | |Data Source=Netnod; NIX; FICIX; IFPI; Swedish Film Institute; | + | |Data Source=Netnod;NIX;FICIX;IFPI;Swedish Film Institute; |
|Method of Collection=Experimental (Natural) | |Method of Collection=Experimental (Natural) | ||
|Method of Analysis=Correlation and Association, Regression Analysis, Structural Equation Modeling | |Method of Analysis=Correlation and Association, Regression Analysis, Structural Equation Modeling | ||
| − | |Industry=Sound recording and music publishing; | + | |Industry=Sound recording and music publishing; Film and motion pictures; |
| − | |Country=Sweden; Norway; Finland; | + | |Country=Sweden;Norway;Finland; |
|Cross-country=Yes | |Cross-country=Yes | ||
|Comparative=Yes | |Comparative=Yes | ||
| Line 38: | Line 32: | ||
}} | }} | ||
|Dataset={{Dataset | |Dataset={{Dataset | ||
| − | |Level of Aggregation= | + | |Sample Size=3 |
| + | |Level of Aggregation=countries | ||
|Data Material Year=2004-2009 | |Data Material Year=2004-2009 | ||
| + | }}{{Dataset | ||
| + | |Sample Size=52 | ||
| + | |Level of Aggregation=IXP traffic reports | ||
| + | |Data Material Year=2009 | ||
| + | }}{{Dataset | ||
| + | |Sample Size=20 | ||
| + | |Level of Aggregation=music sales reports | ||
| + | |Data Material Year=2004 to 2009 | ||
| + | }}{{Dataset | ||
| + | |Sample Size=10 | ||
| + | |Level of Aggregation=digital music sales reports | ||
| + | |Data Material Year=2007 to 2009 | ||
| + | }}{{Dataset | ||
| + | |Sample Size=20 | ||
| + | |Level of Aggregation=Movie Theatre ticket sales reports | ||
| + | |Data Material Year=2005 to 2009 | ||
| + | }}{{Dataset | ||
| + | |Sample Size=10 | ||
| + | |Level of Aggregation=DVD sales reports | ||
| + | |Data Material Year=2007 to 2009 | ||
}} | }} | ||
}} | }} | ||
Latest revision as of 22:02, 20 November 2020
Contents
Source Details
| Adermon and Liang (2010) | |
| Title: | Piracy, Music, and Movies: A Natural Experiment |
| Author(s): | Adermon, A., Liang, C. Y. |
| Year: | 2010 |
| Citation: | Adermon, Adrian, Che-Yuan Liang. 2014. Piracy and Music Sales: The Effects of an Anti-Piracy Law. Journal of Economic Behavior and Organization, 105, 90-106. |
| Link(s): | Definitive , Open Access |
| Key Related Studies: | |
| Discipline: | |
| Linked by: | Poort et al. (2014) |
| About the Data | |
| Data Description: | Weekly and quarterly data taken from aggregate Internet traffic through Internet Exchange Points (IXPs) throughout 2009. For aggregate music sales, we use quarterly data from 2004 to 2009 for physical recorded music sales and from 2007 to 2009 for digital recorded music sales. Before 2007, digital sales were negligible. For aggregate movie sales, we use quarterly data from 2005 to 2009 for movie theater ticket sales and from 2007 to 2009 for DVD movie sales. |
| Data Type: | Secondary data |
| Secondary Data Sources: | |
| Data Collection Methods: | |
| Data Analysis Methods: | |
| Industry(ies): | |
| Country(ies): | |
| Cross Country Study?: | Yes |
| Comparative Study?: | Yes |
| Literature review?: | No |
| Government or policy study?: | No |
| Time Period(s) of Collection: |
|
| Funder(s): |
|
Abstract
This paper investigates the effects of illegal file sharing (piracy) on music and movie sales. The Swedish implementation of the European Union directive IPRED on April 1, 2009 suddenly increased the risk of being caught and prosecuted for file sharing. We investigate the subsequent drop in piracy as approximated by the drop in Swedish Internet traffic and the effects on music and movie sales in Sweden. We find that the reform decreased Internet traffic by 18 percent during the subsequent six months. It also increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies.
Main Results of the Study
This article empirically investigates the effects of copyright protection reform on Internet piracy and on sales of music and movies. More specifically, This article argues that: *The Swedish implementation of the IPRED law on April 1, 2009 suddenly increased the risks of piracy. Piracy decreased and that music sales increased after the law reform.*Pirated music is a strong substitute to legal music, whereas the substitutability is less for movies. After six months, piracy recovered to a large extent, which resulted in a decrease in the demand for legal music and decreased physical as well as total sales.*This raises some doubts regarding the effectiveness of such law reforms in the long run, but it also points towards better legal alternatives to piracy as a possible way forward for the music industry.
Policy Implications as Stated By Author
- Law reform can be effective in preventing piracy and in increasing music sales for the first six months. Some of these effects must be attributed to a combination of the law and widespread public interest.- It is possible that convictions would restore an effect that is more long-lasting.
Coverage of Study
Datasets
| Sample size: | 3 |
| Level of aggregation: | countries |
| Period of material under study: | 2004-2009 |
| Sample size: | 52 |
| Level of aggregation: | IXP traffic reports |
| Period of material under study: | 2009 |
| Sample size: | 20 |
| Level of aggregation: | music sales reports |
| Period of material under study: | 2004 to 2009 |
| Sample size: | 10 |
| Level of aggregation: | digital music sales reports |
| Period of material under study: | 2007 to 2009 |
| Sample size: | 20 |
| Level of aggregation: | Movie Theatre ticket sales reports |
| Period of material under study: | 2005 to 2009 |
| Sample size: | 10 |
| Level of aggregation: | DVD sales reports |
| Period of material under study: | 2007 to 2009 |
