Png and Wang (2006)
|Png and Wang (2006)|
|Title:||Copyright Duration and the Supply of Creative Work: Evidence from the Movies|
|Author(s):||Png, I. P., Wang, Q. H.|
|Citation:||Png, I. P., & Wang, Q. H. (2009). Copyright Duration and the Supply of Creative Work: Evidence from the Movies. Manuscript, National University of Singapore.|
|Key Related Studies:|
|Linked by:||Long (2011)|
|About the Data|
|Data Description:||Using the IMDbPro, they extracted information about various characteristics of
movies created in the twenty-six OECD member countries during the period 1991-2002. They also used Euromonitor International’s Global Market Information Databaseget data about other national characteristics that might possibly affect the demand for movies and movie production, for example, population, GDP per capita, and real interest rates.
|Data Type:||Secondary data|
|Secondary Data Sources:|
|Data Collection Methods:|
|Data Analysis Methods:|
|Cross Country Study?:||Yes|
|Government or policy study?:|
|Time Period(s) of Collection:||
At various dates between 1991-2002, nineteen OECD countries extended the duration of copyright, typically from the author’s life plus 50 years to author’s life plus 70 years. We study the impact of the extensions on the production of movies. We find that the extensions were associated with an increase in movie production ranging between 8.51% (±4.60%) and 10.4% (±4.89%). The increase was higher in countries where piracy was lower.
These findings were robust to various specifications, including concomitant changes in government funding of movie production.
The extension of copyright duration applied retrospectively to owners of existing film libraries and might have reduced their cost of capital. However, studios with larger libraries did not increase movie production relatively more than smaller studios.
Our results suggest that contrary to received thinking among leading economists and lawyers, extensions of copyright duration far in the future did have economically significant effects on the production of movies.
Main Results of the Study
The authors used data from various sources to test if the copyright extension from life + 50 to life + 70 increased movie production in 26 different OECD member states.
The authors found that, in contrast to what many leading economists had theorised, as the copyright term was retroactively extended it did increase movie production.
The authors also found that large companies with large existing catalogues did not increase production of movies more in comparison to companies with smaller catalogues.
Found that elasticity of movie production is quite high and that during 1991-2002 there were many new production companies but the existing ones did not grow significantly during the time under study.
Policy Implications as Stated By Author
Found that the extension of e copyright term increased movie production, thus suggests the copyright term extension was an effective policy in increasing movie production.