Authors: Klaus Ackermann, Wendy A. Bradley, Jack Francis Cameron
Abstract: Using the film industry, we show how the content of information goods changes the substitutability or complementarity effects of copyright infringement. Leveraging the quasi-random timing of the appearance of a high-quality pirated movie after its release in-theaters, we find for “spectacle”-oriented films, where the value of the good is linked to in-theater viewing, piracy complements box-office sales. For “story”-oriented films, where the value of the good is inherent—unenhanced by in-theater viewing—piracy displaces sales. Our findings suggest the value of creative content is linked to its distribution context, with relevance for commercialization strategies of digital goods in creative industries.
Citation: Ackermann, Klaus and Bradley, Wendy and Cameron, Jack Francis, Avengers Assemble! When Digital Piracy Increases Box Office Demand (June 30, 2020). Available at SSRN: https://ssrn.com/abstract=4255171
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