Policy Papers

The Dual Impact of Movie Piracy on Box-Office Revenue: Cannibalization and Promotion

by , and

There are two main hypothesized effects from movie piracy: a cannibalization effect which reduces legitimate sales, and a promotional effect which increases word-of-mouth and stimulates sales. While these two effects are commonly discussed, there has been no research to measure their relative impact on motion picture sales. In this paper we use a hidden Markov model adapted from MOVIEMOD to decompose, and separately measure, the cannibalization and promotional impacts of piracy.

Attachments

The Dual Impact of Movie Piracy on Box-Office Revenue: Cannibalization and Promotion