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Content Provision Strategies in the Presence of Content Piracy

Author

Listed:
  • Monica Johar

    (The Belk College of Business, University of North Carolina at Charlotte, Charlotte, North Carolina 28223)

  • Nanda Kumar

    (Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, Texas 75080)

  • Vijay Mookerjee

    (Naveen Jindal School of Management, The University of Texas at Dallas, Richardson, Texas 75080)

Abstract

We consider a publisher that earns advertising revenue while providing content to serve a heterogeneous population of consumers. The consumers derive benefit from consuming content but suffer from delivery delays. A publisher's content provision strategy comprises two decisions: (a) the content quality (affecting consumption benefit) and (b) the content distribution delay (affecting consumption cost). The focus here is on how a publisher should choose the content provision strategy in the presence of a content pirate such as a peer-to-peer (P2P) network. Our study sheds light on how a publisher could leverage a pirate's presence to increase profits, even though the pirate essentially encroaches on the demand for the publisher's content. We find that a publisher should sometimes decrease the delivery speed but increase quality in the presence of a pirate (a quality focused strategy ). At other times, a distribution focused strategy is better; namely, increase delivery speed, but lower quality. In most cases, however, we show that the publisher should improve at least one dimension of content provision (quality or delay) in the presence of a pirate.

Suggested Citation

  • Monica Johar & Nanda Kumar & Vijay Mookerjee, 2012. "Content Provision Strategies in the Presence of Content Piracy," Information Systems Research, INFORMS, vol. 23(3-part-2), pages 960-975, September.
    • Handle: RePEc:inm:orisre:v:23:y:2012:i:3-part-2:p:960-975
    DOI: 10.1287/isre.1110.0406
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    References listed on IDEAS

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    1. Kartik Hosanagar & John Chuang & Ramayya Krishnan & Michael D. Smith, 2008. "Service Adoption and Pricing of Content Delivery Network (CDN) Services," Management Science, INFORMS, vol. 54(9), pages 1579-1593, September.
    2. Jungsuk Oh, 2007. "Profit Sharing in a Closed Content Market," Journal of Media Economics, Taylor & Francis Journals, vol. 20(1), pages 55-75.
    3. Sudip Bhattacharjee & Ram D. Gopal & Kaveepan Lertwachara & James R. Marsden & Rahul Telang, 2007. "The Effect of Digital Sharing Technologies on Music Markets: A Survival Analysis of Albums on Ranking Charts," Management Science, INFORMS, vol. 53(9), pages 1359-1374, September.
    4. Ram D. Gopal & Alok Gupta, 2010. "Trading Higher Software Piracy for Higher Profits: The Case of Phantom Piracy," Management Science, INFORMS, vol. 56(11), pages 1946-1962, November.
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    Cited by:

    1. Miguel Godinho de Matos & Pedro Ferreira & Michael D. Smith, 2018. "The Effect of Subscription Video-on-Demand on Piracy: Evidence from a Household-Level Randomized Experiment," Management Science, INFORMS, vol. 64(12), pages 5610-5630, December.
    2. Tarun Jain & Jishnu Hazra & T. C. Edwin Cheng, 2020. "Illegal Content Monitoring on Social Platforms," Production and Operations Management, Production and Operations Management Society, vol. 29(8), pages 1837-1857, August.
    3. Mo, Jeonghoon & Park, Jungju & Im, Nari & Park, Jiwon & Kim, Hansol, 2017. "Why internet service provider and content provider do not collaborate via monitoring of digital piracy," Socio-Economic Planning Sciences, Elsevier, vol. 60(C), pages 49-61.
    4. Can Sun & Yonghua Ji & Xianjun Geng, 2023. "Which Enemy to Dance with? A New Role of Software Piracy in Influencing Antipiracy Strategies," Information Systems Research, INFORMS, vol. 34(4), pages 1711-1727, December.
    5. Debabrata Dey & Antino Kim & Atanu Lahiri, 2019. "Online Piracy and the “Longer Arm” of Enforcement," Management Science, INFORMS, vol. 65(3), pages 1173-1190, March.
    6. Wu, Cheng-Han & Chiu, Yun-Yao, 2023. "Pricing and content development for online media platforms regarding consumer homing choices," European Journal of Operational Research, Elsevier, vol. 305(1), pages 312-328.

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