IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v43y2024i3p469-478.html
   My bibliography  Save this article

Frontiers: Pirating Foes or Creative Friends? Effects of User-Generated Condensed Clips on Demand for Streaming Services

Author

Listed:
  • Guangxin Yang

    (Guanghua School of Management, Peking University, Beijing 100871, China)

  • Yingjie Zhang

    (Guanghua School of Management, Peking University, Beijing 100871, China)

  • Hongju Liu

    (Guanghua School of Management, Peking University, Beijing 100871, China)

Abstract

Short-form video-sharing platforms have seen phenomenal growth in recent years. One type of video that often goes viral on such platforms is the condensed clips derived from existing full-length video content. The traditional entertainment industry has strongly criticized this new form of user-generated derivative content owing to the potential for infringement on copyright owners’ exclusive rights and de facto theft of viewers from original works. However, little is known of the actual impact of condensed clips on the demand for corresponding original works. In this study, we seek to identify such impact with the help of an exogenous boycott event in April 2021 that forced Chinese TikTok to remove condensed clips more proactively. Our results indicate that their removal had reduced the demand for corresponding full-length original works on a major video streaming platform by approximately 3%. In other words, condensed clips serve as friends, rather than foes, of streaming services. Further analyses suggested that positive spillover effects resulted from the fact that condensed clips could enhance the visibility of original works, and such effects were stronger if the original work was of higher quality or had a more fascinating storyline. Our results offer rich managerial and policy insights.

Suggested Citation

  • Guangxin Yang & Yingjie Zhang & Hongju Liu, 2024. "Frontiers: Pirating Foes or Creative Friends? Effects of User-Generated Condensed Clips on Demand for Streaming Services," Marketing Science, INFORMS, vol. 43(3), pages 469-478, May.
    • Handle: RePEc:inm:ormksc:v:43:y:2024:i:3:p:469-478
    DOI: 10.1287/mksc.2023.0031
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.2023.0031
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.2023.0031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Grewal, Dhruv & Herhausen, Dennis & Ludwig, Stephan & Villarroel Ordenes, Francisco, 2022. "The Future of Digital Communication Research: Considering Dynamics and Multimodality," Journal of Retailing, Elsevier, vol. 98(2), pages 224-240.
    2. Kapil Bawa & Robert Shoemaker, 2004. "The Effects of Free Sample Promotions on Incremental Brand Sales," Marketing Science, INFORMS, vol. 23(3), pages 345-363, November.
    3. Peitz, Martin & Waelbroeck, Patrick, 2006. "Piracy of digital products: A critical review of the theoretical literature," Information Economics and Policy, Elsevier, vol. 18(4), pages 449-476, November.
    4. Mitchell J. Lovett & Richard Staelin, 2016. "The Role of Paid, Earned, and Owned Media in Building Entertainment Brands: Reminding, Informing, and Enhancing Enjoyment," Marketing Science, INFORMS, vol. 35(1), pages 142-157, January.
    5. Laxman Narasimhan & Kannan Srinivasan & K. Sudhir, 2015. "Editorial —Marketing Science in Emerging Markets," Marketing Science, INFORMS, vol. 34(4), pages 473-479, July.
    6. Yi Qian, 2014. "Counterfeiters: Foes or Friends? How Counterfeits Affect Sales by Product Quality Tier," Management Science, INFORMS, vol. 60(10), pages 2381-2400, October.
    7. Telang, Rahul & Waldfogel, Joel, 2018. "Piracy and new product creation: A Bollywood story," Information Economics and Policy, Elsevier, vol. 43(C), pages 1-11.
    8. Sungsik Park & Woochoel Shin & Jinhong Xie, 2021. "The Fateful First Consumer Review," Decision Analysis, INFORMS, vol. 40(3), pages 481-507, May-June.
    9. Stephan Seiler & Song Yao & Wenbo Wang, 2017. "Does Online Word of Mouth Increase Demand? (And How?) Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 36(6), pages 838-861, November.
    10. Shijie Lu & Koushyar Rajavi & Isaac Dinner, 2021. "The Effect of Over-the-Top Media Services on Piracy Search: Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 40(3), pages 548-568, May.
    11. Sungsik Park & Woochoel Shin & Jinhong Xie, 2021. "The Fateful First Consumer Review," Marketing Science, INFORMS, vol. 40(3), pages 481-507, May.
    12. Carsten Fink & Keith E. Maskus & Yi Qian, 2016. "The Economic Effects of Counterfeiting and Piracy: A Review and Implications for Developing Countries," The World Bank Research Observer, World Bank, vol. 31(1), pages 1-28.
    13. Shijie Lu & Koushyar Rajavi & Isaac Dinner, 2021. "The Effect of Over-the-Top Media Services on Piracy Search: Evidence from a Natural Experiment," Decision Analysis, INFORMS, vol. 40(3), pages 548-568, May-June.
    14. Liye Ma & Alan L. Montgomery & Param Vir Singh & Michael D. Smith, 2014. "An Empirical Analysis of the Impact of Pre-Release Movie Piracy on Box Office Revenue," Information Systems Research, INFORMS, vol. 25(3), pages 590-603, September.
    15. Schwenzow, Jasper & Hartmann, Jochen & Schikowsky, Amos & Heitmann, Mark, 2021. "Understanding videos at scale: How to extract insights for business research," Journal of Business Research, Elsevier, vol. 123(C), pages 367-379.
    16. Xiaolin Li & Chenxi Liao & Ying Xie, 2021. "Digital Piracy, Creative Productivity, and Customer Care Effort: Evidence from the Digital Publishing Industry," Marketing Science, INFORMS, vol. 40(4), pages 685-707, July.
    17. David Godes & Dina Mayzlin, 2004. "Using Online Conversations to Study Word-of-Mouth Communication," Marketing Science, INFORMS, vol. 23(4), pages 545-560, June.
    18. Jeffrey Ely & Alexander Frankel & Emir Kamenica, 2015. "Suspense and Surprise," Journal of Political Economy, University of Chicago Press, vol. 123(1), pages 215-260.
    19. Shijie Lu & Xin (Shane) Wang & Neil Bendle, 2020. "Does Piracy Create Online Word of Mouth? An Empirical Analysis in the Movie Industry," Management Science, INFORMS, vol. 66(5), pages 2140-2162, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bradley, Wendy A. & Kolev, Julian, 2023. "How does digital piracy affect innovation? Evidence from software firms," Research Policy, Elsevier, vol. 52(3).
    2. Jordi McKenzie, 2023. "The economics of movies (revisited): A survey of recent literature," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 480-525, April.
    3. Anthony Koschmann & Yi Qian, 2020. "Latent Estimation of Piracy Quality and its Effect on Revenues and Distribution: The Case of Motion Pictures," NBER Working Papers 27649, National Bureau of Economic Research, Inc.
    4. Shijie Lu & Xin (Shane) Wang & Neil Bendle, 2020. "Does Piracy Create Online Word of Mouth? An Empirical Analysis in the Movie Industry," Management Science, INFORMS, vol. 66(5), pages 2140-2162, May.
    5. Christian Peukert & Margaritha Windisch, 2023. "The Economics of Copyright in the Digital Age," CESifo Working Paper Series 10687, CESifo.
    6. Beth L. Fossen & Alexander Bleier, 2021. "Online program engagement and audience size during television ads," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 743-761, July.
    7. Xiaolin Li & Chenxi Liao & Ying Xie, 2021. "Digital Piracy, Creative Productivity, and Customer Care Effort: Evidence from the Digital Publishing Industry," Marketing Science, INFORMS, vol. 40(4), pages 685-707, July.
    8. Wu, Chien-Wei & Gong, Jyh-Chyi & Chiu, Hsien-Hung, 2016. "Duopoly competition with non-deceptive counterfeiters," International Review of Law and Economics, Elsevier, vol. 47(C), pages 33-40.
    9. Beth L. Fossen & David A. Schweidel, 2017. "Television Advertising and Online Word-of-Mouth: An Empirical Investigation of Social TV Activity," Marketing Science, INFORMS, vol. 36(1), pages 105-123, January.
    10. William M. Volckmann, 2023. "The effects of market size, wealth, and network effects on digital piracy and profit," European Journal of Law and Economics, Springer, vol. 55(1), pages 61-85, February.
    11. Xingyu Chen & Xing Li & Dai Yao & Zhimin Zhou, 2019. "Seeking the support of the silent majority: are lurking users valuable to UGC platforms?," Journal of the Academy of Marketing Science, Springer, vol. 47(6), pages 986-1004, November.
    12. Steven M. Shugan, 2005. "Brand Loyalty Programs: Are They Shams?," Marketing Science, INFORMS, vol. 24(2), pages 185-193.
    13. Angela Aerry Choi & Daegon Cho & Dobin Yim & Jae Yun Moon & Wonseok Oh, 2019. "When Seeing Helps Believing: The Interactive Effects of Previews and Reviews on E-Book Purchases," Information Systems Research, INFORMS, vol. 30(4), pages 1164-1183, December.
    14. Nikolaus Thumm & Vincenzo Butticè & Federico Caviggioli & Chiara Franzoni & Giuseppe, Scellato, 2018. "Impact of counterfeiting on the performance of digital technology companies," JRC Working Papers on Digital Economy 2018-03, Joint Research Centre.
    15. Butticè, Vincenzo & Caviggioli, Federico & Franzoni, Chiara & Scellato, Giuseppe & Stryszowski, Piotr & Thumm, Nikolaus, 2020. "Counterfeiting in digital technologies: An empirical analysis of the economic performance and innovative activities of affected companies," Research Policy, Elsevier, vol. 49(5).
    16. Christophe Bellégo & Romain De Nijs, 2020. "The Unintended Consequences of Antipiracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry," Information Systems Research, INFORMS, vol. 31(4), pages 1064-1086, December.
    17. Francesco Rullani & Karin Beukel & Matteo De Angelis, 2021. "Anti‐counterfeiting strategy unfolded: A closer look to the case of a large multinational manufacturer," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2084-2103, November.
    18. Agarwal, Reeti & Mehrotra, Ankit & Sharma, Veenu & Papa, Armando & Malibari, Areej, 2023. "Over-the-top (OTT) retailing in the post pandemic world. Unveiling consumer drivers and barriers using a qualitative study," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    19. 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.
    20. Shijie Lu & Koushyar Rajavi & Isaac Dinner, 2021. "The Effect of Over-the-Top Media Services on Piracy Search: Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 40(3), pages 548-568, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:43:y:2024:i:3:p:469-478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.