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Does file-sharing reduce DVD sales?

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  • Emmi Martikainen

Abstract

The short-term effect of BitTorrent file-sharing on movie DVD sales is estimated using sales data on newly released DVDs and torrent file downloads during a 13-week period between March and May 2009 in the USA. To overcome endogeneity between downloads and sales, the analysis is carried out in a dynamic panel setting. After controlling for an autoregressive component and a declining time trend in sales, the file-sharing elasticity of sales is not statistically different from zero in the difference GMM estimations. The results hold when external instruments are used. Moreover, the results suggest an upper bound of −0.21 of elasticity, indicating that the short-term sales displacement effect is moderate at worst. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    • Handle: RePEc:kap:netnom:v:15:y:2014:i:1:p:9-31
    DOI: 10.1007/s11066-014-9085-0
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    Cited by:

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    3. Tyrowicz, Joanna & Krawczyk, Michal & Hardy, Wojciech, 2020. "Friends or foes? A meta-analysis of the relationship between “online piracy” and the sales of cultural goods," Information Economics and Policy, Elsevier, vol. 53(C).
    4. Shinichi Yamaguchi & Hirohide Sakaguchi & Kotaro Iyanaga & Hidetaka Oshima & Tatsuo Tanaka, 2023. "The impact of licensed and unlicensed free goods: an empirical analysis of music, video, and book industries in Japan," SN Business & Economics, Springer, vol. 3(3), pages 1-22, March.

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