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The effects of movie piracy on box-office revenue: an empirical analysis of the Chinese movie market

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  • Yang Yue

Abstract

I evaluate the substitution effects of pirated movies – the unlicensed online movies available on file-sharing websites – on their genuine counterparts, and explore the institutional and economic causes of China’s high level of movie piracy. To do this, I build a dataset including information on online piracy, theater showings, and revenues. I use the level of availability of pirated products and the download intensity of pirated movies as proxies for the piracy level. By utilizing these proxies, I estimate that the average revenue loss caused by piracy is 64%. Protectionism and censorship systems, as well as a low theater coverage rate, contribute to China’s high level of piracy. Counterfactual results show that minimizing release delays, which are mainly caused by protectionism and censorship, increases the box office returns of foreign movies by 43%.

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  • Yang Yue, 2020. "The effects of movie piracy on box-office revenue: an empirical analysis of the Chinese movie market," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 618-655, January.
    • Handle: RePEc:taf:recsxx:v:23:y:2020:i:1:p:618-655
    DOI: 10.1080/15140326.2020.1812477
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    Cited by:

    1. Christian Peukert & Margaritha Windisch, 2023. "The Economics of Copyright in the Digital Age," CESifo Working Paper Series 10687, CESifo.
    2. Ahyun Kim & Silvana Trimi & Sang-Gun Lee, 2021. "Exploring the key success factors of films: a survival analysis approach," Service Business, Springer;Pan-Pacific Business Association, vol. 15(4), pages 613-638, December.
    3. Kanazawa, Kyogo & Kawaguchi, Kohei, 2022. "Displacement effects of public libraries," Journal of the Japanese and International Economies, Elsevier, vol. 66(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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