Study Shows Shutting Down Piracy May Boost Media Sales reports NRM Creative Marketing
Two anonymous studios saw gains in sales following shutdown of two major sites
Peer-to-peer networks and digital cyberlockers account for nearly 25% of internet traffic, according to Cisco Systems' Visual Networking Index.
The report that was compiled by Wellesley College economics professor Brett Danaher and Carnegie Mellon University IT, as well as marketing professor Michael Smith, tracked online sales and rentals revenue of movies after the closure of Megaupload and Megavideo. Cyberlocker MegaUpload was shut in January of 2012 following the Department of Justice levied copyright charges against the owner Kim Dotcom.
Research found that the weekly digital revenue of movies for two studies jumped by 30% compared to when the sites were active, according to the Wall Street Journal.
The study, which did not disclose the studio names, tracked the online retail activities for 18 days following the closure of the two major sites.
“We conclude that shutting down Megaupload and Megavideo caused some customers to shift from cyberlocker-based piracy to purchasing or renting through legal digital channels,” Danaher and Smith wrote.
The study is the first to supposedly demonstrate the effects of shutting piracy sites. Though it could be stated that those sites are for piracy philistines, and thus the removal of obvious and trackable piracy may skew the numbers.
Danaher and Smith both acknowledge the results could be simply a temporary reaction to the shutdown, as individuals are ration reactionary instant-gratifiers.
“We ... do not know whether the sales increase will persist or if these new consumers will eventually find their way back to alternative piracy channels,” the professors wrote.
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