Shutdown of Megaupload May Have Boosted Legal Movie Sales
Posted 03/08/2013 at 6:01am
| by J.R. Bookwalter
What do video and music pirates do when their favorite file transfer service gets shut down? Apparently go buy such content legitimately, according to a new study released this week.
Carnegie Mellon’s Initiative for Digital Entertainment Analytics (IDEA) published the results of a study that examined the affects of legal digital movie and music sales in the wake of Megaupload.com being shut down on January 19, 2012.
"Measuring the effect of the Megaupload shutdown is complicated by its timing and the fact that the shutdown occurred worldwide," the report said. "However, immediately following the shutdown, there was a positive and statistically significant relationship between a country’s sales growth and its pre-shutdown Megaupload penetration."
The result: Digital sales and rentals for at least two major Hollywood studios rose by six to 10 percent higher than they would have if Megaupload had still been in business at that time.
While the study only covers the 18 weeks following the Megaupload shutdown by government authorities, IDEA believes the results "can inform the debate about anti-piracy regulations and may help to better understand consumer behavior in the presence of piracy."
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