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Catch Me if You Can: Effectiveness and Consequences of Online Copyright Enforcement

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  • Peukert, Christian
  • Aguiar, Luis
  • Claussen, Jörg
Abstract
Taking down copyright-infringing websites is a way to reduce consumption of pirated media content and increase licensed consumption. We analyze the consequences of the shutdown of the most popular German video streaming website - kino.to - in June 2011. Using individual-level clickstream data, we find that the shutdown led to significant but short-lived declines in piracy levels. The existence of alternative sources of unlicensed consumption, coupled with the rapid emergence of new platforms, led the streaming piracy market to quickly recover from the intervention and to limited substitution into licensed consumption. Our results therefore present evidence of a high elasticity of supply in the online movie piracy market, together with relatively low switching costs for users of copyright infringing platforms. The fact that the post-shutdown market structure was much more fragmented - and therefore more resistant to future interventions - further questions the effectiveness of the intervention.

Suggested Citation

  • Peukert, Christian & Aguiar, Luis & Claussen, Jörg, 2016. "Catch Me if You Can: Effectiveness and Consequences of Online Copyright Enforcement," VfS Annual Conference 2016 (Augsburg): Demographic Change 145490, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145490
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    Cited by:

    1. Batikas, Michail & Claussen, Jörg & Peukert, Christian, 2019. "Follow the money: Online piracy and self-regulation in the advertising industry," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 121-151.
    2. Song, Zhuzhu & Qin, Zhongfeng & Liu, Tian-Liang, 2024. "Implications of counterfeiting and differentiation on online knowledge services with suitability upgrades," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
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    4. Marc Bourreau & Marianne Lumeau & Francois Moreau & Jordana Viotto da Cruz, 2019. "Recent or Free? An Experimental Study of the Motivations for Pirating Movies," CESifo Working Paper Series 8036, CESifo.
    5. Tarun Jain & Jishnu Hazra & T. C. Edwin Cheng, 2020. "Illegal Content Monitoring on Social Platforms," Production and Operations Management, Production and Operations Management Society, vol. 29(8), pages 1837-1857, August.
    6. Leonardo Madio & Martin Quinn, 2024. "Content Moderation and Advertising in Social Media Platforms," CESifo Working Paper Series 11169, CESifo.
    7. 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.
    8. Wojciech Hardy, 2022. "Brace yourselves, pirates are coming! the effects of Game of Thrones leak on TV viewership," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 46(1), pages 27-55, March.
    9. Batikas, Michail & Claussen, Jörg & Peukert, Christian, 2017. "Follow The Money: Piracy and Online Advertising," 28th European Regional ITS Conference, Passau 2017 169448, International Telecommunications Society (ITS).
    10. Reis, Filipa & Godinho de Matos, Miguel & Ferreira, Pedro, 2024. "Controlling digital piracy via domain name system blocks: A natural experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 89-103.
    11. 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.
    12. Nie, Jiajia & Zhong, Ling & Li, Gendao & Cao, Kuo, 2022. "Piracy as an entry deterrence strategy in software market," European Journal of Operational Research, Elsevier, vol. 298(2), pages 560-572.
    13. Christophe BELLEGO & Romain DE NIJS, 2020. "The Unintended Consequences of Anti-Piracy Laws on Markets with Asymmetric Piracy: The Case of the French Movie Industry," Working Papers 2020-03, Center for Research in Economics and Statistics.
    14. Jeremy Watson & Megan MacGarvie & John McKeon, 2023. "It Was 50 Years Ago Today: Recording Copyright Term and the Supply of Music," Management Science, INFORMS, vol. 69(1), pages 351-376, January.
    15. Milan Miric & Lars Bo Jeppesen, 2020. "Does piracy lead to product abandonment or stimulate new product development?: Evidence from mobile platform‐based developer firms," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2155-2184, December.
    16. Christian Peukert, 2019. "The next wave of digital technological change and the cultural industries," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 43(2), pages 189-210, June.
    17. Jason Chan & Shu He & Dandan Qiao & Andrew Whinston, 2024. "Shedding Light on the Dark: The Impact of Legal Enforcement on Darknet Transactions," Information Systems Research, INFORMS, vol. 35(1), pages 145-164, March.
    18. Leonardo Madio, 2023. "Content Moderation and Advertising in Social Media Platforms," "Marco Fanno" Working Papers 0297, Dipartimento di Scienze Economiche "Marco Fanno".

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    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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