Broadband dvd penetration

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: Unfortunately, disentangling these two effects is extremely difficult. View on SSRN.
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Piracy or Promotion? The Impact of the Broadband Internet Penetration on DVD Sales

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EconPapers: Piracy or promotion? The impact of broadband Internet penetration on DVD sales

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. DOI: Policy The movie industry represents one area where digital networks have had a particularly strong impact on economic activity. These digital networks provide copyright holders with new sales and promotional channels for their content, while also providing consumers with new opportunities to obtain high quality free copies of this content. View via Publisher. Save to Library.
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Piracy or promotion? The impact of broadband Internet penetration on DVD sales

The movie industry represents one area where digital networks have had a particularly strong impact on economic activity. These digital networks provide copyright holders with new sales and promotional channels for their content, while also providing consumers with new opportuni-ties to obtain high quality free copies of this content. Broadband access is a necessary condition for movie piracy and the movie industry has argued that the dominant impact of increased broadband Internet penetration will be increased piracy, and reduced media sales. We analyze this hypothesis by applying fixed effects and first difference models to a new dataset quantifying changes in broadband Internet penetration and DVD sales at a local level from to Contrary to industry concerns, we find that increased broadband Internet penetration leads to a significant increase in DVD sales.
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Unfortunately, disentangling these two effects is extremely difficult. In this paper we attempt to disentangle these two effects by applying fixed effects and first difference models to a new dataset quantifying changes in broadband Internet penetration and DVD sales at a local level from to We then compare our results to those reported in Liebowitz , who uses similar models in a similar time period on a similar product category: music CDs.
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