Pirate Bay 'Promotion' Increases Post-Release Box Office Revenue, Study Shows (torrentfreak.com) 42
New research suggests that post-release movie piracy through The Pirate Bay is linked to increased box revenue. The counter-intuitive finding is driven by word-of-mouth promotion. The effect, which does not apply to pre-release piracy, results in rather interesting policy implications. From a report: Hollywood's general logic is that piracy hurts box office revenues. However, there is also some evidence of positive effects through word-of-mouth promotion. Using the Pirate Bay downtime as a natural experiment, the researchers tried to find out if thatâ(TM)s indeed the case. "It is natural to focus on the downsides of piracy for movie makers -- and these can be significant -- but many will be interested to note that piracy can have an upside," Professor Shijie Lu informs TF. Through their research, Lu and his co-authors Xin Wang and Neil Bendle, investigated the effect of this "buzz" in detail. They published their findings in a paper titled "Does Piracy Create Online Word-of-Mouth? An Empirical Analysis in Movie Industry."
Movies shared on The Pirate Bay are the main focus. The researchers use the Pirate Bay downtime following the 2014 raid to measure its impact on word-of-mouth promotion and box office revenues. Based on a sample of hundreds of movie torrents and data from most popular movie review sites, Lu and his colleagues estimated this effect. Their results are rather intriguing. First off, the findings clearly show a negative effect of pre-release piracy on box office sales. This result is consistent with previous studies and an increase in "buzz" doesn't do enough to offset the negative effect. [...] This changes when the researchers look at post-release piracy. That is, piracy which occurs after a film has premiered at the box office. In this case, there's a positive effect on box office revenue through an increase in word-of-mouth promotion (WOM).
Movies shared on The Pirate Bay are the main focus. The researchers use the Pirate Bay downtime following the 2014 raid to measure its impact on word-of-mouth promotion and box office revenues. Based on a sample of hundreds of movie torrents and data from most popular movie review sites, Lu and his colleagues estimated this effect. Their results are rather intriguing. First off, the findings clearly show a negative effect of pre-release piracy on box office sales. This result is consistent with previous studies and an increase in "buzz" doesn't do enough to offset the negative effect. [...] This changes when the researchers look at post-release piracy. That is, piracy which occurs after a film has premiered at the box office. In this case, there's a positive effect on box office revenue through an increase in word-of-mouth promotion (WOM).