Feeds

Study: Megaupload closure boosted Hollywood sales 10%

Based on Tinseltown's figures, that is

Providing a secure and efficient Helpdesk

A new study claims that the revenues of two anonymous Hollywood studios rose between 6 to 10 per cent in countries where digital sales are available, after the cyberlocker site Megaupload was shut down.

"Our analysis shows that the shutdown of a major online piracy site can increase digital media sales, and by extension we provide evidence that Internet movie piracy displaces digital film sales and rentals," said the study by Brett Danaher from Wellesley College department of economics and Michael D. Smith from Carnegie Mellon University.

The research comes from the Carnegie Mellon University's Initiative for Digital Entertainment Analytics (IDEA), which tracked the number of Megaupoload users in 12 countries by using Google AdWords estimates. The sales and rental data for the period came from two anonymous studios, but only for digital sales since the data for physical media was deemed "less reliable".

After armed police raided the New Zealand home of Kim Dotcom by helicopter and shut down Megaupload, the academics noted a 7-to-10 per cent increase in digital sales revenue and a 4-to-7 per cent increase in rentals, using an average price of $15 and $4.50 respectively. The study adjusted its figures to account for the Christmas sales rush.

"The bottom line is that this study provides empirical proof that shuttering Megaupload stopped users from accessing its stolen wares, and steered them toward the many legitimate sources for movies online," Kate Bedingfield, a spokesperson for the MPAA told El Reg.

"Actions like those against Megaupload won't solve the piracy problem on their own," Bedingfield said, "but they are a necessary and vital tactic that helps foster a playing field where legal services can thrive, enabling the movie makers to distribute their creative product in more new and innovative ways every day."

The academics were keen to stress that the study wasn't funded by the MPAA, and that the anonymous studios providing the sales data had no editorial control – but it's worth noting that IDEA itself was created last year with funds provided by the MPAA. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.