Feeds

Study: Megaupload closure boosted Hollywood sales 10%

Based on Tinseltown's figures, that is

Top three mobile application threats

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. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.