Feeds

Study: Megaupload closure boosted Hollywood sales 10%

Based on Tinseltown's figures, that is

Beginner's guide to SSL certificates

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.