Klaus Ackermann (Monash University), Wendy A. Bradley (Southern Methodist University (SMU) – Strategy & Entrepreneurship Department), & Jack Francis Cameron (Bain & Company) have posted Avengers Assemble! When Digital Piracy Increases Box Office Demand on SSRN. Here is the abstract:
Using the film industry, we show how the content of information goods changes the substitutability or complementarity effects of copyright infringement. Leveraging the quasi-random timing of the appearance of a high-quality pirated movie after its release in-theaters, we find for “spectacle”-oriented films, where the value of the good is linked to in-theater viewing, piracy complements box-office sales. For “story”-oriented films, where the value of the good is inherent—unenhanced by in-theater viewing—piracy displaces sales. Our findings suggest the value of creative content is linked to its distribution context, with relevance for commercialization strategies of digital goods in creative industries.