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Shutdown of Piracy Sites Results in Movie Sales Increase, Says New Study

Posted: March 8th, 2013 by WorstPreviews.com Staff
Shutdown of Piracy Sites Results in Movie Sales Increase, Says New StudySubmit Comment
When discussing piracy, there are plenty of opinions. Some believe that people would be willing to pay for movies if there were more legal options. Others believe that people who download illegally cannot be convinced to pay.

To get the answer, Wellesley College professor Brett Danaher and Carnegie Mellon University professor Michael D. Smith reached out to two major movie studios and got their hands on detailed reports that show how many of their movies were downloaded legally before and after the January 2012 closing of MegaUpload website, which was one of the biggest sources of illegal content.

According to the study, the studios saw weekly online sales grow by between 10,500 and 15,300 units. Online rentals also grew between 13,700 and 24,000 units per week. "We conclude that shutting down MegaUpload and MegaVideo caused some customers to shift from piracy to purchasing or renting through legal digital channels," the researchers said.

The data examined was only up to 18 weeks after the closure of MegaUpload. "We do not know whether the sales increase will persist or if these new consumers will eventually find their way back to piracy channels," they added.

Source: WSJ

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Displaying 32 comment(s) Profanity: Turn On
j-man writes:
on March 8th, 2013 at 6:09:49 AM

Who gives a f*ck
Ip_man writes:
on March 8th, 2013 at 6:22:42 AM

2 down...1000 more to go.
M. Bullitt writes:
on March 8th, 2013 at 6:42:55 AM


Deaft0ne writes:
on March 8th, 2013 at 7:32:16 AM

I'm bout to sh*t out a MEGAMORNINLOAD
sleepingshane writes:
on March 8th, 2013 at 7:43:42 AM

This guy is talking sh*t its information feed down a fiber optic cable were not physically steeling anything, so there's no theft the legal definition of "unlimited" broadband is unhindered no bounderys so if the movie industry wants to take me to court then i will be taking my service provider to court for breaking the contract it made with me when i singed up to there service. and if millions of people start suing there cable companies it might put an end to this sh*t. government stay the f*ck out of our lives you parasitic wankers. i feel a bit better now i have had the rant sorry dudes!
BadChadB33 writes:
on March 8th, 2013 at 8:25:12 AM

O well close down one and two takes if place.
ENFORCER writes:
on March 8th, 2013 at 9:18:19 AM

Shut the f*ck up Bullit, just saying bullsh*t is pathetic, they gave f*cking facts and figures you dopey *sshole of a man.
[StuntMan_MiKe] writes:
on March 8th, 2013 at 9:55:03 AM

I used BTJunkie before it shut itself down.
SpookyCupcakes writes:
on March 8th, 2013 at 10:31:59 AM


The WSJ article doesn't link any source to the study, guess I'll have to go digging...

Oh, this is interesting, this study conducted by the same school nearly a year ago to this day said piracy has nothing to do with box office sales: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1986299

And here's the study they conducted (No thanks to WSJ. Tsk, tsk, not posting your sources, very poor journalism): http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2229349

"Aggregating these increases, our analysis across 12 countries suggests that, in the 18 weeks following the shutdown, digital revenues for these two studio’s movies were 6-10% higher than they would have been if not for the shutdown. Thus our findings show that the closing 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. "

Why the sudden change of heart, Wellesley? Hollywood willing to fund your college a little bit after a study or two supporting them methinks.

There are way too many factors left out in this study to determine what actually could have been the reason for this 6-10% increase in sales of digital medias. Things like the types of films and shows which were released in the proceeding 18 weeks, why people would've opted to buy them instead of pirating, how this compares torrent sites like IsoHunt or PirateBay, the list goes on.

My best guess? The numbers are bullsh*t since they weren't gathered by the college, instead they were gathered by the studios and then given to the college. Big difference there.

Even if they aren't bullsh*t, all those economical, popcultural and societal factors are still left out of the mix. Pastafarians 'believe' that global warming is caused by a lack of pirates, since the decline in pirates coincides with a rise in global temperatures. Does that make it true? Absolutely not, it's absurd.

Take this with a very miniscule grain of salt, everyone...
FBO writes:
on March 8th, 2013 at 10:32:06 AM

I wouldn't mind if Hollywood died off and movie went back to being an art form instead of systematic formula. With that said, let's make Hollywood put their money where there mouth is and tax the sh*t out of all the actors and directors and studio execs to pay for America's welfare system.
Stapes writes:
on March 8th, 2013 at 10:41:15 AM

@sleepingshane, I like your thinking, however, all a service provider has to do is write the provision into their sign up contract to make legal recourse impossible. Which is when I open my own internet provider company.
Stapes writes:
on March 8th, 2013 at 1:02:51 PM

... and I believe you mean LARGE grain of salt spooky. Idiot kids these days I tell you.
minkowski writes:
on March 8th, 2013 at 1:30:11 PM

I don't give a sh*t. They take down one site, eighty more spring up. And the technology for file sharing evolves. People are going to share movies just like they smoke weed. You can't stop people and only trying to control it makes it more prevalent. When the f*ck are the people who do the controlling going to realize, and accept, this little snippet of human psychology?

"tax the sh*t out of all the actors and directors and studio execs to pay for America's welfare system."

Should be a higher tax scale for people like Tom Cruise. They bring down ten, twenty million, pay their tax pittance, and then go buy a tenth mansion all the while telling people who make 200K a year they need to pay more taxes. f*cking ridiculous.
minkowski writes:
on March 8th, 2013 at 1:38:42 PM

As for the study, maybe, but a few things: what they did to Kim Dotcom was more than a little fascist, and two, Megavideo and Megaupload weren't the largest filelockers people used. That was Filesonic and another. None of the websites that trade in illegal software, including movies, used Mega because the premium referral awards were sh*t.

And in fact, as someone who pirates every day and was pirating my ass off at the very moment Mega and the other filelockers went off-line, I almost never downloaded anything from Mega because it wasn't the better option, or even a good one. Hell, I paid for a few Filsonic accounts.

On the other hand...when Mega went down, every other filelocker closed their door, at least temporarily. So killing Mega wasn't the reason; scaring the f*ck out of everyone else WAS.

To the MPAA: f*ck you! The RIAA lost the war, so will YOU. It's over. You lost. Learn to adapt or f*cking die you controlling greedy c*cksuckers.

That is all.
swoooop writes:
on March 8th, 2013 at 3:32:04 PM

A study like this cant be taken as any kind of truth. It all depend on who payed for the study, what the actual question formulation was and so on. Inn a couple of months their will be another study, payed by someone else, with another conclusion. Just to compare, there are studies showing that smoking and second hand smoking is in no way proven to be dangerous. So its all bullsh*tt.
synthetic1985 writes:
on March 8th, 2013 at 3:57:42 PM

i'd like to add a comment/opinion of my own...first off, I agree most with everyone here saying that not all other measurements were taken into account based on this study such as other download sites as well as what movies were released during those times...secondly there was more than one article on this site alone also without all other measurements included that pointed out downloading not only increased sales but also popularity via word of mouth...call it what you want and stop it if you can hollywood which you can't, but audiences are well beyond being gullable these days and by that I mean of course that hollywood still uses money rather than art in hopes of bringing more money in...yea that would've worked in 90s when there were no download sites but this is 2013 hollywood, if you really want to bring in more money especially to those people that say they're willing to pay for a movie if it deserves it, then gives these people just that...but what would also help if these *ssholes in the industry stop sucking up,all the spotlights for themselves and help others get their chance to shine we might see a bigger increase than expected but unfortunately the only risks hollywood ever takes are ones that ultimately end up to be classified as 'well it made a lot of money but it could've made even more if we only did this or that'...i shall prove I can get rich without making a single penny just by making a form of art that people think 'deserves better'...and that goes for ANYONE...problem is enough people have to know about you so that you're famous enough to the point where bigger companies take notice and offer you something ONLY because of the popularity you get simply because they think you'll bring in big money for them
SpookyCupcakes writes:
on March 8th, 2013 at 4:50:43 PM

@Stapes, that was what we in the industry (that industry being non-retards) call "hyperbole".

It usually falls under the comedic categories of "satire", "parody" and usually "sarcasm".
Stapes writes:
on March 8th, 2013 at 5:25:13 PM

Sure, spooky, a likely excuse for ignorance. Your generation loves that sh*t, which is why most of you remain ignorant.
BillyBunter writes:
on March 8th, 2013 at 6:03:58 PM

I for one enjoy going to the movies, but file sharing is everywhere. People Drop box music and tv shows i have no idea how they can clamp down on this. I will say i have friends in the movie industry so i don't download films because i want to support and respect them, as they would not come in to my office and steal my s**t. I think we crossing the threshold of working out what is far for artist/creators and fair for the audience. We are living in a changing times my friends.
SpookyCupcakes writes:
on March 8th, 2013 at 6:43:25 PM

I hardly see how my age (which is incorrect on WP, mind you) has any impact on my ignorance just because it fits in with a generation.

I think I've demonstrated the opposite of ignorance by digging through and reading the original study that this article is about, and posting it here for all to see, so we can have a less ignorant discussion.
SpookyCupcakes writes:
on March 8th, 2013 at 6:47:12 PM

However, because I wrote one phrase incorrectly (or at least because you view it as incorrect), the entire post that comes beforehand is now absolutely useless?

The only ignorant one here seems to be you.
minkowski writes:
on March 8th, 2013 at 7:00:14 PM

lol. Everyone one here knows this so-called study was conducted using Hollywood studio numbers, right?

In the same vein, according to Nazi record keepers, no Jews were incinerated, they just went on a permanent tropical vacation.
minkowski writes:
on March 8th, 2013 at 7:04:15 PM

Ignorance, Spooky? You compared one study that looked only at BITTORRENT sites to another study looking at only FILELOCKER sites!

Want to compare apple and oranges next?

Christ man, get your ducks in a row before you start shooting off like Elmer Fudd.
minkowski writes:
on March 8th, 2013 at 7:13:41 PM

Btw Spooky, your post is the most pompous, grandiose comment, empty comment I've ever read here, and that's including everything I've ever written.

I mean, Pastafarians? Was that an attempt at humor, or did you really think that lends seriousness to your opinion? Want to quote a member of the Church of the Flying Spaghetti Monster too?

f*cking kids these days.
minkowski writes:
on March 8th, 2013 at 7:14:19 PM

minkowski writes:
on March 8th, 2013 at 7:15:08 PM

did +do.
Stapes writes:
on March 8th, 2013 at 9:37:05 PM

@Mink, glad someone else noticed.
Rocksteddy writes:
on March 9th, 2013 at 1:25:03 AM

Doesn't mean jack sh*t. More greed and careless hatred from the bastards at Hollywood.

When will someone get the decent knowledge as to boycott these f*cks?
FBO writes:
on March 9th, 2013 at 2:44:57 AM

I am just saying that I wouldn't cry if N. Korea dropped a small ICBM on Hollywood. In fact, as un-American as this might sound, I'd probably be laughing my ass off screaming "f*ck you Hollywood, how much do you love communism now??"
Janus writes:
on March 9th, 2013 at 4:21:24 AM

Ok?!? Let's combine all information of all studies on the topic. The shutdown resulted in a movie sale increase but it also resulted in a movie sale decrease for low budget movies and independent movies, so the movie sale increase must have been for high budget movies. Well?
minkowski writes:
on March 10th, 2013 at 6:07:16 PM

@FBO: you and me both, nigga.
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on September 20th, 2016 at 4:55:33 PM


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