Market-Based Strategies to Fight Piracy

Converting Pirates without Cannibalizing Purchasers The Impact of Digital Distribution on Physical Sales and Internet Piracy
Danaher, Brett, Samita Dhanasobhon, Michael D. Smith, Rahul Telang. 2010. Converting Pirates without Cannibalizing Purchasers: The Impact of Digital Distribution on Physical Sales and Internet Piracy. Marketing Science, 29(6) 1138-1151.
QUESTIONS: How does availability on legal digital channels impact the demand for piracy?
RESULTS: “NBC’s decision to remove its content from iTunes in December 2007 is casually associated with an 11.2% increase in the demand for pirate content.”

Understanding Media Markets in the Digital Age:  Economics and Methodology
Danaher, Brett, Samita Dhanasobhon, Michael D. Smith, Rahul Telang. 2015. Understanding Media Markets in the Digital Age: Economics and Methodology, Goldfarb, Greenstein, and Tucker, eds. Economic Analysis of the Digital Economy. Chapter 13 (pp. 385-406), University of Chicago Press, Chicago, Illinois. (Reprinted in the Alfred P. Sloan Foundation Economic Research Papers series.) (http://ssrn.com/abstract=2355640)
QUESTIONS:  How does availability on legal digital streaming channels impact the demand for piracy?
RESULTS: Distribution of television through online streaming (in this case, Hulu.com) can decrease piracy of that content by 15–20 percent…Firms can compete against ‘free’ pirated content by either making legitimate digital content easier to consume, or by making pirated content harder to consume.”

Delaying Content Leaves Money on the Table
Smith, Michael D., Rahul Telang. 2011. Delaying Content Leaves Money on the Table. Opinion and Editorial Page. The Hill. November 11. (http://thehill.com/opinion/op-ed/196051-delaying-content-leaves-money-on-the-table)
QUESTION: How do delays in international release dates impact sales in the presence of piracy?
RESULT: “Based on our analysis of seven large nations, we find that in most countries, every week customers have to wait before they can buy a DVD translates into, on average, 1.8 percent lower DVD sales.”

Why Digital Media Require A Strategic Rethink
Smith, Michael D., Rahul Telang. 2012. Why Digital Media Require A Strategic Rethink. Harvard Business Review. Idea Watch, October.
QUESTION: What strategies can firms use to respond to the new opportunities and challenges afforded by digital channels?
RESULT: Our research finds that making content available in digital channels has very little short-term impact on sales of physical products (e.g., DVDs), and that availability in legal digital channels can significantly reduce the demand for pirated content.

Windows of Opportunity: The Impact of Piracy and Delayed International Availability on Dvd Sales
Smith, Michael D. and Telang, Rahul, Windows of Opportunity: The Impact of Piracy and Delayed International Availability on Dvd Sales (May 26, 2016). Available at SSRN: http://ssrn.com/abstract=2784759
QUESTION: What is the impact of early piracy availability on DVD sales in legitimate channels?
RESULT: “An additional 10-day delay between the availability of digital piracy and the legitimate DVD release date in a particular country is correlated with a 2-3% reduction in DVD sales in that country.”