Report: MegaUpload’s Shutdown Increased Movie Sales

MegauploadWhile Kim Dotcom continues to fight his Megaupload copyright case in New Zealand and the United States, a new academic study concludes 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.” On Wednesday, Brett Danaher and Michael D. Smith, professors at Wellesley College and Carnegie Mellon University respectively, published a paper on the well-known Social Science Research Network. The pair write: “Controlling for country-specific trends and the Christmas holiday, we find no statistical relationship between Megaupload penetration and changes in digital sales prior to the shutdown. However, we find a statistically significant positive relationship between a country’s Megaupload penetration and its sales change after the shutdown.”

Read the full story at Ars Technica.

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Shelly Palmer

Shelly Palmer is Managing Director, Digital Media Group at Landmark Ventures/ShellyPalmer a technology focused Investment Banking & Advisory practice specializing in M&A, Financings, Strategic Partnerships and Innovation Access. He is Fox 5 New York's On-air Tech Expert and well known for his work on Fox Television's Shelly Palmer Digital Living as well as his daily radio report on United Stations Radio Networks. For more information, visit shellypalmer.com.

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