While 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.”
About Shelly Palmer
Named one of LinkedIn’s Top 10 Voices in Technology, Shelly Palmer is Managing Partner at Palmer Advanced Media, a technology-focused strategic advisory practice that helps Fortune 500 companies and growth-stage companies with digital strategy, data science, marketing, branding, and business development. He is Fox 5 New York's on-air tech and digital media expert and a regular commentator on CNBC and CNN. @shellypalmer or visit shellypalmer.com.
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"Report: MegaUpload’s Shutdown Increased Movie Sales" by @ShellyPalmer
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