The effect of Netflix on movie piracy and its impact on the movie industry

• Autor(a) principal: Wagener, Mauritz Constantin
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29769
• topic: Piracy; Movies; Netflix; SVoD; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

We conduct a multiple group fixed effects analysis on the effect on two differently structured datasets. On the country level we examine the effect of Netflix being present on the level of movie piracy. The results show that movie piracy is decreasing by 1.8% per month overall. However, when looking at the entire time period the availability of Netflix in a country does not significantly decrease piracy levels. When focusing on the time period of the largest country expansion of Netflix we can observe a significant decrease in piracy on a country level by 8.1%. When examining piracy on a movie level, we come to the conclusion that the most important factor in reducing piracy levels is the size of the catalogue. Movies that are available within catalogue in the 95th percentile of size have shown a decrease of 22.8%. However, counterintuitive to popular belief a movie just being available on Netflix does not decrease piracy levels. The effect however is heterogeneous across countries where English speaking countries have shown a lower piracy level when a movie is available compared to non-English speaking countries.