The Effect of Graduated Response Anti‐Piracy Laws on Music Sales: Evidence from an Event Study in France |
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| Authors: | Brett Danaher Michael D Smith Rahul Telang Siwen Chen |
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| Institution: | 1. Department of Economics, Wellesley College, , Wellesley, Massachusetts, U.S.A.;2. School of Information Systems and Management, Heinz College, Carnegie Mellon University, , Pittsburgh, Pennsylvania, U.S.A.;3. Oliver Wyman, , New York, New York, U.S.A. |
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| Abstract: | Despite the problem that filesharing poses to the creative industries, there is little research on the effectiveness of governmental anti‐piracy policies. This study analyzes how the HADOPI 2 graduated response law in France affected digital music sales. Using a panel of sales data from the four major labels, we applied a difference‐in‐difference approach, comparing sales trends in France to a control group of European countries. We find that increased consumer awareness of HADOPI caused French iTunes music sales to increase by 22‐25%. The observed sales increase is larger in high piracy genres than low piracy ones, strengthening the causal interpretation of our results. |
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