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Do Illegal Copies of Movies Reduce the Revenue of Legal Products? The case of TV animation in Japan

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Research/Policy Papers
Author NameTANAKA Tatsuo  (Faculty Fellow, RIETI)
Creation Date/
NO.
January 2011  11-J-010
Research ProjectSearching for Optimal Copyright Protection Levels
Download / Links Download paper [PDF:601KB] (Japanese)

Abstract

Whether or not illegal copies circulating on the internet reduce the sales of legal products has been a hot issue in the entertainment industries. Though much empirical research has been conducted on the music industry, research on the movie industry has been very limited. This paper examines the effects of the movie sharing site Youtube and file sharing program Winny on DVD sales and rentals of Japanese TV animation programs. Estimated equations of 105 anime episodes show that (1) Youtube viewing does not negatively affect DVD rentals, and it appears to help raise DVD sales; and (2) although Winny file sharing negatively affects DVD rentals, it does not affect DVD sales. Youtube’s effect of boosting DVD sales can be seen after the TV's broadcasting of the series has concluded, which suggests that not just a few people learned about the program via a Youtube viewing. In other words YouTube can be interpreted as a promotion tool for DVD sales.

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