Digital piracy

This chapter reviews the academic research related to digital piracy. The chapter begins by reviewing the collection of studies that have attempted to measure the sales displacement effect caused by piracy. It discusses the various methods and data that have been used to examine this effect across different types of (digital) entertainment content. The chapter then discusses the empirical challenge faced by such studies (the endogeneity problem), before proceeding to review a related collection of research studies that have used policy and/or supply-side shocks to identify the sales displacement effect. Finally, the chapter discusses the short- and long-run welfare implication of piracy, and the effects that new streaming services (such as Spotify and Netflix) have had on the unlawful activity.