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Is piracy helping or hurting online word of mouth buzz around motion picture releases?

Postby MrFredPFL » Wed May 15, 2019 10:40 pm

Story : https://phys.org/news/2019-05-piracy-online-word-mouth-motion.html





Researchers from the University of Houston and Western University in London, Ontario, published new research in the INFORMS journal Management Science that has found that the power of word of mouth (WOM) is effective at boosting demand for counterfeited copies of motion pictures, but it depends on when the copies are made available.

The study to be published in an upcoming edition of the INFORMS journal Management Science is titled "Does Piracy Create Online Word of Mouth? An Empirical Analysis in the Movie Industry," and is authored by Shijie Lu of the University of Houston, and Xin (Shane) Wang and Neil Bendle of Western University in London, Ontario.

According to the study's authors, counterfeiting or online piracy can help create online WOM and boost demand, but if the counterfeits are made available during the pre-release time period in advance of the motion picture's official screening, that can lead to lower box office revenues. But, when counterfeited copies of movies are made available to the public after the official release of a motion picture, the pirated copies show a positive correlation to the WOM effect and higher revenues.

The researchers were able to use real-world developments, in part, to analyze the impact of limited online access to counterfeits when a major web site that traffics in online motion picture piracy was taken down.







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