MegaUpload shutdown bad for the Box Office business?



The resounding MegaUpload shutdown is almost history, Kim Dotcom is waiting to start a new (seemingly) legit business with its Mega service and researchers are now trying to understand what kind of impact (if any) the end of one of the most popular file sharing services on the Internet had on the entertainment business.

A new paper coming from European researchers is in particular focused on the film industry, being the Motion Picture Association of America (MPAA) one of the most powerful organizations behind the MegaUpload demise.

The paper analyzes data about 1,344 films in 49 different countries and their corresponding performances in theatres over a five-year period, highlighting the audience differences before and after the MegaUpload shutdown.

The researchers state that the file sharing service demise did in fact had a noticeable (negative) effect on the box office revenue, even though different types of entertainment reacted in different (opposed) ways to the pivotal event: blockbusters, Hollywood-type films went up, while smaller products were negatively impacted by the shutdown.

“Our counter-intuitive finding may suggest support for the theoretical perspective of (social) network effects”, the researchers write, “where file-sharing acts as a mechanism to spread information about a good from consumers with zero or low willingness to pay to users with high willingness to pay”. The “word of mouth” promotion theory is in fact true, the paper suggests, and the overall film industry lost a sizeable amount of money because of the MegaUpload shutdown.


Source: Neowin
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Comments (8)
  • 0
    1bunglung 27 Nov 2012 #

    Da Nile, not just a river in Egypt.

    MPAA shot them selves in the foot.

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    sefton222 27 Nov 2012 #

    same thing happened to YouTube when music videos were banned from being uploaded.

    As for the MPAA, I find that more and more so called 'blockbusters' are more of a let down. I have now got into the routine of watching a film and if it is a decent movie I will buy it, if not it gets deleted.

    Reply
  • 0
    skopas 27 Nov 2012 #

    lol...MPAA bunch of Jerkoffs. Thankfully we have more hosters to choose from. Mega was one of the first so its fond memories. Funny how this goes, my bro in law lives in NYC. He says when a new movie comes out that very afternoon they are people selling copies on the corner. SO much for control, aint going to happen.

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    PaxMundi 27 Nov 2012 #

    Really interesting news: Blockbusters and mainstream movies suffer from file hosting activities whereas smaller enterprises benefit?

    We all know that file hosters will chose national environments poising less of a threat and -- they'll find them.

    Wanting to control the internet is much like attempting to ban the Bible's translation which became available since 1521!

    Reply
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    DavidAmaya 27 Nov 2012 #

    my take on all this is;

    Blockbusters suck or not based on their trailers. if a "movie" watcher wants to pay an arm and a leg for 2 hours of mindless entertainment they will get disappointed more often than not, so the "cinema" viewer, (Documentaries, low-budget art films and the like) doesn't hear about a great small market film, enter the Internet and sites like (**Cough** SA) Mega, someone sees a low budget flick and they tell their friends, and with the internet to help those firends tell 100s they don't even know!


    FREE DOT. COM!!!!!!!!!!!

    Reply
  • 0
    DavidAmaya 27 Nov 2012 #

    besides how does the MPAA know just how much a film DIDN'T make??

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    DavidAmaya 27 Nov 2012 #

    in 1991 If I don't think I'll like a film, I would wait untill it it hit my local Blockbuster Video since i was in college and couldn't afford $5.00USD for a ticket, Now If I don't think I'd like a film I'll DL it, If I love it (like the Hobbit!) I'll shell the ransom to see it on the Big Screen, if not (Red dawn redid anyone?) I'll wait until it makes it's way onto my Netflix Que somewhere between a classic Disney feature and season 3 of Adam-12!!

    Reply
  • 0
    Ozzman 27 Nov 2012 #

    One just never knows how how the pins will fall until the end .

    Reply
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