Pirate and chill: The effect of netflix on illegal streaming

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2023
Volume: 209
Issue: C
Pages: 334-347

Authors (3)

Frick, Sarah J. (not in RePEc) Fletcher, Deborah (not in RePEc) Smith, Austin C. (Institute of Labor Economics (...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Over 188 million people in the United States use a subscription video streaming service, yet digital piracy remains prevalent and costs the U.S. economy an estimated $29.2 billion annually. This paper investigates the relationship between a movie's availability on Netflix, the largest video subscription service, and intent to illegally stream the movie. We leverage a contract dispute that caused Epix (a cable network company) to move all its movies from Netflix to Hulu, representing a substantial decrease in the legal streaming availability of these movies. Using a difference-in-differences design, we find that reducing legal streaming access via the removal of Epix movies from Netflix results in a 20% increase in piracy intent relative to movies that remained on Netflix, as measured by Google search volume. This study contributes to the understanding of the substitution between legal streaming services and movie piracy and has implications for content owners deciding what platform to offer their movie on.

Technical Details

RePEc Handle
repec:eee:jeborg:v:209:y:2023:i:c:p:334-347
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29