Notorious cyberlocker Megaupload was shuttered on January 19, 2012 and a pair of U.S. researchers says that in the 18 weeks following, there was a 6-10% increase in digital movie revenues across 12 countries. Using data from two anonymous Hollywood majors, the academics put together a just-released study titled: Gone In 60 Seconds: The Impact Of The Megaupload Shutdown On Movie Sales. The findings are based on online rentals and purchases in the U.S., the UK, Australia, New Zealand, Belgium, France, Germany, Spain, Mexico, Austria, Ireland and Canada. The researchers notably found that in those territories where pre-shutdown usage was higher – like Spain – there were larger increases in digital sales and rentals post-shutdown. They estimate that across the two studios, 18 weeks and 12 countries, weekly rental units increased by 13,700 to 24,000 due to the Megaupload shutdown and that weekly digital sales units jumped 10,500 to 15,300. “We conclude that shutting down Megaupload and [sister site] Megavideo caused some customers to shift from cyberlocker-based piracy to purchasing or renting through legal digital channels,” said Wellesley assistant professor of economics Brett Danaher and Carnegie Mellon professor of information technology and marketing Michael D. Smith, who conducted the study. Smith is also co-director of the Initiative for Digital Entertainment Analytics at Carnegie Mellon which was created late last year through an unrestricted gift from the MPAA. However, Smith tells me that no MPAA money was used for this research project. Megaupload’s brainchild, Kim Dotcom, meanwhile is in New Zealand fighting extradition to the U.S.


I call bullshit.
So do I. Information provided by anonymous sources to a group funded by the MPAA does not sound good to me. Plus, correlation does not equal causation even if all the facts are correct and being interpreted correctly. What differences were there in material being offered? What other factors could have had an effect. The MPAA wanted a certain result and the entity they fund produced it.
Ditto.
Waa! I want free movies entertainment that other people slaved to make! Waa! Next your going to tell me its wrong to steal other things other people built, like computers and cars! I have to pay for those too?! WAA!
You are a fool. Calling out studios when they basically lie in a story like this is the right thing to do. They never mention that not only did Megaupload close but many similar websites self shutdown after it as well.
And how about Hollywood and the American government now spying on people to accuse them of downloading copyrighted material with no evidence?
You realize there’s a difference between calling BS on this study and advocating for piracy?
“Smith is also co-director of the Initiative for Digital Entertainment Analytics at Carnegie Mellon which was created late last year through an unrestricted gift from the MPAA.”
Enough said.
So this study was financed indirectly by the MPAA? I agree with Phone Home, smells like bullshit. Just like when Wolverine was leaked in its entirety, then opened to ninety million dollars. There is no correlation, and Hollywood just won’t accept that.
IDEA is funded by the MPAA and the researchers give expert testimony for the FTC and CIC.
http://idea.heinz.cmu.edu/
Or maybe it’s easier now to buy things online than before…
I agree. Megaupload was a significant player in the file download world, but anything you can get through the file download sites, you can get through torrent sites and the torrent downloads are usually much faster. The file download sites are used mainly for downloading pirated porn.
I agree with Phone Home. The increase in revenue could have been caused by:
* Increased prices
* Increased availability of digital releases (Apple TV, VOD on Cable, etc.)
* Or Increased Quality … look at how well the movies nominated for Best Picture did this year… 2012 was a record year at the box office… so the increase in digital revenues would go hand and hand with that.
Movies were only available on Megaupload, right. Complete bullshit and propaganda from the MPAA.
has this study been peer reviewed by a department that WASN’T funded by the MPAA? Also, wasn’t rental use already on a steady incline before the megaupload shutdown?
I second that bullshit! Amen.
I’d be curious to see what shutting down Pirate Bay would do. It is so common, even among the technological illiterate to download these days… Just shutting dow a handful of the major torrent sites could have a huge impact.
s
That is complete BS. Megaupload wasn’t the only place to download movies and TV shows, it was just the most popular. There are/were numerous popular cyberlockers and torrentsites still in operation after MU was taken down. People wouldn’t just stop downloading things altogether just because one of many sources was no longer available.
Not to mention the fact that people who generally download things are the ones who wouldn’t pay for it, regardless. So they certainly aren’t going to pay for things once their favorite site is no longer operational.
Either those numbers are crap or those sales coinciding with the shutting down of MU was a coincidence.
Wow! A study funded by studios prove what they want it to! What are the odds?
The basis of this premise, for all reasons stated above and more, is faulty to begin with as Megaupload was not the only source for online downloading.
Since all numbers provided by studios are false anyway…why exactly should we trust these? It seems the only numbers the studios want to swear by to anyone who isn’t on Wall Street are numbers that show how money money they’re losing. To Wall Street though…well their quarterly earnings are BETTER THAN EVER! What a joke.
This is total B.S, Sorry, I do not buy this for a second.
Correlation does not imply causation.
Those numbers are highly selective…
“Using data from two anonymous Hollywood majors”
So you pick the two studios who benefited most from the Megaupload closure and ignore all the smaller players who had a decrease in sales over the same period.
And I don’t think that having an “unrestricted gift from the MPAA” in one part of your life is a great start to conducting any form of independent research.
Yeah this is pucky
Exactly, of course its “anonymus”(not) its the same people who take bribes from hollywood attorneys to some how apply u.s. law to other countries which isn’t even legal. All torrent sites outside of the usa do not fall under usa law. It’s ridiculous, there is no such thing, but if you bribe the right people like piratebays case somehow he was charged in sweden under u.s. law. How twisted.