New blog

All new content on my restarted blog is here

Wednesday, March 26

How piracy helps business

Karen Croxson, a Junior Research Fellow in Economics at New College, Oxford, gave a lecture at the Royal Economic Society Annual Conference explaining how software and music piracy can actually help businesses.

While piracy may harm sales, it can also serve to provide free marketing, helping to create ‘buzz’ about a product.
This is product specific and may explain certain protections: console games vs. office software for example.
The unauthorised copying of digital goods such as software, music and films – a practice referred to as ‘digital piracy’ – has been claimed to place in peril the viability of whole industries. With perceived losses running so high, one might expect to see all sellers moving mountains to safeguard their intellectual property technologically. In fact there are some puzzling differences in attitudes.
Piracy can displace sales but highlights the importance of being realistic about this: not every copy implies a lost purchase. In any market there are some who value the product but never would buy (perhaps children with limited pocket money) and their piracy poses no threat to sales.

Given that the cost of piracy is likely to come down to a personal calculation (related to such things as the value of time, fear of penalties and moral costs), there may be variation across markets in the genuine sales threat – the temptation to pirate by those who would otherwise buy.
Croxson using the example of the Arctic Monkeys to explain how valuable 'word-of-mouth' is, although putting a sterling value on this is very hard to do.
The instant success of the music group's first album was due not to traditional marketing muscle but to the energy of early consumers who hyped its songs through social networking site

Hat-tip: Etre


  1. Anonymous28.7.10

    hermes bag are the dream of stylish ladies but I think only the rich and famous can afford to carry Hermes Lindy on their arm. For sure herme would really make them feel happy and delighted and gifted by obtaining such amazing bags.
    daidaihua is a combination of Capsicum (hot chilli pepper extract) Caffeine and Niacin. lida slimming is said to burn as many calories as you would burn following an hour and a half walk or a 25 minute jog, 278 calories it is reported. slimming capsule is available to purchase without prescription as slimming capsules consists of completely natural ingredients. lida is suitable for vegetarians and vegans and safe for anyone over the age of 16 in good health to use. lida daidaihua has already eclipsed its rivals by getting heavy publicity in the newspapers and magazines.
    These Chanel are made from calf skin and chanel watches is the symbol of durability and reliability of a good looking bag. Not only calfskin has been used but also Chanel handbag 2010 is there on the list to make the material of handbag soft and smooth.
    Each of Tiffany jewellery has its own unique features. No matter which kind you will choose, you can all relish the peculiar cultural connotation of silver charms. Tiffany charms are particularly distinctive, with designs ranging from classic solitaires to elaborate multi-stone arrangements. The diamonds are chosen for their high quality, and only the best gems appear in silver sets rings.

  2. Anonymous6.8.10

    The fashion ed hardy shoes for girls skinny leg denim jeans is massive! There are sever ed hardy shoes al reasons for this following. Firstly, these ed hardy shoes figure squeezing jeans are well-liked by teen superstars and girls often like to emulate their most loved star. They are also very easy to wear – jeans complement everything in your wardrobe and can be dressed up or dressed down
    based on the situation. Additionally, young women and teen girls prefer ed hardy clothing to have on something their own mothers can’t, and skinny ed hardy outlet leg jeans fit this description.

  3. Since you are pandora jewellery going to propose cheap pandora to your special someone only once, you should cheap pandora uk make things extra special pandora discount uk by looking into antique pandora uk art deco rings. The cheap pandora necklaces luxurious and classy look of these rings make them a perfect wedding ring pandora necklaces and charms option for those who want to make their proposal more memorable and exciting.Antique art pandora beads deco rings are known for pandora beads uk their decorative structure and their geometric designs. Their intricate cheap pandora beads patterns and bold colors make them every girls dream come true.



  5. Anonymous10.11.10

  6. Anonymous22.12.11

    The true this topic is one of the most controversial because it has to different faces
    Buy Viagra