Megaupload Shutdown Resulted In Movie Sales Increase

There are always two sides to a coin, and different viewpoints in a situation. For instance, one man’s freedom fighter is another man’s terrorist, and when it comes to a site like Megaupload, it is bound to split opinions on it right down the middle. According to The Wall Street Journal, they reported that movie sales actually jumped in a significant amount in the months that followed after Megaupload was ordered to shut down. This bit of information was taken off a new study that was conducted by Wellesley College assistant professor of economics Brett Danaher and Carnegie Mellon University professor Michael D. Smith.

Both researchers claimed that “shutting down Megaupload and Megavideo caused some customers to shift from cyberlocker-based piracy to purchasing or renting through legal digital channels,” which would provide ammunition for the anti-Megaupload camp, as it clearly contradicts previous studies that did suggest the suspension of Megaupload did not have a significant impact in lowering the instances of online piracy.

According to the researchers, “the shutdown of Megaupload caused weekly digital sales of movies from the two studios to grow by between 10,500 and 15,300 units from what would otherwise have been expected” while “rentals grew between 13,700 and 24,000 units a week.” Which side of the divide are you on?

Edwin Kee
Categories: Computers
Tags: megaupload