Tolerating Piracy Can Reap Benefits for Consumers and Creators, Research Finds

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As per the New Research, tolerating piracy can actually benefit the customers, creators and retailers. It’s a complete win-win situation as per research which can have a positive outcome on the overall economy of any country.

Using the ever famous game of Thrones as an example, the researchers found that tolerating piracy to some good extent can bear positive results. Therefore, come along as we will go in-depth about the phenomenon of tolerating piracy and much more things.

Tolerating Piracy Can Benefit Consumers, Creators Story

Since the past few years, entertainment companies and tightened their screws on Piracy companies. Each day, different lawsuits are made and every single pirate sites are becoming inaccessible. However, since it a billion dollar industry, site owners have found a way after every blockage. Either by creating mirror sites or using a VPN tunnel, major pirate sites are still running without an issue.

However, based on the new research and study by Indiana University, researcher Aritino Kim conducted a test with its colleagues. After the test, they concluded that piracy can bear some really positive outcomes.

Also, in the latest economic impact model and the article named, “The Invincible hand of Piracy”, the findings were published.

According to the analysis, piracy is limiting the pricing power of the retailer along with the creator. This definitely reduces the overall impact of double marginalization which happens when the creator and retailer add to the product prices.

A Word of Mouth by Kim

“When information goods are sold to consumers via a retailer, in certain situations, a moderate level of piracy seems to have a surprisingly positive impact on the profits of the manufacturer and the retailer while, at the same time, enhancing consumer welfare. Such a win-win-win situation is not only good for the supply chain but is also beneficial for the overall economy,” they add.” Kim wrote.

The researchers showed the most popular game of Thrones as an example. Despite the growing piracy of this particular game, HBO hasn’t taken many massive steps. They are not letting people stop sharing of the game because they know it’s helping them to grow their game’s fan base.

Also, the article authors note that creators along with retailers don’t need to encourage piracy to a massive scale. However, tolerating piracy can help improve the overall publicity of any film or TV show.

Some more words by the Researchers

“The implication is simply that, situated in a real-world context, our manufacturer and retailer should recognize that a certain level of piracy or its threat might actually be beneficial and should, therefore, exercise some moderation in their anti-piracy efforts,” the researchers wrote.

“This could manifest itself in them tolerating piracy to a certain level, perhaps by turning a blind eye to it. Such a strategy would indeed be consistent with how others have described HBO’s attitude toward piracy of its products,” they add.

Read More: Torrent Paradise Develops a Decentralized Pirate Bay Using IPFS

Conclusion: Tolerating Piracy Can Benefit Consumers, Creators & Retailers

The findings are clearly based on the economic model that can work for retailer sold information goods. Also, Piracy will not always have a positive effect but at some point in time, it can reap positive outcomes.

Therefore, for entertainment companies, they will have to become a lot persistent. And believe that tolerating piracy can have good effects on their business.

content credit- Torrent Freak


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