2016
DOI: 10.1016/j.ijresmar.2015.06.005
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Accepting or fighting unlicensed usage: Can firms reduce unlicensed usage by optimizing their timing and pricing strategies?

Abstract: The rise of the Internet and new online services have led to the wide-scale illegal distribution of digital entertainment products, such as music, movies, games, and books. We analyze whether firms in the entertainment industry should fight unlicensed usage by providing specific offers that maximize the utility for segments relying on unlicensed usage, i.e., by optimizing timing and pricing strategies, or whether they should simply accept a certain level of unlicensed usage. We combine Becker's (1968) economic… Show more

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Cited by 15 publications
(5 citation statements)
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References 63 publications
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“…Chellappa and Shivendu (2005) find that the optimal use of software sampling strategy must be considered along with the consumers' perceptions of product and piracy deterrence strategies. Burmester et al (2016) examine whether firms should fight piracy by providing offers to discourage unlicensed usage, and find such an approach to have a limited effect. Prasad and Mahajan (2003) show that firms should start with minimum protection of its software, but impose maximum protection and maintain it thereafter during the software diffusion lifecycle.…”
Section: Software Piracymentioning
confidence: 99%
“…Chellappa and Shivendu (2005) find that the optimal use of software sampling strategy must be considered along with the consumers' perceptions of product and piracy deterrence strategies. Burmester et al (2016) examine whether firms should fight piracy by providing offers to discourage unlicensed usage, and find such an approach to have a limited effect. Prasad and Mahajan (2003) show that firms should start with minimum protection of its software, but impose maximum protection and maintain it thereafter during the software diffusion lifecycle.…”
Section: Software Piracymentioning
confidence: 99%
“…Despite these efforts, pirate websites are evolving and increasing. Interestingly, several studies (Adermon and Liang, 2014; Burmester et al , 2015; Sanz, 2015) suggested that closures of pirate sites have very limited impact on digital piracy and could be too costly to implement. Therefore, changing consumer attitude and behaviour could provide a more effective means of combating digital piracy in the long run.…”
Section: Introductionmentioning
confidence: 99%
“…For example, when we estimated the actual channel configuration at the time we conducted the study, the results reproduced the "real world" quite accurately, with the estimated percentage of producer revenues resembling actual channel percentages closely (±2 percentage points).408 Burmester et al (2016) calculate each channel's revenues simply by multiplying a channel's price by its "market share" from the channel-preferences determined via conjoint analysis.…”
mentioning
confidence: 90%
“…Whereas our results were robust under the assumptions of the study, 407 our approach leaves out some aspects; the influence of illegal channels on a channel configuration's optimality is certainly a notable one. In a partial extension and update of our study, Burmester et al (2016) added illegal file-sharing to the options a consumer faces when deciding whether, and through which channel, to consume an entertainment product. In addition to theater visits, DVD sales and rentals, and EST they also consider two more legal channels that have gained popularity since we conducted our study: VOD (i.e., digital rentals of movies) and Blu-ray purchases; they also offer the choice between high and low definition for VOD offers.…”
Section: Valuing Alternative Distribution Models Empiricallymentioning
confidence: 99%