It looks like the entertainment industry may have gotten its money’s worth after
law enforcement officials shut down Kim Dotcom’s Megaupload last year.
The Wall Street Journal reports that movie sales increased significantly after Megaupload went offline, according to new study conducted by Wellesley College assistant professor of economics Brett Danaher and Carnegie Mellon University professor Michael D. Smith. The two researchers say that “shutting down Megaupload and Megavideo caused some customers to shift from cyberlocker-based piracy to purchasing or renting through legal digital channels,” contradicting earlier studies that
suggested shutting down the site did little to lessen online piracy.
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