Fighting free with free: Freemium vs. Piracy


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Date

2024-12

Publication Type

Journal Article

ETH Bibliography

yes

Citations

Altmetric
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Data

Rights / License

Abstract

We analyze the optimal business model of a firm facing piracy. The firm either sells a premium version of its product, or also offers a free version along with the premium version. The firm can in turn impose restrictions on the use of the free version. Consumers can choose between the free and the premium version, but can also get an illegal digital copy. We show that freemium offers can reduce digital piracy by fighting free with free and that firms choose their optimal business model depending on the strength of copyright protection. Therefore, the strength of copyright protection can lead firms to choose a traditional business model rather than the new freemium model, impacting significantly the legal usage of the good.

Publication status

published

Editor

Book title

Volume

80

Pages / Article No.

106226

Publisher

Elsevier

Event

Edition / version

Methods

Software

Geographic location

Date collected

Date created

Subject

Online piracy; Versioning; Freemium; streaming; Copyright; Music

Organisational unit

03988 - Köthenbürger, Marko / Köthenbürger, Marko check_circle

Notes

Funding

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