Fighting free with free: Freemium vs. Piracy
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Author / Producer
Date
2024-12
Publication Type
Journal Article
ETH Bibliography
yes
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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.
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Publication status
published
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Book title
Journal / series
Volume
80
Pages / Article No.
106226
Publisher
Elsevier
Event
Edition / version
Methods
Software
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Date collected
Date created
Subject
Online piracy; Versioning; Freemium; streaming; Copyright; Music
Organisational unit
03988 - Köthenbürger, Marko / Köthenbürger, Marko
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