Paper Number

2584

Paper Type

short

Description

Considering a setting where a content provider (CP) sells their content to customers over a network owned by an ISP, we examine whether the CP can use monetary incentives to encourage the ISP to fight digital piracy without any intervention by the policymaker. In our model, the CP sets a fraction of its revenue that is shared with the ISP and the price of its content, the ISP determines its anti-piracy enforcement level, and users decide whether to purchase, copy, or not use the content. We find that voluntarily sharing its revenue with the ISP can lead to increased profits for the CP, non-decreasing profits for the ISP, and reduced piracy. More importantly, we find that although being characterized by low data usage raises the chance of achieving a revenue sharing contract, it also exposes the CP to higher levels of digital piracy.

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22-Digital

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Dec 11th, 12:00 AM

Fair Play for Fair Pay: Fighting Digital Piracy through Revenue Sharing

Considering a setting where a content provider (CP) sells their content to customers over a network owned by an ISP, we examine whether the CP can use monetary incentives to encourage the ISP to fight digital piracy without any intervention by the policymaker. In our model, the CP sets a fraction of its revenue that is shared with the ISP and the price of its content, the ISP determines its anti-piracy enforcement level, and users decide whether to purchase, copy, or not use the content. We find that voluntarily sharing its revenue with the ISP can lead to increased profits for the CP, non-decreasing profits for the ISP, and reduced piracy. More importantly, we find that although being characterized by low data usage raises the chance of achieving a revenue sharing contract, it also exposes the CP to higher levels of digital piracy.

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