Research

Choi, David Y; Perez, Arturo. Online piracy and the emergence of new business models. USASBE/SBI 2006 Joint Conference Proceedings. Tucson, AZ. ed. Toombs, Leslie A. 2006. 8 pp.

USASBE/SBI.

Abstract:  Although often dismissed by academics and professionals alike, online piracy is a valuable source of innovation for both industry incumbents and entrepreneurs. By shaping the evolution of file-transferring technology, providing market insight to the business world, and contributing to new market creation, online pirates have pioneered the use of new technologies.

This exploratory study examines the impact of online piracy on the emergence of innovative, legitimate business models. After a summary of the evolution of piracy technologies and associated online communities (from Napster and its followers to the new BitTorrent phenomenon and its impact on the emergence of new businesses), a literature review that underlines the scarcity of academic research in the area of online piracy is offered.

It appears that online piracy will continue to have a large impact on the fast-changing media and software industries. It is also argued that online piracy impacts industries through the following processes: (1) it pioneers the use of new technologies; (2) it offers the business world market insight; (3) it contributes to new market creation; and (4) it evolves into legitimate and innovative business models. These four processes are found to be repetitive, appearing with each technology generation.  (CBS)