Controlling digital piracy via domain name system blocks: A natural experiment

• Published in: Journal of economic behavior & organization 2024-02, Vol.218, p.89-103
• Main Authors: Reis, Filipa, Godinho de Matos, Miguel, Ferreira, Pedro
• Format: Article
• Language: English
• Subjects: Cultural protection policy; Digital piracy; Natural experiment
• ISSN: 0167-2681; 1879-1751
• DOI: 10.1016/j.jebo.2023.12.005

We study the impact of batch DNS filtering of copyright-infringing websites, a novel administrative-based process that does not require judicial involvement. In partnership with a large telecommunication provider, we measure the impact of this intervention on piracy activity and the legal alternatives integrated into households' media subscription bundles, an aspect largely unexplored in prior literature. We find a significant reduction in Internet traffic, which proxies piracy activity. However, we do not observe statistically significant changes in the consumption of the legal alternatives under consideration, only a slight increase in TV viewership. To further understand these outcomes, we examine the heterogeneity of these results based on households' pre-block usage intensity of digital piracy and demographic characteristics. Our work contributes to the literature on the effectiveness of piracy control strategies and informs policy makers and industry practitioners about the benefits and limitations of DNS-based website blocking. •Digital pirates are heavy users of paid and free legal media.•DNS blocks on piracy sites lower Internet traffic, indicating less piracy.•DNS blocks don't affect pay-TV, VoD, and paid channels' consumption.•DNS blocks are less effective against piracy in households with young people.