The Online Market for Illegal Copies of Magazines: A German Case Study

Abstract

A few years ago, publishing companies started to sell digital copies of their magazines. This study investigates a consequence of this change: the increasing online trade with illegal copies. We collected data on almost 10,000 issues of German magazines that are illegally offered online. The files are distributed in a three-sided market, in which a small number of platforms bring suppliers of illegal copies, consumers, and advertisers together. The market has been growing rapidly—between 2009 and 2012 by a factor of 10. In contrast to the legal magazine market, the illegal trade mostly concerns IT and consumer electronics magazines.

Additional information

Notes on contributors

Marcel Garz

Marcel Garz (Ph.D., University of Hamburg, Germany) is a postdoctoral researcher at Hamburg Media School. His research interests include the economics of media markets and information processing.

Armin Rott

Armin Rott (Ph.D., University of Dortmund, Germany) is professor of Media Economics, University of Hamburg, and head of the Media Management Department at Hamburg Media School. His research focuses on media economics, media management, and competition policy.

Matthias Wass von Czege

Matthias Wass von Czege (M.B.A., University of Hamburg, Germany) is a graduate of the Media Management Program of Hamburg Media School. His research interests include marketing, advertising, and magazine piracy.