There has been a lot of research on pirate markets, from illegal downloads to counterfeit designer clothes, and it's pretty well understood. Pirate markets app

There has been a lot of research on pirate markets, from illegal downloads to counterfeit designer clothes, and it's pretty well understood. Pirate markets appear when the cost of a good in a market is way above the perceived value, and a pirated version can be produced for a fraction of the cost. Legit goods cost only money, but pirate goods instead cost time or uneasiness of breaking the law. Consumers then make cost-benefit analyses as to which version they want, and as long as enough consumers choose the pirated version, the pirate market is sustained. The way to beat a pirate market is to simply treat it as a legit competitor and out-market it. iTunes music store is so incredibly successful, because it is out-marketing illegaly downloaded music. Netflix is so incredibly successful, because it is out-marketing illegaly downloaded movies. They simply provide cheaper and better service than the previous legal alternatives.