Tuesday, December 4, 2012

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The 3 Step Plan in Solving Internet Piracy: Prelude & Step 1


My Argument: 

Internet piracy is a continuous issue, and it will never be stopped, but it can be effectively reduced and managed by shifting industry and consumer attitudes, new business models and an appropriate legal policy. 



Step 1: Changing Industry Attitudes

In order to reach potential solutions, the economic impact of piracy should first be considered and examined. An OECD Report has said that many statistics about how internet piracy has had a hugely negative impact on the economy and respective industries are skewed and inaccurate (read). Piracy of other products though, such as pharmaceuticals, electronic and automotive components have a much greater impact.

Executives in industries that rely on Digital copyrighted intellectual property such as music, film, software, argue and claim lost revenue due to pirates getting their work for free. The problem is that the entertainment industry forgets to recognize and factor in the benefits the internet, digital technology and piracy has given them, such as zero-cost viral promotion, cheap production costs, and a wider supporting audience. (More on this)

Even during tough economic times, the entertainment industries in music, games, software, books and film have grown over 50% in the past ten years, total film box offices have increased 7+ billion from 2006 to 2010 according to complied statistics from UNESCO, Bloomberg, MPAA and others. Job losses? The net job loss in music and film industry in 2010 was roughly 70,000, but the statistic fails to directly indicate piracy as the cause. In an international study done by the Organization for Economic Cooperation and Development (OECD), there was no correlation found between internet piracy and significant revenue loss and also no correlation that piracy discouraged creators and studios to produce more works.

Unsurprisingly another study showed that the top pirated films were the ones most successful at the box office, so another perspective is that if your movie isn't being pirated, people probably don't want to see it.

Notice, I it didn't say good movies, even this horrible movie has a continuing box office because of it's cult following.




Again, the point here is that the issue of Internet Piracy is exaggeratedly blown out of proportion and belongs nowhere near the list of economic problems in the U.S., and the industry needs to fix its level 5 DEFCON attitude about it. Contrary to Pro-Piracy critics though, it is a very real problem in that it is advancing a self-entitled and disrespectful generation and culture of consumers (Perfect Example). 

The industry therefore needs to partake in the solution by accurately understanding data and the impact of piracy, rather than radically claiming losses and attempting to keep an old and ineffective business model. A more comprehensive attitude and approach in which the industry adapts to the evolving markets and technology is itself, a solution because it leads to development of newer and effective business models.

When RIAA record labels produce and try to sell a 13 song album for $15-20, and consumers only want the one good song, they will much rather use the internet's iTunes to just buy that one song for 99 cents or pirate it. To many record labels, that is a loss in $14-19 right there, because they were not able to rip you off a whole album for one song. Consumers are discouraged to purchase CD Albums in this perspective, which is why businesses should use music as a gateway to promote other products. A study has shown that Japanese albums that come with memorabilia and non-digital exclusive content, have directly made more sales than normal CD's. Another Techdirt analysis reveals that although physical album sales have decreased, more money has gone into live performances and shows, which businesses should capitalize on. Slight changes in business models like these could have significant impact on sales. 




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1 comments:

em lies tho u lovz that movie :'c

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