Monday, June 4, 2012

What’s the true cost of piracy?

http://venturebeat.com/2012/03/15/true-cost-piracy/


      As we can see on Infographic , the true cost of piracy is close to zero. Piracy neither creates nor destroys money. It may redirect money from one industry to another, but not lose them. Let’s look at this situation from penniless students side, who cannot afford to go to the cinema or do not have a expansive movie on their computers. The movie industry would let us believe they have lost money. 

          Let’s look at reality, if piracy was somehow made impossible overnight and all illegal copies destroyed. The students would still be penniless, and the movie industry would be no richer from it. Other industries like advertising will lose even much more money, then they could possibly earn on “free download” sites. 

      However, most of the time there are negative and positive sides of theme. I suggest not only see statistic, and listen somebody’s comments, but also know how to read, and analyze information.

7 comments:

  1. I do not understand or see how music professionals or actors make so much of money. A part of me is probably just jealous. Actually, all of me is pretty jealous. But let's see this situation from the artist's perspective. You state that, "Piracy neither creates nor destroys money." Doesn't piracy destroy the chances of artists making money? Production studios? Record labels? Films normally cost millions to make, as do songs. If you were the artist, would you appreciate the websites, individuals, or groups that stole your movie or music and released it on the internet or in the market where you were not getting anything from them?

    ReplyDelete
  2. Piracy has a drastic impact on many industries, it is not only the music industry that is loosing massive amounts of money from the devastating effects of piracy. However, you shouldn't be so jealous of the money the artist are making because believe it or not artist do not make a ton of money from their songs. There was study done to survey college student's reasoning behind their illegal actions of pirating music. The number one misconception was that the artist make so much money by selling CD's or one song on iTunes that it does not matter if a "couple" albums or songs are not legally purchased. However, if we broke down the purchase of one song from iTunes it would quickly understood that artist are not the one's making the massive amount of money from the music industry, it is the actual record labels. Out of the $.99 song from iTunes $.47 goes to the record label and only a petty $.07 goes to the actual artist.

    I am pretty sure that the larger artist, who are well established in the music industry, are not happy or appreciative of wide spread exposure to illegal file sharing websites with their songs/albums; however, this may not be the case for the up and coming artist. Pirating music allows new artist to receive a massive amount of exposure without any help from expensive record labels. Some artist who are trying to get certain messages out through a particular song or album encourage their fans to "burn" and distribute their music, an example being Immortal Technique in his song Burn This.

    My point is that yes the artist are losing money from their loss in album sales; however, their exposure is allowing them to increase tours and ticket sales. So the real people making money that you can be jealous about are top executives in the record labels.

    ReplyDelete
    Replies
    1. The top winners in this case are the record execs,they in fact pirate music too with that same exposure the fan gets.The mixtape market is huge when it comes to these guys,The record labels listen to the "streets to find out what artists they are willing to make apart of their label. It is easier for them to enter the mix tape market versus paying to have promotions,showcases,etc to find new upcoming artists as well as the ones all ready in existence.

      Delete
  3. I am with piracy 100% on music and movies. The question here do we enforce stronger laws against piracy, or we look for the reason behind piracy?
    In my opinion, if we want to decrease piracy over music and movies we should lower the prices of them, and instead of having less sales with higher prices, we will have higher number of sales with lower prices. The legal movies online are between 3.99 and 5.99 to rent, or I just own the movie with the same quality for free.

    At the end, I think piracy is harming both industries, but singers for example try to make up their losses through concerts and world tours. The actors does also go on tours to promote their movies to gain more profits. Piracy is harmful, but there are ways to get around the losses.

    ReplyDelete
  4. It’s hard to tell that how the artist making money. It’s confusing in everywhere. It’s like you can go online and download it and put it in a CD so where is the difference, and you saved 5$ ? The piracy is not good for the artist. I think movies can make money, because people would like to go to the theater rather than staying at home.

    ReplyDelete
  5. Although money may not be created or taken away from the cost of privacy, because like you said even if all the illegal copies were to be destroyed companies will not be any richer and customers will still have no money personally. I think the effects of piracy comes into play when the people who work in industries such as movies, and music. This is because the record executives make a majority of their money off of the sales of the artist while the artist only gets a small percentage from actual sells. I think it just harms all the small people in these industries because they need the support of fans to keep the label working and paying the lower wage workers with these funds. So when people download free music they are able to enjoy the product but it hurts the small people that work behind the scenes.
    Response by Bryan Gaither

    ReplyDelete
  6. Piracy is defined as an act of robbery or theft. Yet, as you explain here, money is neither created or destroyed. Therefore, should piracy really be viewed as such a series crime? Money won't be given to an industry, because the act is mainly done by penniless citizens. "Just because I pirate a movie doesn’t mean that I would’ve bought it if piracy wasn’t an option." Joe Lee also states that many artist wouldn't have been even discovered if it wasn't for piracy. I truly agree with this statement. I don't believe it's a good thing either. Just simply a neutral reality which has been brought on by the rise of technology. I think a more simpler method of enforcement should be acted upon this crime.

    ReplyDelete