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Impact of piracy in the music industry

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Megan Paquin

on 21 December 2012

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Transcript of Impact of piracy in the music industry

Impact of piracy in the music industry From the years 2001-2011 Megan Paquin Piracy is: Music piracy is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent. Facts: Each year, the music industry loses about $4.2 billion (US) to worldwide piracy. For every legal track sold online, 20 are 'stolen.' The average iPod has about $800 (US) worth of illegal tracks on their iPod/iPhone. 30 billion pirated CDs and DVDs are manufactured globally each year. Websites hosting pirated content receive more than 146 million visitors per day. More than 75% of all registered computers have at least 1 downloaded illegal application. Access to older music no longer in print Creates devout music fans By the way that contracts are made, the artist that makes the music doesn't own it. The record company that produces the music does. When artists change labels, therefore, their new label isn't allowed, by the contracts signed with previous record labels, to reproduce the music the artist has already made. So, if the previous label(s) decide to not print anymore albums or release the songs, the music if 'dead.' By downloading the music, it effectively an easy way for people to access these 'dead' songs. Illegal music downloading is mostly done by teens that both have the time it takes to download mass amounts of music, and who don't have the money to buy the albums. But by having them download music, it creates a love of music nevertheless, that they carry from being a teenager to an adult. Cons of Music Piracy The people who pirate the music are the first to lose out. Recording industries and Law enforcement officials are cracking down around the world. Consumers also lose because the shortcut savings enjoyed by downloading music drive up the costs of legitimate product for everyone. Record companies lose.
85% of released recordings don't make enough money to cover the costs. The record companies depend heavily on the 15% that make a profit of recordings to cover over the less profitable types of music, to cover the cost of making new artists, and to keep their companies running. The downloaders and thieves often don't think about the eighty-five percent; the go 'straight to the top and steal the gold.' Earliest Methods of Music Piracy Movies TV Almost as soon as cassette players, voice recorders and VCR's were released, they were brought to court and sued for unauthorized distribution of property. Another thing that brought on controversy was TV shows. like MTV and VH1. These shows brought the rights to certain songs and later aired then on TV where millions could enjoy them. Present methods Streaming Streaming is known as playing sound or video in real time as it's being downloaded over the internet rather than storing it in a local file first. Applications/Programs All applications and sites contribute to one thing which we don’t think about to much. That is getting music or other media files for absolutely no cost or recognition to the person who created it. Online Music Stores Programs (iTunes, Napster, etc.) have moved onto charging minimal amounts of money for songs and other media files. Although it costs a small amount of money, many people use the costless method. Gr.11 Applied Math Teacher: Mr. Makysmchuk Future Methods of Music Piracy CD's If piracy becomes an intense problem, media companies might start maing rip-proof CD's. These CD's won't be able to be copied or ripped onto a computer. In the future of goverment laws, they could outlaw file sharing and programs that let people download media for free (Kazaa, mp3.com, MediaMonkey, BitTorrent & Limewire. File-sharing Webistes and Programs Streaming Streaming is a feature that lets someone listen to the song or watch the movie without actually downloading it. This allows people to discover mew music, perview albums, then decide if they wanna buy it. December 21st, 2012 Highlights of piracy stats In 2008, 41% of software installed on PCs in that US were pirated. $51 billion(us) was lost in 2009 because of online piracy. From 2004-2009, 30 billion songs were downloaded illegally. Over 70% of Americans think that sharing movie and music files with a family member is okay. Over 50% of Americans feel that sharing movie and music files with friends is okay. Democrats and Independants are more likely to download illegal material over the internet. Hundreds of millions of dollars are used annually to combat against piracy in the United States. 70% of people between the ages of 18-29 have admitted to downloading illegal content. The True Cost of Piracy claimed losses In 2008, 41% of installed PC software was accounted for by piracy. Within the years of 2004 and 2009, approx. 30 BILLION songs were illegally downloaded on file sharing networks. It was reported that movie piracy costs U.S. film studios about $25 Billion a year. Anti-Piracy Budgets The True Cost of Piracy cont'd Great and expensive lengths are met when copyright industries to enforce advocacy and anti-piracy campaigns. Int'l Federation of the Phonographic Industry: Recording Industry Association of America: Motion Picture Association of America: Business Software Alliance: Used $120 Million Used between $45-55 Million Used between $60-75 million in the year of 2009 Used $55 million in 2007 |
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| (All in US $) Websites used for this project http://library.thinkquest.org/06aug/02241/effects.htm http://www.go-gulf.com/blog/online-piracy http://www.a2im.org/objectives.aspx http://www.iese.edu/en/files/6_8386.pdf#search=%22pros%20and%20cons%20of%20internet%20music%20downloading%22 http://ansonalex.com/infographics/online-piracy-statistics-2012-infographic/ http://www.ifpi.org/content/section_news/20041007d.html True Facts about Internet Piracy 700 million unauthorized music files(800 million on the internet overall) are involved in internet file-sharing at any one time. All major surveys say that illegal file-sharing makes people buy less, the latest survey is showing that 36% of downloaders buy less music as a result. Illegal file sharing is a major factor in the fall in music sales, down 7% in 2003, and down 14% in 3 years. Examples from other countries The value of music sales in Denmark has fallen by 16% per year, for the past 3 years. Between 2001 and 2003, music sales fell by 50 million euros, an 8% drop. In the UK, between 2001 and 2003, music sales fell by ₤55 million. a 4.5% drop. Between 2001 and 2003 music sales in France fell by 134 million euros, an 11% drop. In Germany, sales figures are down 50% in 6 years. France's sales figures were down 15% in 2003, and 22% in the first half of 2004. Industy's response and it's impact on illegal file sharing Music file infringement on the overall internet are down nearly 30% between June of 2003 and June of 2004. There's been a 20% drop of users on the most P2P service since Janurary of 2004. Since June 2004 (before all US and international legal action) there's been a drop of 40% of users on the most popular of P2P sites. Internet Piracy in Canada Within the past 5 years, retail sales of casset sound recordings and CDs in Canada have decreased by almost 30% (A drop of $425 million) The recordings that were named 'Top 10 Bestsellers' in Canada sold 5.9 million units in 1999, compared to 3.4 million in 2003 58% of people in Canada are aware that file sharing of music from non-authorised internet services is illegal 62% of Canadians are aware of legal action by the recording industries 54% of Canadians believe the industry is justified in these launching legal actions against peopel who file share http://www.ifpi.org/content/section_news/20040330d.html
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