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Case Study: Internet Piracy

How much is Internet Piracy REALLY costing the movie industry.
by

George Anderson

on 17 May 2011

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Transcript of Case Study: Internet Piracy

Case Study: Internet Piracy By George Anderson How much is Internet Piracy
affecting the movie industry? The History of Internet Piracy 1999 Piracy the unauthorised reproduction or use of a
copyrighted book, recording, television
program, patented invention, trademarked product, etc. noun, plural -cies. Image Source: http://lifestyle-addict.blogspot.com/2010_10_01_archive.html Image Source: http://2dboy.com/2008/11/13/90/ Image Source: http://classes.tametheweb.com/jessicac/2009/10/04/post-3-virtually-communing/ Piracy noun, plural -cies. practice of a pirate; robbery or illegal violence at sea. http://dictionary.reference.com/browse/piracy Image Source: http://musically.com/blog/2011/01/28/napster-loses-court-battle-with-rounder-records/ Created June 1999
Peer-to-peer file sharing service of MP3 files
6 months after launch, The Recording Industry Association of America (RIAA) sues for copyright infringement, asking for damages of $100,000 each time a song is copied.
Peaked in Feb 2001 with 26.4 million users
A&M Records vs Napster case
Forced to shut down in July 2001. http://www.businessweek.com/2000/00_33/b3694003.htm Image Source: http://scour-exchange.softonic.com/imagenes 2000 Image Source: http://www.sharealink.org/scour/ http://news.cnet.com/2100-1023-247021.html Scour Exchanged Launched March 2000
Peer-to-peer mulitple media file types and software
Scour Inc files bankrupty in October 2000 after being sued by motion picture and record industries. 2001 Image Sources: http://www.krazyofficial.com/?p=2692
http://techgenie.com/softwares/networking-softwares/kazaa/
http://torula.com/iadeastar-semi-jointly-develop-the-first-bittorrent-optimized-microprocessor What is the definition of Piracy? Image Source: http://techgenie.com/softwares/networking-softwares/kazaa/ Launched March 2001
September 2003 - The RIAA began filing lawsuits against private individuals allegedly sharing files using Kazaa
June 2006 - MGM Studios vs Grokster Ltd causes a settlement of $100 million and converts Kazaa to legal only file sharing. 2003 Image Source: http://replay.web.archive.org/20040715094358/http://thepiratebay.org/ Image Source: http://upload.wikimedia.org/wikipedia/commons/1/16/The_Pirate_Bay_logo.svg Launched November 2003
Still active today, despite numerous legal actions
In February 2009 "The Pirate Bay Trial" began
In April 2009 the trial concludes, each defendant is sentenced to one year in jail and a total of $3.6million in fines and damages.
According to Alexa, web information company it is the 91st most popular site on the Internet as of May 2011 2005 Image Source: www.megaupload.com Image Source: http://www.gamerslove.com/reel-deal-slot-quest-vampire-lord-full-version/
http://upload.wikimedia.org/wikipedia/en/3/3b/RapidShare_Logo.svg Launched March 2005
As of May 2011, is the 49th most visited site on the web Launched October 2006
"Overwhelmingly used for the global exchange of illegal movies, music and other copyrighted works"

"most people utilize RapidShare for legal use cases" The US government congressional international anti-piracy caucus The Düsseldorf higher regional court 2007 Image Source: http://latimesblogs.latimes.com/technology/2009/06/riaa-jammie-thomas-rasset-piracy-verdict-kazaa.html
http://www.cracked.com/funny-2153-riaa/ vs Major Record Labels
vs
Jammie Thomas-Rasset Image Source: http://latimesblogs.latimes.com/technology/2009/06/riaa-jammie-thomas-rasset-piracy-verdict-kazaa.html 1st Trial in 2007 - found liable for infringing 24 songs downloaded using Kazaa and ordered to pay $220,000 in statutory damages.
2nd Trial in 2009 - found liable again, ordered to pay $1.92million in damages.
"monstrous and shocking"

This was then lowered to $54,000 in January 2010.
Settlement of $25,000 offered, and declined.
3rd Trial in 2010 - Damages were raised again, to $1.5million. Chief Judge Michael J. Davis 2008 Image Source: http://www.cracked.com/funny-2153-riaa/ Image Source: http://www.cracked.com/funny-2153-riaa/ Recording Industry Association of America claim to end its peer-to-peer litigation campaign against individuals in the U.S.
They start a new three strike system with Internet Service Providers. 2010 http://www.techknowl.com/limewire-5-pro-download-link.html In October 2010, LimeWire was forced to disable the "searching, downloading, uploading, file trading and/or file distribution functionality" of it's service
The RIAA began pursuing legal action over the damages caused to affected record labels
In 2011 they announced their intention to sue LimeWire for $75trillion
On 13th May 2011, LimeWire agreed to pay the 13 record companies $105million in an out of court settlement Image Sources: http://www.krazyofficial.com/?p=2692 Why focus on the Movie Industry? http://www.geekosystem.com/limewire-sued-75-trillion/ Sources http://news.bbc.co.uk/1/hi/sci/tech/5220406.stm http://www.dailytech.com/Kazaa+to+Pay+100+Million+to+Record+Labels/article3535.htm http://www.alexa.com/siteinfo/thepiratebay.org http://www.pcpro.co.uk/news/363178/pirate-bay-trio-lose-appeal-against-jail-sentences http://www.alexa.com/siteinfo/megaupload.com http://www.riaa.com/newsitem.php?id=58185AFD-5525-19D4-FFD2-4233518393AD http://gigaom.com/video/rapidshare-wins-in-court/ http://www.alexa.com/siteinfo/rapidshare.com http://query.nytimes.com/gst/fullpage.html?res=9803E2DD1739F936A35753C1A9619C8B63 http://technology.timesonline.co.uk/tol/news/tech_and_web/article6534542.ece http://www.webcitation.org/5n2E7HM3z http://copyrightsandcampaigns.blogspot.com/2010/11/third-thomas-rasset-verdict-15-million.html http://www.guardian.co.uk/technology/2010/oct/27/limewire-shut-down Image Source: http://www.wired.com/epicenter/2011/02/where-have-the-pirates-gone/ Image Source:http://documents.envisional.com/docs/Envisional-Internet_Usage-Jan2011.pdf How can the movie industry combat Internet Piracy? Jan '11, Envisional - An Estimate of Infringing Use of the Internet http://www.wired.com/epicenter/2011/02/where-have-the-pirates-gone/ Image Source: http://www.maximumpc.com/article/%5Bprimary-term%5D/mpaa_and_brein_claim_12_us_torrent_sites_shut_down ? vs "The MPAA’s strategy focuses on all levels of Internet piracy to cut off the major suppliers of illegal files and at the same time curtail facilitation of illegal file swapping by peer-to-peer networks. Approximately 75 Torrent and eDonkey sites have been shut down in the last year as a result of these efforts." vs Image Source:http://www.maximumpc.com/article/%5Bprimary-term%5D/mpaa_and_brein_claim_12_us_torrent_sites_shut_down
http://www.iconshock.com/communication-icons/ Image Source:http://www.maximumpc.com/article/%5Bprimary-term%5D/mpaa_and_brein_claim_12_us_torrent_sites_shut_down
http://upload.wikimedia.org/wikipedia/commons/1/16/The_Pirate_Bay_logo.svg "The actions today taken in Sweden serve as a reminder to pirates all over the world that there are no safe harbors for Internet copyright thieves." MPAA Statement, February 2006. Glickman, May 2006. "piracy will never be stopped" Glickman, Good Copy Bad Copy, 2007 How much is the industry affected? "The group(MPAA) estimates that its industry loses $3 billion in annual revenue due to global piracy" By Scarlet Pruitt, IDG News 9 Jul, 2004 "ICE won't break down the exact numbers, but says that intellectual property violations cost American companies billions of dollars and the loss of hundreds of thousands of jobs." By Julia Boorstin, CNBC Correspondent 30 Jun 2010 http://www.pcworld.com/article/116842/mpaa_movie_piracy_is_the_new_plague.html http://www.cnbc.com/id/38022758/Movie_Piracy_Crackdown_Begins_Internet_Sites_Seized "The movie industry had previously focused on piracy's impact on lost sales of legal DVDs and online films, estimated at about $6 billion per year, according to a previously released study commissioned by the Motion Picture Association of America" By Frank Ahrens, Washington Post Staff Writer 26 September, 2006 http://www.washingtonpost.com/wp-dyn/content/article/2006/09/28/AR2006092801640.html $9.23billion 2004 Box Office Revenue $9.20billion 2006 Box Office Revenue $10.56billion 2010 Box Office Revenue 2009 $10.59billion 2009 Box Office Revenue +10% Increased from 2008. #1 Movie of 2009 Avatar Image Source: http://blogs.sundaymercury.net/anorak-city/2009/12/avatar-how-many-people-does-it.html $2.78billion Total Worldwide Gross Avatar New Technologies
3D
Motion Capture "made up just over 21% of total receipts in 2010" http://www.piracynetwork.com/piracy-news/mpaa-movie-industry-has-another-record-year-in-2010.html http://boxofficemojo.com/yearly/ http://boxofficemojo.com/movies/?id=avatar.htm Image Source: http://www.popfi.com/2010/02/12/avatars-source-material/ Image Source: http://www.guardian.co.uk/environment/2010/may/10/3d-glasses 2010 - 3D 2010 - Piracy Image Source: http://www.joox.net/news/black-ops-billions-call-of-duty-makes-avatar-money-in-42-days-5/ Most Pirated Film of 2010 Avatar 16,580,000 downloads According to TorrentFreak http://blog.movies.yahoo.com/blog/330-the-most-pirated-film-of-2010-is "the music industry made a critical mistake by trying to stop piracy instead of innovating to give consumers new experiences that the industry could use to generate more money."

"new technologies, such as high-definition 3D video, can create new experiences for viewers and drive demand."

"use technology to create an experience that is unmatched anywhere other than the theater" http://reviews.cnet.com/8301-12261_7-20001201-10356022.html#ixzz1MQy4gGje by Marguerite Reardon 25 March 2010 NBC Anchor Michelle Caruso-Cabrera and Avatar director James Cameron Interview Review. Combating Piracy Image Source: http://www.techinfo-4u.com/2010/04/30/itunes-movies-now-available-in-ireland-and-france/ http://www.prlog.org/11305318-netflix-vpn-how-to-watch-netflix-outside-of-usa.html http://www.totallyskint.co.uk/join-lovefilm/ "the prospect of "cloud-based" internet services – virtual storage technology that will allow individual film fans to set up a "digital rights locker" through which they can watch legally selected films on a domestic device of their choice." By Vanessa Thorpe, 13 March, 2011 "Warner Bros and Facebook are to join forces to distribute films directly over the internet" Image Source: http://www.findanyfilm.com Future... By Vanessa Thorpe, 13 March, 2011 FindAnyFilm.com http://www.guardian.co.uk/film/2011/mar/13/illegal-downloads-threaten-british-film Image Source: http://www.netzin.cz/clanky/cloud-computing-svetla-budoucnost-nebo-neviditelny-strasak-1 Image Source: http://www.financeweek.co.uk/image/warner-bros-logo-thumbjpeg
http://www.textually.org/tv/archives/2010/06/026152.htm Image Source: http://www.getmoreyoutubeviews.com/ "Sony, Warner Brothers and Universal have signed up to pipe movies to people via YouTube's on-demand rental service."
"The deal means US viewers will get at 3,000 films and helps YouTube compete with Netflix, Apple, Amazon and others." By Maggie Shiels, BBC Technoloy Reporter, 10 May, 2011 http://www.bbc.co.uk/news/technology-13347014 Image Source: http://www.precisionpolling.com/blog 90% had seen a pirated movie. Online Download - 77.8%
Online Streaming - 66.7% 0% have bought a pirated DVD 44.4% said they Strongly Disagree to enjoying pirated movies more than going to the cinema 66.7% said they do not "feel guilty when they watch pirated films" 66.7% said they "do watch pirated movies but also still buy a lot of DVD's and visit the cinema often." 66.7% also said they disagree that "the film industry is already too big and the money they lose from Piracy doesn't affect them that much." 66.7% Disagreed that they don't like how Piracy is damaging the film industry and will never watch a pirated movie. 55.6% said that they do worry about Piracy. "piracy is bad, but is a lot cheaper than watching all the latest movies in the cinemas or buying them on dvds." "Not worth watching copies as bad picture and ruins film" "Piracy is bad yes, but since going to the cinema and buying DVDs has become so expensive nowadays, piracy is a cheap gateway to watch current films. It also doesn't help with things being freely and readily available over the Internet. Give people an easier option and they will go for that." Responses Views on Piracy "I would argue that pirated films don't necessarily equate to lost sales for film companies. If people who pirate films did not have the ability to do so, it's more likely they would just consume less media, rather than paying to watch the same amount. It's also arguable that people who pirate films actually spend more on films (assuming they still partake in going to the cinema etc) than an average member of the population who doesn't pirate films or watch them very much." An Interesting View "The Internet, and online streaming should not be written off as a thorn in the side of the film industry, but embraced as a new medium in which this industry can flourish." http://www.helium.com/items/1023440-how-piracy-threatens-the-movie-industry by Dominic Wells, 29 April, 2008 Original Question New Question Any
Questions? Thank You For Listening :)
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