A variety of problems arise: Decrease in Sales of Legal Copies The number of additional authorized copies that would be sold is not equal to the number of illegally duplicated copies. Pirates typically sell their wares at prices substantially discounted from street prices; the substantial price discounts induce some people to purchase the product who would not otherwise do so.
Innovation Files has moved! For ITIF's quick takes, quips, and commentary on the latest in tech policy, go to itif. However, academics studying the effects appear to be behind the curve. In theory, pirates are additional viewers who could purchase merchandise or generate word-of-mouth advertising that could get others to legally view the content.
If the good outweighs the bad, then piracy might actually be helping the content industry. Yet there are data-driven studies by real academics insisting that digital piracy is a boon for content creators. However, a new meta-analysis of literature examining the effects of online-piracy, Friends or Foe?
The paper also details the methodological difficulties of calculating just how much damage piracy does, demonstrating why academic research has found such a wide array of empirical results.
Additionally, many papers 36 percent for the film industry and 16 percent for the music industry were inconclusive. Considering the methodologies being employed—many of which lack the strength to successfully attribute causality—this is not a surprise.
This does not necessarily mean that a large number of studies showed no relationship, but instead points to the difficulties incumbent with reaching any significant result. Meanwhile, only 11 percent of film and 23 percent of music industry studies identified a positive relationship between piracy and sales.
Yet, these are the ones that are brandished by the defenders of piracy as support for their assertions that no policy actions are needed. The breadth of these findings is curious. Why are the results so widespread and inconclusive? Estimating an unobservable counterfactual of an illegal and thus hard to measure activity while simultaneously designing a way to avoid causal confusion is hard.
Consequentially, empiric results run the gamut—and this is after papers with suspect methodology or lacking regression analysis were excluded from the meta-analysis. Obviously, while content piracy rates and overall sales are correlated, there is no causal link between the two as these are both driven by popularity.
People pirate bad content much less than they pirate good content. Academics studying digital piracy are forced to find a way around this problem in order to be able to attribute causality, and as such have found creative ways to estimate piracy rates.
Examples range from changing local laws to Internet connection speeds and technological proficiency to the number of clicks on unauthorized websites. How can they really tell what the movie-going behavior would be like if online piracy was not rampant?
Or even what platforms we would consume music through if artists did not have to deal with piracy? As one industry insider —Radiohead producer Nigel Godrich—stated: Film executive increasingly green light movies with over-the-top special effects that viewers desire to experience in a theater rather than watching on a laptop.
And, as piracy decreases ticket sales but increases merchandising potential, piracy could contribute to the increase in sequels coming out of Hollywood. Moreover, replacing ticket sales is just one impact digital piracy has on industries which have had to reinvent themselves to survive amid high rates of illegal downloads.Don’t get me wrong, I’m not justifying “piracy.” It doesn’t need to be justified.
It’s not going away. Music sharing is a cultural achievement and should be celebrated.
Jun 28, · But the music industry is still trying to recover from piracy's heyday. Last year, total music industry revenue was about $15 billion worldwide, well below the peak of $38 billion. An Examination of Music Piracy and Its Positives and Negatives PAGES 6. WORDS 1, View Full Essay.
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Exactly what I needed. - Jenna Kraig, student @ UCLA. Wow. Most helpful essay resource ever! History. The invention of the internet and digital media created music piracy in its modern form. With the invention of newer technology that allowed for the piracy process to become less complicated, it became much more common.
Hardy et al. finds that over half of rigorous academic papers (54 percent of papers examining the film industry and 60 percent of papers examining the music industry) on the subject demonstrate that piracy has a clear, statistically significant negative impact on profits for content creators.
A study by the Institute of Policy Innovation estimated the impact of US music piracy to be $ billion, plus a loss of 71, jobs (about a third in .