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How piracy threatens the movie industry

by Joy Solomon

Created on: May 06, 2008

The movies and televisions piracy industries is a thriving business in most countries in the world today.Improvements in the technology today has helped the pirating industry to thrive.In a single day thousands of copy can be dubbed.

Television companies encountered unprecedented losses of revenue because people are already watching these movies on DVD before they were shown on television.As a result T.V advertisers freaked out causing million dollars of losses to these Television companies.

A report by the Motion Picture Association of America (MPAA) shows that the U.S movie studios are loosing about $US 6.1 billion annually in global wholesale revenue to piracy,about
75 per cent more than the previous estimated losses of $US 3.5 billion in hard goods.

The MPAA also repoted four years ago about a "growing global epidemic" movie piracy over the internet.IDG news service reported "the increasing ease of downloading movies through broadband and compression technologies and wide film availability on line were factors drivinh consumers to download."
In one market it was calculated that every bootleg DVD that turn up in raids seven more existed.Estimates for piracy losses ran from $US 280 million in China to $US 275 million in Russia.Losses in the US from piracy are believed to total almost $US 1.3 billion.Mexico overshadows Russia and China to rank as the world largest market for pirated U.S films accounting for an estimated $US 483 million in lost revenue to MPAA member studios way back in 2005.

Why do people buy from non-legitimate dealers? It is because most legitimate dealers were ripping off customers with exorbitant charges and hefty late fees.This was driving customers into the shops of non-legitimate dealers.Today most people goes for cheaper pirated copies.Why rent a movie for $20 when you can buy a DVD for $2.

Although some pirated movies are of poor quality,people still buy them because it is cheaper.Just take a walk in the streets of China and Mexico and see thousands of pirated movies on sale.The advantage here that even the poor can get a copy and watch it at home.

The problem in these countries their copyright laws are not effective.Most people are not complaining about movie piracy.It does mean that people are content with it.

I do not think we can eradicate the problem completely.It will always be there.Copyright law or no copyright law I am sorry to say that the problem will always be there.

Learn more about this author, Joy Solomon.
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