Monday, 27 August 2012

Pirated Movies Don't Only Hurt Hollywood

By Joe Cohen


If you ever keep up-to-date with the latest movie news, you most likely heard stories on how piracy is affecting box office revenue and leading to a decline in the number of moviegoers that still go to theaters to enjoy movies. Piracy is on the rise and this is not surprising, since it's really easy to view the latest movies right at home, often times for free. When illegal copies of movies are readily available, especially before they reach the big screen, there is a negative impact on the film industry and the people who like to enjoy movies in the theater.

Anybody who is trying to acquire illegal copies of a copyrighted movie, will usually buy knockoff DVDs or search file sharing websites. They typically pay a fraction of the price or nothing whatsoever to enjoy these movies in the comfort of their own homes. Studios fault this practice for inducing the sharp drop in ticket sales, they then increase prices at the box office to minimize the loss in income.

Film makers also add anti-piracy mechanisms during the production and distribution of movies. This adds to the overall budget of the film. Whenever studios are looking at higher cost, they are all too willing to pass the burden on to the customer.

There is also an indirect way that pirated movies hurt the movie industry. Theater companies must remain competitive with home theater technology that allows people to enjoy movies at home with the same bells and whistles touted by today's theaters. Studios and theaters work together to utilize technology that gives them an edge in creating a movie going experience that is difficult to replicate at home. They spend a lot of money to bring 3D and the IMAX options to the moviegoing public, but many people still shy away from the higher ticket prices. Some prefer to pay for a regular movie, while others opt for a cheap bootleg of lesser quality, presumably hoping their HD TVs can miraculously enhance the quality of the bootleg. Therefore, studios and theaters often lose money on these riskier more expensive movie options.

So it's obvious to see that piracy is truly a pervasive and widespread situation that is eating away at the movie industry. But more importantly, it's theater goers who end up footing the bill in the long run. Nevertheless, things won't change if theaters continue to be unable to keep up with the technology that permits it. The industry has doubled their efforts at lobbying lawmakers to increase the fines and penalties for pirating copyrighted material, but an economic solution may be better. If they find innovative ways to make movies cheaper and bring down ticket prices, maybe those illegal copies won't look all that attractive.




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