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Is Piracy In the Consumers' Best Interests?

moviemodel writes "Warner Home Video in China are beginning trials of 'simple pack' DVD releases at $1.50. They state they are doing this as a test to see if they can recover a market lost to pirate DVD's at 75c each. They also sell higher priced and more complete DVD sets as 'silver' and 'gold' packs. Maybe this marks the beginning of movie industry realism and long hoped for shift in business models, forced by piracy. Perhaps they can take it on as a better model for movie downloads worldwide, facing the same problem of competition from pirated movies. Is such a model viable in the long term?"

9 of 574 comments (clear)

  1. Less risk. by Threni · · Score: 5, Insightful

    They have less of my money at $1.50, which is good. When they get what they're currently charging there's a risk they'll make more crap films starring clueless overpaid actors, and that's not a risk I'm prepared to take. I only watch a film once, so why pay more for a DVD than it costs to watch in the theater?

  2. Re:Better than nothing by kfg · · Score: 5, Insightful

    At least they can make some money now selling cheap DVDs

    Which just goes to show ya exactly how overpriced DVDs are. CDs as well.

    Think about stuff from the catalog too, say Chaplin's City Lights ($22) or Badfinger's No Dice ($17), whose costs were paid off decades ago and so aren't relevant in justifying the cost of the disk. In fact, under the copyright laws that were in effect the first time I ever saw/heard most of the stuff in the catalog they should be in the public domain already. As far as I'm concerned Congress has breached their contract with me when it comes to these.

    KFG

  3. Re:Old argument by kfg · · Score: 5, Insightful

    People who steal are very good at talking people into thinking that what they did is OK

    Ya mean like constantly expanding the range of copyright laws so that nothing ever actually goes into the the public domain, so the free money cow never dries up?

    KFG

  4. This is to cut their piracy losses by 91degrees · · Score: 5, Funny

    Every time you pirate a movie, the studios lose the cost of that movie. If the movie costs $20 then they lose $20, and if it costs $30, then they lose $30. They know they can't possibly compete with free, so they're doing the best they possibly can to reduce their losses. By only charging $1.50 for each copy, this will cut their piracy losses considerably even if they don't sell any.

  5. Re:But what does average Chinese person make? by balloonhead · · Score: 5, Informative

    12 of 36 000 is 1/3000 = so your math is out by a factor of around 10.

    $8 for a DVD isn't so bad (assuming the rest of your calcs are correct - I didn't check)

    --
    This idea was invented by Shampoo.
  6. Re:Of course by Zordak · · Score: 5, Funny
    >> if you set your price point correctly; you make up in volume what you lack in single sales profit.

    Yes, it's almost as if you could draw two intersecting lines. One line would represent the number of units people would demand as the price increases. The other would represent the number that manufacturers would be willing to supply as the price decreases. I wonder what it would mean when those two lines intersected.

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    Today's Sesame Street was brought to you by the number e.
  7. Huge difference between real property and IP by Infonaut · · Score: 5, Informative

    That position is very short-sighted. It isn't "theft" to extend copyright laws. The rough analog to the copyrighted material devolving from private property to public property is Congress writing a law that causes your house to be turned over to the city after 100 years. While you almost certainly will be dead when it happens, what public good is enhanced by destroying private ownership?

    That's not even a roughly accurate analog. Real property is finite. There is only so much real estate on the planet. Ideas are not. Therefore, scarcity of real property exists without any outside involvement by the state or any other actor. Scarcity of intellectual property is a legal construct designed to provide people who create innovative ideas with the ability to profit from them for a short time, in order to spur the development of new ideas, which are beneficial to society as a whole.

    The impetus for creation of intellectual property right flowed from the goal to improve society by providing a carrot to innovators. It was government intervention in economics, not the development of a fundamental right akin to life, liberty, and the pursuit of happiness.

    While I'm sure the public good can be shown to be "served" by confiscating physical works of art, it still smells like theft to me. Is the case any less obvious with intellectual property that is essentially entertainment?

    The public good has not been shown to be served by confiscating physical works of art, which is why in the United States the government can't just come and snatch up that Picasso you have hanging in your den. Intellectual property that primarily serves entertainment purposes is not physical. It is constructed by the legal system, in the same way that any other IP right is constructed. Recorded art in particular is the beneficiary of government largesse.

    If there were no way for us to record musical works or create movies, artists would still be able to make money through live performances, because those performances would be naturally scarce, without any government intervention. This is in contrast to the situation we have today, where music and movies are anything but scarce. They are all around us, distributed in a wide variety of forms. Yet the movie and music industry would have the government continue to enforce an arbitrary scarcity that bears no relationship to economic reality. If we were talking about the distribution of physical products like silicon chips or automobiles, we'd call this protectionism - government intervention that serves no party but the big businesses being protected. Ultimately, it doesn't even serve them, given that it only shields them from economic forces that should be causing them to alter their business model.

    Copyright coverage for a short time does spur creation of new art, but copyright of any duration is always a tradeoff between the previously-existing natural rights of society at large and the artificially-created rights given to the copyright holder.

    "The primary objective of copyright is not to reward the labor of authors, but '[t]o promote the Progress of Science and useful Arts.'" - Justice Sandra Day O'Connor, writing for the majority in Feist v. Rural Telephone Service Company, Inc. (1991)

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    Read the EFF's Fair Use FAQ
  8. P.S. by kfg · · Score: 5, Informative

    Congress has breached a lot of such contracts with the public in the past fifty years or so.

    Perhaps the difference between me and most Slashdotters is that I have actually been alive through those 50 years.

    To me these breaches are not historical breaches of contract with the public, but actual breaches with me.

    I was made specific promises that specific works would enter the public domain at a specific time.

    They did not.

    This is the breach, not merely that copyright law was modified.

    KFG

  9. you got that right! Being around to see things cha by zogger · · Score: 5, Insightful

    ...gives you a unique perspective and brings home reality over their BS they spew. I'm in a similar half a century + change personally screwed by those bozos. A couple of my pet peeves are them continuuing to muck about with gun rights after they promised the 68 act would be "it", no more after that, and later on with the huge illegals amnesty during the reagan years (I think, don't remember, 84??), then they said they would "crack down" and "enforce the laws on the books".

    Oh ya, my all time *favorite* "random courtesy roadblocks". WTF is up with that?? Remember back in school we were taught only supremely evil and totalitarian bad places like east germany and whatnot had those sorts of roadblocks (Your papers please!) and how wrong and illegal it would be here?

    Man, there's a bunch. You are right, people of a younger age don't have any frame of reference on some of these subjects outside of an academic one.

    Now here's one I keep trying to maintain a frame of reference on, the great depression. It's hard, but I try, I keep it in the back of my mind when I look at economic news andd geopolitical events. I wasn't around then, but my parents and aunts and uncles, etc, were, and I distinctly remember the stories they told me about it and how amazingly fast things can change and how utterly bogus the stock market/government currency manipulators are when it comes to hosing the population with their congames. Keep promising them just this huge something for nothing deal until they are all sucked in, then WHAMO, drop the hammer and walk off with all the REAL wealth leaving the peons holding the bag with worthless paper. Seems they pull this stunt on a big scale every other generation or something, because it takes that long for people to "forget" those "leaders" main skill set is *lying*. They are professional grifters.