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Record Box Office Indicates MPAA 'Piracy Problem' Hot Air

Kinescope writes "The motion picture industry has said that its profits are at risk due to piracy, but a record-setting 2007 box office has some wondering if the industry is crying 'wolf.' Last year, the US box office totaled $9.63 billion, a 5.4% increase over 2006. 'Piracy is so bad, according to the MPAA, that we need special legislation to target the dastardly college pirates who are destroying the business. It's so bad that Weekly Reader subscribers will learn about the $7 billion a year "lost" to Internet piracy. It's so bad that the MPAA wants ISPs to ignore years of common carrier law and the promises of "safe harbor" and start filtering their traffic, looking for copyright violations. The real world isn't quite this simple, of course. It turns out that the MPAA's college numbers were off by a factor of three, a revelation that came after years of hiding the study's methodology but continuing to lobby Congress with its numbers.'"

15 of 244 comments (clear)

  1. Old News, but ... by PC+and+Sony+Fanboy · · Score: 5, Insightful

    When the governator (Arnold!) made a visit to canada to discuss this 'problem', there was new legislation that was made law within two months. That shows you the power of the governator (or perhaps, the power of american influence). The problem was that 'Canada was responsible for over half the pirated movies in north america'. The legislation enacted was almost EXACTLY what was requested by Gov. Schwarzenegger... and STILL they cry 'Blame Canada!'

    The only problem with it all ... is that it ISN'T actually a problem!

    1. Re:Old News, but ... by billcopc · · Score: 3, Insightful

      That shows you the power of the governator (or perhaps, the power of american influence)

      Nah, it just shows how big of a sellout Stephen Harper really is. As bizarre as it may sound, I'd rather have the old farts and their sponsorship scams than this Conservative pushover. I value freedom far far above tax cuts.

      --
      -Billco, Fnarg.com
  2. As I have posted previously.... by Creepy+Crawler · · Score: 4, Insightful

    What alternatives do we have?

    Our body of law gives rights to the creators and their protected ability of being the one to approve copies. Regardless of whether we agree or now with this, that is our situation.

    Now, we take this to the "digital domain". Those older creators want, no.. need these protections as they see in the non-internet world. The only real way to "guarantee" this is by digital restrictions. The best way I think of this is that of a akin to a capability system and the copyright maintainer has an account on your machine.

    However, our machines are ours. The geeks amongst us demand that we are able to control our software and hardware. What was unable to do in WinXP, Vista seems to offer the beginning of that capability system with the media companies at the kill switch. And to top it off, Vista has remotely disabling drivers for "holes" that might appear. For those that own a machine, this OS laughs in their face, as if saying "Bring It On!"

    And there are many casualties. Those casualties are the Joe and Jane Publics that don't understand this issue close enough, or think that all needs to be done is burn to DVD... just like the iPod to music. When they find out that they are locked with binary garbage that cannot be used for any fair use purpose (backing up owned DVDs is fair usage).

    And where are we now? When the users know they are eventually shafted, those that have the know-how will show others where to download the movies and the music they legitimately bought. Once they know they were taken advantage of, any feeling of "theft" (or whatever you call it) will be gone. The media companies had their chance to do their dealings with the public honestly, but have failed.

    Just like língchí.. Death by a thousand cuts.

    posted on kuro5hin.org

    --
    1. Re:As I have posted previously.... by dave562 · · Score: 5, Insightful
      What I foresee eventually happening is that Hollywood and the creative types in the world will come to realize that the public isn't willing and or able to support them. The public will lose interest in providing a star multiple millions of dollars to sit in front of the camera playing make believe. The studios will realize that they can't keep the movie making juggernaut of writers, grips, camera operators, sound techs, costumers, make-up artists, etc. etc. employed playing make believe.

      What it really all boils down to is that people pay what they think the production is worth. If they want the experience of the theater they will pay for it at the theater. If they want to watch it at home the majority of them will pay to rent it. I think the logical fallacy taking place is that the studios are losing money because of piracy. I'd bet that over 80% of the people who pirate a movie would simply go without if they suddenly couldn't get a free copy of it. Most of my friends who are into movies and really like movies want to support the studios and they cringe at the thought of having a "movie collection" in a CD case with the names scrawled on them in Sharpie.

      Despite the "losses to piracy", the studios continue to put out a good quality product and employ large numbers of people. They don't seem to be hurting that much. The large majority of Hollywood is unionized. Those people make relatively obscene amounts of money for what they do, and the perks are top notch.

      I realize I didn't really address the original question of "What alternatives do we have." I don't see many. Like I stated earlier, people pay what they are willing to pay. Hollywood could identify the conduits of piracy and increases the cost to compensate. For example, they could charge movie rental places more for the original copies. Those places would then charge their customers more to rent them. The people who make copies of the rentals would then in essence be "paying" for the movie. I think that would have the opposite effect though because suddenly a large number of people would decide that they didn't want to rent movies because they were too expensive, and so they'd pirate them or wait until their neighbor rents the movie and makes them an archival copy. The only other option is to lower the cost of the movies to the point where people who are pirating them decide to buy them instead. In theory they could then reap their benefits by sales volume instead of individual unit price. That won't happen though because I truly believe that the people who really want to buy a DVD movie are already paying the price that Hollywood asks. Everyone else just doesn't place a high premium on having a bookcase filled with plastic boxes with pretty pictures on them. They're happy with Sharpie labelled Memorex discs that play the movie as soon as you put it in the player and don't require skipping through warnings, previews and choosing menu options.

    2. Re:As I have posted previously.... by joel8x · · Score: 3, Insightful

      The evidence of what happened is clear: 2007 was the best year in almost a decade for decent movie releases. And, I'm not talking about just the big crappy blockbusters, but actual good movies like There Will Be Blood and No Country For Old Men. The increase in box office intake correlates to what we've (intelligent people) been saying all along - put out good content and people will consume it.

      People are sick of crappy popular music and the only stuff that sells in huge quantities is kiddie stuff because they are easy audiences and don't realize that Hannah Montana can't hit a note without autotune. That is the main reason why the music industry is hurting - the talent is abandoning them and their old ways. Pretty soon though, you will find that as video equipment comes down in price and editing software is cheaply available, independent movies will come out and have global distribution the same way any musician can over the internet. The talent will slowly migrate to the new business model while the old studios will cry foul on their own customers. The best thing the movie studios can do to slow down the inevitable is to put out more good movies and stop trying to cheapen your brand by remaking everything just for a quick buck.

      --
      Sound waves should be free!
  3. Re:summary wrong by Sean+Riordan · · Score: 5, Insightful

    But how much of that decline is due to consumers sitting out the format fiasco, partaking of On Demand offerings, or doing the Netflix thing?

    --
    Sig? What if I prefer Glock?
  4. Re:summary wrong by Wandering+Wombat · · Score: 5, Insightful

    Or, you know... only watching the good movies?

    --
    I like to place meaningful quotes in my sig, so people will know that I know what meaningful quotes are.
  5. Re:summary wrong by ma1wrbu5tr · · Score: 5, Insightful

    I'll tell you the same thing I told U2s manager. Make more than 1 good movie (or song) per year (or album). Sell some bumper stickers. OR some action figures.
    I'd be willing to bet Lucas made more $ from merchandise than from the actual Star Wars movies themselves.
    One of the kids I knew growing up had at least $3000 of Star Wars action figures, models, posters, clothes. And that was in the 80's which translates to some ungodly amount now.
    Again, this is a business model issue, not a Piracy issue. If studios are losing money, then they need to re-examine how much they pay executives and actors. I mean honestly, there is no actor alive that is worth millions of dollars a picture.
    Yeah, I'm kindof a Troll about this. F'ing whiners, the lot of 'em.

    --
    Why can't we go back to using jumpers to configure slot adapter cards? Why? I say!
  6. Re:summary wrong by billcopc · · Score: 5, Insightful

    Yep I wish someone would explain to me, in plain terms that make business sense, why an actor should be paid 42 bazillion dollars for four half-days of work.

    And once that's clarified, we'll talk about sports celebrities.

    a. Standing around looking pretty, 10 million
    b. Hitting a ball with a stick, 7 million
    c. Designing the hardware, software and networks that bring it all to the consumers, 40k/yr

    Shit's upside down!

    --
    -Billco, Fnarg.com
  7. record profits tell little by superwiz · · Score: 4, Insightful

    when the dollar is falling almost daily. Wheat growers are having record profits, too (despite the famine). That's because the dollar has lost about 15% of its value in the past year. And now comes the torrent of accusations of conspiracy theories because I think the fed inflation figure is laughable. Not that I am saying that the right to charge for a freely(as in beer)-reproducible commodity should be equated with the right to sell a piece of property that can only be sold once without having to create it again (as in bread). Copyrights that last over 10 years is what causes piracy -- not consumers that want to treat movies the way they treat books. But the dollar buys much fewer things that anyone wants to have nowadays, so there are all the dollars people "earn" or have accumulated (when spend at the same rate) must be buying fewer things... but at higher prices.

    --
    Any guest worker system is indistinguishable from indentured servitude.
  8. Re:summary wrong by kylehase · · Score: 5, Insightful

    Right, so how can we actually tell if piracy is the problem?

    An economist would have to take many things into consideration:
    1. Total media sales and rentals (since pirates don't need to by or rent)
      • DVD
      • HD-DVD
      • Blu-Ray
      • Netflix
      • Blockbuster
      • iTunes
      • any others...
    2. Box office sales
    3. Quality of the movies
    4. New or rise in substitute goods
      • New game or game console
      • New fad (raves, swing etc)
      • Other substitutes...
    5. Prohibitively high ticket/media prices
    6. Boycotting movies in retaliation toward MPAA

    And if all these factors are measured in dollars then you'd also have to adjust for inflation and other price changes. Only after you've factored all these variables can you determine if the difference is due to piracy.

    --
    You want fun, go home and buy a monkey!
  9. Re:summary wrong by TheVelvetFlamebait · · Score: 5, Insightful

    There hasn't been a good film in almost 10 years. Nothing creative or original. Everything they produce now seems to be a rehash of an older film, a book or a video game.
    Optimists say there are about 30 original stories out there. Pessimists say less. Every thing else is just a mish-mash of older stories. The originality of films probably peaked within a month of video cameras becoming available.

    Anyway, that's completely erroneous, because it's an extremely shallow and useless method of appreciating movies to judge them by originality alone.
    --
    You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
  10. Good movies only? by hachiman · · Score: 4, Insightful

    Good lord! Were there such things in 2007?

    I am struggling to think of when I actually went to a cinema and saw a film and if so, what it was. I really cannot remember if I spent an inordinate amount of money getting in, then spent a small fortune getting a drink or sweets. Nope, still drawing a blank...

    DVDs however are another matter. Barely a week went by without some sort of hiring going on. It's far more comfortable and relaxing to curl up on the sofa with fiancee and a beer and relax.

    One point I will say is that during the Great Depression, movie audiences were also at a very large high. It was felt that the general population needed to escape from the reality of their lives for a short period of time and that movies provided that relief. With the way that the world is heading (rising oil prices etc), what is to say that people will also choose to spend a few hours a week safe in the womb of feel-good movies.

    Maybe Disney will see a new market here and make films with even more schmaltzy endings...

    --
    Teamwork is essential. It gives the enemy someone else to shoot at
  11. I Know This Music..... by IHC+Navistar · · Score: 5, Insightful

    Here is how the MPAA / RIAA / ISP logic works:

    Year-End Loss: Piracy is to blame. It's not our fault.
    Year-End Profit: We had great artists/writers/engineers that made some great products.
    Not Enough Bandwidth: Piracy is taking up all the bandwidth. It's not our fault.
    Excess Bandwidth: We have a better system than the 'other'guys. We're better ISP.
    Low Box Office Turnout: People are pirating movies instead of going to the theater. It's not our fault.
    High Box Office Turnout: We made really great movies.
    Low Record Sales: People are pirating all their music instead of buying it. It's not our fault.
    High Record Sales: We have great artists who produced great songs.

    Anybody see a pattern here? Whenever the MPAA/RIAA or ISP's have problems, they blame pirates for "taking away" sales and clogging networks. The MPAA and RIAA don't realize that if they continue to pump out crappy content (films/music), then people are going to want to make sure thay what they are going to spend $25 on is worth it (would you buy a song or movie without listening or viewing it first? A 30 second preview isn't enough.). The MPAA/RIAA doesn't understand that people are pirating because the industries are prducing horrible music albums and over-hyped movies that nobody feels is worth their hard-earned money. Every film t hat comes out of Hollywood is over-hyped and inflated, so there is no way to tell a great film from a bad one. Record labels use the trick of putting 2 or 3 good songs out of 10-12 tracks on an album, and then charging $25 for the whole thing. If you produce crappy content, people are going to do what they can to make it better, or at least save themselves from being duped by record labels and film studios. ISP's have a similar reaction: Comcast blames p2p file sharing ("pirating" in Comcast's eyes) as the reason that it's service is horrible, rather than acknowledge that it spends way to much on advertising for customers that it already doen't have the bandwidth or infrastructure to support.

    Whenever these guys have problems, they shift blame to other people, namely, "pirates". BUT, when they have a windfall, they are pretty damn quick to shift the attention towards themselves.

    Basically:

    Successes: We're just simply a company of experts who know what we're doing!
    Problems: It's your fault, not ours.

    The problem isn't only limited to these groups, but can be seen in other companies that don't understand how to run a business:

    MAINTAIN your infrastructure. If you lose it, you have nothing.
    INFRASTRUCTURE is everything. If it suffers, your customers suffer, and ultimately, you will suffer the most. (Just look at AOL.....)
    DO remember that your customers chose you. You didn't choose them.
    DO keep your customers happy.
    DO provide good service.
    DO give the customer what they want. If you do, they will give you money in return.
    DO remember people want a product, not more advertisements. (AOL again.....)
    DON'T spend more than you make.
    DON'T advertise things you can't deliver.
    DON'T try to pull a fast one by your customers. You will always lose.
    DON'T overvalue your product. (AOL again.....)
    DON'T treat the customer like an ATM. It pisses them off.
    Word-Of-Mouth is the best and most effective way to get a new customer.
    A happy customer is far more likely to convince a friend to buy from you than your commercial is.
    Money from a customer is good, but get greedy and it will disappear.

    And lastly:

    DO remember that your competitors would be more than happy to buy your company from your creditors if you ever went belly-up.

    --
    Knowing Google's lust for data collection, the Soviet Union is still alive and well inside the psyche of Sergey Brin....
  12. Re:summary wrong by n3tcat · · Score: 4, Insightful

    Well, you're right and wrong.

    People are paid based on the money they bring in, not the work they put out. If we were all paid based on the work we put out, then trash men would be gods and many of our congressmen would be paid like school teachers.