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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.'"

3 of 244 comments (clear)

  1. "Hollywood accounting" by Anonymous Coward · · Score: 5, Interesting

    What do you expect from an industry that produces products that gross many times more than they cost to make, but still supposedly fail to turn a profit? "The Lord of the Rings" movies apparently grossed ~$6 billion, but didn't make a profit, all thanks to Hollywood accounting. Why should it be different for their other numbers, whether their "lost profits", stats on movie piracy, or any other number they decide to make up for the need at hand?

  2. Re:summary wrong by hairyfeet · · Score: 5, Interesting

    Hollywood accounting is the term you are looking for,and is EXACTLY why I could not care less if pirates steal the building right out from under them. Look at how many artists have had to sue for YEARS, just to get paid pennies on the dollar? It took Meatloaf, what, twelve years just to get paid for Bat Out of Hell I? Or Peter Jackson having to sue because,according to the studio, LOTR "didn't turn a profit",WTF?? Why should I care about a bunch that buys of our politicians by saying "we need to protect the artists" and then screw them for every cent they can? The truly ironic part is you have a bunch of thieves screaming about pirates. It sounds like something from a Monty Python sketch.

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  3. The problem with content and profit by SmallFurryCreature · · Score: 4, Interesting

    The problem is that the content products like movies, music even books try to pretend they are normal products until it comes time to actually discuss profit margins and production costs.

    You would say that if a movie cost X to produce then if it made a box office result of X+Y that Y would be profit? It don't work like that, extremely successfull movies that break box-office records can nonetheless show a LOSS. Hollywood style accounting would get you arrested in any other field, but somehow we tolerate it because... well you got to wonder why it is tolerated.

    It seems rather convenient that the movie industry is allowed to just inflate its costs on all of its products until they rather handily do not show a profit. Say I create an item, a painting, I put itup for auction, then as the price goes higher and higher I keep increasing the costs of the paint I used so that even if my simple pencil drawing started out with a cost of a penny, if it sells for a million, it cost me a million and a penny to produce.

    Idiotic? Well it happens all the time in movies, just look at the Spiderman movies and Lord of the Rings trilogy. Products that OBVIOUSLY had more revenue then cost but that is NOT what the final account says.

    I know this will shock americans, but it is high time the state steps in and regulates the content industry. Offcourse that won't happen, any politician who dares regulate hollywood will be torn to shreds by the media.

    And we swallow it, what is the favorite show of Slashdot? Futurama? How many eps show rampant anti-piracy propoganda? A show were turning humans into a softdrink is perfectly fine, but copyright infringement is an evil that deserves an entire episode.

    We are controlled by the media, as long as the media can set public opinion they can abuse this by making sure politicians who do what they want them to do get noticed, and the ones who go against get buried.

    Oh and don't think for a second that the content industry cares one shit about censorship. Ratings, a fine for a nipple? All part of charade. In exchange for allowing Hollywood to make its own economic rules, the politicians are allowed to introduce simplistic and ineffective self regulation.

    And no, this is NOT a conspiracy theorie, there are no shadowy meetings in which this is arranged, it is just how things work. Conspiracy theorists are dreamers, idealists who hope that there is a clear enemy who no matter how powerfull can ultimately be overcome one day.

    Real life don't work that way, there is just an understanding. Politicians leave the content producers alone, and the content producers won't tear them a new hole in the public eye.

    Ever wonder why we think Kerry was a stiff, Al Gore to intellectual? Who do you think put that image in our minds? Watch the media very carefully and see how every person who is the smallest threath to the way things are done is assasinated.

    Just imagine how you would react to a Jay Leno monologue about a senator who wishes to put the IRS in charge of examing hollywoods finanicials. How many seconds do you think he would need to tear this guy down and the audience swallowing it hook line and sinker?

    The politicians KNOW this, the media controls the public so they can never control them.

    Some people believe a free press is needed to keep goverment in check, but who keeps the media in check? Examine the politics in England and how newspaper support for one party or the other can swing the election. The media is the watchdog, but who watches the watcher? The public? Yeah right, they only know what the media tells them.

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