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Researchers Find Megaupload Shutdown Hurt Box Office Revenues
An anonymous reader writes "We've heard this one before, over and over again: pirates are the biggest spenders. It therefore shouldn't surprise too many people to learn that shutting down Megaupload earlier this year had a negative effect on box office revenues. The latest finding comes from a paper titled: 'Piracy and Movie Revenues: Evidence from Megaupload.'"
What movies did they use in their control group? I'm sorry but a 3 page paper with little details on the research is not enough to convince me that they can
make any kind of valid conclusion.
The actual conclusion of the researchers was:
We find that the shutdown had a negative, yet insignificant effect on box office revenues.
(emphasis mine)
So basically there was basically no effect either way on overall box office revenues. Blockbusters gained from the shutdown of megaupload (probably due to more people forced to go see it in the theatres as they couldn't download it any more), many smaller and less well known movies lost (probably due to less people being able to preview the movie, resulting in less word-of-mouth promotion of a movie).
Interesting results anyway.
Just because there is alleged correlation between the two events doesn't mean the lower box office revenues were caused by the shutdown. Perhaps it is due to lackluster movies this year, perhaps it was due to the ever dwindling economy so those who would have normally gone to a movie couldn't justify spending an ever increasing amount on tickets (and concessions if the choose to get those), or perhaps it was just more people going to see "matinee" showings which are often a lot less expensive which drives down revenues but perhaps increases ticket sales. Heck one local theater to me has matinee showings that are $3 and most other showings are less than $5 before 6PM.
Perhaps instead of counting revenues they should count actual ticket sales. Like when they say a movie has broken a box office revenue record, is it because more people are actually seeing the movie or is it because ticket prices are at record highs?
There's only a small, finite number of movies in theaters at any one time - the article mentioned 1344. If each one were hosted once, that'd be 1344 files. Meanwhile, MegaUpload was hosting files numbering many orders of magnitude beyond that. Therefore, it's possible that both are correct - most files were not piracy related, but there were some that did, and they may have had an effect on the market.
NO ONE is denying that OP content lives on these and other servers. NO ONE.
Claims asserted include that Megaupload is used for MORE than just that and that innocent users and businesses were harmed by the overzealous acts of the US government... not just overzealous, but illegal acts.
By the reasoning you are implying, public parks should all be shut down because drug deals are known to occur in them.
Now for a psycho-medical opinion of you: You suffer from omission and denial of the obvious along with selective evidence and conclusions based on belief. The result of this is your apparent manufacture of statements made by this imaginary "singular entity" that are 'pirates' which are not even pirates by correct definitions.
If Megaupload did hurt box office sales, then they obviously hosted lots of pirated material.
You get an F in Logic 101 today. It is quite possible for a site to host no pirated content and yet hurt box office sales. For example, movie critic web sites could give low ratings. A site could have only trailers (presumably that would be legal), which could backfire, convincing people to skip the movie. Perhaps the most damaging blow is an entertainment related discussion site ignoring the existence of a particular movie.
You demand a yes or no answer to an unfair question we all know can already be answered with a yes. This is the springboard to an obvious and contrived implication, which is "Megaupload broke the law/is evil".
Have you ever told a lie? Ever? If you've told just one lie in your entire life, then you are a liar! The number of adults who aren't liars under that standard might well be zero. The world is a sink of depravity.
And your black and white view is, as others said, beside the point. The real enabler is technology in the form of the Internet and extremely capacious and fast storage media. Bashing Megaupload is just shooting the messenger.
Intellectual Property is a monopolistic, selfish, and defective concept. It is "tyranny over the mind of man"
The actual conclusion of the researchers was:
We find that the shutdown had a negative, yet insignificant effect on box office revenues.
You have misquoted the article, leaving out an important qualifier. The true quote actually reads:
"we find that the shutdown had a negative, yet in some cases insignificant effect on box office revenues.”
I need hardly add that this is not a trivial distinction. Assuming you used copy and paste for the quote, you must have then deliberately removed the text reading "in some cases" before you posted. Why exactly would anyone do this, except to change the meaning of the quote, however slightly?
Where to begin, even.
First, who are "the pirates"?
Second, where are they, as a class, saying that Megaupload was mostly used for non-piracy related files?
Third and most importantly, you're spouting nonsense from a logical perspective. YouTube hosts LOTS of cat videos, maybe enough even to influence the number of cat purchases by animal lovers. That doesn't mean that YouTube mainly hosts cat videos. Who knows? Maybe it's 75% meow-infested, or maybe cat videos are less than 1% what's being hosted. THERE'S NO WAY TO TELL, just going on the fact (for argument's sake) that the number of YouTube hosted cat videos is enough to influence the pet industry. Similarly, there's no way to tell, just based upon Megaupload's influence on the box office, if movies were a major component of Megaupload's offerings.
Fourth, hosted and downloaded are two different things. It's entirely possible that by number of files hosted, pirated music and movies are a small component, but going by the number of downloads, they are the lion's share. After all, you might only need to share a particular powerpoint presentation a few times, but a bootleg media file could get downloaded tens of thousands of times. Or it could be that most uploads are not unauthorized, most downloads are not unauthorized, but the ones that are make up the vast majority of Megaupload's bandwidth. So, in that case, is Megaupload mostly used for piracy or not? Depends on your point of view.
Bottom line, the assertions you are claiming are contradictory really aren't.
There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
Box office != to Movies sold.
I assume you're referring to DVD/BluRay sales. It's worth noting that the industry also claimed, at one point, that VCRs should be illegal because they enabled piracy. A couple of years down the line, legitimate VHS sales were a major part of their revenue.
It's ad hominem, I know, but the industry doesn't have a great track record of accurately forecasting the effects of new technology on their business. They follow the same MO each time...try to block all progress to maintain the status quo and then, once there's no other option, adapt. Studies like this are needed to help bring that adaptation sooner rather than later.
I'm curious if the city-wide crime statistics dropped when the park was closed. If so, I'm happy that the nanny state stepped in and protected citizens who would not protect themselves. If not, then the city deprived people of their park so that criminals would have to walk three blocks to commit their crimes.