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  (Source: MPAA)
MPAA reports that 2007 saw one of the highest grossing years for the motion picture industry

The Motion Picture Association of America (MPAA) relentlessly bombards the public with copyright and piracy information.  It plagued the news media for years with tireless finger pointing; even its own website is dedicated to giving the public information on copyright laws and piracy.  Different sections, such as Movie Thieves, offer information on who the criminals are and asks individuals to help in their “fight to stop movie thieves!”

The confusing part is the link in the “Latest News” section that claims an all-time high in domestic and global box office sales.  The global market grew 4.9% to $26.6 billion, claims the MPAA, and the U.S. domestic market grew roughly 5.4%, passing the $9.6 billion mark.

“From the threat and eventual reality of a writer’s strike to the global impact of film theft to concerns over the economy, the film industry faced significant challenges in 2007,” stated Dan Glickman, Chairman and Chief Executive Officer of the MPAA. “But, ultimately, we got our Hollywood ending. Once again, diverse, quality films and the timeless allure of the movie house proved a winning combination with consumers around the world.”

It is surprising to see the MPAA claim that the motion picture industry is taking a beating from piracy when their own data shows that the market is producing better than before. This is not to say, however, that piracy doesn't have an effect on the film industry.

According to a study done by the Institute for Public Innovation, motion picture piracy costs the U.S. economy about $20.5 billion annually which includes revenue and “related measures of economic performance”.  The related measure includes loss of jobs, decrease in earning for workers, and the U.S. governments loss of tax revenue.  The study claims that film industry would have added a little over 45,000 new jobs.

Even though the film industry is taking some large hits from piracy, you can rest a little easier knowing that the industry is still raking in quite a sum of cash.



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numbers game
By Screwballl on 3/7/2008 11:54:32 AM , Rating: 2
ok so let me get this straight, in the US there was a record high $9.6Billion box office for 2007... yet piracy costs $20.5 Billion??? So if there was no piracy they would be seeing box office numbers in the US of $30 billion yearly??? What a load of bull.
Not likely since the numbers have stayed on a slow but consistent rise by their own graph which means that piracy has a very minimal impact on their numbers, and thus shows that they are money hungry, greedy, deceitful and hypocritical.
Now if you add in worldwide, the numbers there have gone up 98.8% in 6 years ($8.6B to $17.1B) so that further strengthens their hypocritical status. They're making more money than ever yet still chasing down petty thieves to make a few extra bucks.




RE: numbers game
By masher2 (blog) on 3/7/2008 12:01:26 PM , Rating: 2
> "So if there was no piracy they would be seeing box office numbers in the US of $30 billion yearly??? What a load of bull."

Oops - your analysis has a few errors. First of all, total motion picture revenues include not only box office receipts, but DVD, TV licensing and other sales. Also, the loss figures are what the US motion picture industry loses due to world piracy, not just in the US.

Is the $20B loss figure correct? I don't know, but given the entire industry is pulling in some $43B/year now, it does't seem wholly outrageous.


RE: numbers game
By omnicronx on 3/7/2008 12:29:40 PM , Rating: 2
quote:
Also, the loss figures are what the US motion picture industry loses due to world piracy, not just in the US.
Very interesting, so let me get this straight; They are still making 20 billion a year, 20 billion is 'lost' due to piracy worldwide. Yet they fail mention that countries like China are the ones doing most of the pirating? Many North Americans at least still go to the Theater, meanwhile in China or Japan you might turn into the laughing stock of the neighborhood for buying too many 'legal movies'.

Lots and lots of movie pirating does go on in North America, don't get me wrong, but who was to say I would have actually gone to see that movie in theaters anyways. Hell I see most new releases (at least the ones i think are going to be good), download hardly any movies anymore and yet I go to the theater once or twice a month. The movie industry is complaining about lost revenue that would have never really been theirs anyways.

Sitting at home and clicking a few buttons is a far cry from paying 20 bucks for tickets and popcorn... and then there is getting my lazy ass off the couch in the first place.


RE: numbers game
By masher2 (blog) on 3/7/2008 12:59:41 PM , Rating: 2
> "Yet they fail mention that countries like China are the ones doing most of the pirating?"

Fail to mention? They clearly state these are worldwide totals in the report summary. Furthermore, the "they" here isn't even the MPAA -- the study was done by another group entirely.


RE: numbers game
By The Irish Patient on 3/7/2008 2:05:12 PM , Rating: 2
You corrected an error in the report without realizing it.

The report says "motion picture piracy costs the U.S. economy about $20.5 billion annually" whereas your post analyzes the loss to the motion picture industry .

I don't doubt that piracy causes a substantial loss to the industry, even if it isn't as high as $20B.

What I don't believe is that movie piracy causes a substantial loss to the U.S. economy as a whole. Few Americans would put any of their money into savings even if their lives depended on it. If Timmy does a rent and rip of Transformers, the industry loses $20 but Timmy now has an extra $20 in his pocket. Timmy will inevitably spend the $20 on something else, resulting in extra revenue to some other sector of the economy.

Government and industry claims for losses to the U.S. economy always assume that Timmy sets fire to the $20 bill saved by ripping Transformers. Government has a legitimate public interest in passing sufficient laws to make copyrights enforceable. But there is not enough evidence of harm to the U.S. economy to justify some of the Draconian laws that Congress has passed, or tried to pass, for the benefit of the music and movie industries.


RE: numbers game
By Screwballl on 3/7/2008 7:34:42 PM , Rating: 2
quote:
First of all, total motion picture revenues include not only box office receipts, but DVD, TV licensing and other sales. Also, the loss figures are what the US motion picture industry loses due to world piracy, not just in the US.


1: read the story and the IPI Publication summary, both say very specifically:
quote:
Motion picture piracy now results in total lost output among all U.S. industries of $20.5 billion annually.

This does not say worldwide, just in the US, on both websites.

2: The story AND chart say US and worldwide "box office sales", not "box office and media sales". The PDF in this story mentioned the same thing, only box office sales with mentions of some influence of online advertising. At no point did they say it also included sales of media such as DVD, BluRay, HD-DVD or any other media base, only box office sales.

Sorry but no analysis errors when information was checked before posting. Granted some of my post was opinion but the factual numbers based on the charts and such are grounds for a factual basis.


RE: numbers game
By walk2k on 3/7/2008 12:21:42 PM , Rating: 2
Is this a surprise? To anyone?

Music sales are also at all-time highs despite all the crying over piracy.


RE: numbers game
By JakLee on 3/7/2008 3:08:30 PM , Rating: 2
But it all depends on, in the end, how many of those people who pirate a movie would actually go & see it they had to actually pay. I will occationally go to a chick flick with my wife because she really likes them but I would not pay to go by myself (or with my friends for that matter, LOL). Same idea with pirated movies, I am sure many of the people who pirate would have likely just skipped the movie if they did not have access to it for free. I think it would be interesting to get numbers on how many people downloaded a movie/song/album/game & then actually enjoyed it so much that they purchased it later?


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