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.