October 1, 2015
The losers: pirates, malware, viruses, and thieves
The internet has been a huge engine for commerce. You can go online to by just about anything and have it delivered to your home. You can also legitimately buy and download music, movies, and television shows from a incredible array of legal services. But where there are legitimate businesses, there are also pirates trying to make a quick buck selling that which they do not own. The truth is they make more than a quick buck — they steal billions every year pirating content belonging to others.
GroupM, a leading global media investment management company, recently announced that they will require all their partners to become certified by the Trustworthy Accountability Group (TAG), a voluntary initiative by the advertising industry to fight internet piracy of copyrighted material — typically movies, music, and television programing. Many piracy sites make their money from advertisements on their websites. Indeed, the Digital Citizens Alliance conducted a report concluding that piracy sites made over $209 million selling ads in 2014. So the initiative is aimed at stopping advertisements from legitimate companies running on illegitimate pirate sites. By stopping the flow of advertising dollars to the pirate sites, piracy itself will be reduced, thereby incentivizing creativity, innovation, investment, and jobs. Continue reading →
July 28, 2014
by Michael D. Smith
This past week a DVD-quality copy of the movie The Expendables 3 leaked online three weeks before its planned U.S. theatrical release. According to Variety, the film was downloaded 189,000 times within 24 hours. As researchers, an immediate question comes to mind: how much of a financial impact could movie-makers face from such pre-release piracy?
The effect of piracy on the sales of movies and other copyrighted works has long been scrutinized, with the vast majority of peer-reviewed academic papers concluding that piracy negatively impacts sales. Indeed, in a recent National Bureau of Economic Research book chapter, my co-authors and I reviewed the academic literature, and showed that 16 of the 19 papers published in peer-reviewed academic journals find that piracy harms media sales. Continue reading →
May 28, 2014
“The Copyright Alert System (CAS) is a voluntary initiative between leading Internet Service Providers (ISPs) and copyright holders designed to reduce pirating of digital material — often music, movies and shows. The CAS uses a progressive series of six graduated notifications aimed at educating consumers when unlawful pirating appears to be occurring on their servers or accounts. The good news is that this voluntary effort is working. Continue reading →