Comments for The hidden treasure of piracy? Jordan 23 February 2018 Absolutely, How people like me who don't want to pay to listen to music will do ? I think i'll still looking for something that will help me to download the thousands of music I have in my computer without giving any euros and if i don't find any solution , record compagnies, labels or big producers will lose…Read moreAbsolutely, How people like me who don’t want to pay to listen to music will do ? I think i’ll still looking for something that will help me to download the thousands of music I have in my computer without giving any euros and if i don’t find any solution , record compagnies, labels or big producers will lose money, because singers and labels have understood that an album «Leaked » or a movie downloaded by people like me will make them earn more money than if I had to pay it (not including the good consumer who buy it), and I’ll give you the reasons. – First, the word of mouth is something very powerfull in our society, like it is said in the article, about Game of throne. I heard about this serie thanks to a friend that have download the serie. Seeing this series has me wanted to share this serie and speak about it. And now a lot of friend of mine look this series and speak about it too, pushing other to see it . Result a lot of people have bought for example the book of game of throne or things refering to the serie . If this serie was exclusively reserved for the members HBO, I think that it will not have the succes that game of throne have now. – In the music world,it is true that the digital music and the piracy had a important impact in the sell of physical music sales but it’s an evolution of the market with development of internet at this time. Music has changed the singer and his fans too. The world of physical music hasn’t succed to adapt with the evolution of the market. But in a meantime the digital way is more accessible than a cd store. You only need to have a phone and internet, things that are omnipresent in the world. The music world has adapted to the evolution of society and it’s I think that it is more a problem of generation more than a economic problem. Like it’s said in the article, our generation, singers as much as fans doesn’t banish piracy and on contrary think that is benefic. (1) – The absence of piracy could also impeach little producer of movie or a singer to become famous. In deed no ways of piracy means that a singer for example has to be appart of a record compagny and in like all the markets, the concurrency is strong and some couldn’t succed just because of the power of record compagny , who could choose who to promote or not. It is the same case if a not known singer want to sell his songs in a digital plateforms. It requires cost and a even if he has a good communication with the socialnetworks it will not have the same impact and benefit than what a good word of mouth could bring. There is a respons who has been created to help singer in the beginning. Soundcloud this site help singer without record compagny to make them be known by sharing freely their songs (2). Some USA singers has became famous thanks to Soundcloud (like Chance the rapper or Tekashi). Now a part of soundcloud is not free but has the same objectif as spotify or deezer , facilitate the entry of singer in the market and facilitate the acces of music at less cost than a record compagny could do. -Like I said before , an hack can be very profitable and singers or producers has understood it ( game of throne has leaked the 5 first episode of the season 7 and you can be sure that in my entourage it was at this the periood the only subject of discussion). It is the same case for singers. An example a french artist , Booba , his album has « leaked » few days before its release . This technic of non protection of their work, bring people to a idea of « first to obtain it » or « first to hear it », (3), who will push them to be the first to spread the album and speak about it. And if the work of the artist receive a good critic, the buy of the album from the good consumers will be more important. Adding the fact that producers of movie or singers use a lot socialnetworks to put fans in contribution ( and create a feeling of recongnition) by asking them to show their support ( meaning that they have bought the product) can also push people like me to finally buy their work, or not ? And if you still don’t believe that piracy isn’t good and should be reguled by law, here, is an article speaking about the negatif aspect of Hadopi laws: http://www.liberation.fr/ecrans/2009/05/07/la-loi-hadopi-nuit-a-la-creation-artistique-et-penalise-les-petits-artistes_960424 https://korben.info/que-pensent-les-artistes-du-telechargement-illegal.html (1) https://brooklilleseason.com/2017/12/01/lessor-de-la-generation-soundcloud-au-sein-du-rap-us (2) https://davidpeyron.wordpress.com/2016/01/11/le-marketing-du-leak/ (3) Show less Reply AEGERTER Noémi 23 February 2018 Piracy in the world over has become an industry, technology is allowing it to flourish. Today almost every king of product are concerned, especially Musics, Films, Series, Softwares and video games. thus provoking sharp criticism and threatening of these different industries. The main danger of piracy lies in the insufficient remuneration of production and creation, which can be very harmful for…Read morePiracy in the world over has become an industry, technology is allowing it to flourish. Today almost every king of product are concerned, especially Musics, Films, Series, Softwares and video games. thus provoking sharp criticism and threatening of these different industries. The main danger of piracy lies in the insufficient remuneration of production and creation, which can be very harmful for these industries. Thereby, goods become non-exclusive and non-rival, that is, they are easily and speedy copied to different media, that consumers can easily trade them and that owning one does not prevent other consumers from owning it too. As far as the film industry is concerned, the impacts are, as we have seen with you, very real. However, although the victims of the phenomenon are heard, some opinions on the subject diverge. Indeed, while copyrights or artists’ rights are often violated, some actors see their image enlarged, some producers aiming to convey a message prefer to make less profit but their film is transmitted and can be seen by a maximum of people. If indeed illegal downloading is the cause of direct losses for these industries, its positive consequences are more important. This is also one of the main conclusions of a recent report related to the impact of the piracy of works in digital format (movies, music, video games) on the internet. Commissioned by the European Commission in 2015. Which shows that the effects are not the same on the sector concerned. Thus, It allows Internet users to access a wide choice of cultural goods, without it being necessary to move, for a price close to zero and discover products before buying later. However, the arrival of legal offer online has become a severe competitor of illegal downloads. It is a good answer to illegal downloading because it respects the copyrights and allows a remuneration of the artistic creation by the payment of the downloads. And It presupposes a real differentiation by the quality of service (diversity of the offer, ease of use, legal certainty.. ) rather than quantity, which in my opinion, as a Spotify and Netflix consumer can be more advantageous that piracy. Thus, Due to the different downloading techniques and advancement in duplication technology has made piracy easy, accessible to all, free and speedy. It revolutionizes the thinking of cultural industries and their financing because it makes copying a phenomenon of a scale that is currently out of control and difficult to prevent. By the way, many solutions have been envisage to counter this transition to a new economic model of the cultural industries while motivating consumers by offering them an inexpensive and honest alternative. To conclude, according to me, the question is not to know if ‘one become even worse than the other, since in reality it would be too unrealistic to imagine a world without piracy today or in the near future. But what would be the most efficiente solution for the actors concerned ? Sources Bibliography Etude CNC « La piraterie de films : motivations et pratiques des internautes » Sitography : http://www.wipo.int/edocs/mdocs/aspac/en/wipo_ipr_pnh_11/wipo_ipr_pnh_11_ref_t1.pdf http://www.wipo.int/edocs/mdocs/africa/en/ompi_pi_dak_15/ompi_pi_dak_15_cluster_ii_9.pdf http://www.liberation.fr/ecrans/2009/01/20/le-piratage-et-ses-effets-positifs-sur-l-economie_958798 Show less Reply Narjiss Dhibat 23 February 2018 So, would the absence of piracy become even worse than piracy itself? As it was mentioned in the article, piracy nowadays became like any other known normal phenomena; the producers of GOT TV show and the people responsible did confirm that piracy doesn’t have any negative effects on the show’s revenues nor popularity but it is the way around…Read moreSo, would the absence of piracy become even worse than piracy itself? As it was mentioned in the article, piracy nowadays became like any other known normal phenomena; the producers of GOT TV show and the people responsible did confirm that piracy doesn’t have any negative effects on the show’s revenues nor popularity but it is the way around , so I believe there is no need to say more about this . I am a huge fan of GOT , and I didn’t miss a single episode since the day HBO launched its first plot; however I must admit that I never subscribed nor paid anything for it . Am I a Pirate? I guess I am, but it is not my fault that they are thousand of websites that allow you to watch any series or movies you want in HD quality. I’ve always wondered though about those people who subscribe to Netflix or other cable services and I never get it!! Why are they still paying for it while they could find it for free all over the internet? Yet it seems that doesn’t stop millions of people of buying the original content, companies and people in the show business are still happy and proud of their goods and their income; In fact they encourage piracy so that their show gain more popularity so I guess the absence of piracy would be even worse than piracy itself . This latter did and does no harm but its absence in my opinion is going to turn the table in favor of the people in show business for a while because they will take advantage of this situation by playing with prices in any way they want , while the customers would be obliged to be slaves because there are no alternatives. Things could go further worse because people may stop subscribing and may lose their interest for the goods: It was mentioned earlier in the article that piracy feeds the cultural buzz so without it the show would be less followed until it became forgotten , and they would have to cancel a show after another because of the lack of popularity . Not to forget that series like GOT became internationally know and people are watching it from all continents by some people who don’t even speak English. The way I see it, not only that the absence of piracy would have negative effects on both makers and customers but it is impossible to be achievedin the first place . Show less Reply Paul Belleflamme 25 February 2018 I appreciate that your voice your opinion but you should back it up with sources and references, in a proper academic way. ammour hamza 23 February 2018 Piracy may be a scary word, because it is usually associated with theft. But even the worst things in life may have a positive side and so does piracy. The question is what could be the benefits of such a bad habit? And would its absence worsen the economy? In my opinion, piracy has one strong power: it makes the series…Read morePiracy may be a scary word, because it is usually associated with theft. But even the worst things in life may have a positive side and so does piracy. The question is what could be the benefits of such a bad habit? And would its absence worsen the economy? In my opinion, piracy has one strong power: it makes the series for example more known than ever since it allows people who cannot afford the original DVD to know about it. This contributes to create a stronger “buzz” simply because everybody can watch it. This buzz will lead to an increase of the sales of the original copy. The positive effect of piracy is not limited to “the cultural buzz”. In fact, numerous studies have shown that it has a positive effect on the content producers’ profits: their consumers can increase, they can be attracted by the illegal copies and buy the legitimate ones later. Also, it positively affects the Network. In fact, the network increases in function of the number of the consumers of that good no matter what if he bought a legitimate copy or a pirated one. So, knowing that almost anyone would be a victim of piracy and even producers benefit from it, would its absence worsen the economy? In my opinion Yes. Without piracy, we wouldn’t know about many series, songs and even artists. The buzz that piracy creates is crucial to those producers because they can reach the wealthy target who can afford the original copies as well as the unfortunate target, they can reach everybody, everybody knows and talks about them and this is beneficial for them. The fact that people who got the pirated copies didn’t pay for it will be compensated by an increase of the sales since they created a “buzz” that made other people get the legitimated copies. Those people who got pirated copies became fans, created networks and the producers benefited of free communication and publicity Show less Reply Coudray Morgane 23 February 2018 Most of the time, piracy is used for economical reasons, downloading something on the Internet is free while you have to pay to buy it in-store or online. This article show us several effects of piracy on differents industries, like the cinema (Exemple : Game of Thrones) or music. We can see that piracy have some positive effects because for some…Read moreMost of the time, piracy is used for economical reasons, downloading something on the Internet is free while you have to pay to buy it in-store or online. This article show us several effects of piracy on differents industries, like the cinema (Exemple : Game of Thrones) or music. We can see that piracy have some positive effects because for some producters like the HBO programming president, Michael Lombardo, it’s a sign of a demand. Then, when you illegally download a file, you discover the serie or the movie and if you enjoy it, it could encourage you to buy it legally, just for the pleasure of having it.There is also a network effect, and that’s probably what happened with Game of Thrones. A lot of people, and I’m a part of them, started to what that serie because everyone was talking about it ; it was shown that the more people watch a serie, the more people will want to watch it, a little bit like a fad. And finally, the rate of piracy is an indicator for the productors of the value that consumers attribute to their good, it allows them to developp some complementary goods that will be legally buy by consumers and pirates. That’s already four arguments that shows the positive effects of piracy, but of course, they are only theorical effects, how to show them in reality ? Well, by doing some empirical studies. Nowadays, it’s acquired that piracy have had a negative impact on physical music sales, for example. An argument that is opposed to the idea that lots of goods that have been illegally download wouldn’t have been buy legally. So, if I was a musician, trying to make me known and to sell Cd’s, I would rather be known even if it’s thanks to piracy than seeing my CD’s unsold. What about online music sales ? Aiguar and Martens conducted a study about it and showed that piracy had no effects on sales volume.Obviously, knowing that the people they have studied and the fact that this households were aware of being watch, the study is maybe biased. It could mean that piracy could have an effect on online music sales, but what effect ? Is it positive or negative ? To conclude, piracy could become an ally of copyright holders because of his positive impact on some industries. If we managed to remoe completely piracy, there would be no more informations about the true demand of a good (legal and illegal demand), no more network effect neither. Some people download a serie to watch it and see if she worth to be by but without piracy, they wouldn’t take the risk to buy a serie which might not like them. So, in my opinion, based on elements that were presented by Paul Belleflamme in this article, the absence of piracy would be worst both for the consumers and for the producters. Show less Reply Cecilia Busardo 22 February 2018 With the emergence of Internet and social networks, we assist at the emergence of the phenomenon of piracy. Digital piracy could be defined as the practice of illegally downloading music, films, series etc. and also illegally selling them. In my opinion, digital piracy, like every concept, has its good and bad sides. In a certain measure, it is a great…Read moreWith the emergence of Internet and social networks, we assist at the emergence of the phenomenon of piracy. Digital piracy could be defined as the practice of illegally downloading music, films, series etc. and also illegally selling them. In my opinion, digital piracy, like every concept, has its good and bad sides. In a certain measure, it is a great way to spread music and all digital contents. Considering the fact of “digital buzz” mentioned in this article, artists that desire to become known and famous can easily find a utility in this digital piracy. As an example, Ed Sheeran, an international singer known by almost everyone has affirmed that piracy was what made him known. He said: “Illegal file sharing was what made me. It was students in England going to university, sharing my songs with each other.” As a certain kind of buzz, piracy platforms could be considered as means of promotion. The fact that millions of users go to these sites to download, digital contents are, by the way, seen by a majority of users who will download and recommend these contents and so. However, this works in majority for artists that aren’t really famous. Top artists (or series, movies etc.) really suffer from piracy. For example, in France, one French people on four has downloaded or watched illegally an audio-visual content, which represents 1.35 billion Euros. According to studies, musical industry would be the one mostly touched by this piracy. I do think that piracy is a bad thing but a necessary thing. Actually, it is a way of sharing contents, of discovering and of getting known. Without these downloading platforms, we wouldn’t know all these artists or movies that aren’t on TV, cinema or on the radio. At a certain point, artists can retire benefits from piracy. Illegally downloading can give us free access to a lot of contents; can give us the possibility to discover a lot of things, but I do not believe people who download would buy the content just after they illegally got it. Maybe it would push them to go to the cinema to see a film from the same producer in the case of movies, but not in the case of music. A lot of songs aren’t available in CD’s just because their author isn’t really known so they do not have the means to register a CD. Moreover, a lot of contents are available in one country but not in another country. But, every artist has taken time to give birth to their projects, they invested their money and some even risked to lose everything achieve their goals. In this sense, they have to be rewarded. Piracy can just help them to get known but it won’t give them the earnings they deserve. So, I think that piracy should exist but be controlled. There are alternatives such as platforms where we can pay a little amount of money per month to have access to a lot of contents in total legality (Netflix, Spotify, Deezer etc). In my opinion these platforms are the perfect alternative to piracy: it is not as expensive as if you bought ten films a month but it allows artists to get a reward for their production. https://torrentfreak.com/piracy-can-help-music-sales-of-many-artists-research-shows-180128/ https://lexpansion.lexpress.fr/high-tech/le-cout-du-piratage-en-2016-1-35-milliard-d-euros-et-2000-emplois-directs_1882428.html Show less Reply paolantoni Nolane 21 February 2018 • The piracy of cultural property on the Internet, and especially its impact on the sale of works, has been the subject of an abundant economic literature, often focused on the music industry. It is true that this industry has experienced since the late 90s an unprecedented recession, with a turnover that fell by half in France between 2005 and 2011.…Read more• The piracy of cultural property on the Internet, and especially its impact on the sale of works, has been the subject of an abundant economic literature, often focused on the music industry. It is true that this industry has experienced since the late 90s an unprecedented recession, with a turnover that fell by half in France between 2005 and 2011. However, piracy does not end with music and the other sectors of cultural goods (film, video game and book) also suffer or fear the effects of piracy: DVD sales have fallen by around 30% in France. the same period (2005-2010). Piracy is a widespread practice in the world of video games; as for the book, great legal battles oppose the publishers to the actors of the digitization. • While industry players often blame piracy for cannibalizing sales, the economic literature suggests that the effect of piracy on legal sales is a priori ambiguous due to the presence of two contrary effects, the sampling effect ( “Sampling”) and the substitution effect. The sampling effect is based on the idea that cultural goods are experiential goods whose quality or positioning is unknown ex ante to consumers. Hacking a cultural property makes it possible to test it before buying and to make sure that the good matches its tastes. To the extent that there is a vertical differentiation in quality between the pirated good and the original, piracy can have a positive effect on sales (Peitz and Waelbroeck ). The substitution effect means that when the illegally downloaded good and the legal good are substitutes, piracy (logically) decreases sales. • The literature on empirical analysis of piracy has focused mainly on the music and, to a lesser extent, cinema sectors. Several methodological approaches have been adopted to study the impact of piracy. Some studies are based on the analysis of aggregated sales data in several countries or urban areas. To measure the impact of piracy, they use the penetration rate of high-speed Internet as a proxy for illegal downloading (Michel , Peitz and Waelbroeck ) or rely on natural events such as anti-piracy laws (Adermon and Liang , Danaher et al ). Other studies compare sales and downloads of a subset of products (Blackburn ) or use other variables to measure the impact of piracy such as the availability of products on the iTunes Store. Finally, some studies rely on consumer surveys to measure the link between legal consumption and piracy (Bounie et al., 2006). • Regardless of the methodology used, the vast majority of work on recorded music concludes that piracy has a negative impact on sales. Piracy may explain a small part of the decline in sales (Michel , Peitz and Waelbroeck ), about half (Zentner ), or all (Liebowitz ). On the other hand, Oberholzer and Strumpf  suggest, by comparing sales in the United States of a sample of records with the number of downloads they have been subjected to on peer-to-peer networks, that the download has no impact on recorded music sales. Similarly, Andersen and Frenz  conclude, based on a survey of CD sales in Canada, that sales lost as a result of piracy are offset by additional purchases by consumers due to the effect of sampling. • Liebowitz  emits a study stressing in particular the lack of validity of the instrument used to control the endogeneity of the piracy variable. The results of Andersen and Frenz were also criticized by Barker and Maloney  who, by resuming the survey and correcting the definition of the sample, found a negative relationship between CD sales and download. Finally, Smith and Telang  point out that leaks of pirate copies before the release of the album are a random event that does not depend on the notoriety of the artist (which seems debatable). • An important feature of movie piracy is that files are larger in size and it is more time consuming to download movies than music files (which was especially true before the advent of BitTorrent technology in 2010). 2003). Comparing DVD sales and broadband Internet penetration in 100 US cities over the period 2000-2003, Smith and Telang  show that the spread of the Internet has led to an increase in DVD sales. Studies after this period lead to more contrasting results. Bounie et al. , based on a survey of high school students, and Zentner , based on a study of thirty-six countries over the period 1996-2008, come to the same conclusion: hacking has no impact on theatrical inputs but has a negative impact on DVD sales. • So we find from the studies and the opinions on piracy give mixed results. Some theories evoke the positive effects of piracy, particularly in terms of sales and visibility, while others demonstrate the harms with a drop in sales particularly. • In my opinion, if hacking did not exist, most of us would miss out on an artist, a band or a movie we might like. Indeed, we would lose too much time looking for new films, new series or new music but also money, these two elements would necessarily discourage us. However, I think that hacking could hurt small artists who still need to make their business profitable, as Eric Feinberg, one of the creditors who promotes the rights of artists who raise awareness on issues like Internet safety, says. piracy. “If we do not deal with piracy, many artists will not be able to make a living, and without artists, there is no audience.” Is the absence of piracy worse than the hacking itself? My point of view is divided between these two points of view. • Finally, an interesting report on sales piracy has just been highlighted by MEP Julia Reda. The conclusion of the ECORYS study is that “the results do not show clear statistical evidence of a shift in sales due to copyright infringement, it does not mean that piracy has not only because the statistical analysis does not reliably prove that there is an effect “. Researchers have failed to prove the correlation between piracy and declining sales, with one exception at least: blockbuster movies … In 2016, the Commission did not publish the Ecorys study … Has the European institution voluntarily concealed the report because the conclusions of the report did not go in its direction (notably because of its copyright policy)? Everyone will be able to form their opinion on this subject (link in the sources) Sources : – https://www.tresor.economie.gouv.fr/Ressources/file/326532 – http://pratique.leparisien.fr/faq/informatique/ordinateur/c-est-quoi-le-piratage-1320004134#xtref=https%3A%2F%2Fwww.google.fr%2F – http://www.cnetfrance.fr/news/le-piratage-nuit-il-aux-ventes-pas-sur-selon-un-rapport-non-publie-de-l-ue-39857872.htm – https://www.numerama.com/magazine/5205-qui-a-dit-que-le-piratage-nuit-a-la-creation-artistique.html – https://www.ige.ch/fr/propriete-intellectuelle/contrefacon-et-piraterie.html – http://observateurocde.org/news/archivestory.php/aid/1899/Contrefa_E7on_et_piratage_.html – Livre : Droit de l’Intelligence Economique, Litec Professionnels Show less Reply Games piracy is “good for sales 2 October 2017 […] Source: IPdigIT […] Reply Digital piracy is illegal, but is it wrong? By Gabrielle Gibson. – Site Title 8 June 2017 […] Belleflamme, P. (2013). The hidden treasure of piracy? Retrieved from http://www.ipdigit.eu/2013/12/the-hidden-treasure-of-piracy/ […] Reply messad 11 March 2017 For me, piracy is synonymous with theft and evil, for it is illegal; But let's read this article I am a rapper a saying that say "the misfortune of some makes the right time of others" and the ca become "the good hour of the good hour of others", Companies piracy positive effects. With all the technological advances and innovations in…Read moreFor me, piracy is synonymous with theft and evil, for it is illegal; But let’s read this article I am a rapper a saying that say “the misfortune of some makes the right time of others” and the ca become “the good hour of the good hour of others”, Companies piracy positive effects. With all the technological advances and innovations in the field that keeps getting better; It becomes impossible to be able to stop the piracy in this big web of the Internet. So; The industries most concerned (music and film industries) try to make a phenomenon and find solutions to be able to manipulate it and turn it to their advantages. But for a number of their turnover is only a decline a cause of piracy. Nevertheless, companies can derive certain advantages from piracy such as: 1. the cultural buzz. 2. very fast circulations of information from the existence of a new product which is like a great ad for the product. 3. And these first two points can apply to the demand of the product and also to the word of mouth. In my opinion; Even if there is no way to stop the phenomenon of piracy; I think that the absence of piracy would be worse than is existence; Dune shares for the majority of companies that benefits from the consequences of piracy and also for those for whom piracy is their reason for living. But to date, piracy and the music and cinema industries cohabit together. Show less Reply Allen 24 February 2017 Piracy will always come with its pros and cons. Though it’s undeniable, it is a curse for the entertainment industry, it is an expanding phenomenon. A couple of years ago, piracy was less frequent. As this article points out, the outcomes of piracy can be positive to a certain extent. For instance, piracy in the film industry can bring more…Read morePiracy will always come with its pros and cons. Though it’s undeniable, it is a curse for the entertainment industry, it is an expanding phenomenon. A couple of years ago, piracy was less frequent. As this article points out, the outcomes of piracy can be positive to a certain extent. For instance, piracy in the film industry can bring more attention to a movie, create a cultural buzz that will be followed with the raise of the sales of the DVD. I do believe that people who download illegal content online weren’t going to buy the album/the movie if piracy didn’t exist. So they weren’t going to raise the benefits the album/movie/tv show to start with. I do stand with Michael Lombardo on this idea. I could even go further by saying that people who have seen a movie or a TV show illegally and enjoyed it could spread the word about it and attract new fans. The fact that illegal downloads are unlimited gives you an unlimited amount of albums, or movies to discover. You are not limited by your earnings anymore, and you can, for the future, know on which artist or actor you would pay to get the album or view the movie. If piracy didn’t exist, most of us would be missing out on an artist, a band or a movie we now love, our tastes would by limited to blockbusters movies that are over-publicized or famous mainstream artists as almost nobody would spend a ton of a time and especially money trying to discover less famous artists, movies, buying album by album, DVD by DVD, while considering the risk of not liking a portion of them. I view piracy as sharing and not stealing. If a friend lends you an album and you copy it, it is not considered as stealing, but it does expand your audience. So why would it be stealing if someone shares the album at a larger scale ? Either way, the artist is not going to gain any money from those shares, but could get new fans. To conclude, piracy doesn’t make artists lose money because without piracy, people wouldn’t have bought their work anyway, and artists would have a more restrained fan base. On the other hand, with piracy, though the artist might not be gaining the money of his shared work, he is growing his fan base which might in the future buy his work. So yes, the absence of piracy would be far more worse than piracy itself, for both the artist and the audience. Show less Reply Paul Belleflamme 26 February 2017 It’s good to give your personal opinion; I appreciate it. But you should also try to back your arguments with references. Chachki 24 February 2017 I feel like piracy is a new way of testing out music, movies and tv shows. It's sort of having the option of test it without buying it, but of course, not everyone is going to buy the DVD just because he or she enjoyed the movie that's been downloaded illegally. That being said it can push people to go…Read moreI feel like piracy is a new way of testing out music, movies and tv shows. It’s sort of having the option of test it without buying it, but of course, not everyone is going to buy the DVD just because he or she enjoyed the movie that’s been downloaded illegally. That being said it can push people to go to the movies and watch another movie by the same producer, or with the same actor next time. For bands or musicians I do believe it can be beneficial too. Some fans may not be buying the albums but they might go to the concert and buy the band/artist’s merchandise. So yes, I do think the absence of piracy would smother the entertainment industry as it would narrow down the number of fans and future potential buyers. For instance, I have a friend who’s a huge fan of Game Of Thrones, she always watched the show illegally, yet collects every game of thrones’ Pop figurine she can find. If it wasn’t for piracy she probably never would have been a fan of the show. That being said, I do believe that piracy hurts small artist that still need to make their activity profitable. “What many people don’t realize is that many up and coming artists are one missed paycheck away from homelessness”, “If we do not address and fix piracy many artists will not be able to make a living. And without artists there is no audience” says Eric Feinberg, one of the funders for #ProtectOurFutures, a campaign that promotes artists’ rights and to raise awareness on issues like internet safety and piracy. ( https://www.forbes.com/sites/nelsongranados/2016/02/01/how-online-piracy-hurts-emerging-artists/#a41541077741 ) Though downloading illegal content doesn’t hurt multi-million dollars making artists, we should remain smart as to weather we should illegally download content from an up-and-coming artist. Piracy is a real struggle and is discouraging the next generation of great talents, leaving us with the already established ones, and for the audience, that means a lack of renewal (new talents) in the entertainment industry. Show less Reply Laura Martin 16 February 2017 Before reading the article, I never thought positive about piracy, since it is illegal most of the people have a more critical point of view. Even that the article shows the positive points of piracy, like attracting new consumers or feeding the buzz I’m still thinking that piracy is devastating for the creative heads. Keith Kupferschmid, CEO of the Copyright…Read moreBefore reading the article, I never thought positive about piracy, since it is illegal most of the people have a more critical point of view. Even that the article shows the positive points of piracy, like attracting new consumers or feeding the buzz I’m still thinking that piracy is devastating for the creative heads. Keith Kupferschmid, CEO of the Copyright Alliance, states: “Piracy arguably hurts independent creators who are struggling to make it – including photographers, film producers, musicians, and app developers – more than it harms established artists. Independent creators are striving to earn a livelihood and make a career. When they are pirated they lose essential income, they lose confidence, and the lost income prevents them from re-investing in their creative work.” I think that Kupferschmid did exactly point the problem. Even when big artists don’t really feel the disastrous consequences of illegal downloads; they can prevent young talents to go big. Furthermore, studies show that illegal downloads induce generally the decrease of physical sales but haven’t had yet a negative influence on the legal downloads. I am of the point of view that this will change in the near future. Nowadays technology is changing so fast, that physical components like DVDs, Blu-ray and other will disappear mostly. All the consumption of films, music etc. will be based on downloads (legal and illegal). When this process will be done, the consumers will probably increase their illegal downloads. People will get the same for free (illegal download) as they will in a legal download. There isn’t any difference no more between what you get when you pay and when you won’t (before you had CDs when you paid, here you will online have a data file). http://www.forbes.com/sites/nelsongranados/2016/02/01/how-online-piracy-hurts-emerging-artists/#422489137fa2 Show less Reply Balaji Ramachandran 21 December 2016 While answering the question on whether the absence of piracy would make the industry a better place than it would if it existed, we need to analyze the exclusive value that piracy provides and whether these can be duplicated by other means. First, we can ascertain that the biggest benefit of piracy is reach. Pirated copies of movies and TV…Read moreWhile answering the question on whether the absence of piracy would make the industry a better place than it would if it existed, we need to analyze the exclusive value that piracy provides and whether these can be duplicated by other means. First, we can ascertain that the biggest benefit of piracy is reach. Pirated copies of movies and TV shows reach foreign lands in their original and dubbed versions much faster than the producer of these can possibly release. Therefore, in the context of the market, piracy actually helps achieve greater penetration amongst the internal market and expands the reach of the content on a global market. For instance, Pokemon Go was widely played in countries like India and China well before its official launch. This led to the buzz around the game sustain for a longer period than it would if no action had been taken by pirates to release an early version of the game. Second, we can identify that piracy tends to reduce the cost of acquisition of this content to a miniscule amount. Finally, we can see that piracy pushes firms to invest in more secure technological solutions to prevent further unauthorized copying. On these three benefits, we realize that the incentives to improve security are strongest when the company is constantly under threat. However, instead of pirates looking to mine information, entertainment companies can instead hire ethical hackers to perform the same function minus the risk of stolen data reaching the wrong hands. Similarly, the cost of acquisition can be annulled if the firm decides to release the content itself for free and monetizes using advertisements or uploads short versions of content on streaming sites to achieve consumers’ aim of minimizing costs. Finally, we can see that reach is hard to emulate. However, with the increase in internet adoption and secure payment gateways, I believe that the opportunity available to reach more people becomes more useful when you have relationships with the consumers. This can happen even without social media as the word-of-mouth on the quality of the product is likely to trump in a few years either way. References  http://www.macrumors.com/2016/12/13/pokemon-go-officially-launches-in-india-tomorrow/  http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452  http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ Show less Reply Angéline Bonte 21 December 2016 “In a perfect world, everyone would respect intellectual property and copyrighted software, music, and other content”. But we don't live in a perfect world and certain users are always going to illegally download some content. Therefore, knowing that the absence of piracy is impossible, the best response is taking the benefits that it can bring. First of all, piracy is a…Read more“In a perfect world, everyone would respect intellectual property and copyrighted software, music, and other content”. But we don’t live in a perfect world and certain users are always going to illegally download some content. Therefore, knowing that the absence of piracy is impossible, the best response is taking the benefits that it can bring. First of all, piracy is a sign that the product is wanted by the public. In fact, the amount of illegal downloads of a content can be an estimation for its demand. The more people pirate it, the biggest is the potential market of legal users. It has even been shown that “frequently, pirated albums sell slightly more copies than ones that aren’t”. Furthermore, people want to know if a product is good before buying it legitimately. Therefore, it is not unusual that people “evaluate” the software or the music albums via, quite obviously, piracy which is today the easiest way to do that. That is why, in response to this trend, we see more and more software companies offering full-featured trials/demos or artists who freely share online their new album a couple of weeks before the official day of released. Besides the fact that these methods allow producers of content to control piracy, they are really good purchase incentives. In fact, “albums that are shared before they are officially released actually sell more copies than expected”. A second reason that drive people to piracy is often the cost of the content (mainly for the software’s). For example, the Adobe suite of software are a few hundred US dollars each which is too much for a lot of users. To avoid piracy due to a too high price, companies offer now a more affordable solution: subscription. “Previously, software was purchased as a one-off bundle”. Once a user has purchased a software, he owns it and can it indefinitely. However, the user only owns the license for that particular version and he has to pay for the new one if the software is upgraded. Now, “software subscription is a pay-as-you-use model”. It means that users can opt to pay per month, year, etc. with discounts for longer terms as purchase incentives. But this new way to sell is not only for software, we see this concept emerge for others content, such as movies and music. Finally, we can say that piracy drive innovation. To reduce or control it, companies adapt themselves in creating new roads to sell their products. In the world of software, “the amount of piracy surrounding Adobe products like Photoshop and Illustrator actually led them to develop the Creative Cloud subscription service”. We clearly see here how piracy drove a company to recognize the extreme demand of their products. In another type of business, Netflix was also created in response to an increasing demand for TV shows and movies on-demand at an affordable price. In fact, the piracy of media (on torrent sites for example) has driven success for Netflix, Spotify and other low-cost subscription providers.  Luijten, C. (2016). Four positive side effects of software piracy for developers. Available on: https://www.itca.com/blog/4-positive-side-effects-of-software-piracy-for-developers  Koebler, J. (2012). Report: Album Piracy May Help Musicians Sell. Available on: http://www.usnews.com/news/articles/2012/05/29/report-album-piracy-may-help-musicians-sell  Idem.  Zyen. (2016). Subscription: The Software Industry’s Answer to Piracy, and the Benefits to Users. Available on: http://mywebweaver.com/2016/08/24/subscription-software-industrys-answer-piracy-benefits-users/  Idem.  Luijten, C. (2016). Four positive side effects of software piracy for developers. Available on: https://www.itca.com/blog/4-positive-side-effects-of-software-piracy-for-developers Show less Reply Nausicaa Aguie 21 December 2016 In my personal opinion, no piracy would be worst than the piracy itself for the artistic sector. To state that, I think we should more focus on the way people consume artistic goods instead of simply the amount of physical or legal numeric copies sold. My point is that if someone is used to buy CDs and DVDs for a very…Read moreIn my personal opinion, no piracy would be worst than the piracy itself for the artistic sector. To state that, I think we should more focus on the way people consume artistic goods instead of simply the amount of physical or legal numeric copies sold. My point is that if someone is used to buy CDs and DVDs for a very long time and if this person does it because she absolutely wants to encourage the artists, then she won’t consider decreasing the amount she usually spends on such goods. She might however illegally download extra copies that she wouldn’t have bought anyway, as it is above her dedicated budget, there is thus no displacement here. A sampling effect could even appear here as piracy can lead this person to discover new artists which production she will afterwards buy legally. Piracy can be seen as a free trial for discovery in that case. There are also some convinced pirats who absolutely refuse to pay for an information goods like music, movies or TV series. But the intrinsic characteristics of those goods makes those people keen to fall in a network effect and/or a complementary goods effect. Let’s illustrate by some examples. If you often listen to an artist and you have many friends appreciating the same artists, you will be much likely to accept to go to a concert to see him. The network effect of everybody listening to the same music wasn’t enough to make you buy a legitimate copy but it made you buy a complementary good such as a live performance. We can find another example for GOT, a lot of people started to watch this serie because they were one of the fewest who didn’t follow GOT in their social network. They end up watching it because of social pressure and because they can watc it for free. They wouldn’t have buy it otherwise so there is no displacement here also. I like to think that piracy has shifted the consumption of information goods. As people don’t have to pay to watch or listen as much as they want (although they still can) they have the opportunity to discover more artists. As this is true for everyone the network effect, and the social pressure (especially nowadays when everybody like to show how we spend our personal time on social medias) can lead those people to shift their consumption from buying copies to buying concerts, festival, cinema tickets or exposition for their favourite TV serie entrance. Live performance and real experience is maybe the future greater revenue source for the music industry as well as for the movie industry and the TV show production. Show less Reply Vincent Callens 21 December 2016 Since the invention of the digital format, Piracy has always been subject to debate. The early stages were undoubtfully stealing. Indeed, people were at first reproducing CD’s or VHS and those were sold in black market. With the apparition of the internet, piracy has become more ambiguous. While some people were still using the black market to sell free downloaded…Read moreSince the invention of the digital format, Piracy has always been subject to debate. The early stages were undoubtfully stealing. Indeed, people were at first reproducing CD’s or VHS and those were sold in black market. With the apparition of the internet, piracy has become more ambiguous. While some people were still using the black market to sell free downloaded content to people unable to down because they didn’t know how or didn’t want to take such a risk. With the development of the Internet and the download speed increase, more and more people had an easy access to a new world of sharing. Peer to peer protocols allowed each one to be part of a huge network. Numbers of download since skyrocketed and the vast majority of the pirates have never been into any legal problem. Politics around the world see this as a problem and have developed protection and furthermore surveillance. Hadopi for example was the French system to monitor the network and catch the pirates but each protection has its own bypass and nothing really stopped the downloads from happening, pirate platforms using more and more complex techniques to stay protected and to use servers operating in countries with more lax laws. The never-winning war against piracy has had really negative effects on some parts of our life. With the monitoring of the entire network, online privacy is more than ever endangered for some profit makers. It hasn’t taken long before political opinions emerged from the people. The Snowden case showed everyone how powerful and intrusive that surveillance. It was now notorious that we were spied, that every part of our life was monitored. Pirate political parties emerged all around the world. Nearly 70 countries now have such a political party. They try to reverse the paradigm all around the world. Many arguments in favor of this monitoring namely the ones aiming at protecting the artists are now scientifically refuted. Artists themselves see the piracy as a method to be known around the world in a really fast way. With those straight facts, some of those pirate parties gained not negligible power in some countries namely the Nothern Europe ones such as Sweden which was the first historical pirate party or more impressively in Iceland where the political and economic situation is not stable those last years. For the first time in history, a pirate party could access to the power according to the surveys. This party wants to reverse the actual privacy/secrecy rights. They want to make everything happening in the political sphere totally transparent while protecting personal rights such as online privacy. They see piracy not as stealing but as a way of spreading information, knowledge and to make a common culture worldwide. They want also for example to give Edward Snowden Icelandic citizenship. They clearly stand against political decisions limiting personal freedom such as the total prohibition of drugs or the control of online pornography access already active in Iceland. Even if they earn sufficient votes to enter the government, they won’t be able to enforce all they stand for because the others parties in the government ( Iceland political system encourages to have alliance among the parties to form a government representing the majority ), it could be a huge step forward for global freedom. December 2 2016, their chief received the mandate to form a government so the chances to see the party in an official political sphere are higher than ever. Other countries could then follow the lead with such a visibility and rise locally before going worldwide. The deep problems grieving our present world could have some solutions in those alternative political parties. Who knows, piracy could go from criminal activists to freedom fighters heroes our world needs. Sources https://pp-international.net/about-ppi/ http://piracy.web.unc.edu/brief-history-of-online-piracy/ http://news.nationalpost.com/news/world/iceland-might-be-taken-over-by-pirates-well-the-pirate-party-heres-what-you-need-to-know Show less Reply Mariam Zaroual 21 December 2016 While thinking about piracy, it is commonly thought that it is bad since it is illegal. Nevertheless, in this article it has been clearly shown that piracy can lead to positive effects for the companies. Firstly, an advantage that companies might gain from the piracy is the “cultural buzz”. Indeed, the illegal practice permits to spread the word-of-mouth. Consequently, it…Read moreWhile thinking about piracy, it is commonly thought that it is bad since it is illegal. Nevertheless, in this article it has been clearly shown that piracy can lead to positive effects for the companies. Firstly, an advantage that companies might gain from the piracy is the “cultural buzz”. Indeed, the illegal practice permits to spread the word-of-mouth. Consequently, it might result in a bigger success compared to the absence of piracy. Secondly, another benefit is the fact that illegal consumers will more likely purchase a legal copy later. Nowadays, one of the most downloaded thing is the digital music which became easily accessible to the consumers even for free: YouTube and Spotify are popular for instance. These platforms can be used as promoting tools. Concerning the consumers, they enjoy the accessibility of specific songs (they listen to the artists when and where they want) and the diversity of the songs. We can speak about the “freemium” versus “premium” option of Spotify. Some of them are ready to pay to access a wider range of music. Thirdly, and most importantly, piracy allows companies to increase the demand for complementary products. Let’s take again the example of the music industry. Even if the physical sales of CD’s significantly decreased due to the online access to the music, artists will benefit from the revenue of paired “products” such as concert tickets. In addition, it should be said that in the absence of piracy, the products would not be necessary purchased by consumers. As a matter of fact, some of the illegal customers would not invest money to get the “content of good”. For instance, every consumer of digital music (illegally downloaded) would not buy CD’s and they would prefer “free” alternatives like the radio. To conclude, according to me for all the reasons mentioned above the absence would become even worse than piracy itself. Moreover, it should be underlined that piracy cannot be perfectly controlled. In my opinion, people continuously look after things with a minimum cost and they will always find a way to get illegal copies of a “good”. References: Bastard, I., Bourreau, M. and Moreau, F. (2014). L’impact du piratage sur l’achat et le téléchargement légal. Revue économique, 65(3), 573-600. Doi 10.3917/reco.653.0573 Scholes, W. (2014). Piracy’s Ripple Effect on the Global Economy. Retrieved from http://www.diplomaticourier.com/2014/01/14/piracy-s-ripple-effect-on-the-global-economy/ consulted on 21st of December 2016. Tassi, P. (2012). You Will Never Kill Piracy, and Piracy Will Never Kill You. Retrieved from http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/, consulted on 21st of December 2016. Show less Reply Haux Mélanie 21 December 2016 Today, we are in a world where almost everybody uses internet. I think that the piracy could not be completely deleted, it would be, I guess, impossible to punish every single person who is a pirate, because there exists different kinds of piracy. Of course, the “very big” pirate should be punished. Indeed, I think that the absence of piracy…Read moreToday, we are in a world where almost everybody uses internet. I think that the piracy could not be completely deleted, it would be, I guess, impossible to punish every single person who is a pirate, because there exists different kinds of piracy. Of course, the “very big” pirate should be punished. Indeed, I think that the absence of piracy would not be possible in the actual economic context. Furthermore, because piracy exists, people should make everything to get the advantages of the piracy. Nowadays, in this economy, most people want to have directly access to the songs, or movies, and they do not want to pay for them. Furthermore, the technology is always increasing, so the quality of the pirated products is also increasing, that gives incentives to be a pirate. Moreover, in the case that piracy could be completely erased, I think that nowadays, the absence of piracy would be worse that piracy itself. I agree with the three mechanisms that are mention in the IpDigit article from Professor Belleflamme: (1) illegal copies of a content good can play a sampling role by attracting consumers and driving them to purchase a legitimate copy later, (2)many content goods generate network effects; that is, the attraction of the good increases with the number of consumers of that good, regardless of the consumed copies being legitimate or not, (3) piracy can increase demand for goods that are complementary to the pirated content; the producer is then able to capture indirectly the value that consumers attach to the pirated good. Let me explain what I think: the action of downloading music exists since some years now, and there are more and more new artists in the game. If the piracy was so negative, I think that it would not exist many artists anymore, if the singers keep singing and producing albums, it is certainly because they have found the way to take advantage of this situation. In my opinion, piracy could provide free advertising to the singers (or the compositors,…), because people who download their music may not know them, they listen their music because it was in the suggestions of the website where they’ve downloaded and then they like the music, they speak about their new discovery to their friends, and the anonymous singer, begin to become more and more famous, thanks to this free publicity (2nd mechanism). People may decide to go to the concert of this singer (3rd mechanism), if they did not have downloaded illegally the songs of the singer, they would not know him and would never buy a ticket for a concert where they do not know the artist. If they really like the previous album of this artist, they may buy the second one, even if they did not listen to him before (1st mechanism). To conclude, I think that the answer to the question “would the absence of piracy become even worse than piracy itself?” could not be answered by a simple yes. Of course, there are positive effects for the producer, the singer… to be pirated (free advertising, be more known,…) but the question of piracy is not as simple as that, the negative aspects should be taken also into account. References: Belleflamme, P. (2016). Digital piracy (slides). Not published, Louvain School of Management, Louvain-la-Neuve. Belleflamme,P. (2013). The hidden treasure of piracy? IPdigit http://cs.stanford.edu/people/eroberts/cs181/projects/software-piracy/personal.html Show less Reply Julien Loriers 21 December 2016 A digital transformation of many labors has for the last couple years yields to a redefinition of industries. In fact, many companies have seen opportunities in the digitalization of our life to enhance and ease products and services as well as to serve them to more consumers. This extension of markets in some application is synonym of the interest of…Read moreA digital transformation of many labors has for the last couple years yields to a redefinition of industries. In fact, many companies have seen opportunities in the digitalization of our life to enhance and ease products and services as well as to serve them to more consumers. This extension of markets in some application is synonym of the interest of smarter player. At the time when the consumer had no access to massive information, product or service providers could control more easily their market. Nowadays the digitalization has opened up markets to global providers. As a result, multiple mechanisms appeared and required the redefinition of many business models. Large companies like Uber created businesses in which the scope of the service enabled its marketization at a lower price than the previous competitors. The sharing economy is a clear application of what the digitalization has permitted. In the banking sector for example, the cryptocurrency redefined the way of transacting money. In fact, the control of all transactions are validated by a network and there is no single entity to process the transaction and collect the profit. It makes the consumer the center of his action. I would like to express after this small introduction that in order to succeed, industries in many cases may need to find new business models that put the consumer in the center. Indeed, in today’s digital economy, firms must find business solutions which give the value to the consumer and that still generate revenues. In my opinion, this is what is happening and what will become general in the movie and music industries. Piracy has made traditional prices for physical and digital contents outdated. While many claims that piracy is a real problem that threatens most of creative companies and struggle to enforce intellectual properties rights, they could be right but they will have trouble to stop it. Recording industries must now find attached services to the traditional one to generate revenues. In fact, those industries cannot rely anymore on content sales to support their art and must innovate new business models that bring them value. Nowadays, piracy could be seen as the free channel to get what was before payable. It inevitably binds more consumer to a product and therefore generates a positive network externality. If we consider the software industry for instance, the value of some services rely on the number of user. Illegal downloads help create a network of user and make the product mainstream. Consequently, the service provider will inherit a massive number of customer that would not have exist in the absence of privacy. And innovative management could find ways to benefit from this free marketing by monetizing parallel products to the initial one. Similarly, in the music industry, piracy cultivates popularity among artists. For smaller creators, it offers them a wider reach and can significantly leverage their opportunities of expansion. To conclude, I believe that piracy has plunge the record industries in a redefinition of their market rather than harming it through a slow extinction. Indeed, it is not negligible that piracy has a negative effect on physical and digital content. But it could be seen as any other environmental threatens that every industry has to face in order to survive. Considering this feature, piracy with multiple mechanisms positively support the creation of value around the initial content. Bibliography. – De Castro, J.O., Balkin, D.B. and Shepherd, D.A. (2008) ‘Can entrepreneurial firms benefit from product piracy?’, Journal of Business Venturing, 23(1), pp. 75–90. doi: 10.1016/j.jbusvent.2005.07.003. – Karaganis, J. and Renkema, L. (2013) Copy Culture. Available at: http://piracy.americanassembly.org/wp-content/uploads/2013/01/Copy-Culture.pdf (Accessed: 21 December 2016). – SAP, C. (2015) Digitalization: Driving Business Model Transformation. Available at: http://www.sap.com/docs/download/2015/10/bec5f1d4-4c7c-0010-82c7-eda71af511fa.pdf (Accessed: 21 December 2016). Show less Reply Timothée Cosse 21 December 2016 The absence of piracy is for me an unreachable “utopia” in human society. Even more in our society in which everyone can observe everything. The social medias are now part of our everyday life and we could not figure living without them. In such a situation, less fortunate people will always develop envy. They will develop the need of having…Read moreThe absence of piracy is for me an unreachable “utopia” in human society. Even more in our society in which everyone can observe everything. The social medias are now part of our everyday life and we could not figure living without them. In such a situation, less fortunate people will always develop envy. They will develop the need of having the same things, in this case, watching the same movies and being aware of the last trends. This is a social need, at the top of the Maslow pyramid but still present in human mind. Secondly, the recent shutdowns of direct-downloading websites showed us that it is more a waste of time and resources than anything else. When megaupload was shut down, the era of peer to peer torrents began. When the Us closed kickasstorrents, there were already mirror images of the phantom website popping everywhere on the web. I don’t see how you could stop torrenting because of the “multiple sourcing” download structure. But even if one day authorities found an effective response to that, pirates would in my opinion be already three steps ahead using another system to achieve their dark objectives. That being said, I totally agree with the content of the article. The pirates’willingness to pay is often really weak or even inexistent. That is why even if the only way to procure those medias was buying them, sales would not increase. But why is that willingness to pay so low? The prices of medias did not evolve while the world is in perpetual evolution. People nowadays are “binge watching” their series. They don’t want to buy something they will just consume and then throw away. Sometimes they won’t even consume those illegal downloads. In addition to that, they don’t feel guilty because of the non-rivalry of the goods. When you don’t sell your products, your business model is wrong. I don’t invent it. This is basic marketing. It is laughable to blame the customers if they don’t want to buy your products. Apple is managing to sell the same telephone 7 years in a row while increasing prices to thresholds never seen before. What is your excuse? Maybe with a lower price or with a different approach the whole industry could be quickly back on tracks. To conclude, the results of the Nielsen survey showed us that the business model is the key. Indeed, the digital and legal purchase of online music tends to be a serious competitor for pirates on the internet. Developing new ways of selling and presenting your products is needed in every business. The music and movies industry are warned, they need to rethink their position in order to answer more effectively to the needs of their customers. They thought they were comfortable and did not innovate while others were ( the pirates ). They need to catch up by producing better consumption goods, not by whining about injustice and illegal downloading. So, we should talk about the presence of well designed business models before even thinking about the absence of piracy. http://www.bbc.com/news/technology-16642369 https://www.quora.com/What-happened-to-the-website-thekickasstorrents-com http://www.hngn.com/articles/218045/20161121/why-pirate-bay-extratorrent-cc-shut-down-best-kickass-torrent.htm http://en.yibada.com/articles/151826/20160816/top-5-torrenting-alternatives-rely-kickass-torrents-kat-torrentz-shut.htm https://hbr.org/2015/01/what-is-a-business-model http://www2.pitt.edu/~upjecon/MCG/MICRO/GOVT/Pubgood.html Show less Reply Charlotte 21 December 2016 Piracy is not new. This has been a subject of debate for several years. But with the arrival of digital the reproductions have intensified. Indeed reproductions thanks to digital are easier and cheaper. This motivates the counterfeiting of films on the Internet. Let us return to copyright law. Copyright has created the concept of intellectual property to…Read morePiracy is not new. This has been a subject of debate for several years. But with the arrival of digital the reproductions have intensified. Indeed reproductions thanks to digital are easier and cheaper. This motivates the counterfeiting of films on the Internet. Let us return to copyright law. Copyright has created the concept of intellectual property to protect artists. However, it is important to emphasize that an idea will disappear if it is not shared. An idea persists through sharing. Through piracy, we can see this as a digital sharing and not a theft. Piracy can therefore have a positive effect on culture because it allows its dispertion, its visibility, its promotion, .. Piracy makes it possible to discover contents before buying them later. Indeed, according to studies most of the respondents would never have bought the files if they had not downloaded them and tried before. Some copiers can indeed turn into buyers of the original product. Nevertheless, it is a part of the copiers, because the individual can also, due to the pirated copy, reach his satisfaction more quickly and decrease his propensity to buy an original version. Authors can use piracy as a source of information. Piracy can be used as a means of exploring a risky market where demand is uncertain. Rather than invest heavily, producers can rely on piracy to estimate the importance of demand Moreover the authors can use the creativity of the pirates to increase their own profit. The idea of creating certain products can grow thanks to the bold initiatives of the pirate. A climate of competition can be created by the pirates. They are likely to boost the firm’s innovation capabilities to levels higher than they would have been without piracy. But it is clear that some people will continue emphasize that illegal downloading is a serious threat to the sustainability of this economic sector. The pirates deprive creators of the remuneration due to them, hampering innovation. They also hamper competitiveness. There are positive and negative effects of piracy. In conclusion, good use must therefore be made of piracy Sources https://guillaumedeloison.wordpress.com/2015/04/23/pourquoi-le-piratage-est-bon-pour-les-artistes/ http://www.numerama.com/magazine/19504-un-studio-explique-que-le-piratage-est-positif-pour-les-ventes.html http://www.liberation.fr/ecrans/2009/01/20/le-piratage-et-ses-effets-positifs-sur-l-economie_958798 https://www.cairn.info/revue-economique-2010-4-page-793.htm Show less Reply Thomas Laurent 21 December 2016 This article shows that despite what we might think, piracy has not only negative effects, they are even positive. I will give my opinion on this topic, with arguments, and I will emphasize on the most important thing for me about piracy : access to culture. "Give him an inch, and he'll take a mile." I begin my argumentation with…Read moreThis article shows that despite what we might think, piracy has not only negative effects, they are even positive. I will give my opinion on this topic, with arguments, and I will emphasize on the most important thing for me about piracy : access to culture. “Give him an inch, and he’ll take a mile.” I begin my argumentation with this expression that reflects that when you begin to “pirate” online content, even if it is only just one song, you are a thief. You have the same status that the one who downloads gigabytes of content every day. The frontier is almost inexistant. More and more things are available illegally on the web. This article mentions tv shows and music but we can also cite movies, softwares, video games, books, newspapers, magazines, maps for GPS, mobile applications, etc. You can download a song whose price is $0.99 on itunes to a software like Photoshop CS6 that worth around $1000. I think it is not a good signal for creativity and entrepreneurs. For sure piracy is like free-promotion for some content like music or tv shows but what about softwares like Photoshop? Photoshop is the world most renown graphics editor and does not really needs promotion. The hacked version is exactly similar to the original one. So for Adobe I think piracy is harmful. So I would say that the benefits of piracy are not the same for each type of content. So I would say that piracy is not respectful regarding the work provided by the authors to make quality (or not) content. However I have to be for piracy as I see it as an easier access to quality content and culture. Piracy allows you to read, see, use many books, movies, softwares that you will not if you had to pay. And the best quality contents will be promote through their popularity on illegal download sites while the bad ones will not spread. I sometimes watch the television and I have to conclude that, if you have only the cable, the content is really poor. Piracy offers quality content for everyone who has the “skills” to find it on the web. So there are pros and cons for piracy but if we have to choose between a world with or without privacy, which one will I choose? I would definitely choose the world with piracy as it allows people to get more knowledge and be more educated. Moreover, as several studies said, benefits almost offset negative effects ont the sales and therefore on the motivation of authors to create content. However we are living in a state of law where the private property has to be respected. So I think companies and authors should rethink the way they make profit and find alternative source. For instance, if a new singer offers his songs, he will acquire some popularity through sharing and he will be able to organize paying concert. I do not know how to apply this for each content but I am sure there is a way to upset business models. Sources : http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452 http://cs.stanford.edu/people/eroberts/cs201/projects/1999-00/dvd-css/piracy.htm Panethiere, D. (2015). The persistence of Piracy: the Consequences for Ceativity, for Culture and for Sustainable Development. e-Copyright Bulletin http://portal.unesco.org/culture/en/files/28696/11513329261panethiere_en.pdf/panethiere_en.pdf Show less Reply Priya Jindal 21 December 2016 It was interesting to read in this blog that piracy can actually be good for the economy. So I tried to read more about the topic. Internet opened up innumerable ways to benefit as well as harm the society. This allows a number of possibilities for users of the internet to undertake illegal activities, such as piracy of content and…Read moreIt was interesting to read in this blog that piracy can actually be good for the economy. So I tried to read more about the topic. Internet opened up innumerable ways to benefit as well as harm the society. This allows a number of possibilities for users of the internet to undertake illegal activities, such as piracy of content and entertainment, at ease. The stakeholders in this business have been crying foul against the perpetuators of such a crime for the loss of revenue. However, recent studies have tried explaining how piracy actually boosts sales or leads to positive benefits for the media industry. It is difficult to ascertain the accurate impact of piracy, negative or positive, on the industry and its revenue. It is commonly believed that pirates are skewed towards the low income section, who would generally not want to or could afford to pay for the same things that they illegally download. Thus, the study shows that the people using the pirated content were actually never earlier consuming the product. The payers of music did not linearly shift to become pirates. The total consumers of the music essentially increased. This means more exposure to the artists and the content, greater network effects, more sales of complementary goods, and possibility of pirates becoming paying customers eventually. It is also interesting to see what prompts people to become pirates. A research showed that legally unavailable content was pirated 11.4% more frequently than the legally available content. Thus, there is a relationship between content availability and pirating. This also works as a feedback mechanism to see what the consumers want and what they are willing to pay for. It was also surprising to note that closing piracy sites did not increase the sales of movies. Only the sales of the big movies increased, showing that people then chose to spend their money on something that has proved itself in the market. The free media online allowed people to check the content, spread good word about the movie, and then motivating others to go spend their moneys on the movie. Piracy, therefore can have four benefits: 1. Discovering media that is unknown 2. Accessing products that are otherwise inaccessible 3. Innovating new technology 4. Discovering and forming opinions Thus, it can be said that if the entertainment industry stopped piracy, its benefits to the society will also stop. Again, it is hard to ascertain the exact the benefits of demerits of piracy and in what way it should be allowed to operate in the economy. Although, illegal music sharing might help the industry in some ways, it is safe to assume that the rational consumer chooses the cheapest option available. Thus, there are evident damages that the practice of piracy does and the economic consequences for the people in the industry are very real. Internet piracy is still an illegal practice and should be condemned, but it’s clear there are definite benefits from its existence. Sources: Journal – The Economics of Video Piracy, Matthew Greenberg https://www.rt.com/news/music-piracy-online-sales-572/ http://www.draytontribune.com/no-need-to-pay-the-impact-of-piracy-on-the-music-industry/ Show less Reply Akshat Prakash Verma 21 December 2016 I believe it is high time that piracy be viewed from a different lens from what we have grown accustomed to, something that has been pointed out in the article. Let me take the example of Internet piracy and substantiate my argument. Broadly Internet piracy is a phenomenon that happens when any content is illegally obtained through Internet channels, usually through…Read moreI believe it is high time that piracy be viewed from a different lens from what we have grown accustomed to, something that has been pointed out in the article. Let me take the example of Internet piracy and substantiate my argument. Broadly Internet piracy is a phenomenon that happens when any content is illegally obtained through Internet channels, usually through peer-to-peer file sharing systems or downloaded from pirate Web sites that make it available for download for free. Now we have been led to believe that this is bad, and is a deathblow to some major industries, like the Music or Film industry, in terms of lost opportunity/sales. But there are some major benefits of piracy that has generally been overlooked. I would take up one of this which I would refer to as “Accessing the Inaccessible”. Accessing the Inaccessible works both from the creator’s perspective as well as consumers. For consumers, if Internet piracy and free availability of digital music wasn’t there, how many people really would discover and listen to new artists? Even Justin Bieber was discovered on YouTube! And from the creator’s perspective, they are able to reach an audience multiple of the size they’d have through legal sales. Not everyone can afford to pay for a Game of Thrones CD, and not everyone who can afford would, simply because they don’t want to spend the money. It is this reach to a larger audience that results in shows, films, actors, directors or musicians gaining cult status worldwide. Take for example, my home country of India where Tom Cruise, Brad Pitt and Christopher Nolan have a God-like status, which wouldn’t have been possible if we didn’t have free access to their movies! This may also result in spillovers in the sense that the people who won’t necessarily pay the price of a movie, would contribute to the earnings through ancillary sales, like accessories, clothes, video games etc (which research is yet to back up). We can also see it like an investment for the future, where the creator is letting go of the present income for a future income. Here I would like to bring the example of Harry Potter franchise in India, where most of the sales of the first book were of pirated copies to today, when people are ready to pay the extra cost for the original copy of the latest book! Now, one of the biggest reasons that have led us to believe piracy is bad or immoral is the rant of big companies claiming that every pirated copy is a lost sale. This, as has also been pointed out in the article, is not entirely true. There are two reasons for me to say this – 1. Not every person who is consuming a pirated version of the content would do so if it was available legally, which I have already established above. There are many movies, songs etc that people watch on the internet for which they won’t like to pay and so it is not correct to see these as lost sales. 2. There is a strong correlation between the increase in pirated sales and increase in legal digital sales (though causation still needs to be established through research). But what has been seen is that increase in clicks on websites that offer pirated content has led to a simultaneous increase in the clicks on websites offering legal digital content. From the above, I have tried to establish that piracy has some advantages that have generally been overlooked, and if it weren’t for piracy, the shift to digital content and a wider audience would probably have taken longer and that piracy is helping rather than harming the content producers in the long run. So, in my view, the absence of piracy would, in fact, be worse than piracy itself. References- http://www.debate.org/opinions/is-internet-piracy-a-bad-thing http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ https://www.linkedin.com/pulse/death-internet-piracy-good-bad-william-sheehan https://www.bloomberg.com/gadfly/articles/2016-03-23/google-and-media-titans-clash-in-a-war-on-internet-piracy Show less Reply Johnpaul Weppler 21 December 2016 In agreement with the article, I also view piracy to be a positive. The act of piracy in and of itself is theft which I condemn, however I believe media piracy served as a catalyst for the industry to innovate the ways in which it delivers content, which by and large has been positive for both content producers and consumers. When…Read moreIn agreement with the article, I also view piracy to be a positive. The act of piracy in and of itself is theft which I condemn, however I believe media piracy served as a catalyst for the industry to innovate the ways in which it delivers content, which by and large has been positive for both content producers and consumers. When online media piracy first became prevalent in the early 2000’s with Napster, the music industry and later the film and television industry had reason to be alarmed. Their business model had been disrupted on a scale that seriously threatened the survival of the industry. Consumers no longer had to physically buy whole albums when they could simply download the songs they liked for free. The industry’s response was initially to try and save the traditional way they had done business which was largely ineffective and created animosity between content distributors and consumers at large with well-publicized court cases ruling that an individual had to pay hundreds of thousands of dollars for downloading fewer songs than a double album (Rolling Stone, 2012).Rather than using the legal system to pursue every person who downloaded music, the “if you can’t beat them, join them” mentality set in, and content producers and distributors began to go digital. I view the advent of legal streaming services as the “democratization of content” in that as the new industry paradigm has matured, there is more content available at a price point accessible for more consumers. This new distribution system also benefits content producers who previously would not have had their projects financed and distributed, as traditional production and distribution methods were costly and relied on physical resources, such as capacity to produce CD’s, and space in music stores for example. Services such as Netflix and Amazon Prime are also heavily investing original content, which has brought about what many are calling the Golden age of television due to the higher quality of production and storytelling that can be attributed to producers being less risk averse in selecting which projects to produce. The most glaring evidence of the successful paradigm shift that content piracy started is that Bittorrent, the web’s foremost content piracy platform, has seen its web traffic consistently decline year over year as Netflix has grown. In 2008, Bittorrent owned 31% of total North American web traffic, where as they only accounted for 5% in 2015, while Netflix had grown to 37.1% (Ibarra, 2015). In conclusion piracy has had a long-term positive effect for IP producers. Without piracy, one can argue that there would be less content produced and consumed, production and distribution would be controlled to a greater extent by a media cartel and many consumers would be maligned by a prohibitive pricing model, where consumption relied on expensive individual purchases of content, rather than having broad access as we now enjoy, to the benefit of the entertainment industry. Ibarra, R. (2015, December 08). Netflix is killing pirated content. Retrieved December 21, 2016, from http://www.nydailynews.com/news/national/netflix-killing-pirated-content-article-1.2458904 Sandvine: Over 70% Of North American Traffic Is Now Streaming Video And Audio. (2015, December 7). Retrieved December 21, 2016, from https://www.sandvine.com/pr/2015/12/7/sandvine-over-70-of-north-american-traffic-is-now-streaming-video-and-audio.html Smith, C. (2016, January 21). Netflix isn’t just hurting pay TV, it’s also slowly killing online piracy. Retrieved December 21, 2016, from http://bgr.com/2016/01/21/netflix-downloads-bittorrent-piracy/ Stone, R. (2012, September 12). Minnesota Woman Ordered to Pay $222,000 in Music Piracy Case. Retrieved December 21, 2016, from http://www.rollingstone.com/music/news/minnesota-woman-ordered-to-pay-222-000-in-music-piracy-case-20120912 Show less Reply Hogge Pauline 21 December 2016 So, would the absence of piracy become even worse than piracy itself? First of all, I would like to recall the exact definition of piracy, which is “the unauthorized use or reproduction of another's work”1. In view of this definition, my first intuition would be to answer that the absence of piracy cannot be worse than piracy itself. In fact, we can…Read moreSo, would the absence of piracy become even worse than piracy itself? First of all, I would like to recall the exact definition of piracy, which is “the unauthorized use or reproduction of another’s work”1. In view of this definition, my first intuition would be to answer that the absence of piracy cannot be worse than piracy itself. In fact, we can see that piracy is something illegal and therefore a bad thing for society. What I am thinking about here is the illegal download of music, movies, video games and books. This, logically, reduces physical sales but also online sales. Indeed, as seen in an article, “DVD sales have fallen by about 30% in France”2 between 2005 and 2012. Moreover, why would the US Department of Justice have decided in 2012 to shut down the download site “Megaupload” (created in 2005 and owned by Kim Dotcom) if its effect on society was positive? However, I still want to moderate this statement by mentioning that online sales are increasingly present in our lives, and that they also play a big role in the decrease of physical sales, which is thus not only linked to piracy. Nevertheless, piracy must somehow have positive effects because otherwise, why would the US have accepted the opening of the site “Mega”, which is the perfect replacement to “Megaupload” and is also held by Kit Dotcom? After reading several articles on the subject, I realize that there are indeed many negative effects, but there are also several positive effects to piracy, which I did not expect. For example, a study showed that “Megaupload” was complementary to the movie industry in an unexpected way. Indeed, it published movies that did not benefit from public awareness and consequent advertising budgets on its platform, which allowed them to get some publicity without being broadcasted in cinemas. In addition, piracy would make it possible to try out new materials from a different culture (films, video games and books) before they go on sale. This test would ensure that the cultural properties offered are in line with consumer preferences on a specific market. This is called “sampling”, and is a real argument in favour of piracy, as explained in this article “The hidden treasure of piracy?”. In conclusion, I think that piracy has negative as well as positive effects. It all depends on the context. But personally I watch movies and series in streaming daily, and I am very glad that piracy exists, because I would not pay to have access to all these materials. I would therefore extrapolate this, and conclude by saying that, in my opinion, the absence of piracy would indeed be worse than piracy itself, because it would mean that lots of people would not have access to various materials, as they do today. References: 1https://en.oxforddictionaries.com/definition/piracy 2http://manzanamecanica.org/files/Piratage4filieres_06avril2012.pdf https://fr.wikipedia.org/wiki/Megaupload#Fermeture http://www.01net.com/actualites/etude-le-piratage-sur-megaupload-profitait-a-l-industrie-du-cinema-580867.html Show less Reply Bribosia Timothée 21 December 2016 Nowadays, Internet piracy is becoming more usual. Indeed, People are no longer afraid of having repercussions following an illegal download. To illustrate our remarks, we can take the case of the “illegitimate” viewers with the most popular TV series of the moment: “Game of Thrones”. The first episode of the new season of Game of Thrones was illegally downloaded a…Read moreNowadays, Internet piracy is becoming more usual. Indeed, People are no longer afraid of having repercussions following an illegal download. To illustrate our remarks, we can take the case of the “illegitimate” viewers with the most popular TV series of the moment: “Game of Thrones”. The first episode of the new season of Game of Thrones was illegally downloaded a million times in half a day. Moreover, 95% of music downloaded online is illegal. In 2010, over $59 billion worth of software was illegally downloaded. The examples lead us to ask a question: “would the absence of piracy become even worse than piracy itself? Economists often answer: it depends. But it depends of what? To answer at this question, we will take the point of view of different actors who get pirated. First of all, for the case of popular TV series, the piracy has not a negative effect on DVD sales (according to Michael Lombardo with the case of Game of Thrones). Moreover, this series has an advantage from piracy due to the “cultural buzz”. Indeed, people talk about the scenario and that can increase sales of the series in physical form in long run. Second, we can take the example of music industry. The negative effect may be overcompensated by a positive effect. According to the conclusion of the International Journal of Industrial Organization: “in our model, profits increase for a certain set of parameters because consumers can make more informed purchasing decisions because of sampling and are willing to spend for the original although they could consume the download for free”. In my opinion, in that sector, some lose but others gain. One the one hand, musical artists must find others means of financing to compensate for the loss of cd sale. The artists have thus greatly increased their cachet for performances on stage as for concerts or festivals (for example, the cost for Adele, David Guetta or Katy Perry are respectively $750k, $150-200k and $500k). One the other hand, the online legal sales of digital music appeared thanks, among other things to piracy. This new form of listening gives a certain amount to the artists per cliques. Third, piracy is one of the most challenging problems faced by the motion picture industry. In fact, the Motion Picture Association of America estimated that US studios lose more than $3 billion annually in box office revenue from piracy. In conclusion, I believe that the Internet piracy can be a good or bad. That depends the sector where it is used. Our methodological approach about this question prove that there are more pros than cons for the music industry and for the TV series. Nevertheless, in others sectors as the movie industrialization “all in not pink”. Indeed, in 2010 the music industry lost $12 billion to online piracy of music and music videos. Not only is this affecting the music industry but it’s causing loss of jobs. Over 7,000 jobs are lost yearly in the US due to piracy. My sources for my comment: http://onlinepiracyisbad.weebly.com/ http://www.telegraph.co.uk/technology/2016/04/26/game-of-thrones-season-six-1-million-illegal-downloads-in-hours/ http://professorsavings.com/game-of-thrones-the-piracy-effect/ http://www.sciencedirect.com/science/article/pii/S0167718705001682 http://link.springer.com/article/10.1007/s11151-007-9141-0 Show less Reply Harold de Thibault 20 December 2016 Nowadays, piracy is increasingly present in different sectors like the music, films/series, books or even in the software sector. Indeed, piracy is becoming a common phenomenon in our current society. Two of the main reasons are the facility to pirate (even if you have no knowledge in computing you can easily download illegal files by following a 3 minutes-video-tutorial…Read moreNowadays, piracy is increasingly present in different sectors like the music, films/series, books or even in the software sector. Indeed, piracy is becoming a common phenomenon in our current society. Two of the main reasons are the facility to pirate (even if you have no knowledge in computing you can easily download illegal files by following a 3 minutes-video-tutorial on YouTube for example ) as well as the difficulty for the authorities to control it. This article deals with the fact that piracy may have positive impacts for the entertainment industry which is firstly quite surprising because it is most of the time claimed that piracy has heavy bad consequences for sectors. Through this comment, I would like to express my opinion to the following question “Would the absence of piracy become even worse than piracy itself?” As it is highlighted in the article, piracy is a good way to promote a product by doing “social advertising”. If I take the example of Game of Thrones, lots of friends and I have decided to watch this series only because of its buzz and the fact that every people around us were talking about it. Piracy participated to its success and allowed it to reach a broader public. We can notice a snowball effect because people have the opportunity to watch it quickly (like the day after it was released in the United States of the America) and even without leaving their house. Nevertheless, everyone is presumed to know the law and to respect it which is the basis of the constitution and how people can live in society. By piracy, we break it and steal content from others but one main difference in people’s mind between stealing a CD in a shop and pirating it behind their laptop is that people feel morally less guilty and do not always see the illegal aspect because “everyone does”. As it is really difficult to control who are downloading illegal contents, people feel less threatening and some may think it is only a question of sharing material. Furthermore, to really know the exactly consequences of piracy, we have to make more researches to know if people would really buy the product or not if they should pay for it as well as the real (good or bad) consequences of piracy on the producers. Actually, the research of Aguiar and Martens may be disputing of its validity due to the biases. It would be beneficial to do further researches in the following years which may help us to responsd to this question. Indeed, deeper studies might exactly show if a film/series would or not have the same succes with(out) piracy. To sum up, piracy has become more and more important in our society which made it nearly impossible to fight against in order to eradicate it. To my view, authorities should not try to eradicate it because this is hardly lost. But they have to establish and find different ways to allow industry to continue to produce music, films, books.. knowing that they would be pirated. The world is continually evolving and we have to adapt our system to it like the way we consume products. – Digital piracy: theory Paul BELLEFLAMME 1 and Martin PEITZ2 – http://copyright.nova.edu/copyright-piracy-entertainment-industries/ – http://www.ipi.org/ipi_issues/detail/the-true-cost-of-sound-recording-piracy-to-the-us-economy Show less Reply Juan Presmanes Tejada 20 December 2016 The main issue of this article is to discuss if piracy is better than the absence of it or not. Since many years, this topic has become a subject of controversy, as there are people who think that piracy should be legalized, while others say that it must remain illegal. On the one hand, the main reason why some people have…Read moreThe main issue of this article is to discuss if piracy is better than the absence of it or not. Since many years, this topic has become a subject of controversy, as there are people who think that piracy should be legalized, while others say that it must remain illegal. On the one hand, the main reason why some people have the first view is beacuse piracy makes people stop buying information goods, reducing producers’ profits and discouraging production. Evidently, if consumers can have access to a particular good or service for free, they will not spend money on purchasing it. In other words, if producers cannot prevent others from consuming their goods, there will be a risk of underproduction due to the lack of incentives to produce. Therefore, content producers should be protected by Intellectual Property rights so that they can control and sale their products. On the other hand, some people think that piracy is welfare enhancing, as it helps many individuals to have access to information goods otherwise they could not acquire in the market. If producers had the right of exclusion, in other words, they would become monopolists, they would price above the marginal cost and total welfare would decrease, besides that many consumers could not afford to buy those contents. In my opinion, digital piracy should be legalized, as it may have positive effects on creators’ profits and on social welfare. First, it is obvious that unauthorized copies have a direct negative impact on creators’ sales as individuals will prefer to reproduce the illegal copies rather than purchasing the new ones. This means that, in the absence of piracy, consumers would buy more content goods. This is true, but the sales deplacement effect is away from one, so we cannot say that each illegal reproduction of a digital content substitutes one legal acquisition of that content. Second, piracy has no negative effects on social welfare. As information goods are experience goods, pirated copies can allow potential consumers to know the characteristics of a certain good without any cost for producers, and this may lead to more consumption and higher profits. In addition, a lot of digital products’ utility increases with the number of other consumers of thhe same information good (network effects); a good example of it would be the music streaming service Spotify. As a result, piracy might increase the number of individuals who use or consume a certain product, and this may make it more useful. Finally, the idea of indirect appropiation suggests that copies can raise consumers’ willingness to pay for originals, so firms may get benefits from the value of those firms. In this case, through price discrimination, firms can identify those consumers who value more the capacity of copying and charge them a higher price. As a conclusion, i think digital piracy can be a positive phenomenon for society and it can help creators to increase profits, and individuals to enjoy more from information goods. One very good example of this is the music industry, where it has been shown that illegal downloads may enhance the purchase of new legal copies. Sources: http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2010_60web.pdf http://ftp.jrc.es/EURdoc/JRC79605.pdf Show less Reply Werner Karen 20 December 2016 For this comment, I'd like to discuss and mitigate two conclusions stated in the article. I will try to illustrate that in some cases, the absence of piracy could be better than piracy itself. First, I'd like to discuss the conclusion of the study stating that piracy has no effect on legal consumption of digital music. Around a decade ago,…Read moreFor this comment, I’d like to discuss and mitigate two conclusions stated in the article. I will try to illustrate that in some cases, the absence of piracy could be better than piracy itself. First, I’d like to discuss the conclusion of the study stating that piracy has no effect on legal consumption of digital music. Around a decade ago, I remember that it was not that easy to illegally download music. Most often, it required downloading a program or platform beforehand, and some music were basically impossible to find. At that time, I knew a lot of people who bought iTunes cards allowing them to legally download music on the Apple store for a certain amount of money. Indeed, it was cheaper and more flexible than buying a CD, and it allowed getting nearly any existing music. However, nowadays it has become so easy to illegal download any music, in a very short period of time, and without requiring any preliminary process. Today, I couldn’t even name a friend that is still buying iTunes cards. Therefore, I think that piracy has had and effect on legal sale of digital music. It could happen that the consequences of piracy are not the same for all kind of digital downloading platform. I believe that piracy has thus had a negative impact on downloading platform for which the consumer has to pay for downloading music. On the contrary, I think that piracy could have had no impact on free-use platform such as the free-version of Spotify. Second, I’d also like to mitigate the finding of the article stating that piracy has only a very small negative impact on physical music sales. Most of the illegally downloaded music would obviously not have been physically purchased without piracy. Indeed, people are less selective since they can get free access to music. However, in my opinion, if buying CDs was the only way to listen to music, people would still at least buy their favorite band albums. In my case, now that music can be freely accessed to, I don’t even buy my favorite singer album anymore. All in all, I think that even if the proportion of music that would have been purchased if piracy didn’t exist is low, it would still represents an extra revenue for the music industry, since people would probably still buy more. From those two perspectives, piracy could have had a negative impact on physical and digital buying. The absence of piracy could therefore have benefits compared to piracy itself. However, this does not prevent piracy to have positive impact that could even outweigh the negative ones, but I decided to only focus on the negative impacts for this comment. Show less Reply Alexis Loriers 19 December 2016 This paper aims to answer one question. Would the absence of piracy become even worse than piracy itself? In order to do so, we have to take into account various factors, namely the different medium, but also the different kinds of consumers. To start with, I would like to say that in my opinion, it is clear that the absence…Read moreThis paper aims to answer one question. Would the absence of piracy become even worse than piracy itself? In order to do so, we have to take into account various factors, namely the different medium, but also the different kinds of consumers. To start with, I would like to say that in my opinion, it is clear that the absence of piracy is a utopia. Therefore, the question loses a bit of coherency. I will try to answer it as if piracy had known a sharp fall in use. Talking about the consumers of medium, I see clearly two kinds of people. On the one hand, people who have enough money to purchase what they want and as much as they want, but could also download illegally to save money. On the other hand, there are people who cannot afford to consume music and movies as they wanted to. The last category has two choices: they can download it illegally (if they know how to do it) or they can decide not to purchase or in a very small quantity. The second category of people does not affect the physical or digital sales, because their purchasing power does not allow them to spend money on it. Without piracy, they will not enjoy it at all and that’s it. The issue is therefore more linked with the first category of people which have enough money to purchase DVD’s or CD’s. I will spit my answer in two parts. First I will talk about the music industry and afterwards, I will develop my thoughts on the movie and Tv industries. As explained in the article, numerous studies have shown that illegal download had a no negative impact on music sales, and even the contrary. As described in the article: “the vast majority of goods that were illegally consumed would not have been purchased in the absence of piracy” I tend to think that the demand of music has just been displaced from physical sales to digital sales. Therefore, music majors don’t control everything anymore and their margin have decreased. ITunes which is the leading company in digital sales of music can now decide and put pressure on big music companies because they have a monopolistic position. Another issue, is that physical sales retailers have faced a lot of trouble. They have not predicted this change. As a result, retailers are the losers of digitalisation, whereas streaming services have created and gained a new market thanks to internet. They offer the same product but more convenient. Let’s talk about the movie and tv industries, that is the real issue of piracy. We could think that piracy has a negative impact on sales because illegal downloading sites are closing down quickly. However, it is established in the article that piracy could have a positive effect on sales as the CEO of HBO said. Therefore, we should ask our self why anti-piracy authorities are still fighting against it? The problem of piracy is that is much more convenient to download it than to go to a shop and to buy to come back to watch and then realise than you don’t like it. The cost of DVD’s and series are expensive and many people don’t want to pay as much to discover. I agree with the ones who claims that thanks to piracy, people have discovered a new series that they will now agree to pay for it. To conclude, in my opinion, prices were too high and that’s why piracy has arisen in addition with its convenience. However, a new kind of consumption has become very famous: it is the streaming services. I tend to think that it is the future of music and movie consumption. Because it is a solution of the two main motivations for illegal downloading, namely convenience and price. It is now possible to pay a fixed price which is very low, and to consume as much as you want. Nobody is anymore afraid of buying something that he will not like. We should not forget that piracy create a “cultural buzz” that allow companies to promote their products at lower cost. In addition, it increases sales of complementary products such as Mp3, speakers, …, but also merchandising products thanks to this cultural buzz. All these reasons make me feel that without piracy, sales would have decrease significantly. Show less Reply Maxime Pierrot 19 December 2016 I was among those who think that piracy was only good for pirates themselves. Certainly due to my childhood spending my free time at regarding DVD. Indeed, I am sure everybody remembers this short video saying that piracy is theft . After having a look around articles and researches about this topic, I have realized the real impacts of this…Read moreI was among those who think that piracy was only good for pirates themselves. Certainly due to my childhood spending my free time at regarding DVD. Indeed, I am sure everybody remembers this short video saying that piracy is theft . After having a look around articles and researches about this topic, I have realized the real impacts of this practice. I will mainly talk about the piracy of music but I will also talk about piracy of video games, software, movies and even books. Bekir, Grolleau & El Harbi (2010) sum up the five main reasons that could improve the pirated organisation: the sampling effect, the derivate products, network externalities, the Coase conjecture and the discovery of talents and innovations. These key concepts are linked but I am not going to approach the Coase conjecture in my comment. (I warmly recommend you the article of Bekir & al. (2010) if you want more information about it). Piracy has brought a new way to sample a product. The sampling effect lead consumer to test what they could consider has an experience good. Piracy may therefore raise the willingness to buy the legitimate product (Hui & Png, 2003) and increase the final demand. People who have not access to piracy and thus to this sample, may simply do without it and do not buy the official one at all. However Bastard, Bourreau & Moreau (2014) say that the sample effect is true only for what we can consider as “big pirate” and slightly decrease the probability to buy music while increasing the incentive to buy video games. Nevertheless, increasing encryption, etc. would simply remove from purchasing people who value the sample effect to decided either to buy or not (Bhattacharjee, Gopal & Sanders, 2003). I think that piracy of music and books, decrease your incentive to acquire the legitimate one while the sample of a video game or a software increase with it. On the other hand, the use of streaming for music – thanks to Spotify for instance – could be a substitute for music piracy and lead to a sale when the user value the track, the album or the artists. Aguiar & Waldfogel (2015) affirm that apparition of streaming music has decreased piracy. Second the sales of derivate products thanks to piracy has led to more concert revenues while decreasing revenues from music sells themselves (Piolatto & al., 2012). Moreover, artists can now follow the fluw of downloads to know where they should sell derivate product and to know where to perform a concert (Bekir & al., 2010) and therefore has conducted to a better allocation of these services. Leung (2015) has showed that if the music piracy has decreased the sales, it has also extended the sales of iPod. I totally agree with those views. However derivate products sold thanks to the pirated goods have to be impossible or difficult to be pirated if the producers want to earn from those derivate products. Piracy has led to apparition of new strategies among those we can cite the used of codes or use of “credit” to play video games, even pirated. Brand new products as e-reader and tablet for digital books, etc. Third the network externalities which is already approached in your article with the “Game of Thrones” case. The consumer valuation sometimes depends on the number of people that consumes the good. Even if it is an illegal version. It allows for instance a monopolist to charge a high price to extract the surplus from consumer who give a high value to this good (Piolatto & al., 2012). We say that even consuming illegal version can help the network externalities. Indeed, individuals who would never buy the item if it could not be pirated – like students and other person with no capacity to pay for it – lead to word-of-mouth and “buzz” effect, to make the product more known and so lead to more sellings (Bekir & al., 2010). According to Piolatto & al. (2012), the revenues of an artist follow an increasing and convex function of their recognition. Consequently, piracy is a good thing even for the artist. Nonetheless, less popular artists can be harm by this. This probability to harm less popular artist must be compared with the discovery tool that piracy can be. It could therefore be an opportunity for them to become well-known thanks to recognition effect. Piracy could also be a source of innovation as pirate are not always simple copier but high-skills genius that pirated companies themselves have incentives to recruit to improve their innovation (Bekir & al., 2010). To conclude piracy seems to have a lot of benefits as well as drawbacks. If they certainly improve the consumers well-fare, the record industry says the suffer from it. Regarding the artists, the effects are qualified. However, piracy has completely changed the market of goods that can be digitized. Nonetheless I think that some effects – as the sampling one – are no more relevant thank to streaming music, free extracts of books and video games, as well as free trial version of software. Regarding the movies market, if DVD certainly suffer from piracy, the rise of streaming platform as Netflix, but also the increase in Cinema attendances show again that the industry simply meet a big change in structure.  https://www.youtube.com/watch?v=sODZLSHJm6Q Aguiar, L., & Waldfogel, J. (2015). Streaming Reaches Flood Stage: Does Spotify Stimulate or Depress Music Sales? (No. w21653). National Bureau of Economic Research. Bastard, I., Bourreau, M., & Moreau, F. (2014). L’impact du piratage sur l’achat et le téléchargement légal. Revue économique, 65(3), 573-600. Bekir, I., Grolleau, G., & El Harbi, S. (2010). Le piratage peut-il être profitable à la firme piratée?. Revue économique, 61(4), 793-805. Bhattacharjee, S., Gopal, R. D., & Sanders, G. L. (2003). Digital music and online sharing: software piracy 2.0?. Communications of the ACM, 46(7), 107-111. Hui, K. L., & Png, I. (2003). Piracy and the legitimate demand for recorded music. Contributions in Economic Analysis & Policy, 2(1). Leung, T. C. (2015). Music piracy: Bad for record sales but good for the iPod?. Information Economics and Policy, 31, 1-12. Piolatto, A., & Schuett, F. (2012). Music piracy: A case of “the rich get richer and the poor get poorer”. Information Economics and Policy, 24(1), 30-39. Show less Reply Myriam Estefania ARAUJO 18 December 2016 Would the absence of piracy become worse than piracy itself? This is a question I hadn’t thought about previously as the classical debate is focused on the assumption that piracy is bad. But it is worth to stop for a second and think if we should combat piracy or not. Putting aside the “lack of morality” associated with pirating a song…Read moreWould the absence of piracy become worse than piracy itself? This is a question I hadn’t thought about previously as the classical debate is focused on the assumption that piracy is bad. But it is worth to stop for a second and think if we should combat piracy or not. Putting aside the “lack of morality” associated with pirating a song or a movie, there could be good reasons to stop trying to eliminate piracy. Let’s dig into it. To keep the same example: the Huffington Post stated that in 2012 Game of Thrones (GOT) was the most pirated TV show of the year, yet the profitability of this TV show seems to be correlated with its success. Indeed, since 2012 HBO has released 6 new seasons and the show’s popularity keeps on growing , thus we can assume that there are not financial problems. Some empirical data shows that illegal downloading of this TV show grows 45% from year to year. If we assume the conclusion from the Aguiar and Martens’ (2013)  study is generally true, we could say that GOT would have had even benefited this increase by around 0,9%. In the scenario in which piracy didn’t exist, things might have happened quite differently. First, given that most of GOT’s audience downloads episodes illegally, the TV show wouldn’t have known its current global popularity. The three mechanisms mentioned in this article allow us to better understand what the lack of piracy would have led to: 1. No possible sampling, so loss of some potential buyers who can’t try the product that is being offered. 2. Having a diminished audience, the word-of-mouth effect (a guerilla kind of marketing) would have been less important, hence attracting fewer people. 3. Profits coming from complementary goods would have been significantly lower, as the audience (only legal) wouldn’t have been representative of the actual potential demand for the products. Because most of the potentially interested customers simply wouldn’t be relevant anymore. All of this goes in favor of the fact that 1 illegal download isn’t equivalent to 1 lost sale, there is no displacement of demand. It rather shows that the lack of piracy could even be a worse scenario. This is the case of a TV show but I think it is also applicable to any other high potential cultural content, such as music. The more it becomes popular (through the mechanisms stated above), the more demand for the product increases, and the more value businesses can create. So, no-piracy could indeed make businesses be worse-off. That goes without saying that society would have also gone by an opportunity of enjoying a good cultural creation. So, there would be a poorer social welfare. Besides, “you will never kill piracy” argues Paul Tassi, a contributor from Forbes, in one of his articles . According to him, forbidding a pirating Business Model will only allow for others to emerge after an innovation process. Another post from this blog  presents this phenomenon in the music industry, after the shutting down of Napster many other ideas emerged to share music, leading to the current Youtube, iTunes and Spotify. So, pirating Business Models could also be a good source of inspiration for legal businesses’ development. Therefore, the non-existence of piracy could allow for monopolistic industries to exist using outdated Business Models that lack to address markets efficiently. With the current state of the art, piracy is covering for the unaddressed demand for content, while businesses might be passing by an opportunity of having their respective surpluses grow. Even though there are people acquiring offered contents through legal channels, there are millions of people ready to have the content but not under the current conditions. Maybe an enhanced price discrimination strategy could be considered? I am not an expert on the matter so is just a hypothesis I make based on my readings. I personally think that the debate should refocus on WHY piracy is so common and WHAT businesses can LEARN about it. The massive number of illegal downloads clearly shows that there is an important demand for some contents, but businesses seem to be addressing this demand in the wrong way or not efficiently enough. In any-case I do think that the absence of piracy would be worse than piracy itself.  http://www.huffingtonpost.com/2013/02/26/game-of-thrones-download_n_2765488.html?utm_hp_ref=entertainment&ir=Entertainment  http://www.imdb.com/title/tt0944947/  http://www.broadbandtvnews.com/2015/04/10/massive-illegal-downloads-of-game-of-thrones/  http://ipts.jrc.ec.europa.eu/publications/pub.cfm?id=6084  http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/3/#246592e82957  http://www.ipdigit.eu/2014/12/business-models-for-digital-goods-in-the-face-of-the-culture-of-free/ Show less Reply Tonneau Mattis 18 December 2016 Piracy is illegal. But despite the negative effects, this article shows that piracy has also positive effects on the market. So should we fight against piracy? I will develop my opinion giving interesting positive and negative advantages. Firstly, I think that an advantage of Internet piracy is that artists, directors, actors and actresses become essentially more famous. People…Read morePiracy is illegal. But despite the negative effects, this article shows that piracy has also positive effects on the market. So should we fight against piracy? I will develop my opinion giving interesting positive and negative advantages. Firstly, I think that an advantage of Internet piracy is that artists, directors, actors and actresses become essentially more famous. People that had no interest in the movie, or would not buy a CD may watch the movie or listen to the music simply because it is free and easily available. Then if that person enjoyed it there is more chance that this person would buy the next DVD or CD when it comes out, would go to the next concert or go to see the next movie to the cinema. This join the first mechanism of the article that says: «illegal copies of a content good can play a sampling role by attracting consumers and driving them to purchase a legitimate copy later.» Secondly, I agree that many content goods generate network effects. In fact, as David Petraca said in the article, I believe that piracy can create a “cultural buzz”. Piracy can play a role of advertising through the Internet and the social media for example. It is known that word-of-mouth is very effective and free as marketing method for advertising. So even if people will use piracy to see the film they heard about, some of them will not use piracy and will buy the film or go to the cinema to see it. Thirdly, piracy has also a negative effect, especially for software piracy. Software piracy slows the economic growth rates of developing because it discourages new software developers from entering the market and slows down the industry’s ability to bring new and innovative solutions to consumers. From an innovative point of view, I think that software piracy has clearly bad consequences for the market. Companies don’t want to spend money to develop softwares if they know that people will crack them. In conclusion, they are many positive and negative effects from piracy but I would like to add that even if piracy is unavoidable and difficult to struggle, people should ask themselves some questions before deciding whether or not to pirate something: – Would you pay for this if you could? Should there be legal options available for a price you can afford, would you still pirate something? – Is there a way to support the creators? – Who are you hurting? Piracy takes on a different connotation morally depending on who is making stuff. For example, as explained in an article I read «Chances are Michael Bay’s not going hungry if you download Transformers: Age of the Dark Side of the Fallen 12. But downloading a pirated APK of a $2 Android app from an indie developer is typically seen as a bigger sin because each download is a bigger percentage of the developer’s take-home pay. » I totally agree with this point, I did it myself, sometimes I use piracy to download films but for some films like surf or ski films I buy them to promote the artists. So these questions can guide to moral choices. Sources: How piracy benefits companies: http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452 Advantages and disadvantages of piracy: http://digitalpiracyin9000.blogspot.be/2011/11/advantages-and-disadvantages-of-piracy.html Advantages and disadvantages of piracy (software piracy): http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ Internet piracy: https://sites.google.com/a/cortland.edu/internetpiracy/advantages Show less Reply Yuhan Zhang 18 December 2016 The empirical literature on piracy are mainly in the music industry, and the empirical studies show that illegal downloading has only slightly “displaced” physical sales and does not induce any “displacement” of the legal music purchase in digital format. However, when thinking about would the absence of piracy become even worse than piracy itself, I wonder, is it also the…Read moreThe empirical literature on piracy are mainly in the music industry, and the empirical studies show that illegal downloading has only slightly “displaced” physical sales and does not induce any “displacement” of the legal music purchase in digital format. However, when thinking about would the absence of piracy become even worse than piracy itself, I wonder, is it also the same story for other industries where piracy can be a big concern, for example, the movie industry? It seems that the empirical literature on the effects of illegal file sharing downloading on sales of DVD movies and box office revenue hasn’t reached a universal conclusion. Adermon and Liang (2010) find that the Swedish implementation of the European Union directive IPRED in 2009, which suddenly increased the risk of being caught and prosecuted for file sharing, increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies. Danaher and Waldfogel (2012) find that international release lags, which facilitate more local pre-release piracy, are associated with decreased box office returns. This relationship is much stronger in contexts where piracy is more prevalent: after BitTorrent’s adoption and in heavily-pirated genres. Bai and Waldfogel (2012) find that three quarters of movie consumption is unpaid and that each instance of unpaid consumption displaces 0.14 paid consumption instances among Chinese college students, using a survey of Chinese college students’ movie consumption and an empirical approach parallel to a similar recent study of US college students. Peukert, Claussen and Kretschmer (2013) compare box office revenues before and after the unexpected shutdown of the popular file hosting platform Megaupload.com on in 2012 to a matched control group of movies unaffected by the shutdown and find that the shutdown had a negative, yet insignificant effect on box office revenues. Martikainen (2014) estimates the short-term effect of BitTorrent file-sharing on movie DVD sales using sales data on newly released DVDs and torrent file downloads during a 13-week period between March and May 2009 in the USA. The results suggest an upper bound of −0.21 of elasticity, indicating that the short-term sales displacement effect is moderate at worst. Further empirical studies need to be conducted and if there were indeed differences between the effects of piracy on legal consumption in the music industry and the movie industry, it would be helpful to study what characteristics of the two industries and what factors of consumer psychology are driving the differences. Hattori Tatsuaki’s comment is of the same concern and gives some tentative explanations by comparing TV program industry with the music industry. Also, when I was doing the literature research, I found some studies on piracy and the poor. For example, Asongu and Andrés (2014) examines the effect of software piracy on inclusive human development in 11 African countries and find that software piracy consistently improves the inequality adjusted human development (IHDI), and its constituents. These studies suggest that the positive effects of piracy are beyond the scope of effects on sales and innovation, which is also mentioned in Reeskamp Adriaan’s comment. However, the ethical concerns shouldn’t be ignored. The sellers and users of pirated products could think it is “fair” or they have the right to make use of those products and that can be very detrimental to the economy in the long run. References: Adermon A, Liang C Y. Piracy, music, and movies: A natural experiment[J]. 2010. Asongu S A, Andrés A R. The Impact of Software Piracy on Inclusive Human Development: Evidence from Africa[J]. 2014. Bai J, Waldfogel J. Movie piracy and sales displacement in two samples of Chinese consumers[J]. Information Economics and Policy, 2012, 24(3): 187-196. Danaher B, Waldfogel J. Reel piracy: The effect of online film piracy on international box office sales[J]. Available at SSRN 1986299, 2012. De Vany A S, Walls W D. Estimating the effects of movie piracy on box-office revenue[J]. Review of Industrial Organization, 2007, 30(4): 291-301. Martikainen E. Does file-sharing reduce DVD sales?[J]. NETNOMICS: Economic Research and Electronic Networking, 2014, 15(1): 9-31. Peukert C, Claussen J, Kretschmer T. Piracy and movie revenues: evidence from Megaupload: a tale of the long tail[C]//communication lors de la German Economic Association’s Annual Conference, Competition Policy and Regulation in a Global Economic Order, Düsseldorf. 2013: 4-7. Hattori Tatsuaki’s comment Reeskamp Adriaan’s comment Show less Reply Alvaro Jimenez 17 December 2016 There has been always a big debate about whether piracy should be legal or not. The main reason why it remains illegal is the potential economic loss that it may incur, however, in order to make a good judgement, we should look at both positive and negative aspects of piracy. Starting for the negative aspects, it's obvious that for every pirated…Read moreThere has been always a big debate about whether piracy should be legal or not. The main reason why it remains illegal is the potential economic loss that it may incur, however, in order to make a good judgement, we should look at both positive and negative aspects of piracy. Starting for the negative aspects, it’s obvious that for every pirated copy of a product, there is some potential loss of income to the producer of that product. This is not the same as saying that every pirated copy is a lost sale, as maybe that person wouldn’t want to access to that copy of that product if he had to pay for it. I mean, in the absence of piracy, they may have bought it at a discount, or second-hand, or just wouldn’t have bought it because for them it isn’t worth spending money on it. Other negative aspects are the free rider problem or the higher prices for those who are legimate purchasers. Regarding the possitive aspects, the main one is the marketing, as the distribution of pirated copies of a product provides free publicity and marketing via word of mouth. This can be particularly useful for low budget releases which don’t have large marketing budgets, however, in practice, we find that the most pirated products are those with larger marketing budgets, such as the series Game of Thrones. Another weak point of this possitive aspect is that it’s unclear as to how much this additional positive word of mouth due to piracy actually results in increased sales rather than simply increased piracy. To conlcude, I would like to say that piracy allows us to discover media that we would’ve otherwise skipped. Therefore, from my point of view, the absence of piracy would become worse than piracy itself because even if creators and authors would be more rewarded they would have less purchasers. Sources: – https://www.webroot.com/us/en/home/resources/tips/ethics-and-legal/the-societal-costs-of-digital-piracy – http://www.tweakguides.com/Piracy_3.html – http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ Show less Reply Muller Matthieu 17 December 2016 My first thought about the paper was : What means “the absence of piracy”? We know that piracy is the unauthorized reproduction or use of a copyrighted item (book, patented invention, television program,…) . Two assumption about the absence of piracy can be made. You can “legalize” piracy, but the consequence would be the end of the copyright system. It would…Read moreMy first thought about the paper was : What means “the absence of piracy”? We know that piracy is the unauthorized reproduction or use of a copyrighted item (book, patented invention, television program,…) . Two assumption about the absence of piracy can be made. You can “legalize” piracy, but the consequence would be the end of the copyright system. It would force the creator to let his work public. Is our economic system ready to drop all his copyright and intellectual property’s laws? Another way is to erase it. The authorities are trying to do this now. Each country has his own legislation about the question , but globally the laws are quite soft. In fact, the authorities cannot set restrictive laws considering that most of their citizens are acting illegally. So, it seems that we are in a deadlock. On the one hand, you cannot legalize piracy. On the other, you cannot erase it. We are in a kind of status quo since many years, fighting piracy in a soft way. Will this new economic approach, who says that piracy has positive effects, do moving things? We believe not. This paper has to be taken with a pinch of salts (avec des pincettes). It’s claiming that piracy can have positives effects, but it doesn’t speak about piracy itself. Does the end justify the means? HBO claim that they are happy with the illegal downloads of their episodes, arguing that it increases the buzz effects and their DVD sales. But if this is true, why didn’t they let their episodes on free access on internet? Because they are some sites where the owners authorize the download and the streaming of their products . On the opposite, when HBO says that piracy has a positives impact on their business, they downplay (il dédramatise) piracy. But we should remember that piracy is illegal and punished by the law. A second argumentation is about the future forecast. Because arguing that piracy has positives externalities on DVD sales is an argument that become weaker each year. In fact, the DVD sales are downward sloping since 2005. For now, computers and television are sold without DVD player. So what for the future? We also know that the video on demand is hitting a plateau since 2012 . Where do the client disappears? Companies sell less and less DVD but VOD is not increasing in the same proportions. To conclude, piracy can lead to higher income but until now it is done in an unethical way. If we could have an absence of piracy, benefits could increase for some time. But will it remain in the future? Bibliography : http://www.dictionary.com/browse/piracy http://www.bbc.co.uk/newsbeat/article/16839637/anti-piracy-download-laws-around-the-world-explained http://www.riaa.com/resources-learning/about-piracy/ http://www.lemonde.fr/economie/article/2015/04/15/le-dvd-reste-le-support-privilegie-pour-l-achat-de-video_4614015_3234.html Show less Reply Antoine Van Der Haegen 17 December 2016 With the occurrence of the internet some decades ago and with the increased easiness of access, some issues occurred. The most important one is piracy. Piracy quickly mushroomed through the years and has become unstoppable. It represents an economy on itself. Every time illegal downloading sites are closed, new ones are created the following days. Fighting piracy is an endless…Read moreWith the occurrence of the internet some decades ago and with the increased easiness of access, some issues occurred. The most important one is piracy. Piracy quickly mushroomed through the years and has become unstoppable. It represents an economy on itself. Every time illegal downloading sites are closed, new ones are created the following days. Fighting piracy is an endless battle. However, is piracy really so bad? Would the absence of privacy be a solution or would it leads to something worse than piracy itself? Contrarily to what most of us believe, piracy has also some positive aspects. Organizations often claim that they are losing millions because of piracy, but pirating a movie for example does not mean that you would buy it if piracy had not existed. Even worse, some movies are only watched because they were available for free. Following this point of view, piracy could be beneficial for mass media. It allows people to discover music artists, TV shows, … that they would have skipped otherwise. Piracy can also be a solution to access products that are otherwise unavailable in your country, such as a specific TV show for example. You would have bought it, but you can’t because they don’t provide it where you are. I believe another positive aspect, when you have a pirated version of a movie for example, is that you avoid all the advertisements before the movie starts. Nowadays, the amount of advertisements is very high and the people don’t want to wait minutes before the film starts. It is a real drawback of the legal versions. Finally, the most important positive aspect is that piracy spurred innovative developments. For example, BitTorrent which is a legal file sharing protocol and Netflix which is a legal internet streaming platform where you can watch your TV show or a movie whenever you want. I pointed out these positive aspects of piracy to show the bigger picture and to raise the awareness that there are not only bad consequences. Personally, I have a divided opinion about it. On the one hand, it helped us to further innovate, but, on the other hand, it infringes the IP rights of IP owners. According to me, measures have to be taken to limit piracy, but I don’t think we need to abolish it. Firstly, because it seems to be impossible and, secondly, because we need to keep the innovative opportunities piracy can bring us. Assuming that piracy could be beaten, what would be the outcome? According to a study of the Bain & Company, the recording sales would be multiplied by 17. Looking at this finding, we can ask ourselves if the recording industries will be able to meet the demand. If such an increase takes place, they will be submerged by the demand and that could lead to the collapse of those industries. The absence of piracy would, then, be worse than living with piracy. Another consequence of the end of piracy could be the replacement of it by other illegal practises that are much worse than piracy itself. As you may know, piracy is often not for the money, but to promote a freer economy. If we can find a way to end piracy, maybe some frustrated pirates will turn themselves into hackers with bad intentions. The follow-ups would be more damaging than those of piracy. To conclude, I don’t think we will be able to stop piracy one day. Even if we try, pirates will always find other ways to circumvent the laws. However, we can try to find a common ground between pirates and the recording industries, as did the creators of Netflix for example. By doing so, we reduce the illegal side of piracy and we benefit from the innovative opportunities it brings us. http://www.geek.com/news/the-world-needs-pirates-for-the-good-of-humanity-1623420/ http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/#31b377686b2a http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ http://www.digitalmusicnews.com/2015/06/29/recording-sales-would-be-17-times-higher-without-piracy-umg-study-finds/ Show less Reply Mertes Thibault 17 December 2016 My first research to react about this topic was finding some figures about this activity sector, to get an objective point of view about the way the market goes. I've chosen the USA's market because it's maybe the most famous and biggest producer for music and cinema around the world. The following paragraph give an overview about the fifteen last…Read moreMy first research to react about this topic was finding some figures about this activity sector, to get an objective point of view about the way the market goes. I’ve chosen the USA’s market because it’s maybe the most famous and biggest producer for music and cinema around the world. The following paragraph give an overview about the fifteen last years, which is enough to get the impact of internet : “Between 1998 and 2004, total GDP increased by 19.4% from $11.1 trillion to $13.3 trillion, but arts and culture GDP grew by 27% from $402 billion to $511 billion. This situation was reversed, in fact to an extraordinary extent as arts and culture GDP declined by 4.8% in 2007, the year before the crisis, and continued to fall in 2008 and 2009 by 1.3% and 5%, respectively. In 2010 and 2011, arts and culture GDP recovered to growth slightly above the total economy.” The art and culture share has changed from 3.85% to 3.32% of united states’ GDP for the last 20 years. Isn’t a big change even if 0,5% of the american’s GDP is a lot of dollars, and we have to consider the 2008 crisis’ impact too. During this period the most important change for this industry has been probably access to INTERNET for a huge quantity of consumers around the world and this number still increase everyday. For 2016 this number reach around 3,5 billions users, which is approximately 46% of worldwide population, compare to 2000, it was only 6.8%. And with internet, a lot of behaviors have changed and still change. The first new impacting element for cultural industry was according to me, Napster, created in 1999 Napster had launched the “peer2peer” generation. Lime wire, Kazaa or eDonkey2000 was few of its unofficial successor. These programs, for me, answer to a new need that has been appear with internet: “get what you need from where you are without leaving your screen”. Its even more true today when you can get everything you could imagine on the web. At the beginning platforms such as Netflix or Amazone Prime video didn’t exist yet so the answer was the “peer2peer”. Of course one advantage was the free aspect it wasn’t the most important because persons was paying before for this. Today much more persons are ready to pay to have access to an official platform, for several reasons. Based on this reflection the problem for the industry was his “reaction speed” faced to a new kind of demand. For a few years now they had started to react with official streaming platforms for tv shows, movies but also for music with by example Apple music or Spotify. And mentality change too, more and more persons use that kind of platform everyday. The most important role of piracy according to my opinion was its transition’s role to face the changing demand. But piracy still have a role today which is quite the same, allowing access to medias for everyone on earth without endless supply chain (necessary for physical supports), lot of persons today even in poor countries have access to internet but couldn’t earn enough money to pay for legal platforms. I hope that this industry will learn from the past and finding an answer faster for these too. And answering their new demand, even if they know that isn’t because they can’t pay for that today, that it will still be the same forever. And they have a solution for waiting, allowing them to watch with piracy keep them staying relevant and talking about what is produce till they can offer that kind of service to them. Sources : http://musicinaustralia.org.au/index.php?title=Arts_and_Cultural_GDP_in_the_United_States https://www.theguardian.com/music/2013/feb/24/napster-music-free-file-sharing http://www.internetlivestats.com/internet-users/ http://o.nouvelobs.com/high-tech/20140107.OBS1612/streaming-les-5-concurrents-du-tout-puissant-netflix.html http://www.inc.com/justin-bariso/the-secrets-behind-the-extraordinary-success-of-netflix.html Show less Reply El Jilali Salahdin 17 December 2016 My opinion about the question of “So, would the absence of piracy becomes even worse than piracy itself?” is quite mitigated.Indeed, different aspects must be considered. In one hand, if we take the point of view of consumers. We can rationally assume that people for whom the utility of consuming a good such like subscribing to HBO is much lower…Read moreMy opinion about the question of “So, would the absence of piracy becomes even worse than piracy itself?” is quite mitigated.Indeed, different aspects must be considered. In one hand, if we take the point of view of consumers. We can rationally assume that people for whom the utility of consuming a good such like subscribing to HBO is much lower than the price of the good. Therefore, we could notice that piracy would lead to a higher consumer welfare. This rising of consumer welfare has a relative low impact on the profit of the producers. Then we can assume a higher social welfare for the whole economy (consumers + producers). On the other hand ,analogously, I think it could be better fo producers to find tools that permits them to discriminate each consumer of Games of Thrones such that the welfare of producers (its profit) is maximized. Each consumer would then buy the good depending on their utility. By default, if producers don’t find a way to fully discriminate their (potential) consumers, they could benefit directly from piracy by advertising by analogy to YouTube. Observing the features of the market is also crucial to answer this question, cultural aspect must be considered. Moreover, we must be conscious that our “occidental” opinion about piracy may be much different than other culture. That is why we must be aware about the relative fit with entire reality when variables and samples are chosen. To sum up, piracy could be good for the entire economy if no way of discrimination exists because it would lead to an increase of social welfare. If discriminating consumers in an efficient way exist, then we can objectively assume that the absence of piracy becomes even worse than piracy itself. Source: Economics of innovation (course LLSMS2041), Paul Belleflamme Show less Reply Hiben Kevin 17 December 2016 In response to this article I would like to talk about my point of view on the true nature of piracy with regard to music, movies and other data illegally downloadable. I think the answer to this is that society, morals and the economy are constantly changing. For me, from my economic point of view, the production of all these…Read moreIn response to this article I would like to talk about my point of view on the true nature of piracy with regard to music, movies and other data illegally downloadable. I think the answer to this is that society, morals and the economy are constantly changing. For me, from my economic point of view, the production of all these digital goods gather the same goal: to be sold and to make money. We always made money where there was opportunity to make money. When a business is no longer profitable, we find another way to make money. I think we are in the same situation here. Indeed, as we can easily see, the industry of music and movies or more broadly of audiovisual is constantly changing with changes of media or format (DVD, CD, Blue-Ray, WAV, MP3, FLAC, …) and the question is or will I make money if my product or my way to supply my product no longer works? It’s about adapting. To illustrate my answer I will first take the music industry. Indeed, with the advent of illegal downloading and falling CD sales this industry seems to be wrong. However, we have seen a shift in revenue sources for singers or publishers. As a simple example, there is Youtube. The video clips of the artists are increasingly seen and there are more and more subscribers to the channels of some publishing houses or artists who make money through the ads included in the beginning of clips available on their chains. That sounds ridiculous but it can count in millions. People using Youtube to illegally download music see these adds and they are indirect customers. Added to this, we can see more and more mention of brands directly included in the videos. The use of advertising seems to become predominant. After these practices, we can see the growing use of services allowing streaming. Here we are moving the way of using the products and finding the way that my product remains profitable. As a second example I would like to mention the film industry. Admittedly, the advent of illegal streaming or torrents is a problem for the sale of movies. But who is the minority who still buys DVDs? There is now the possibility to subscribe to services like Netflix for the same price as a few CDs per year. After that, if they want to watch a movie in high quality, what are we going to do? Well the Blu-Ray allows it and remains accessible as technology. If we take a film of the quality of a Blue-Ray, this format is much too big and tedious to be viewed directly in streaming or to be downloaded. It also need of the media to store the file. The evolution of technologies and innovation thus seem to close doors but open a multitude of others. I would like to conclude by saying that piracy is not a problem in itself but rather that it is a matter of adapting to changes. It is only the evolution of a mode of consumption that is constantly changing. Show less Reply Adrien Deltenre 16 December 2016 People are by nature led by a desire of quickly getting everything they want at the lowest cost. In the digital world, they found a way to answer this: illegal downloading or illegal streaming known as digital piracy. Digital piracy is nowadays a phenomenon known worldwide and concerns a lot of domains. Surprisingly, it seems that piracy has not…Read morePeople are by nature led by a desire of quickly getting everything they want at the lowest cost. In the digital world, they found a way to answer this: illegal downloading or illegal streaming known as digital piracy. Digital piracy is nowadays a phenomenon known worldwide and concerns a lot of domains. Surprisingly, it seems that piracy has not a significant negative impact on sales. On the contrary, it is claimed that it promotes and gives a boost to the sales of movies, TV shows and music. In this comment, firstly, I will give a short definition of “piracy”. After that, I will give my opinion about the following question: “would the absence of piracy become even worse than piracy itself?” Piracy is “the act of illegal copying, using and distributing information products without the authorization of the legal owners, in digital formats or using digital technologies”. The rise in piracy since 1950 is due to 2 major causes. The first one is a huge change in technologies that made copying and the transmission of pirated products easier. The second was a change in mentalities that made pirating more acceptable. We have to admit that piracy seems to be a threat for producers, artists, songwriters, musicians and actors, as they don’t get the fruits of their labor. Indeed, when someone downloads a song or a movie, he is enjoying it without paying any fees or any copyrights to the artist or to the distributor. Nevertheless, referring to the survey of Nielsen, the increase of illegal downloading pushes the legal activities up. This paradox can be explained by three mechanisms: The first one says that illegal copies play an attracting role for the consumers who could be tempted to buy a legal copy later. The second mechanism is the generation of network effect. It means that, with the combined amplifying effect of free illegal downloading or streaming and of the social medias, more and more people will get to know about a movie or a music. Many will just download it illegally but many will also purchase it. This will globally increase the sales of the movie or the music. The last mechanism is that the sales of the derivate products are boosted. To conclude, it is a complicated question because the comparison between the situation with or without piracy is not obvious. I think that a world without free downloading and streaming would mean make a step backward and this may be a utopia. Indeed, there are more and more people using illegal downloading and streaming to watch movies or listen to music and the phenomenon seems to be unstoppable. I believe that the media companies have to find new ways, new strategies or new business models to stay profitable. For example: differentiating drastically between free downloads and payable downloads by a huge quality difference or by giving more than what the consumer will get with an illegal product. Good examples are the platform Spotify for the music or Netflix for series and movies: they are proposing a subscription system providing high quality products with a wide choice and a lot of services around. Show less Reply cadenoel 14 December 2016 A decade ago, when we use to watch a French videocassette there was an advertising saying among others “Le piratage c’est du vol”. We’ve grown up surrounded by anti-piracy commercials and speeches while, at the same time, we had a lot of opportunities to have access to pirated items: movies, song, video games, software… And, maybe stunned by all these…Read moreA decade ago, when we use to watch a French videocassette there was an advertising saying among others “Le piratage c’est du vol”. We’ve grown up surrounded by anti-piracy commercials and speeches while, at the same time, we had a lot of opportunities to have access to pirated items: movies, song, video games, software… And, maybe stunned by all these anti-piracy campaigns, I had never thought that piracy could be positive for the economy. After the reading of this article and of many others, I have changed my mind. As a starting point, I want to express the fact that I don’t think the absence of digital piracy possible. Like in every sector, illegal entities and black markets always emerge. Furthermore, the digital sector is very difficult to control and to analyze in its entirely. Indeed, it is hard to put limitations concerning the Internet in place. And, this is exacerbated by the fact that more and more people in the world have access to the Web. However, if that fictional story really happens, I think that it could have a balanced effect. On the one hand, I think that the absence of piracy could boost online legal sales of digital music through online stores such as iTunes or via streaming services such as Spotify. Although there are studies proving that « 10 % increase in clicks on illegal download websites leads to an increase of 0.2 % in clicks on legal purchase websites » (Belleflamme, P. & Peitz, M. , 2014), I think that a COMPLETE absence of piracy can have a positive effect on legal sales of digital music. Indeed, people are nowadays going everywhere with their smartphone and like to listen to music, online stores will be the best answer to their demand. Henceforth, it has positive impacts for creator and all the people surrounding him. Absence of piracy can also have a positive and major impact on the data control in the case of children for example. Indeed, nowadays a lot of kids are watching adult contents, for example in the case of pornography. On the other hand, people will be less attracted by items that are poorly supported by intense merchandising. Those features are mostly new and less financed projects. In that case, absence of piracy will be in favor of big companies and not of little startups. Due to no more free access to a wide selection of digital movies for example, people will discover fewer new things and so those non-discoveries will not turn into material purchases. An interesting question would be to know if an absence of piracy would impact the television sector. I personally thing that it will not make people buy a TV, ex-user of piracy already had one, but it can increase the number of emission’s views. To conclude, the question was “So, would the absence of piracy become even worse than piracy itself? » and my answer is yes. The current system is not perfect and often in disfavour of the creator (of music, film…). It could be great to change it by promoting the legal sales of online music for example. But make war to the piracy itself is maybe not the right answer because of the cost triggered and of the poor chances of success. Show less Reply Serge Cornet 14 December 2016 With the emergence of new technologies like internet or the digitization of different media for music or movies, more and more people are downloading illegally those products. Today the question is whether is data piracy is beneficial and allows for example to make rise the awareness or have a sample of what we could buy or if on the contrary…Read moreWith the emergence of new technologies like internet or the digitization of different media for music or movies, more and more people are downloading illegally those products. Today the question is whether is data piracy is beneficial and allows for example to make rise the awareness or have a sample of what we could buy or if on the contrary it contributes to the destruction of the market of the CD’s, DVD’s and other products like software or video games. In this essay, we will try to determine the advantages and disadvantages of piracy in the case of music, movies and series. To begin, we will determine the causes of piracy. The first cause we can talk about is related to money that people do not want to spend for a musical piece of work cinematographic ones. Often people are too poor to buy the cd or dvd they want. For us Belgian citizens, a dvd will surely cost us an hour of work, maybe a little more, but in some countries, it costs them a day’s pay, which would imply that it is impossible for them to buy it. This problem is simple, since DVD prices in developing countries are the same than in our countries. Hence, they will have more tendency to illegally download these products simply because their wages are way too low. Another reason is that often people, when they buy a cd, just love two or three songs and then they are disappointed with the rest of the album. In that case, they will just hear all the album to be sure they want it. But there are many other cases. People who simply want to save money or people who think that the sound quality on internet is enough. In the case of DVD, we also have different possibilities, the series only come out very late on DVD and in continents like Europe, the wait is usually too long for the real fans and then they decide to see it earlier. Then we can analyze the new platforms. First, we want to note that in the last few years, there has been a sharp rise in the platforms which offered the possibility to watch a movie, series or to listen to music without leaving your house. We can quote a prime example which will be the VOD (video on demand) which allows to rent movies or series at an affordable price. Then we can quote the evolution of this with Netflix, which today allows to watch many films and series without moving from home, for a monthly subscription more than reasonable. For the music, we have plenty of it too with Spotify or Apple Music. Today, piracy is more important than ever, but we should continue to ask our self one question : Does this piracy is increasing the awareness of movies or music and then contribute to something good ? According to a study on music piracy, it is shown that it does not reduce the legal consumption of musical products. In the case of series, HBO programming president declared on Game of Thrones that he has seen the many downloads positively and that it had no impact on their dvd sales. David Petrarca also said that piracy has had a positive effect by continuing the cultural buzz. There are many different benefits in the case of piracy, the first is due to the simple fact of having figures on whether to rely on a show that works or not. This could serve as a sample effect for the consumer that would be interests to buy this good in the future. We can also talk about labeling that allows the author or broadcaster to make it known. We took the example of HBO which is at the beginning of a multitude of series writing in white on a black background. Finally, it is possible to use the power of illegal downloads by make known complementary goods. Despite all the advantages that can provide unlawful downloading or viewing, there are a multitude of drawbacks. Some have abused it and have made money on the back of the authors or broadcasters, we can quote the example of Megaupload that was a site designed to watch series and movies in streaming and whose boss has made himself Colossal profits. It must not be forgotten that piracy remains a “criminal” act and that should only be beneficial to those who have the rights by raising their awareness. The different authorities like ADAPI should regulate those different illegal websites and close them if necessary. To conclude, I think that piracy should only be tolerated in the case where the person possessing the copyright benefits from it. This can be expressed in many cases such as the series with Game of Thrones, Rick and Morty or The Walking Dead which thanks to this, were able to win in awareness. I think that, in the event, illegal data sharing is only based on a person’s enrichment, this is not right and could therefore bring the discontent of the authors. It is also important to underline that the various institutions currently fighting against this piracy must remain in place, in order to regulate the various illegal goods such as music or films, otherwise it will be an anarchy where the authors would make more loss than profit. People who are only downloading should be punished by the law. Therefore, the measures currently taken should no longer focus on all sites that share illegally but seek the advantages and disadvantages that could procure those websites. Moreover, we can see today, more and more new platforms such as spotify or netflix allow the use of these data for a ridiculous price and will maybe bring the illegal downloads to an end. Digital Piracy: Theory, P. BELLEFLAMME, M. PEITZ, October 2010 http://lifehacker.com https://www.theguardian.com http://www.presse-citron.net http://www.lalibre.be/ Show less Reply Pablo Dattilesi 14 December 2016 Before answering the question, we should ask ourselves about the pertinence of copyright law? Indeed, as for patents there is a deadweight loss to be paid by consumers, by the society in order to make sure that the innovation takes place. The copyright law creates the incentive to innovate and if it didn’t exist I doubt that companies like HBO…Read moreBefore answering the question, we should ask ourselves about the pertinence of copyright law? Indeed, as for patents there is a deadweight loss to be paid by consumers, by the society in order to make sure that the innovation takes place. The copyright law creates the incentive to innovate and if it didn’t exist I doubt that companies like HBO would provide us which such a varieties of shows that allow us to escape reality (see other countries, landscapes, ways of living…). However, Piracy has allowed a share of the population (mostly technology educated people) to access almost every content freely, without having to pay the deadweight loss we were describing before. That being said this practice can be seen as harmful for society as it threatens jobs and creativity, particularly in the audiovisual industry (which is the sector from whom most complaints come from). But on the other hand I share the feeling of Tim O’Reilly, CEO and founder of O’Reilly media that people around the world are being able to enjoy massive amounts of creative content without paying for it, which makes the world a richer place where even that guy who could never have afforded that CD is able to get it for free and listen to his favorite music. Moreover, there are places in the world where some contents are just made inaccessible by an authoritarian regime and there, piracy is one of the main tools, if not the only one to assure the diffusion of culture and knowledge. Which brings us back to what was said in the article concerning illegal copies of a content good that can then attract consumers and driving them to purchase a legitimate copy later, like the effect of advertising. A study was published in 2012 trying to find evidence of a (negative) impact of piracy on internet music sales. To do so they took 12 of the major Music platforms and measured their usage before and after the adoption of the ADOPI law on copyright infringement. According to NetRatings audience measurements the usage of Itunes increased just slightly, along with QObuzz and Allomusic (but not as much as expected by the entertainment industry), and yes there was a jump on the use of two services: Spotify and Beezik, which both allow to listen to music for free. My interpretation if the study is that if Piracy really caused an harm to the audiovisual industry we should certainly see a more drastic impact on those site’s traffic (specially the paying ones) between before and after the adoption of the law. So, despite all the harm the Audiovisual Industry claims it is enduring: if they weren’t ways to get it freely most of the downloaded content wouldn’t be bought at all, it is hard to see evidence of any economic harm. Without talking about the poorest areas in the world where some contents (CD’s, DVD’s…) would be far too expensive for average people to buy them. Even being a student in Belgium, a region that has one of the highest per capita income in the world most of the student wouldn’t be able to afford it if they had to pay for one tenth of the records/series that they listen to/watch. So to answer the question: Yes the absence of Piracy could become even worse that piracy itself, in this new Technological era music and film producers should stop lobbying to enforce more and more laws and copyright infringement and just adapt themselves to this new market like it was done in platforms like Deezer, Spotify or Itunes that are making available for customers both free and paying content. http://www.ipdigit.eu/2013/12/the-hidden-treasure-of-piracy/ http://www.forbes.com/sites/erikkain/2012/01/15/does-piracy-cause-economic-harm-how-to-think-about-economic-frontiers/#acf5d141e793 https://www.techdirt.com/articles/20120330/18222718314/is-there-any-value-cracking-down-piracy-if-it-doesnt-increase-sales.shtml Show less Reply Robin Carrozza 14 December 2016 So, would the absence of piracy become even worse than piracy itself? It’s difficult to imagine the absence of a phenomenon that has existed for years, We can try to speculate about but we will never have the right answer. To answer this question, we can imagine what a piracy-free world would look like and then compare it with what is…Read moreSo, would the absence of piracy become even worse than piracy itself? It’s difficult to imagine the absence of a phenomenon that has existed for years, We can try to speculate about but we will never have the right answer. To answer this question, we can imagine what a piracy-free world would look like and then compare it with what is happening today. I think that to see what a world would look like without piracy, we have to look back several years before the arrival of the Internet. At the time when music was listening only on radio waves or with a physical device. We could really see a distinction between people who loved music and who had dozens of support and then people who only liked a few singers whose records they had and who listened to the radio the rest of the time. True, today people can have legal music on the internet in order to listen to it on their smartphone or on an mp3. I think that if piracy did not exist, people who were previously record-lovers and who collected enormous amounts would be today largely those who would buy legal music on the internet. For me, piracy is mainly used to benefit people who would not buy music on the internet or records. This allows them to have access to a musical knowledge that they would not want if piracy did not exist. This has several advantages. First, these “new” amateurs can promote around them an artist who would improve his visibility, which could ultimately increase his sales. Then, people who are adept at piracy, can enter into legality and buy records from an artist that they really love. To conclude, I would say that piracy has a beneficial side to the music industry. Firstly because it allows to reach a larger audience that the one who is likely to buy the works legally. Then, because people who were ready before to buy their cd to have a physical device are always willing to pay today for a song. Si I think that the absence of piracy could become even worse than piracy itself. Obviously, it is necessary to regulate this piracy and not to allow everything. Sources: http://www.digitalmusicnews.com/2015/07/16/if-you-think-piracy-is-decreasing-you-havent-looked-at-the-data-2/ https://www.washingtonpost.com/news/the-intersect/wp/2015/04/15/the-future-of-online-piracy-is-easy-free-and-already-in-your-pocket/?utm_term=.3cd065398be5 Show less Reply Blockerye Nicolas 13 December 2016 Over the last two decades, the music and film industry has been impacted by tremendous change. The way of consuming music and film is completely different from the past. Physical purchase has been decreasing a lot and represents for example only 24% of sales in the USA for the music industry in 2015. This percentage isn’t homogeneous in all countries.…Read moreOver the last two decades, the music and film industry has been impacted by tremendous change. The way of consuming music and film is completely different from the past. Physical purchase has been decreasing a lot and represents for example only 24% of sales in the USA for the music industry in 2015. This percentage isn’t homogeneous in all countries. In the same year physical purchase of cds in Japan still represented 80% of the purchase. More and more consumers are choosing to buy their music and films on the Internet. The Internet and its simplicity in downloading data and sharing content have facilitated this new way of purchase. But this new trend has an impact on downloading illegal content. With all of the technology available, nowadays it is easy to download free content without copyright. Piracy is widespread and nobody feels very concerned about threat of illegal download. However, piracy represents a huge loss in revenue for editors. In 2015 this loss in revenue represented 56 billion € for the music, film and software industry in Europe. However, things are not so simple. Indeed, music and films are now much more easily available and people can enjoy entertainment at zero cost. People who in the past couldn’t spend a lot of money in this type of entertainment can now enjoy it for free. The consumer surplus is now far higher compared the past resulting in an increased social welfare. What about the producer surplus? If we make a simple model, we can assume that the producer sells fewer products and people have a willingness to pay far less than before. Therefore producers need to sell their product cheaper than before in order to preserve some consumers. We can easily conclude that the drop in the sales and in the price has considerably reduced their producer surplus. However, some economists have examined this subject and have found evidence of some positive effects on profit for the producer. Indeed, listening or watching a copy can lead you to later buy the content because you have enjoyed this content and want to have it at home. Another aspect is the network effect. When a film and in particular a series makes some sort of cultural buzz like Game of Thrones, this leads to an increase of consumers interested in that good. In other words, network effects attract new consumers. The last positive effect is that a producer can « capture » your willingness to pay for a complementary product of the illegal content that you use. Furthermore, empirical evidence shows that illegal downloading has no effect on legal downloading in the digital music industry. At least it might boost people who enjoyed new music downloaded illegally to possibly download it legally afterwards if they liked it a lot In my opinion, I think that the absence of piracy may be worse than the piracy itself. If we assume that authority achieved to prevent illegal downloading, which is very unlikely to succeed because of the inefficiency of such policy, I think that producers will not recover their loss in revenue for several reasons. The first reason is that consumers has been used to having access to music and films for free. If tomorrow you forced consumers to pay for music and films, most of them simply won’t consume it anymore because their willingness to pay-which is near zero- is far under the price of the producer’s. The second reason follows the first. Producers of films and music need advertising for their product. The network effect is a very efficient way to access advertising virtually for free. Producers are not ready to let go of this free advertising. These different aspects show us that the question of illegal or legal downloading is much more complex that it may appear at first sight. To analyze the effect of such a practice we must take into account the indirect effects of illegal downloading such as the network effect etc. Show less Reply Dylan Weverbergh 13 December 2016 My comment is based on the analyse of the music industry and its modifications regarding the business models with the entrance of piracy. Nevertheless, the consequences of this phenomenon can be from a general point of view considered as positive. It goes without saying that piracy has had a bad impact on physical music sales. This is linked with the arrival…Read moreMy comment is based on the analyse of the music industry and its modifications regarding the business models with the entrance of piracy. Nevertheless, the consequences of this phenomenon can be from a general point of view considered as positive. It goes without saying that piracy has had a bad impact on physical music sales. This is linked with the arrival of the internet which is a platform where every user can share and have a quick access to any kind of information. This way of acting was a freeway for piracy to point out. First of all, from The Economic Times point of view, piracy consists in:” the copying and distributing of copies of a piece of music for which the composer, recording artist or copyright-holding record company did not give consent.” The decrease in sales was effectively the first effect when piracy showed up but afterwards they had to rethink their business model and readapt to the new way of having access to content. As a consequence, this allowed the entrance of digital music stores such as Napster, Spotify, iTunes, … Those digital stores have their own business model and allow users or subscribers to have access to a nearly complete data of all kind of music. To my point of view has piracy overtaken the bad elements with several implications. Nowadays, we can have access to new music so quickly. The simple fact of putting a new song on YouTube for example allows every user to be able to listen it with a simple click. This distribution and transmission system has permitted the “buzz effect” which allows to make something worldwide faster. The more we talk about something, the more people will get to know about it. And as you know, the more something gets famous, the more you can create a market on it and get benefits from it. To illustrate my point, when a singer produces a concert, the buzz effect has its importance to fill in the more places possible. Moreover, the more a music band gets famous, the more social groups appear around it that idolize their favourite group. Consequently, this lead once again to the creation of new markets such as the selling of T-shirts, hats, posters and even bibliographies on them. To conclude, even if piracy was seen as a negative element, from a global point of view, it has created a much bigger market from the one that was already standing. The global economy around the music industry has raised and is still gaining power with the constant entrance of innovations and adaptation of the current music market. Sources : http://musicpirating1103.weebly.com/pros-and-cons.html http://www.ipdigit.eu/2012/02/network-effects/ http://theconversation.com/how-piracy-is-changing-the-music-industry-landscape-31919 https://www.reference.com/world-view/piracy-affect-music-industry-3f403f877c9ca6dd http://www.draytontribune.com/no-need-to-pay-the-impact-of-piracy-on-the-music-industry/ Show less Reply Hattori Tatsuaki 12 December 2016 In my opinion, the answer of the question “the absence of piracy become even worse than piracy itself?” depends on the characteristics of the products and consumers of them. To explain it, let me take two examples; TV programs broadcasted by the pay TV, namely Game of Throne and music. First, think about the case of…Read moreIn my opinion, the answer of the question “the absence of piracy become even worse than piracy itself?” depends on the characteristics of the products and consumers of them. To explain it, let me take two examples; TV programs broadcasted by the pay TV, namely Game of Throne and music. First, think about the case of Game of Throne. At first sight, it is wired that online piracy of it didn’t affect the sales of its DVDs. Over one million downloads seems to decrease the sales. Here, we have to consider the features of consumer who buy a DVDs. We can assume people who buy DVDs are core fans of that series. Although it is not free after season 3, originally, consumers can enjoy it in free. People who bought its DVDs when that series is free will buy that of after season 3. In other words, the sales of DVDs is not affected because most of consumers who bought DVDs of part 1 and 2 will continue to buy after part 3. From this point, piracy can act a sample role to rising the sales in the end. Whereas, in the music market, from the start point, all of the consumers have to pay for it. It means that some of them will quit to buy it when they become be able to access to it in free through internet. Thus, the sales of music decreased by piracy. This explanation is not sufficient. One can argue that core fan of Game of Throne will also quit to buy DVDs when they become be able to download it on the internet. But now, we have to think about the characteristics of them. In my opinion, whether preserving is easy or not is important. For music, preserving is very easy. You can download the music through the internet and preserve it on your pc, or you can transfer it to the other devises only with cables. On the contrast, preserving movie is little bit troublesome in some points. For example, the size of data. The data size of movies are far larger than that of music. Thus, people can’t preserve much of it in the pc. They can transfer such data to the other devises, but usually it takes long time. Thus, comparing with music case, people have less incentives to do. To sum up, in this case, piracy harms sales or not is likely to depend on “the main source of revenue is additional goods (DVDs of free TV programs in this case) or not” and “preserving is easy or not”. This explanation might be a conjecture because there seems to be a lot of factors which affects the sales such as resistance feeling on the ethical grounds, the number of core funs (in the Japanese animation market, lunatic fans spend large amount of money beyond the imagine…), an age group of consumers (young people seems to download music through the internet) and so on. Hence, to answer the question “the absence of piracy become even worse than piracy itself?” is hard to answer without observing features of that market. Show less Reply Reeskamp Adriaan 12 December 2016 Poor countries lead the world in piracy. This is because the original goods are too expensive for poor people. For instance, in Belgium a DVD could cost you one-hour work, but the same DVD would cost a worker of a poor country one day, one week of work. So without piracy, these poor people wouldn’t have access to these goods.…Read morePoor countries lead the world in piracy. This is because the original goods are too expensive for poor people. For instance, in Belgium a DVD could cost you one-hour work, but the same DVD would cost a worker of a poor country one day, one week of work. So without piracy, these poor people wouldn’t have access to these goods. But watching DVDs, playing video games, listening to music is also a way to learn more about the world. It can even be seen as a mean by which people can get educated. Some people say they learned English, not at school, but by watching movies or series and listening to music. So piracy can be a good thing for poor people, who without it wouldn’t have access to this content. Piracy may enable people to discover content they wouldn’t discover if there was no piracy. Some people claim piracy cost billions of dollars. But this not true, because without it, a lot of people wouldn’t have watched the downloaded movies, played the downloaded video games or listen to downloaded music. Indeed, if they had to pay for it, they would not buy it. Consumers may think that the content they illegally download is not worth the price asked for it. Piracy can be seen as a good thing because it allows you to discover content you wouldn’t have discover if you had to pay for it. Thanks to this “illegal discovery” consumers could buy additional related products. For instance, a consumer downloads illegally an album of a music band that was recommended by a friend. Without the possibility of piracy, he would not have paid for an unknown artist album. But he really likes the music and decided to go to a concert of the band and to buy a hat. This is money that would not have been spent without the illegal download. Another benefit of piracy is that is can make people access content they would not have access to without it. If you want to see a TV series, but it is not accessible in your country, downloading it illegally may be the only way to have access to it. Let’s assume a person of a small and poor country who would like to see the latest American TV series, but local television doesn’t show it and it is not possible to buy the DVDs. Piracy is the only way to watch the series. One other interesting about piracy is that not only it is free, and not only it is more convenient, but piracy doesn’t treat customers like criminals. We can say that paying customers are punished while pirates remain free. For instance, when you buy a DVD, you have to watch ads you can’t skip, see trailers you can’t skip. So it takes a lot of additional time to watch your movie than what would have happened if you downloaded it illegally. References; Make use of. (2012). 4 ways in which internet piracy can be a good thing. Retrieved December 12 on http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ The Guardian. (2011). Why poor countries lead the world in piracy. Retrieved on December 12 on https://www.theguardian.com/technology/2011/may/03/why-poor-countries-lead-world-piracy Forbes. (2012). Does piracy cause economic harm? How to think about economic frontiers. Retrieved on December 12 on http://www.forbes.com/sites/erikkain/2012/01/15/does-piracy-cause-economic-harm-how-to-think-about-economic-frontiers/#39860c601e79 Show less Reply Margot Detollenaere 12 December 2016 For this comment, I decided to focus on the music industry to analyze the major implications of piracy. There is no longer any doubt that the impacts of the Internet throughout the economy and society are multiple and diversified. The widespread use of the Internet is clearly changing the traditional ways of doing business. I believe the story began in 1999…Read moreFor this comment, I decided to focus on the music industry to analyze the major implications of piracy. There is no longer any doubt that the impacts of the Internet throughout the economy and society are multiple and diversified. The widespread use of the Internet is clearly changing the traditional ways of doing business. I believe the story began in 1999 when Napster, a file-sharing program, was launched. At that time, it greatly contributed to disrupt the traditional music industry. More recently, the National Research Council (2013) argued that “the relatively recent onset of the digital piracy threat can be attributed to the sheer informational magnitude of music and film and the inability, until about two decades ago, to bring to market affordable, high resolution means for listening to and viewing digital content”. Since then, the music industry has undergone numerous technical and structural changes. In this context, the music piracy can be defined as the unauthorized sharing of copyrighted songs. As mentioned in the article, piracy may have positive and negative effects. On the one hand, piracy may increase profits thanks to sampling effect, network effect, or indirect appropriability. On the other hand, piracy damages the music industry in many ways. It deprives creators from the profit they need to survive and thus, reduces incentives to create new music. The Recording Industry Association of America (RIAA) stated “this theft has hurt the music community, with thousands of layoffs, songwriters out of work and new artists having a harder time getting signed and breaking into the business”. Also, piracy increases the competition from the consumers themselves. The cost to produce and distribute illegal music is extremely low, and the enjoyment they derive from it is the same. Turning now to the question of the online legal sales of digital music, one may wonder what are the effects of streaming services such as Spotify? Streaming is not just about delivering music through a data connection. It is also not just about changing the way in which music is made, bundled, and delivered. Streaming is very convenient. It enhances content discovery, gives people access to the characteristics of the content, and informs content providers on the characteristics of the listener. Let’s now examine how iTunes provided a legal way for consumers to download music. Apple is an example of a company that shifted away from the traditional music industry logic to the nowadays defined online stores. They initiated key changes in the traditional business model, which allowed the company to create and capture value. They began by modifying their value proposition with legal music downloads. They also modified the way they captured value by introducing a razor and blade strategy. They sell iPods at low margin and songs on iTunes at high margins. To conclude, I think that the rise of digital distribution became a real challenge for many companies across different industries. I think that piracy will always exist and thus, companies should rethink their business model to escape cutthroat competition by changing the rules of the game. SOURCES : Belleflamme, P. (2016). Management of IPRs in the digital economy (LLSMS2374 slideshow). Louvain School of Management. Bonacina, E. (n.d.). No need to pay? The impact of piracy on the music industry. Online http://www.draytontribune.com/no-need-to-pay-the-impact-of-piracy-on-the-music-industry/, consulted on 12/12/16. Hiller, R.S., & Walter, J. (2016). The rise of streaming music and implications for music production. Online http://faculty.fairfield.edu/rhiller/Research/streamingmusic2.pdf, consulted on 12/12/16. National Research Council. (2013). Copyright in the digital era : building evidence for policy. Edited by Merrill S.A., & Raduchel, W.J. Washington D.C. : The National Academies Press. Chapter 2 : Copyright law and economics in the digital era. Russell, F.M. (2010). Apple’s iTunes and peer-to-peer file sharing. Online http://frankmichaelrussell.typepad.com/frank-michael-russell/2010/11/apples-itunes-and-peer-to-peer-file-sharing.html, consulted on 12/12/16. Sundelin, A. (2010). The razor and blade business model. Online http://tbmdb.blogspot.be/2009/09/razor-and-blade-business-model.html, consulted on 12/12/16. The New York Times. (2014). Napster : Culture of free. Online https://vimeo.com/113949334, consulted on 12/12/16. Show less Reply Aman Gupta 11 December 2016 I completely agree with the statement made in the article that piracy has led to positive externalities. Had piracy not been so popular, the various TV shows/music/movies now being watched by millions would only have been watched by an elite few who could afford it. Lesser popularity also leads to lower economies of scale thus increasing the price of the…Read moreI completely agree with the statement made in the article that piracy has led to positive externalities. Had piracy not been so popular, the various TV shows/music/movies now being watched by millions would only have been watched by an elite few who could afford it. Lesser popularity also leads to lower economies of scale thus increasing the price of the service i.e., music, movie, TV show, etc. The advent of technology is one of the main reasons for piracy. Gadgets help capture the content.The internet, which is within everyone’s reach in today’s world is almost no investment platform to reach millions around the world. The format in which the content was sold at times when the platform was changing to MP3 players, laptops did not evolve. The originals were still sold on DVDs, cassettes, etc. The slow process of evolution of the distribution network also leads to the development of piracy. Some people suggest that people go for piracy because it is easily accessible. But I feel this is not true. Pirated versions are easily accessible, but originals are too. But for this people have to pay. Hence I think people are motivated by piracy because it is far less expensive for a little compromise on quality. Another reason for the promotion of piracy could be the “time” factor. People these days no longer have the time of patience to put an effort into buying a movie, music, etc. But pirated versions can be accessed sitting on your bed with just a click and also immediately. The original version takes some time before they come online. But piracy has helped many small artists to reach the world easily and gain popularity very fast. Hence it also lets fair competition in the market I would like to conclude by saying that in the revolutionary world that we live in, piracy is not bad, as it is not harming the sales that would have happened had piracy not been there. In some cases, it is adding to the revenues as well. One way to reduce piracy for moral reasons would be to make original content available online immediately. Let it be at a price, but let it be immediate. Show less Reply Victor Snoy 11 December 2016 So, would the absence of piracy become even worse than piracy itself? I’d be happy to hear your views about that. The appearance of online piracy in conjunction with the rise of Internet has had profound consequences, consequences permeating within almost every industry. Here, I’d like to examine, deconstruct and dissect the impacts of piracy within the music industry - the…Read moreSo, would the absence of piracy become even worse than piracy itself? I’d be happy to hear your views about that. The appearance of online piracy in conjunction with the rise of Internet has had profound consequences, consequences permeating within almost every industry. Here, I’d like to examine, deconstruct and dissect the impacts of piracy within the music industry – the first business deeply affected by such a phenomenon; from within which birthed the emergence of file-sharing programs such as Napster, Kazaa and Limewire. This has resulted in analogous complaints from, for example, big companies – forming an oligopoly associating each download as a lost sale as in the film industry – a loss of sales that would, in turn, affect and penetrate the film industry later on. At the beginning of the rise of piracy, fears turned into reality, a reality which took the form of sharp decreases in record sales. Nevertheless, the emergence of internet and technological advances has shaped and improved a business classical model, based on an oligopoly that has ruled for more than 50 years, towards legal digital distribution, a better representation of the free market demand schedule for music. Indeed, record companies took most of the profit in music sales leaving not enough share of the pie to the artist – the real creator of value – who would made a predominant part of their profit performing at live venues. This can be seen with the Apple iTunes Store in 2004 or the phenomenon ‘Spotify’ that match much more consumer preferences and allow you to, for instance, listen to a song you like without having to pay the full price of the album. Making all this set of music more affordable has allowed to raise the popularity of artists, and thus, to have a positive impact on the live music sector which has a huge impact on the welfare of artists. All this illustrates that piracy has acted as a vehicle catalysing a shift from the classic business model to something much more adapted to our time, with subsequent beneficial affect such as the improvement of the utility of the consumers, heightening the welfare of the artist and creating a more adaptable/perfect market by igniting the creation of new business models – such as those aforementioned. In the film industry similar trends have been seen with the arising of services such as ‘Netflix’ or ‘HBO’ that are already reshaping and redefining the film industry, witnessing for example, a proliferation of blockbuster TV-Shows that weren’t Cash Cows some years ago, at the same time a generous number of movies available at a considerably better (cheaper) price. To conclude, I would say that ‘piracy’ is essential to lead the market toward a decent equilibrium that in turn increases the utility of consumers and the welfare of the artists, who are, according to me, the most important shareholder of the music and film industry. Sources: http://www.huffingtonpost.com/2013/02/26/game-of-thrones-download_n_2765488.html?utm_hp_ref=entertainment&ir=Entertainment http://www.ipdigit.eu/2013/12/the-hidden-treasure-of-piracy/ http://scholarship.claremont.edu/cgi/viewcontent.cgi?article=1501&context=cmc_theses Show less Reply Léandre de Schrynmakers 11 December 2016 Launch on november 18, the first episode of « The Grand Tour » has been illegally download 7.9 millions times, becoming the most illegally downloaded show in history . Piracy and illegal downloading are now a part of the internet we cannot avoide. When inellegal downloading plateforme is closed – like DPstream three years ago - an other…Read moreLaunch on november 18, the first episode of « The Grand Tour » has been illegally download 7.9 millions times, becoming the most illegally downloaded show in history . Piracy and illegal downloading are now a part of the internet we cannot avoide. When inellegal downloading plateforme is closed – like DPstream three years ago – an other one emerges right after that. With the actual legislation, it seems to be an endless fight. I think reaching the absence of piracy by fighting piracy and illegal downloading would probably cost more than the amount that could be earned without piracy so the network is wide and deep. A common reaction is to say that those artists already earns a lot of money. Katy Perry claimed she has lost « at least $13.5 million of the $135 million she made last year » . Another reaction about The Grand Tour success would be « I will buy it legally when amazon will start paying taxes ». Maybe, for the most renowned artist, the absence of piracy would become even worse than piracy itself, but what about the up-and-coming artists that doesn’t enjoy the « buzz » made by illegal downloading and earnings from derivated goods? Moreover, piracy is mainly done by younger generation, with a lower willingness to pay. The remaining customers are less price sensitive and firms of the music and film industry can therfore raise the price of their good. So if we have to deal wih piracy, shouldn’t we adopt another strategy ? The software industry suffers a lot from this situation. Is the crowdsourcing an answere applicable in every case, when we see the success of Linux ? References :  http://www.dailymail.co.uk/tvshowbiz/article-4021280/Grand-Theft-Auto-Clarkson-s-TV-comeback-illegally-downloaded-history-viewers-pirating-episode-7-9million-times.html  http://www.forbes.com/sites/nelsongranados/2016/02/01/how-online-piracy-hurts-emerging-artists/#413748307fa2 http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/ http://www.mass.gov/ago/public-safety/cyber-crime-and-internet-safety/cyber-crimes/illegal-downloads-copyright-file-sharing-and-.html Show less Reply Marc Abou Jaoude 10 December 2016 I will highlight my point of view, which happens to incorporate both stances regarding piracy, by primarily using TV shows as examples. I will begin by stating why I think that the absence of piracy may be beneficial to studios and content creators. To begin with, it is worth stating that it is too difficult to deem the effects of piracy…Read moreI will highlight my point of view, which happens to incorporate both stances regarding piracy, by primarily using TV shows as examples. I will begin by stating why I think that the absence of piracy may be beneficial to studios and content creators. To begin with, it is worth stating that it is too difficult to deem the effects of piracy to be plainly good or bad. These effects vary according to the market and type of service provided. For instance, Game of Thrones may not suffer badly from piracy because demand for their show is great. As such, they make sufficient revenue from their legal viewers given the fact that a massive amount of people tune in legally to watch the show. A show like Game of Thrones therefore makes massive amounts of profit either ways and so piracy is beneficial as it guarantees extra exposure. That being said, piracy may have more nefarious consequences for smaller shows that have a significantly smaller demand (viewership figures) than Game of Thrones. Piracy may even lead to a show’s cancellation. A perfect example of this would be the cancellation of the show « Hannibal ». Despite the fact that it garnered rave reviews and had a passionate fan base, the show was cancelled midway through the third season. Executive producer of the show, Martha De Laurentiis, stated that piracy led to the shows downfall. She said, “when NBC decided not to renew Hannibal for a fourth season … it wasn’t much of a leap to connect its fate with the fact that the show was ranked as the fifth-most illegally downloaded show in 2013. When nearly one-third of the audience for Hannibal is coming from pirated sites — despite the fact that a legitimate download for each episode was available the following day — you don’t have to know calculus to do the math. If a show is stolen, it makes it difficult, if not impossible, to fairly compensate a crew and keep a series in production.” Furthermore, whilst morality and ethics are principles generally lost in the world of business and commerce, they should be considered nonetheless. Content creators should be remunerated justly for their services regardless of the potential positive externalities that piracy may or may not induce. Piracy remains an illegal action and in many of the cases does lead to a reduction in the just remuneration of people involved in creating the pirated content. Ethically, like all illegal actions, piracy should be frowned upon. In some cases, as the blogpost mentions, it may create a buzz and push people to purchase legal versions of the content, but in others it does not have that effect and hampers content creators. On the other hand, I do recognize the fact that piracy may be beneficial to content creators in some cases, the most prevalent of which I will detail now. There exists certain geographical limits on content that make obtaining that content legally impossible for people living in a different geographical zone. For instance, Europeans may not be able to legally stream (or watch) certain American TV shows as they are aired. The only legal solution in this case would be to await the release of the DVD by which time storylines and events that occurred in the show will have leaked. In this case, welfare may be maximized for both the content creators and European fans if the show is pirated. It is beneficial to the show producers because either ways they wouldn’t be expecting any revenue from the european market immediately and so they lose nothing on the short run if the European viewers of the show pirate it. If anything, the creators benefit clearly as piracy increases exposure. Similarly, it is beneficial for consumers who are able to keep up to date with the show as it goes on. Sometimes piracy may be the only way of allowing people of all nationalities to access the show. Until options are put in place allowing every citizen in the world to gain legal access to previously geographically restricted shows, then an anti-piracy campaign may be redundant as piracy is the only way for some people to access these tv shows. To add to this, there is a case to be made that piracy may even spur innovation. This is a point raised by both David Y. Choi and Adrian Johns. They cite the example of the Napster (an illegal P2P file sharing service) which ended up highlighting the demand for digital music streaming. Furthermore, whilst it has not been explicitly stated, it is fair to assume that the immensely popular tv show and movie streaming service Netflix, was inspired by the massive demand for digital streaming. Many people may have always been happy to pay to gain access to shows or movies they cherish, but that option was simply not available until Netflix was launched. In conclusion, it is undeniable that piracy may heed many benefits to all stakeholders involved with the content that is pirated. That being said, it is not always the case and depends heavily on potential geographical limits that may exist, a potential lack of legal ways to obtain the service and the ratio of legal to illegal downloads. In order for the impacts of piracy to be truly judged, a case by case approach must be adopted. Sources: Hannibal executive producer De Laurentiis’ comments: http://www.avclub.com/article/hannibal-producer-says-online-piracy-brutally-slau-233990 Piracy may be good for innovation article: http://www.hypebot.com/hypebot/2010/11/why-piracy-is-good-for-innovation.html Show less Reply Thomas Heremans 10 December 2016 Piracy is illegal and I believe it has to remain so in order to protect the intellectual property of producers but I think that we should address the fight against piracy in a different way. Up to now law enforcement has been delivering poor results. Indeed, pirates are always one step further and for example when Megaupload, one of the…Read morePiracy is illegal and I believe it has to remain so in order to protect the intellectual property of producers but I think that we should address the fight against piracy in a different way. Up to now law enforcement has been delivering poor results. Indeed, pirates are always one step further and for example when Megaupload, one of the internet’s largest file-sharing sites, was shut down by officials in the US because of piracy issues, it did not reduce the number of piracy files being downloaded. People just found other ways such as torrents. A second example is the Recording Industry Association of America who obtained the closure of Napster, but the victory proved short-lived as a number of other file-sharing systems (such as Kazaa, LimeWire, and Morpheus) quickly replaced Napster. On the contrary, some innovative firms have developed business models to deal with piracy. They see piracy as a social trend which like any trend results of people’s need. For example, when Game of Thrones episodes are illegally downloaded in Belgium, it is the consequence of people willing to be up to date with their US fellows. In today’s globalized world, people want to be the first to access content. I am also convinced that piracy is around because people find it convenient. Downloading a song from an illegal website is as easy as on iTunes. When you make that comparison, it is easy to understand that people will choose the free offer. To face that issue, Spotify developed an even more convenient way to listen to music by offering streaming services. I think that Spotify or Netflix are good examples of firms who see piracy as a competitor that offers free content as their competitive advantage and that those firms should develop their own advantage to gain market share. In conclusion and to answer the question, I think that piracy can increase profits though the three mechanisms derived by Belleflamme and Peitz (2012) but more important is forces business to develop innovative business models when seen as a competitor to be dealt with instead of a fatality. Belleflamme_Peitz_Encyclopedia.pdf course material downloaded on Moodle. http://www.bbc.com/news/technology-16642369 https://en.wikipedia.org/wiki/Napster Show less Reply Stephanie Rodriguez 10 December 2016 I actually never thought piracy could have any advantage, in my head it was always “piracy is illegal and unfair”. But this article shows us, what we experience in life over and over, that in most cases it is hard to find a compromise where we make everyone happy. While most people see piracy as an act of stealing or…Read moreI actually never thought piracy could have any advantage, in my head it was always “piracy is illegal and unfair”. But this article shows us, what we experience in life over and over, that in most cases it is hard to find a compromise where we make everyone happy. While most people see piracy as an act of stealing or as an illegal act, others see piracy as an advantage. I fully agree with both point of view. On the one hand, no matter how advantageous piracy could be for some people, it remains illegal. Although, you are not physically stealing anything (Cd, DVD, book…), you are still not paying for something that cost a lot of effort, time and money to someone. On the other hand, piracy can also have advantages. Take for example the English radio pirates in the 1960s who helped to establish the English pop radio. Indeed, piracy could have an impact on the development of new business models and innovations. Another good example where piracy lend to the creation of a new business is Napster, an online service where people could easily share their digital files with other participant, who helped in establishing a new market for online music. Although the company shut down in July 2001 because of legal complains on copyrights, later they became an online music store. YouTube could also be seen as a good example, they had some legal problems because of his consumers who uploaded illegal music, but eventually managed to solved it, giving royalties to their respective singers. Having said the above, the absence of piracy could have some big consequence on the emergence of new business, technologies and innovations. Sources: http://www.hypebot.com/hypebot/2010/11/why-piracy-is-good-for-innovation.html http://www.debate.org/opinions/is-internet-piracy-a-bad-thing http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ Show less Reply Gregoire Simon 8 December 2016 At first it’s easy to say that piracy has only negative aspect on the film and music industry but this article gives an other view on the issue. Fist let’s ask our self’s if it is even possible to completely stop piracy we are in a world were it’s becoming harder to control all the sites and shutting them down…Read moreAt first it’s easy to say that piracy has only negative aspect on the film and music industry but this article gives an other view on the issue. Fist let’s ask our self’s if it is even possible to completely stop piracy we are in a world were it’s becoming harder to control all the sites and shutting them down might be a lot more expensive that letting them open to the public. The “sampling role” of illegal copies and the “network effect” make total sense in my opinion. Now the main idea is to understand the process of piracy analyse the different positive aspect and try to capitalise on them. This article opened my eyes on some of the positive aspect on piracy. The main one is that by giving access it also mean giving knowledge on the existence of more series more movies and more types of music and artists. Meaning that it increases the demand. New potential clients that wouldn’t even had heard of these movies series etc … are getting interests. So using this could be favourable to the industry. It’s a question of adapting to the new market and steaming is only an other competitor in this industry. One example of adaptation is Netflix. They adapted by offering a new service that isn’t easy to find on the different steaming sites on the Internet. Show less Reply Axel Mugisha 8 December 2016 I think a lot of issues must be addressed when talking about piracy. On the positive side, I personaly agree with the ideas expressed in the first paragraph. Piracy is not such a bad thing : illegal downloaders do free advertising for the product and it would not have been the case if they could not hack as we can…Read moreI think a lot of issues must be addressed when talking about piracy. On the positive side, I personaly agree with the ideas expressed in the first paragraph. Piracy is not such a bad thing : illegal downloaders do free advertising for the product and it would not have been the case if they could not hack as we can assume that, for a large number of them, their WTP is not high enough to pay for TV, DVD or any paying way to watch the serie. So the TV show wouldn’t have that much success. I don’t watch GOT but all my relatives, at least most of them, watch GOT illegaly. I can say that I’ve been aware of the serie’s existence thanks to illegal watchers. On the negative side, I think that piracy can hurt companies’ profits, as the demand is getting lower, and this might hurt in a dramatic way the film and the music industry in the long run. As more and more people won’t pay for their artworks, musicians and film producers get less incentives to produce music and films. So we can predict a lower supply in the future. Also, as everything gets free, people tend to abuse of it and they are not getting as much pleasure they used to do before. I mean by that that their utility function are affected. But on the other hand they dont pay anymore for the products. Another problem I have with piracy is that, I don’t see how we can measure the economic impact of this trend. In other words, how to assess piracy in economic terms ? Yes, GOT is kind of « free riding » on this infromal advertising campaign and it can be beneficial for them as the serie is now « anchor in the popular culture in the western world, but yet is it worth to let them continue downloading illegaly ? Does it makes more good than harm ? I think that deepest economic research need to be made on this, if it hasn’t been done yet. Show less Reply Rotsart Antoine 7 December 2016 Before having read this article, I wouldn’t have imagined that piracy could have positive aspects. Now that I have thought about the matter, I think piracy isn’t as bad as it looks like. Indeed, we all agree that the act of piracy is intrinsically incorrect, yet there are some interesting points that I would like to pinpoint. Firstly, the three arguments…Read moreBefore having read this article, I wouldn’t have imagined that piracy could have positive aspects. Now that I have thought about the matter, I think piracy isn’t as bad as it looks like. Indeed, we all agree that the act of piracy is intrinsically incorrect, yet there are some interesting points that I would like to pinpoint. Firstly, the three arguments exposed by M. Belleflamme seem extremely relevant and convincing to me. The “sampling role” of illegal copies and the “network effect” make total sense in my opinion, as they would apply to some close people I know. The latter seems also logical even though I think it happens less frequently than the first two. Secondly, I would say piracy has brought a new kind of public, a public that is used to watching content for free in the internet. Companies proposing video streaming services – such as Netflix – understood that quite rapidly and built their business around this new market (1). They proposed a better alternative than piracy and captured all that new demand. I’m not saying that this new market was the only factor that made these companies (and especially netflix) a success, but it certainly contributed to it. My point is therefore the following: in the absence of piracy, there probably wouldn’t be video streaming services and we would still be watching conventional medias. Thirdly, it has been demonstrated, according to a study made in canada (2), that there is a positive correlation between downloading songs illegally and their sales. This survey implicitly indicates that piracy is used as a tool to discover new songs, and these will be bought only if they were appreciated from a first listen. In a nutshell, piracy presents many advantages that many people are not aware of. To answer the question of M.Belleflamme, I would therefore say that the absence of piracy would be a bad idea according to me. (1)http://betanews.com/2015/06/10/piracy-is-good-for-netflix/ (2)http://www.liberation.fr/ecrans/2007/11/05/pirater-plus-pour-acheter-plus_957846?page=article Show less Reply Tomasz Chwaja 7 December 2016 The piracy in the Internet is a really important issue right now. I personally think that to answer the question if the absence of piracy become even worse than piracy itself we should think if it is possible to deal with piracy in the Internet. In my opinion it is almost impossible to get rid of piracy, especially when the amount…Read moreThe piracy in the Internet is a really important issue right now. I personally think that to answer the question if the absence of piracy become even worse than piracy itself we should think if it is possible to deal with piracy in the Internet. In my opinion it is almost impossible to get rid of piracy, especially when the amount of data produced every year is getting higher and higher. Moreover, you can easily observe the cases of websites like 123movies, which after being banned had only to change the domain (from .org to .net). I think piracy, which is obviously morally blameworthy, can be really beneficial for the music or movie industry for instance. Primarily, we cannot assume that the whole amount of the files which are illegally downloaded from the Internet would be simply purchased in shops if the absence of piracy. As the paper “Digital Music Consumption on the Internet: Evidence from Clickstream Data” reads, “It seems that the majority of the music that is consumed illegally by the individuals in our sample would not have been purchased if illegal downloading websites were not available to them”. What is more, the piracy is an incentive for the companies operating in these industries to innovate. I believe that the success of Netflix or Spotify shows the evidence that customers do not look only for free music or films but primarily for comfortable use of music or movies and additional features such as playlists. Finally, I agree with the article which reads that piracy can be a substitute of marketing of the music or movie producer. We all know that the word of mouth is probably the best way to promote yourself, therefore piracy can play significant role in the promotion process and surprisingly has a positive impact on company’s performance. To sum up, I would like to answer the question if the absence of piracy would be even worse than its presence. Personally, I believe that the world without piracy is an utopia. Therefore, the question is for me only theoretical. But even if we assume that it is possible to ban piracy everywhere, I think it will not be beneficial for music and movie industry. Sources: https://torrentfreak.com/why-most-artists-profit-from-piracy/ https://www.rt.com/news/music-piracy-online-sales-572/ Show less Reply Edouard Fabri 7 December 2016 Piracy is often associated with stealing, infringement of the existing laws and unethical practices. Further, it might be considered as unfair competition, compared to many producers that are still operating with the legal systems of music and movies release and see their sales decreasing (and therefore increasing the risk of being kicked out of the market). These illegal practices have…Read morePiracy is often associated with stealing, infringement of the existing laws and unethical practices. Further, it might be considered as unfair competition, compared to many producers that are still operating with the legal systems of music and movies release and see their sales decreasing (and therefore increasing the risk of being kicked out of the market). These illegal practices have simplified the access to both movies and music, so that consumers tend to ignore the time and money artists and producers invest in their productions. Why would people keep paying for products they attach less value to and to which they have free and easy access? I believe it has become impossible and senseless to fight piracy. In one way or another, piracy will always be one step ahead and circumvent the implemented protection measures. Take for example the huge amount of controversial music or video streaming apps, which are often closed due to legal issues and back on track a few days later with stronger IT protections. Moreover, lot of consumers and considerably minimize the risks incurred of illegally downloading apps by taking advantage of VPNs and differences regarding the piracy laws in different countries. These reasons expose why it might be unrealistic to consider a situation without piracy. Even if we consider the abolition of piracy, I am convinced its absence would be worse of piracy itself, in spite of the drawbacks of piracy exposed previously. Indeed, we have seen that a lot of measures are taken to circumvent the existing laws and take benefit from the flaws in the music and movie industries. This is partly due to the evolution in consumers’ habits and the increasing trend of the so-called “freer and sharing economy” (with the typical examples of Uber, BlaBlaCar or Airbnb). More and more artists and production groups become conscious of its importance and have adapted themselves to free music release and share on the internet. It is now seen as factor of their potential success and promotion tool (by sharing their productions with a larger and various public), especially in a fast changing and highly connected environment. The question now arises “without piracy, would all of this still be possible?”. In order to remain competitive on the market and increase the recorded sales, media companies should differentiate themselves and offer the consumers features and advantages illegal platforms have no access to. Therefore, next to legal enforcement, innovation is the key so that customers perceive the added value of legally acquiring productions. Spotify and Netflix are typical examples of platforms that brought successfully something new to the market by setting up easy and consumers-friendly access to music/movies and reducing significantly the costs of these products, while remaining legal and supporting creators. References: http://www.hypebot.com/hypebot/2010/11/why-piracy-is-good-for-innovation.html http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452 Show less Reply Dirk Auer 7 December 2016 In this comment, I would like to highlight an additional mechanism by which movies and TV series might benefit from piracy. I will look at three questions: Do some movies generate substantial revenues from product placement? Are pirated copies taken into account when firms invest in product placement? Could product placement revenue be sufficiently high to compensate for lost sales? The…Read moreIn this comment, I would like to highlight an additional mechanism by which movies and TV series might benefit from piracy. I will look at three questions: Do some movies generate substantial revenues from product placement? Are pirated copies taken into account when firms invest in product placement? Could product placement revenue be sufficiently high to compensate for lost sales? The first question is whether product placement represents an important source of revenue for film and TV studios. Unfortunately, this information is hard to access. I found no reference to direct product placement revenues in the annual reports of the “Big Six” production & distribution studios. Only Viacom mentions that product placement regulations may significantly affect its revenues. The lack of references might be down to the fact that the Big Six don’t always produce films themselves. Instead, they often distribute films produced by smaller studios who aren’t required to publish annual reports. At the very least, anecdotal evidence suggests that product placement can generate vast revenue for producers. “The Man of Steel” allegedly rake in $170 million in product placements for a production costs of $225 million. “Skyfall”, the 23rd Bond film, famously received $45 million from Heineken (compared to an alleged total budget of $150 million). In exchange, viewers got to see Her Majesty’s secret servant sipping a frosty beer instead of a vodka martini. Other notable examples include the fourth “Transformers” movie  ; and “Cast Away” in which Tom Hanks spends most of his time speaking to Wilson, a branded volleyball . All this to say that product placement can definitely generate significant revenues. The second question is whether product placement investments take illegal viewers into account. The answer is not clear-cut. As Coase showed for the music industry, the ultimate goal of product placements is to boost sales of the “plugged” good. The only thing that matters is the total number of viewers and the performance of the plugged good. In that regard, pirated movies are problematic. Studios might find it hard to estimate the number of people that view pirated copies because, by definition, piracy is often concealed. Some proxies might be of help, such as legal sales, Google searches, IMDB votes, or “torrent” activity. Moreover, it is notoriously difficult to monitor the effect of an ad campaign on actual sales. As a result, advertisers might not be able to adapt their product placement expenses according to illegal viewing activity. If piracy reduces legal sales, it might thus have a negative effect on product placement investments and movie profitability. To try and test this intuition, I have searched for movies that were not screened in China (this is often the case for US movies ) but which contained placements of purely Chinese products (many US movies legally screened in China contain such placement). I could not find a single one. This tends to support the idea that advertisers do not think of illegal sales when they plug products. Of course there may be other explanations. Western audiences might simply feel alienated by Chinese products. In short, it is not obvious that product placements increase with illegal viewing because, as things stand, it is hard to know how many people have seen a pirated copy of a movie. The final question is whether product placements might provide sufficient incentives to produce movies or TV series if piracy becomes even more widespread. It is theoretically possible that advertising could be sufficient to finance movies. Each movie can be thought of as a two-sided market with advertisers on one side and consumers on the other. In this case, advertisers value consumers but consumers have a non-linear valuation of advertisers/placements. They might value them to a point, because they make movies culturally relevant (think of the Cast Away example). Beyond this point, however, placements might just become a nuisance (think of Transformers 4). In this type of setting, it is theoretically possible that the movie producer would choose to maximize its revenues by producing placement-heavy movies distributed for free. However, the fact that we don’t see many movies distributed this way suggests that producers make more profits with the traditional model (lost sales and decreased quality might outweigh the extra revenue from placements). Moreover, even if they became the most profitable option, placement-heavy movies might not be a “first best”. Collectively, viewers might prefer placement-light movies (which lead to higher valuations) and some fee. But because of free-riding, such a goal might be hard to reach (once a high valuation movie is produced, users would rather pirate it). To summarize, I am not sure that product placement can replace legitimate sales if piracy becomes more widespread. Though placements can generate substantial revenues, it may be harder to justify them in a world where piracy is ubiquitous. Finally, even if this strategy did become profitable, it might be harmful because viewers would rather pay for placement-light movies than receive placement-heavy ones for free. There are currently six major studios in the US. See https://en.wikipedia.org/wiki/Major_film_studio#Current.  See Viacom’s annual report for year 2015, p. 23.  See http://www.independent.co.uk/arts-entertainment/films/news/superman-is-already-a-170m-brand-superhero-as-man-of-steel-tops-the-product-placement-charts-8651215.html  See http://www.forbes.com/sites/moneybuilder/2012/10/10/bond-investing-james-bond-investing/#482002712905. The placement was confirmed in Heineken’s 2012 annual report, p 27.  Though the actual product placement budget is unknown, a quick look at the film suggests that advertisers had a massive role in the movies’ financing. See this link for an overview of the placements [warning strong language] https://www.youtube.com/watch?v=bs5bbWSrzBQ.  Wilson apparently didn’t pay to place their product. This example shows that including brands in films does not necessarily reduce their quality or appeal with audiences. See http://brandsandfilms.com/2011/02/product-placement-highlights-wilson-in-cast-away/.  See Ronald H Coase, Payola in radio and television broadcasting, JOURNAL OF LAW AND ECONOMICS, 270 (1979).  See Magid M Abraham & Leonard M Lodish, Getting the most out of advertising and promotion, 68 HARVARD BUSINESS REVIEW (1989). See also Magid Abraham, The off-line impact of online ads, 86 HARVARD BUSINESS REVIEW (2008). Both articles show that it is necessary to know which consumers have viewed an ad – or product placement – to measure its effectiveness. This would be difficult for pirated movies.  See http://www.vox.com/videos/2016/11/29/13765398/china-movie-industry-changing-hollywood.  On two-sided market, see Jean‐Charles Rochet & Jean Tirole, Two‐sided markets: a progress report, 37 THE RAND JOURNAL OF ECONOMICS (2006). Show less Reply Chahine Mohsine 5 December 2016 Since the introduction of illegal website where we can download illegal music for free, music industry has reduced his sales and many people have lost their jobs. But is piracy really bad for the music industry? Could the music industry be better or worse without piracy? Previously there as no internet. People listened to music on the radio and if they…Read moreSince the introduction of illegal website where we can download illegal music for free, music industry has reduced his sales and many people have lost their jobs. But is piracy really bad for the music industry? Could the music industry be better or worse without piracy? Previously there as no internet. People listened to music on the radio and if they wanted to buy the single or the album they had to give a lot of money to get it. In addition people knew the music that was diffused on the radio so the famous one. It was really easy to find a famous local single in a shop but for knowledgeable people who know a lot about other countries music it was uncommon to find it in a local shop. Thank’s to new website that share music for free, people can know different kinds of music and no only music on the radio. Furthermore it allows to people the possibility to listen to music for free. That has a very good impact on the welfare of the society. First because people can know more about music and don’t have to pay a lot of money in order to get one music. Second, as this kind of sharing has increased in the world, music industry needed to reduce their price in order to attract people. So now people can hear music for free and then buy the album for less money. We understand that piracy has a bad impact on the music industry because this last one losses money and so prices have to be reduced. In comparison music industry can take advantage from the piracy because people are starting to buy music because they were able to listen it before buying. When we listen music for free and we like the music we listened it is always better to have the original album in our house and it is possible now for less money. We can also say that some old original album became very special and the price has gone up significantly. Everything I wrote above could not be possible without the free music industry on the web (piracy). Show less Reply van Raemdonck Marion 4 December 2016 Piracy is a widespread practice in our society. Even if it is sometimes harder, people are more and more able to search and download what they want to. But piracy is illegal and causes damages. They are so two opposite opinions about this subject. The most obvious advice it to think that without piracy the media sector would be doing…Read morePiracy is a widespread practice in our society. Even if it is sometimes harder, people are more and more able to search and download what they want to. But piracy is illegal and causes damages. They are so two opposite opinions about this subject. The most obvious advice it to think that without piracy the media sector would be doing better. This is a logic argument: if they are no more theft, companies, artists, etc, will earn more money and it would encourage the development of these sectors. However, others have fit with this practice and are able to make profit legally thanks to piracy. And downloaders are also winning with this practice because they do not have to pay for anything. But should the absence of piracy become even worse than piracy itself? On the one hand, as it is said on the article and above, some creators have fit with the illegal practice. Indeed, they have based their films or music’s promotions on the illegal downloading. Moreover, making accessible products is the best way to induce people to watch it. And the audience is what interests advertising companies. So I think that with downloading companies have to rethink the way they launch a product and should think about partnerships with other companies that could gain benefits with the big numbers of views. An example is given in the article with game of thrones that have three main advantages with piracy. Another one is given by people that play music and enjoy the free platform to become known. Or some are already known but they enjoy this use by promoting shows that allow them to earn money. These are good ways to use the practice and not to suffer because of it. On the other hand, for some companies that sell products which are illegally downloaded are not able to fit as well as others with this practice. For instance, products offered by windows are often illegal downloaded but they are not able to gain benefits with the practice. Indeed, products like word, excel, PowerPoint,… are not free but some people think they are just because they are too illegally accessible to consumers. Moreover, some versions are damaged and give a negative image of the product while what they download was not offer by the company they thought it was. These downloads are harmful for these companies and should be fought. Nevertheless, legal platforms exists to download music or to watch films and series: Netflix, iTunes,.. These platforms are used by a lot of consumers. This is why I think that these kind of platforms should be more promoting and known by users. I also think that the total absence of free access to music or films could cause the loss to a lot of artists because people won’t pay for something they don’t know. Some artists and companies could balance between setting their product on free access and on pay version. Whereas other should absolutely fight against the websites that allow their product’s downloading. To conclude, I think that the absence of piracy’s opinion should be balanced. Indeed this is very useful for many companies whereas it harmful for others and these ones should be protected. https://www.microsoft.com/en-us/piracy/ http://www.mass.gov/ago/public-safety/cyber-crime-and-internet-safety/cyber-crimes/illegal-downloads-copyright-file-sharing-and-.html Show less Reply Robert Heyse 3 December 2016 Before answering whether the absence of piracy could be worse than piracy itself, I believe that another question must be addressed: Is it even possible to get rid of internet piracy? Despite countless efforts to stop it, piracy is still prevalent on the internet. In fact, it is suggested that the amount of bandwidth used for piracy is increasing. Take as…Read moreBefore answering whether the absence of piracy could be worse than piracy itself, I believe that another question must be addressed: Is it even possible to get rid of internet piracy? Despite countless efforts to stop it, piracy is still prevalent on the internet. In fact, it is suggested that the amount of bandwidth used for piracy is increasing. Take as an example Pirate Bay. After authorities managed to impose an order that blocked people from entering the most famous BitTorrent website in 2012, the Pirate Bay just published its source code for everyone to download. People began creating their own little Pirate Bays on other servers and nothing changed. There are numerous examples like this, and it seems that the pirates are always one step ahead. They are already thinking about using drones equipped with wireless radio transmitters to illegally distribute content or storing their servers in secure bank vaults. These examples show that legal measures against piracy prove to be mostly ineffective. But is there another way to diminish internet piracy? To answer this question, I want to take a closer look at the motivations of the ones that consume pirated content. While the most apparent reason to pirate might be that it is free of cost, I believe that this is not the main reason. Indeed, I believe that convenience is an even stronger reason to pirate content. The emergence of Netflix, which provides an easy and affordable access to movies and TV shows, has coincided with a decline in searches for BitTorrent, a popular hub for pirated media. In the same manner, the convenience of iTunes has reduced piracy as a share of digital media consumption. Despite the evidence that speaks for business model innovation instead of legal measures, big media companies like to stay with the status quo and want to solve the perceived problem of piracy through legislation. This is understandable, because the old way was very profitable for them. While the transition from CDs to mp3 reduced the distribution costs of major labels drastically, they were still paying artists the same 15-20% on the wholesale price for a long time. Because they did not innovate, they are now threatened by the emergence of streaming services such as Spotify, that offer a better deal to both consumers of music and artists by eliminating the middleman. If big media companies shift their old behaviors towards innovating, they could start to offer more affordable and convenient ways to consume media and thus reduce piracy. This also answers the question whether the absence of piracy could be worse than piracy itself: In fact, the need for piracy could be drastically reduced if big media companies took the aforementioned measures. By providing convenience and affordability in media consumption, the majority of the positive effects that piracy now brings could be retained while also effectively reducing piracy. Sources: http://creativefuture.org/new-study-the-size-and-scope-of-global-internet-piracy-is-on-the-rise-video/# http://www.nytimes.com/2012/08/05/sunday-review/internet-pirates-will-always-win.html https://www.techdirt.com/blog/innovation/articles/20120229/03324017910/who-cares-if-piracy-is-wrong-if-stopping-it-is-impossible-innovating-provides-better-solutions.shtml http://www.nationalreview.com/article/291732/innovate-or-legislate-reihan-salam-patrick-ruffini Show less Reply Amandine Bolle 29 November 2016 Piracy is not as negative as we can think. This is why I’ll talk about some pros and cons. First of all, it’s understandable why people use piracy to watch their movies because in our society with all the social networks everyone wants to be the first to watch the last episode of our favorite series. We want to watch it…Read morePiracy is not as negative as we can think. This is why I’ll talk about some pros and cons. First of all, it’s understandable why people use piracy to watch their movies because in our society with all the social networks everyone wants to be the first to watch the last episode of our favorite series. We want to watch it at the same time than the Americans on their TV because we want to be equal to them. If we have to wait that the series go out on DVD in Belgium we have to wait at least 3 months and during this time we will have spoilers from every social network. Secondly, when people are watching directly on their computer they can talk about it and then there is a word-of-mouth effect because the entire world can watch it at the same time. This can then increase the demand. Moreover it’s not the same feeling to watch a movie on our computer with usually a bad quality than on our television with a DVD, which has a great quality. So even if we watch a movie on our computer it doesn’t mean that we will not buy it later. It just means that we want to be sure that we like the movie before buying it. Thirdly, Spotify and Netflix are two streaming services, which work very well around the world. On the one hand, Spotify is free if we keep the advertising and is a good solution because it decreases music piracy but it has no impact on the revenue because it doesn’t increase the legal track sales. On the other hand, Netflix is not free and has a huge success. It decreases online piracy but unfortunately it is also killing pay TV. People prefer to watch movies or TV series of their choice without any advertising than to watch the TV program that is imposed by the channels. The streaming services are then a good idea but it still has some issues. Finally, the sector that suffers the most from the piracy is the movie rental. There are less and less shops that rent movies because it doesn’t work anymore. Nobody wants to rent a movie that can be watched easily on lots of websites. https://www.theguardian.com/film/2016/aug/10/movie-film-piracy-us-interpol-extradition https://torrentfreak.com/spotify-helps-to-beat-music-piracy-european-commission-finds-151028/ http://bgr.com/2016/01/21/netflix-downloads-bittorrent-piracy/ Show less Reply Zoé Godeaux 18 November 2016 Piracy has always been illegal but should we revisit our laws on the subject? Many people say that if internet piracy didn’t exist, people would have no other alternative than to buy products legally. I disagree with this point of view. I think there is a predominantly negative view of piracy. In many cases, when someone illegally downloads a movie…Read morePiracy has always been illegal but should we revisit our laws on the subject? Many people say that if internet piracy didn’t exist, people would have no other alternative than to buy products legally. I disagree with this point of view. I think there is a predominantly negative view of piracy. In many cases, when someone illegally downloads a movie or a music they wouldn’t have bought it if they had other option. What motivates people to use piracy is because it is free and easily accessible. In many ways piracy can be beneficial to the market. It is a way for companies to attract new customers. Through mouth-to-mouth they can get known faster, as well as spread their influence more efficiently. Creators don’t need large resources to participate in the market and get a global reach. A study conducted by Cammerts, Mansell and Meng uncovered interesting facts on the subject. Hollywood arguments that they are taking huge losses caused by illegal piracy, at the same time it achieved a record-breaking global box office in 2012 with an increase of 6% from 2011. Concerning the music sector, as record sales decrease, we can notice a significant raise in live performances and digital revenues, including streaming services. Similar results were found concerning both gaming and publishing department. Another study conducted by the European Commission’s Joint Research Centre obtained comparable data. In their opinion piracy can actually provide a boost to music revenues online. To conclude I think online piracy should not be seen as a threat to the movie or music sectors. It should be seen as a natural evolution of our consumption habits. Companies should find ways to work with it and not against it. They should find a way to embrace these changes and benefit from them instead of trying to get rid of a custom which is already well implemented in society. http://www.lsunow.com/entertainment/piracy-can-be-a-good-thing/article_ea64b1de-5bc1-11e3-98a5-001a4bcf6878.html http://edition.cnn.com/2009/SHOWBIZ/Movies/04/17/online.piracy.for.against/index.html?eref=rss_tech https://sg.finance.yahoo.com/news/why-digital-piracy-may-good-160000146.html https://www.rt.com/news/music-piracy-online-sales-572/ Show less Reply Thibault Ways 9 December 2015 Piracy is illegal according the current law, it’s a fact. However, does it mean that is something immoral? Imagine if piracy always has a positive impact, like a hidden treasure, on all its stakeholders (legal consumers, pirates, content producers/copyrights holders, government). Would it still stay illegal, immoral, and compared to an IP theft? In fact, I don’t believe it,…Read morePiracy is illegal according the current law, it’s a fact. However, does it mean that is something immoral? Imagine if piracy always has a positive impact, like a hidden treasure, on all its stakeholders (legal consumers, pirates, content producers/copyrights holders, government). Would it still stay illegal, immoral, and compared to an IP theft? In fact, I don’t believe it, but the issue is more complex. Indeed, several studies have shown that piracy have also some negative impacts. So the question “Would the absence of piracy become even worse than piracy itself” is meaningful. To answer the question, let’s take the example of illegal music downloadings and their pro and cons regarding the music industry. Firstly, from an economic point of view, illegal music downloadings have most of the time a negative impact on CD’s sales. However, a huge number of illegal downloadings may have a positive impact on the profit of copyrighted music holders. The example of Game of Thrones and HBO demonstrates that a cultural buzz feeds by illegal downloadings can bring positives effects. For many content goods and especially for Game of Thrones, network effects have helped to create the buzz. But the fact is, we can’t easily determine the success parameters of network effects. Means to attract the demand and the consumers ‘interest are subjective. Therefore, it’s difficult for copyright holders to rely on a brief buzz. Moreover, it’s impossible for them to compare the losses due to piracy and the possible gain brings by this buzz, since it’s subjective. Secondly, the introduction of legal sales of digital music on the market can either help the music industry or hurt it. Indeed, legal sales of digital music are competitors of physical sales. And they are also serious competitors to the illegal downloadings. As the famous quote says “the enemy of my enemy is my ally”, piracy could become an ally of copyright holders in order to resist to the competition with legal sales of digital music. But the fact is that legal sales of digital music represent only a few part of the revenues of the music industry. Piracy should therefore be considered as a bigger competitor of physical sales than the legal digital ones. In that case, the absence of piracy is thus better. Thirdly, consumers will always benefit from piracy, in my opinion. Simply because they can have music for free. For example, it’s a mean for poor people who can’t afford lots of CD’s and those who are not ready to pay the market price to enjoy music. These people will always find means to listen to music. It started with Napster, a peer-to-peer music file sharing system, in 1999. Now, we can say that other means, like Youtube, supports this “culture of free”. In fact, Youtube is used like a legal sharing means to listen to music. It is therefore a good solution to satisfy both artists and listeners expectations. Indeed, they can both benefit from it since artists are remunerated for each music video and since Youtube is seen as a promotion tool. Finally, I would say that piracy is something impossible to stop in a constantly connected world like ours. Therefore, finding the optimal welfare for all the stakeholders is the main issue of piracy, but knowing that copyright holders and content producers will certainly adapt their business models (because they suppose piracy can happen) if they want to make profit. Sources: http://www.ipdigit.eu/2012/02/network-effects/ http://www.ipdigit.eu/2013/04/lor-cache-des-pirates/ https://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2014_19web.pdf https://www.youtube.com/yt/copyright/ Show less Reply Maxime Michaux 9 December 2015 The fact that music and movies have become very easy to download illegally has lead to change the way we get and consume those « goods ». The effort we have to invest in to acquire movies or music is way lower than it was before. Back then we had to consume our effort, our time and our money to…Read moreThe fact that music and movies have become very easy to download illegally has lead to change the way we get and consume those « goods ». The effort we have to invest in to acquire movies or music is way lower than it was before. Back then we had to consume our effort, our time and our money to go to a store purchase these goods. As a consequence, getting a new movie or/and music was then also about our motivation to move, to find the specific movie/song, and to spend a certain amount of money on it. Being able to consume these goods implied a real personal involvement and financial means. On the contrary, now, we can easily look for any movies/songs on the Internet, watch/listen to them (through downloading or streaming) directly from any connected area and we can do it for free (legally or not). Moreover, this situation has also decreased the feeling of “it wasn’t worth it” which is the consequence of the balance between all the effort, time and money invested and the satisfaction the good consumption. As the initial investment is much lower than before, the risk of being disappointed for all that has been invested is also much lower. Actually, this change has led the consumer to discover movies/songs for which he had a lower initial motivation or/and who doesn’t have enough money or doesn’t want to spend it on them. For instance, in the music industry, this change has allowed some new artists to be known and listened to by a larger amount of people. It has had a positive impact for a lot of artists such as Birdy, Karmin or Justin Bieber whose talent was discovered thanks to their personal video that they posted on Youtube. On the counterpart, this situation also has had a negative impact: the value we attach to the song we listen to. Besides, the development of the computer market (and the Internet) which has (among all) made buying and using a computer more accessible to consumers, produced increasingly more efficient computers and developed more smart and connected products (tablets, smart TV, smartphones, etc.), combined to people’s (strong) consumption habits of these smart products which has increased the demand for movies and songs (some of these devices enable people to enjoy watching a movie or listening to music anywhere and at anytime), have also impacted movies and music piracy. Indeed, people have to use adapted format of movies and music to use with all of their devices. Regarding the downloading or streaming platforms, they have soared and it doesn’t seem about to stop even if many of them are acting illegally. These platforms where people share files like music, movies, softwares and so on, seem to be comparable to the sharing economy and then benefit from the good social aspects. However, it remains a big difference which is that the things we share through the internet are not tangible like sharing a car or a sharing an apartment (like Cambio and AirBNB). Furthermore, for a majority of these goods, the platform user who shares them online hasn’t the property of them or is not legally allowed to do so. As a result, the comparison seems to be irrelevant even if the principle is fundamentally the same. (http://monetizepros.com/features/25-celebrities-who-got-rich-famous-on-youtube/) Show less Reply Irina Karabelyova 9 December 2015 So, would the absence of piracy become even worse than piracy itself? Firstly I would like to point out that the eradication of the practice (piracy) all together seems very unfeasible. The US – one of the countries in the world with the strictest anti-piracy laws, which are updated as often as almost every two years receives the same result…Read moreSo, would the absence of piracy become even worse than piracy itself? Firstly I would like to point out that the eradication of the practice (piracy) all together seems very unfeasible. The US – one of the countries in the world with the strictest anti-piracy laws, which are updated as often as almost every two years receives the same result time and time again: copyright infringement continues unperturbed. However, I will assume that piracy can be absent in the market. Below I examine the effect of the absence of piracy in the music and film industry. Personally, I don’t think that the elimination of piracy would help to increase the sales of music CDs. Because there would still be so many ways to enjoy the music of your favourite artists for free. For example, many official websites of performers have a section where you can listen to the artist’s music, or you can visit the artist’s page on YouTube and listen to it there. Or by simply subscribing to a streaming service (Spotify). I am a big fan of streaming services as they provide benefits such as: diversity, accessibility and quality for little to no cost to consumers. Moreover, CD sales are decreasing all over the world: in countries such as Spain with lax anti-piracy laws; but also in Germany- a relatively low-piracy market. In the case of the music industry I believe the lack of piracy will have a negative effect on demand of goods that benefit from the three mechanisms mentioned in the article above. An example from the film industry: the price of the DVD – ‘’The Dark Knight” in Russia was equivalent to $75 per copy. With this huge discrepancy in price between the Russian and US market and assuming there is no piracy, I can safely come to the conclusion that Christopher Nolan’s film would not have reached as many supporters of the trilogy as it currently has in that region. Furthermore, I have no qualms about claiming that the sales of merchandise related to the movie franchise would have been dramatically lower. The lack of piracy in this case would certainly not push consumers to spend $75 for a DVD, but it would have simply lost its customer base, therefore piracy is a necessary evil in this case, that does more good than harm. As illustrated in the cases above piracy is better for the music and film industry than no-piracy. What we need to understand is that people will always find ways to cheat and bend the system to their advantage. For instance, the online streaming service – Netflix; offers its new users a one-month free trial period, and many people have taken advantage by deleting their account at the end of the period and creating a new one immediately after, providing different data to avoid detection. This practice is not illegal, nevertheless, I am sure that Netflix representatives are not happy about it. And even though illegal, piracy serves a role of attracting consumers through sampling content, increasing recognition of the product and raising sales of complementary goods. In conclusion, I would like to say that I support the existence of anti-piracy laws, but looking at the facts I believe piracy is better than the alternative. References: http://www.bbc.co.uk/newsbeat/article/16839637/anti-piracy-download-laws-around-the-world-explained http://www.economist.com/node/21526299 https://www.techdirt.com/articles/20140329/08050226728/russia-admits-its-strict-anti-piracy-laws-arent-working-so-theyll-just-try-some-more.shtml http://www.wired.co.uk/news/archive/2012-10/02/japan-strict-copyright-law http://secureknow.com/how-to-guides/netflix-free-trial-forever/ Show less Reply David Vanraes 9 December 2015 Since the copyright sector is a strong diversified sector, i’ll concentrate in this comment on the music industry to answer the question at the end of the article. It is important to say that the digital music industry is evolving very fast and at the same speed the internet is evolving. If we want to understand what the effect would…Read moreSince the copyright sector is a strong diversified sector, i’ll concentrate in this comment on the music industry to answer the question at the end of the article. It is important to say that the digital music industry is evolving very fast and at the same speed the internet is evolving. If we want to understand what the effect would be of the absence of piracy we need to take account with these evolutions. But would a today’s absence of piracy be the same like an absence of piracy in the past, in a time when peer-to-peer file sharing internet services like Napster didn’t exist yet? I don’t think so because there are big differences between the actual state of music on internet and that one of the period before Napster. o A first difference the actual free-listening music systems as Deezer and Spotify makes it possible to listen almost all the music we want without paying anything. o A second difference is that nowadays, free-sharing of music by musical artists becomes more and more popular. Since internet and software enables artist to produce their own music without record label more and more musical artists start to release their own music for free. A good example is from the famous American Rock band OK GO. https://en.wikipedia.org/wiki/OK_Go. From 2012 they released their album, Hungry Ghosts, for free on their Website. From that moment they continued to release music for free on the internet. They tell that the selling’s of their albums even have boosted by releasing them for free. The majority of their revenues come from touring. http://www.wsj.com/articles/SB10001424052748703727804576017592259031536 o A third difference is the creation of websites like youtube (founded in 2005) that boosted significantly the diffusion of new music and music videos that can be listened for free. These three differences are important because it shows that the internet have brought music very close to the people. Before you needed to buy an album to be able to hear your preferred song whenever you want, now you just need to go to the internet and you can listen to a lot of songs for free. Thanks to the internet developments, people can listen to the music they want and finally choose which music they want to buy. In this sense the absence of piracy would be quite beneficial because since people know what they want they would also buy a lot more. At the same time we can also refute this last argument. Listening for free to music is an action that can be seen as a new way of “possessing” since the use (in this case listening) of “something” is strictly related to its possession. Therefore people are less motivated to buy songs or albums since they possess already the use of the object. If we look into the future when internet will be free everywhere and everyone will be connected (IoT), you’ll be able to listen everywhere and whenever you want to the music that you want. So why would you still buy music? Apart from this, looking to studies about effects of the absence of piracy show that its effects are different for small artists then for big artists. For example, Amedeo Piolatto and Florian Schuett say in their paper that since small artists cannot get enough extra revenues of extra alternative activities such as concerts, respected IP rights can therefore help them to survive. At the same time we can say that this model forgets to take into account the benefits of the actual state of the music services on the internet mentioned above in this comment. The gain in visibility that is offered by the actual possibilities on the internet is strongly underestimated in this model. Artists can become very popular without making a lot of costs. Since record tools become available on internet and it therefore enables people to produce their own music it seems that the only thing they need to do is wait and see if their music becomes popular. A great example of this is Bakermat. Bakermat Dutch musical artist and record producer of electronic music. He began to make music in 2012 and is now in 2015 known in a lot of European countries. He is now a full professional music artist and makes very well his living out of his music. https://nl.wikipedia.org/wiki/Bakermat_(artiest) Conclusion: I think personally that to be able to measure the difference between absence and presence of piracy in the music industry, we need to understand and take into account that the recent music service developments on internet have completely changed the relation between use and possession of music. Piracy of digital music will disappear because people will not have the need any more to buy music since music will become accessible everywhere at any time. Sources: Amedeo Piolatto, Florian Schuett, 2008, A MODEL OF MUSIC PIRACY WITH POPULARITY-DEPENDENT COPYING COSTS http://www.wsj.com/articles/SB10001424052748703727804576017592259031536 https://nl.wikipedia.org/wiki/Bakermat_(artiest) https://en.wikipedia.org/wiki/OK_Go https://en.wikipedia.org/wiki/Bakermat Show less Reply Sebastien Duchateau 9 December 2015 To resume this article, piracy have not a significant negative impact on physical and digital sales but on the contrary it promotes and gives a boost to the movie, the TV show or the music in question. The question I ask myself now if what would happen if there were absolutely no piracy in this world? What would be the…Read moreTo resume this article, piracy have not a significant negative impact on physical and digital sales but on the contrary it promotes and gives a boost to the movie, the TV show or the music in question. The question I ask myself now if what would happen if there were absolutely no piracy in this world? What would be the impact on legal sales? First, since few years, we are in a continued transition to the digital media according to official stats. Indeed, global physical sales declined by 8,1 % in 2014, even though it still represent a huge source of revenue. In a very nearly future, the absence of piracy might still have a positive impact, because physical sales still represent an important part of the market and as we saw before piracy has mainly a negative effect on physical sales. But still, as it is quote in the article piracy have a positive impact on complementary products. Meaning that the level of pirated product is related with the sell of paired products. Then avoiding it could actually lower the total amount of physical products legally sold. In a more distant future, the absence will have a fewer impact, because the physical sells will represent a minor part of total revenues and as we have seen in the article, illegal downloading has no or little influence on the digital sales. Then the only impact that will occur is the free advertise that piracy procures thanks to the its networking effect, buzz effect which will soon be compensated by the fact that people will be forced to purchase digital services. At the end, companies involved in the market will lose their free-benchmarking power, so it will be harder for them to create famous differentiated products and to sell more. Although, the global demand will raise and thus the final effect will be balanced. To conclude, I think piracy will always exists and according to few websites, illegal downloading is not decreasing even though online legal purchase websites have evolved a lot since few years e.g Netflix. Even if government everywhere in the world would combine their forces to stop Internet piracy, people will always find a way to get their needs for free. Therefore, it is a bit utopic for us to imagine a world without piracy… References: http://www.ifpi.org/facts-and-stats.php http://www.digitalmusicnews.com/2015/07/16/if-you-think-piracy-is-decreasing-you-havent-looked-at-the-data-2/ http://www.digitalmusicnews.com/2015/07/16/if-you-think-piracy-is-decreasing-you-havent-looked-at-the-data-2/ http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/ Show less Reply Cédric Schepers 9 December 2015 Although piracy can be considered as the worst evil for quiet some companies it can be seen as an opportunity as well. This controversial idea needs some explanation. If a company invests in such a way that it is always one step ahead of the competition piracy will not hurt them, it will only challenge the innovative spirit of that…Read moreAlthough piracy can be considered as the worst evil for quiet some companies it can be seen as an opportunity as well. This controversial idea needs some explanation. If a company invests in such a way that it is always one step ahead of the competition piracy will not hurt them, it will only challenge the innovative spirit of that company. They always have to find a new way to better the product, to launch a new idea,… Let’s take the example of the iPhone of apple. An iPhone 5 can already be found in China at a very cheap price in a non-legal version. But Apple is already commercialising the Iphone 7. The fact that you find those products in a cheap version knowing that Apple has already invented a better iPhone creates a buzz and will increase the sales of their product. The iPhone is much more considered as a gadget. You have to change from iPhone every year in order to be in. So it doesn’t affect the sales of Apple if you can find an old illegal version for a lower price. That’s also the reason why Apple condones piracy. Piracy allows us to discover products that we would have skipped otherwise. Think of the underwear brand “Bjorn Borg”. It was a popular brand in Sweden, so in Turkey they started to imitate the brand and they started to sell underwear with a fake logo. The media discovered this fraud and it became worldwide news. Instead of dropping sales, because everybody could buy there BjornBorg underwear illegally in Turkey, the opposite was true. Thanks to the media attention, the brand became very popular and there turnover doubled in less than a year. So I would conclude by saying that piracy isn’t always bad, I would even say that in a lot of cases it can be a benefit for the company. References: http://www.idownloadblog.com/20150109 http://www.apple.com/legal/intellectualproperty/piracy.html http://www.ibtimes.com/chinese-iphone-6-clones-feature-47-inch-display-run-android-1632606 siliconangle.com/?s=Piracy Show less Reply Rafaël Vansteenberghe 9 December 2015 Piracy is today totally part of our society. But is it an advantage for us ? Does piracy really have a positive effect on the social welfare ? To answer this question, we must first weigh up the pros and cons. We have seen in this article that illegal downloading has displaced physical sales. This effect is confirmed by some studies…Read morePiracy is today totally part of our society. But is it an advantage for us ? Does piracy really have a positive effect on the social welfare ? To answer this question, we must first weigh up the pros and cons. We have seen in this article that illegal downloading has displaced physical sales. This effect is confirmed by some studies (1). In the same study, we can see that the repartition of the price of a physical disk is not the same as the repartition on a digital legal downloading. The biggest change here is that the revenues which were previously left to the retailers have now totally disappeared. These revenues have been spread and are now given mostly to the record label and the online platform. The point I want to stress here is that number of these retailers have probably stopped working in this industry (there are fewer online platform than the number of small retailers existing before the “downloading era”). This represents a large loss as maybe not all of these retailers have found another job. So, what is the role played by illegal downloading here ? In my opinion, it has accelerated the shift from physical to digital sales. Of course, one can argue that this effect is just a displacement of the revenues. And it is probably true as the money lost by retailers is now for the record label or the platform. The problem is that this money is now far less fairly spread as the revenues are now given to a few actors. Would the absence of piracy be worse than piracy itself ? From a purely economic point of view, probably. We have seen the three positive effects of piracy in the article. We can also add to the “sample effect” that piracy has changed our way of consuming music : where people used to buy one album and enjoy it for a long time in their car, piracy has indeed given to us the possibility of getting every pieces of music quickly, which is also probably a boost for legal downloading. However, social welfare should not only be about money. In my opinion, the way that the revenues are now spread has had a terribly negative effect on a lot of actors. Personally, I think that piracy is now inescapable and that, on a long term, it will have a positive or at least neutral effect on our economy as we see that many actors have adapted very well (e.g. Spotify,…) to these new conditions. However, as said earlier, it has been one of the leverage of the “physical to digital shift”, which should have been better managed/braked. It would have left time to people to adapt, and so limited the negative aspects of this shift. (1) http://www.droit-technologie.org/upload/dossier/doc/179-1.pdf Show less Reply Maria Inmaculada Chicon Sarria 9 December 2015 The concept of piracy has changed over the years. At the beginning, piracy was something bad, that only a few people used in order to make money at the expense of others. But nowadays it becomes something that also benefits the film, TV and music industry. It would be use as a tool to promote a product, as it is…Read moreThe concept of piracy has changed over the years. At the beginning, piracy was something bad, that only a few people used in order to make money at the expense of others. But nowadays it becomes something that also benefits the film, TV and music industry. It would be use as a tool to promote a product, as it is said in the article, if we listen to a CD online we can then want to buy it, but first we need to “taste” if we like it that much to spend money on it. Also about movies, if we really want to watch a movie, we will go to the cinema because the quality is much higher than watching it online. I think that the most injured by the piracy have been the video rental shops, because since the apparition of movies and videogames online, they have been disappearing progressively, and nowadays they practically don’t exist. One good example might be the franchise Blockbuster, created in 1985 and having a great success during the 80s, 90s, and 2000s decades and decreasing sales after that, closing most of their stores by 2013. The company was bought by a satellite TV provider (Dish network). The great failure of Blockbuster was due to the competition with Netflix and other similar providers. Also, Blockbuster was unable to adapt to the new demands of the customers, they should have innovated in order to fight against the new demand and changes. Blockbuster didn’t change its business model, something that Netflix did and got all the advantage of it. Nowadays, Netflix and similar platforms are an alternative of video rental stores and a new way of consume this kind of goods. To the question: Would the absence of piracy become even worse than piracy itself? I don’t think that the absence of piracy would be something bad, but there is a need of a change if the industry wants to adapt to the new times. Piracy maybe has been the way to develop new business models in the film and music industry. Also platforms such as Spotify or Deezer are a way to listen to free music legally, without using piracy. I think that piracy should change into a new model developed to benefit everybody. https://en.wikipedia.org/wiki/Netflix https://en.wikipedia.org/wiki/Blockbuster_LLC http://www.abovethefoldmag.com/?q=article/learning-blockbuster%E2%80%99s-failure-adapt Show less Reply Joël Van Leuven 9 December 2015 I personally find this subject very interesting and I completely agree with the 3 positive impacts you sketched here. While searching for inspiration, I found an old comment of an Erasmus friend, Yasuhiro Minami, which reminded me good memories. I decided thus to develop more his subject, show how strong these 3 impacts could be found in 2 different kind…Read moreI personally find this subject very interesting and I completely agree with the 3 positive impacts you sketched here. While searching for inspiration, I found an old comment of an Erasmus friend, Yasuhiro Minami, which reminded me good memories. I decided thus to develop more his subject, show how strong these 3 impacts could be found in 2 different kind of Japanese industry and detail some in-depth situations. I really want to share here my personal experiences and thought about the economic impact so I must warn you that I will mainly use my own knowledge and data acquired during these last past years and especially when I was a member of the Kotmanga (one of the LLN’s Kot-à-projet). My first focus will be on the “Anime” industry, which is basically Japanese animation series. Usually, a new “anime” has one of its episodes broadcasted every week only on the Japanese TV network. However, nearly immediately after its diffusion, on the internet, a lot of non-Japanese forums are already full of comments about the newest series, saw by people around the world. It is indeed really easy to download illegally the new episode, already subtitled by fans teams. But this situation, in my point of view, is very profitable for the anime industry. The high rate of piracy and comments on social networks show that a high demand exists outside the border of Japan. Moreover, there are even “Anime conventions” (they are big events or gatherings of people promoting animes) where a lot of complementary and derivate goodies are sold, such as at Made In Asia in Belgium or at Japan Expo in France. Of course, if the anime should be sold outside Japan, piracy will cause an impact on the sales, but not necessarily negatively. If you know there is an enough demand, you know that selling a license to other countries’ broadcasters could be rentable. You can use online platforms as a distribution method to let “foreigners” buy and add the series in HQ version to their collection if they really love it and want to share with other people. Knowing the demand, you can also be sure that the next season or a sequel movie could be interesting to sell in others country. Solid method must still be put in place, but some online platforms such as Wakanim in France succeed to make some series legally sold (to people that agree on this method) or to diffuse sequel movies in France. The second focus is on “Doujinshi”, which is the category of private works made mostly by amateurs and usually based on animes, games or even their original ideas. It can take a lot of different forms, such as books, comics, pictures, music’s, animations or games. Their distribution method is mainly during “Anime convention” where amateurs are selling their work at their stand. These “doujinshis” are also very much subject to piracy (but can we still call it piracy…) and do not have any patent to defend themselves. But again, I think they really gain benefits of this situation. Like small freelance companies, “Doujinshis” encounter issue to promote themselves; however, it is not or not yet the main job of the creator. Letting the possibility for the piracy is thus an opportunity to become more famous by mouth-to-mouth. I am myself downloading some of these and when I discuss with the creators, they are always happy to see their works being world spread. They often say that if their works is downloadable, it increases the number of followers, sales, and the possibilities to attract a producer or an editor headhunter. The idea that I want to point out here with these examples is that piracy can really help big and small companies to promote their works, especially if you want to sell outside your home country. Big companies can thus discover some unforeseen niches and small ones can become famous and/or keep contact with their main customer. Of course piracy already destroyed some companies, such as CD sellers, but on the other hand, I think that a lot of stakeholders can find a win-win situation. Show less Reply Marquis Guillaume 9 December 2015 At first glance, the fact that HBO programming president, Michael Lombardo, says piracy hasn’t a negative effect on DVD sales is very surprising. Indeed, my first reasoning was the following : Legal and pirated copies are perfect substitutes which implies that if pirated copies don’t exist, people will probably buy legal copies.Thus, the presence of pirated copies will increase the…Read moreAt first glance, the fact that HBO programming president, Michael Lombardo, says piracy hasn’t a negative effect on DVD sales is very surprising. Indeed, my first reasoning was the following : Legal and pirated copies are perfect substitutes which implies that if pirated copies don’t exist, people will probably buy legal copies.Thus, the presence of pirated copies will increase the competition and decrease legal companies’ revenues. Moreover I already heard that piracy killed the music industry. Hence, why is it beneficial for DVD industry ? According to this article, I admit that the effect of piracy is controversial because the three mecanisms listed are definitively favourable to piracy. So we should ask us « Does the absence of piracy become even worse than piracy itself ?» Everybody will agree that piracy is a real competitor of HBO. Therefore, the absence of piracy could allow HBO to reach a monopolist position. Therefore, from a consumer point of view, such a monopolist position decreases their welfare and their purchasing power leading to a worse situation. To sum up, I think that governments have the possibility to regulate the market but they don’t take many actions against pirates because they know that monopolist could lead to a worse situation if they abuse of their position. Show less Reply Vanvolsem Julie 9 December 2015 In my comment, I will focus on digital piracy on music and movies because it’s the two domain of digital piracy that I know better. To begin, let me say that I agree with the assumption that says that the consumption of illegal product is not directly related to a sales decrease of legal product. In fact, peoples buying legal…Read moreIn my comment, I will focus on digital piracy on music and movies because it’s the two domain of digital piracy that I know better. To begin, let me say that I agree with the assumption that says that the consumption of illegal product is not directly related to a sales decrease of legal product. In fact, peoples buying legal products (CD or DVD) do not have the same needs than the others downloading illegal products. There are therefore two kinds of end users: The “primary amateurs”, i.e. people buying legal products. Those kind of amateur could be motivated by the sake of remunerating artists, by a collections habit, by a desire to detain physically the products or because of a lack of IT expertise. The other consumers, “secondary amateurs” are those who will never pay full price for CDs or DVDs. Furthermore, Aguiar and Martens (2013) and Waldman (2013) have highlighted that the age as one of the factors influencing decision piracy. That implies that roughly, young people would be more in the “amateur side,” and the oldest in the category “primary amateur”. Since the download trend concerns the younger generation accustomed to consume mass free, and given that this trend seems to be growing (and Waldman. 2013), it seems difficult to imagine in the near future (when younger generation will replace the generation of “secondary amateur”), the suppression of illegal downloads. According to me, this downloading growth is directly linked to an easier access generated by the free of the service and the direct “at home” accessibility. This ease of access has helped create cultural buzz effects of network effect, two big two which lead to an increasing greed of musical or film knowledge or curiosity. By removing completely illegal downloading, we would go in an opposite side compare to the current habits of “mass consumption”. I think that remove piracy will maybe weakly affect the sales of legal products like we saw in the Aguiar and Martens (2013) study but I mainly think that will have a significative impact on the sales of complementary products. I truly believe in this cultural effect buzz and in its “benefits”. To conclude, the generational factor, the trend according to which we are accustomed, and especially the younger generations, to have an easy access to a huge quantity of information or data, the benefits coming from the network effect thanks to the cultural buzz, are factors that show that the digital piracy is an integral part of the today’s world. Therefore, it seems more relevant to focus on the alternative and innovative strategies that could permit to find a compromise between illegal issues and profits concerns. One way to avoid legacy issues could be to open the digital access of those products. By doing that, like Facebook, this could lead to a huge flow of information about the consumer that could be used as a new source of revenues. The limit of this comment resides in the subjectivity of my arguments directly related to my sociodemographic data. Indeed, I am one of those young “secondary amateur” who do not know half of what they know in music or film if they had no free access. Show less Reply Barthélemy Destrée 9 December 2015 Since the beginning of Internet, people have always wanted to quickly get everything they want and if possible at the lowest cost. They have found in illegal downloading a way to answer their will. Piracy is present in every digital sphere, which permit people to get around price barriers. At the first sight, we have to admit that piracy seems…Read moreSince the beginning of Internet, people have always wanted to quickly get everything they want and if possible at the lowest cost. They have found in illegal downloading a way to answer their will. Piracy is present in every digital sphere, which permit people to get around price barriers. At the first sight, we have to admit that piracy seems to be a brake for artists, developers and actors, as they might not get the fruits of their labour. It seems to be obvious that they are losing profit, as welfare is transferred to consumers. Nevertheless, the survey led by Nielsen demonstrated that the increase in illegal downloading is pushing the legal activities up. Even certain firms take piracy as an advantage to boost their sales like for the series Games of Thrones. This paradox is explained by three mechanisms. First of all consumers could be tempted to buy a legal copy later. Secondly it has a crucial network effect. For instance, people hear of a movie and want to see it. Therefore they will probably download it illegally or buy it and talk to their acquaintances about it. That will globally increase the sales for this movie. Third mechanism is the fact that the sales of complementary goods are boosted. I personally think that banning piracy would be worse than accepting it, knowing all the consequences it can have. Firstly, it would lead to an endless war between hackers and law defenders. It is utopic to try to ban piracy. Indeed almost eighty per cent of the Internet is even not accessible directly for the public. It is called the darknet. It is defined as an « overlay network that can only be accessed with specific software, configurations, or authorization, often using non-standardcommunications protocols and ports. » (1) Secondly, as mentioned above, piracy is sometimes benefical for the producers. Therefore it is not in their interest to try to eradicate illegal dowloading. I think they should develop process that regulates it. For instance, developing complemantary products is a feature that could turn piracy into an advantage. That was even related by US government. (2) Piracy can also be an incentive to innovate. By analysing piracy market, producers can have the opportunity to discover potential customer groups in order to launch new products. They also can take advantage of a whole bunch of people’s feedbacks what could be a precious asset for their development. (3). References (1) https://en.wikipedia.org/wiki/Darknet (2) https://torrentfreak.com/u-s-government-recognizes-benefits-of-piracy-100413/ (3) http://www.hypebot.com/hypebot/2010/11/why-piracy-is-good-for-innovation.html Show less Reply Julien De Mesmaeker 9 December 2015 At first sight, piracy has every characteristics to be interpreted as destructive for the industries involved. Knowing that the most downloaded movie during the period June 21-Sept 9 2015 (Mad Max: the fury road) counts more than 22.90 million shares on torrent networks (1), everybody has the right to be afraid about this popularity for illegal downloading, especially music and…Read moreAt first sight, piracy has every characteristics to be interpreted as destructive for the industries involved. Knowing that the most downloaded movie during the period June 21-Sept 9 2015 (Mad Max: the fury road) counts more than 22.90 million shares on torrent networks (1), everybody has the right to be afraid about this popularity for illegal downloading, especially music and film industries. Indeed, only few people can assure that they have never downloaded nothing illegally. However, piracy may not be as destructive as many people may claim. In fact, as a report carried in 2013 by the site TorrentFreak showed: “Contrary to the industry claims, the music industry is not in terminal decline, but still holding ground and showing healthy profits. Revenues from digital sales, subscription services, streaming and live performances compensate for the decline in revenues from the sale of CDs or records”(2). Even more than that, as the reports also says: “Despite the Motion Picture Association of America’s (MPAA) claim that online piracy is devastating the movie industry, Hollywood achieved record-breaking global box office revenues of $35 billion in 2012, a 6% increase over 2011”. So would the piracy have a lower negative impact than we tend to think? Would it even have a positive impact? Those statements are maybe not as crazy as they may seem… The proudness of Michael Lombardo about Game Of Thrones being that much illegally downloaded supports that idea. In fact, by watching the past, we notice the fact that the piracy concept has been existing for many years. Even if it wasn’t in the same form as we may find today (online downloading), it existed for example by copying tapes, by copying CDs… Of course the evolution of internet has made that trend more and more popular to achieve the tremendous number of downloads we see today. In practice, even if it may sound as a paradox, piracy can have many good impacts. The benefits lost by industries caused by illegal downloading can be erased by the popularity gained in return by those downloads. Being hugely illegally downloaded allows the increase of the popularity of the product and then the profit lost by people not paying for it can quickly be compensated by other indirect products linked to the original creation. Game Of Thrones, for example, would have probably not been as popular without the help of illegal downloading. As Jeff Bewkes (CEO of Time Warner) said: “Our experience is, it all leads to more penetration, more paying subs, more health for HBO, less reliance on having to do paid advertising…”(3). Money lost on sales of episode can be regained by other ways, piracy can be profitable! To answer the initial question, I would say that the absence of piracy wouldn’t necessarily be even worse than piracy itself but, as piracy exists and won’t ever disappear, it is the role of the industrials to take advantage of that trend. As Paul Tassi claimed “You Will Never Kill Piracy, and Piracy Will Never Kill You”. Being pirated a lot means that people are interested into your product and it tells you that you can put in place derived products or ideas that will be profitable because there is a real interest. Another point I would like to mention about piracy is that it can also be indirectly legally profitable for consumers. Indeed, the competition will be increased by illegal downloading as companies will see what are the most demanded products and will put in place some solutions to use it as a way to make a profit. Cheap subscription fees like those on well-known websites like Netlfix, Spotify… answer to that need. Many illegal downloaders wouldn’t be against to pay a little fee to stop downloading and some companies understood it and reduce they price to attract those potential consumers. Piracy exists, that’s a fact that will never change. It is up to creators and industrials to find a way to take advantage out of it by being creative and aware of this phenomenon. (1) http://variety.com/2015/digital/news/summer-movie-piracy-mad-max-fury-road-2015-1201589991/ (2) http://news.yahoo.com/blogs/sideshow/new-study-says-online-piracy-isn%E2%80%99t-hurting-entertainment-industry-220006729.html (3) http://www.forbes.com/sites/insertcoin/2014/04/15/game-of-thrones-sets-piracy-world-record-but-does-hbo-care/ (4) http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/ Show less Reply Gauthier Seny 9 December 2015 As to introduce this comment, piracy is undoubtedly one of the key problematics in recent years, and will remain so for several years. It is true that piracy generates economic defficiences. For instance, not to mention the argumenents already developed in the article, piracy can affect the reputation of the producer, whether it is a musician, a film producer, a…Read moreAs to introduce this comment, piracy is undoubtedly one of the key problematics in recent years, and will remain so for several years. It is true that piracy generates economic defficiences. For instance, not to mention the argumenents already developed in the article, piracy can affect the reputation of the producer, whether it is a musician, a film producer, a video games producer, … For example, it may be that the pirated copy is not provided with the same sound quality, graphic quality. The copy can also be less efficient than the original version. In this specific case, this may negatively affect the producer because the consumer could have a poorer perception of the product and that because of the pirated copy which will serve as an example. As was said in the article above, a pirated copy that we share with those around us can indeed encourage some people to buy the original version but if it is not high quality, it could have a reverse effect on sales. Now, the era of cd’s, dvd’s, etc. being (almost) over, from a legal standpoint, it is quiet clear that piracy gives a boost to legal downloads given that the product is more widespread and therefore potentially more likely to be sold/bought. I think that ideally, a word without piracy would obviously be better economically speaking if we did not yet know the benefits of piracy… But given that piracy is integrated everywhere, be it in the music sector, in the academic sector, for movies and video games, etc., a sudden withdrawal of piracy would not be the best solution. Aknowledging the fact that all kind of producers may have been obliged to adapt and by those means, gain benefits from piracy today, it would be a litlle disaster from an economical point of vue if we eradicate piracy today. From another point of vue, knowing that a lot of governments try to make disapear some of the largest piracy platforms, it is really difficult to completely eradicate those platforms. For instance, one of the greatest platforms, the Piratebay, even with their trials and the withdrawal of their website in many countries, they always succeeded to transfer their website in new countries were they are still considered legal. All this to simply say that it is still a long way before the absence of piracy. Show less Reply BEKKAL Abdelfettah 9 December 2015 In order to distinguish between the advantages and the drawbacks of piracy especially in the case of films, music and some softwares, we should make a difference between piracy in developed countries and this in developing countries. On the one hand, population has a high living standard in the developed countries, consequently citizens have -in overall- the capability to buy a…Read moreIn order to distinguish between the advantages and the drawbacks of piracy especially in the case of films, music and some softwares, we should make a difference between piracy in developed countries and this in developing countries. On the one hand, population has a high living standard in the developed countries, consequently citizens have -in overall- the capability to buy a given software or a kind of music without any problem. This general observation doesn’t mean that all citizens have enough money to buy the licensed product, so in this case I think that is preferable to practice a price discrimination notably a third degree with the piracy ban. This kind of price discrimination means charging a different price to different consumer groups. For example students and unemployed people could buy a kind of music with a low price however the persons with high revenue should pay the full price. On the other hand, the living standard in the developing countries is too low and then it is more difficult to buy a licensed product even to the persons who work. In this kind of these countries the unemployment rate is too high and the life is hard where meeting basic needs has more priority for people than buying a CD for watching a film or listening to music. For my part, it is tolerable to accept a little piracy for those who don’t have any revenue and practice a single low price for the rest of population. Certainly the implementation of this proposal remains difficult but if we do that, the part of the piracy in the developing countries will decrease and the intellectual property owner profit will increase. Finally, I think that the presence of a little piracy in the developing countries is better than its absence because of its benefits on poor consumers and on intellectual property owners. However, it is bad to have it in the developed countries as the population is financially able to buy the licensed product. Show less Reply Alberto Fragapane 9 December 2015 The starting point of my discussion is that I don't think that we can achieve the absence of piracy, specially in the world of music and TV-series. There are so many way to bypass the intervention of the authorities, so facing this problem would be a miss-match, just a waste of resources. For this reason the producers must start thinking…Read moreThe starting point of my discussion is that I don’t think that we can achieve the absence of piracy, specially in the world of music and TV-series. There are so many way to bypass the intervention of the authorities, so facing this problem would be a miss-match, just a waste of resources. For this reason the producers must start thinking how take advantage of this, “if you can’t defeat your enemy, just become friend of them”. And in this case, as the article reported there are many ways to become friend of the piracy. But now I want to investigate more in deep the difference between the two markkets, TV-series and music. One of the main reasons of the success of piracy in the world of TV-series is that it allows to see many episodes in a row, without being forced to wait for the exit of the next episode on TV and without waiting for the commercialization of the Dvd’s. Obviously there is also the economic aspect, but I think that it’s in the background with respect to the first element. However, after that a consumer have finished to watch the currently available episodes of a TV-series he’ll have to wait for the new episodes and he’ll prefer to watch them on a large TV screen than on a small, low quality computer video. Instead, regarding the world of music I think that the incentives for downloading are mainly related on the economic aspect, but here we have to distinguish between different types of customers. The real fans and the real experts will never start downloading music, specially the music produced by their favourite artists. On the other side all the others “casual consumers” will probably never start to buy CD’s or to pay for downloading songs. It’s a cultural question, a sort of loyalty effect. Therefore the solution is to find a way to create this loyalty effect: probably the best way is to let the customer “taste” the product, downloading it and become attached to it. Therefore my conlusion about the piracy is that since you cannot defeat it you must use it as a sort of free sponsor in the first period, with the idea of getting the revenues in the second period. A sort of predatory pricing strategy, in which you don’t have to face the constraint of any Antitrust authority. Your “pirates friends” will face the law for you and if they win you’ll get a free advertisement, instead if the law wins you’ll be able again to sell your products. Show less Reply Antoine Schyns 9 December 2015 Some years ago, the piracy became a new phenomenon of consumption. Movies, series, music, books or yet electronical programs were the first casualties of it. Nowadays, this phenomenon is completely anchored in our habits. But is really the piracy as bad as the majority of the media try to make us look at it? Sure, the piracy causes many problems.…Read moreSome years ago, the piracy became a new phenomenon of consumption. Movies, series, music, books or yet electronical programs were the first casualties of it. Nowadays, this phenomenon is completely anchored in our habits. But is really the piracy as bad as the majority of the media try to make us look at it? Sure, the piracy causes many problems. Firstly, as mentioned in this article, the piracy caused a negative impact on the musical industry, especially for physical music (CDs). Then, by storing an impressive amount of information, the user trusts in a security that is not developed as nearly enough as it should be. At last, we could speak of the economic repercussions that are diminishing. But who are the actual losers here? The state does not get taxes on the material, the stores reduce their margins and the people who made money thanks to the artists may be losing money too. That’s why I think that the piracy also possesses many perks. The illegal download can for example help an artist to get famous without having to invest a lot of money for it. It is also a good thing for the consumer because he gets more choices. Then, I quite agree with the Belleflamme’s and Peitz’ mechanisms that are the sampling, the network effects and the indirect appropriation. We just have to look around us to notice those effects. For the first one, if I like an artist who is yet to get known, I am likely to encourage him by purchasing a CD or something else. The second mechanism is to be found when a friend of mine gives me a recommendation to watch a new movie. Finally, the third mechanism who is about the complementary goods seems to be less obvious but nonetheless totally understandable. As a conclusion, would there thus be worse piracy than the lack of piracy? It is complicated enough to answer this in an affirmative way. I don’t mean to sing the praises of the illegal download, i would simply like to finish through this sentence: in what discovering a new artist through the download is illegal? Reference: http://filipe.f.ferreira.free.fr/dlst/spip.php?article237 Show less Reply Demoulin Ophélie 9 December 2015 As Lee Marshall said, the word piracy englobe a lot of different activities: Counterfeiting; Pirating; Bootlegging, Home taping; Tape Trading and online file sharing. Because of all its aspects, it is difficult to understand fully the effects of piracy in general. And people can easily use one facet of piracy to prove rhetorical impact of generic piracy instead of giving…Read moreAs Lee Marshall said, the word piracy englobe a lot of different activities: Counterfeiting; Pirating; Bootlegging, Home taping; Tape Trading and online file sharing. Because of all its aspects, it is difficult to understand fully the effects of piracy in general. And people can easily use one facet of piracy to prove rhetorical impact of generic piracy instead of giving a true picture of reality. But why does the music industry says it is hurting so much form the piracy when you can see the positif impact of leaking songs? A song leak means that the song is online before it is available for sale digitally and before it hits the airwaves. There is more and more popular artist such as Taylor Swift, Lady Gaga, Madonna, etc. that had the experience. Researches has established that when a leak is only about a single it has positives publicity impacts on the sales due to the media buzz that follows it. However, when a full album is exposed the impact is not so great. (2) We can also see that the business models have changed over the past few years. The model previously in force was massive production and distribution of physical goods and a following world tour. Nowadays, with the appearance of online music and an increased ranched of possibilities, consumers have more variable and broader taste. Therefore, the way music industry takes profit from the new market is with lives experiences whether it is on streaming or not and with online streaming platform such as Spotify and SirusXM. This is why we see more and more festivals surface every years. It is also the reason why the online streaming platform have a great suces. (3) (4) With all that in mind, I believe that with piracy or not, music market have drastically changed with the arrival of the internet and the way to make money is just not the same. Before internet, I think piracy (here: bootlegging) was a calamity. But today, piracy is a new way for publicity and in a constantly connected, buzz is primordial. Something that you can not find illegally often means it has not enough suces and thus you can see piracy for your music as an achievement. (1) http://mcs.sagepub.com/content/26/2/163.full.pdf+html (2) http://www.cbsnews.com/news/whats-the-story-behind-song-leaks/ (3) http://eclass.uoa.gr/modules/document/file.php/MEDIA137/Business%20models%20in%20music%20industry/The%20Evolution%20of%20Business%20Models%20in%20the%20Music%20Industry.pdf (4) http://www.forbes.com/sites/greatspeculations/2014/07/29/making-money-in-the-music-industry/ Show less Reply Aghemio Zaccaria 9 December 2015 The hidden treasure of piracy? Illegal in most countries because of the economic losses it can occurred, Piracy is here meant as the act of copying and procuring computer data without any permission. Game developers and music producers spend months and years in the creation of new products that will in the end be more stolen than sold. But why do…Read moreThe hidden treasure of piracy? Illegal in most countries because of the economic losses it can occurred, Piracy is here meant as the act of copying and procuring computer data without any permission. Game developers and music producers spend months and years in the creation of new products that will in the end be more stolen than sold. But why do they continue to produce them then? Is piracy as immoral as the society want us to perceive it? The people disposition to acquire free-items is utterly different than their willingness to pay for it. It means that a person who choose to illegitimately download a game, a movie or a music was not likely to purchase it anyway. Formerly it demonstrates that the total amount of sold games without piracy is not equal to the amount of stolen games plus the amount legally procured games. Actually, in some case, this number can rise thanks to piracy. Economists talk about a network effect, meaning that the total quantity of consumer grows in parallel with the attractiveness of a product, regardless, of course, of the total volume of sold and stolen items. Besides, concerning music’s and movies, piracy has never stopped people going to gigs or movie theatre. Indeed, piracy as explained in the blog has contributed to the popularity of all those works and hence the consumption of derivative products which are not the music or movie itself but could be t-shirt, concerts or just the act of going to the cinema. Even if the the act of illegally download movies or music’s is directly relied to steal, it does not only have negative effects on the economy. Undeniably, illegitimate downloaders steal artist products, but they also indirectly help the artist getting renowned. Moreover, in certain kind of industry, piracy has incidentally lead to the development of lucrative app such as Netflix, Apple Music or Spotify. Therefore, in my opinion, illegal downloaders are nothing more than burglar. But as long as piracy stays a minimum under control, meaning keeping it forbidden, it will succour artists or companies to raise their profit. • http://www.ipdigit.eu/2013/12/the-hidden-treasure-of-piracy/ • http://www.eurogamer.net/articles/2011-09-30-how-bad-is-pc-piracy-really-article • http://bigthink.com/the-moral-sciences-club/does-internet-piracy-really-hurt-the-economy Show less Reply Kevin Leroy 8 December 2015 The idea that piracy is something that’s hurting the economy is widespread. If you ask anyone their opinion about piracy, it is most likely that they will respond to you that it is bad thing. Even though almost all of them own something that was illegally downloaded. And there is a lot of chance that some people will confess that…Read moreThe idea that piracy is something that’s hurting the economy is widespread. If you ask anyone their opinion about piracy, it is most likely that they will respond to you that it is bad thing. Even though almost all of them own something that was illegally downloaded. And there is a lot of chance that some people will confess that they frequently download things illegally. Piracy has become something very common in today’s society. Even though it’s still illegal. That being said, piracy has his benefits and even the industry begin to recognize that. For example, Warner Bros is now using piracy numbers « as a surrogate for demand » (1). It helps them to measure the real impact of their films and shows and helps them to put their focus where people want it. Some of them even consider piracy as a good way to advertise. Time Warner’s CEO Jeff Bewkes think that Game of Thrones being the most pirated series advertise the show better than an Emmy Award (1). In the early 90’s, piracy even help to create the channel now well-know Comedy Central. In a nutshell, the Comedy Channel became really famous when they started to re-air a show that was cancelled but that was very popular among people. They discovered that even though the show was cancelled, people would still watch it and trade illegal records of the shows. Later, the Comedy Channel was able to merge with the network Ha! and became the Comedy Central (1). But the industry isn’t the only one who sees these benefits. Some authors themselves began to use piracy to their advantage. David Bowie for example allowed his entire new album to be streamed online for free weeks before the official release. The results ? The preorders of his album on iTunes went off the roof (). The same thing happened with a satirical children’s book (aimed at adults) entitled Go the **** to Sleep that were pirated and exchanged peer to peer before the release. When the book officially came out, it became one of Amazon’s best sellers (2). Even the US government recognizes the benefits of piracy and stated that « companies may experience increased revenues due to the sales of merchandise that are based on movie characters whose popularity is enhanced by sales of pirated movies » (3). Concerning the consumers, there is obviously the fact that they can acquire the goods for free. But it’s not the only advantage. It can help them to discover unknown artists, access some things that are physically and financially inaccessible for them and more importantly, it helps them to make a stand. I found this statement on the internet and I found it really well written : « In capitalistic societies, our demands are determined by our actions. We vote with our wallets, and producers and corporations will respond to that consumer demand. In this kind of world, piracy is another way that we can vote » (4). It says it all about today’s society. To conclude, I think that saying that piracy is all bad is clearly underestimating the impact of piracy. As I demonstrated it above, everyone find some benefits in piracy. I’m not saying that it’s a good thing but it is a fact that things are changing. So I think that talking about the absence of piracy is irrelevant. Piracy isn’t something that you could kill. So companies might as well embracing it and using it to their advantage rather than trying to stop it (5). (1) http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452 (2) http://www.businesscircle.com.my/yes-piracy-has-its-benefits/ (3) https://torrentfreak.com/u-s-government-recognizes-benefits-of-piracy-100413/ (4) http://www.makeuseof.com/tag/4-ways-internet-piracy-good-opinion/ (5) http://www.forbes.com/sites/insertcoin/2012/02/03/you-will-never-kill-piracy-and-piracy-will-never-kill-you/ Show less Reply Soumya Gaddam 8 December 2015 Piracy as we all know is not ethically correct. There are different scenarios where piracy has destroyed media artists,companies by robbing their share of profit by illegal usage and there are instances where piracy has the helped to create a buzz for a particular product/artist/business, increased branding, expanded outreach of the business to different consumers across the world.…Read morePiracy as we all know is not ethically correct. There are different scenarios where piracy has destroyed media artists,companies by robbing their share of profit by illegal usage and there are instances where piracy has the helped to create a buzz for a particular product/artist/business, increased branding, expanded outreach of the business to different consumers across the world. Both the views are quite interesting and contrasting. In this current internet frenzy generation and fast paced lives, people no longer have time to explore and find goods that they find interesting. Nobody no longer goes to a store to see what’s new. Social media, online websites, word of mouth are the sources that consumers depend on to find out about new things. These days consumers have a “If i like it, I’ll pay for it” mindset. Piracy in these cases, acts a catalyst in spreading the word out in the open. Not every consumer is ready to pay to find out if a particular product is interesting or not for him/her.The availability of illegal content makes it viable to try out various choices, which otherwise would not have been even tried or tested by consumers. Piracy like mentioned earlier also helps to reach out to a larger and wider audiences in different parts of the world, a good example of this can be ‘The Breaking bad’ tv series. Being an American TV series, it had viewers from all over the world. This was possible only because, the illegal content websites allows viewers to download and view anytime they wanted to instead of watching it at fixed show time. When it comes to music industry, piracy provides novice artists a platform to showcase their talents and share between friends if they like the artist increasing popularity. There is a decline in physical sales of the product because of pirated versions but it also has helped business areas like gaming where the gamers try different games and once they get addicted to a particular game and find it interesting, they tend to buy the originals for complete access to all the levels. In an research article by Wharton business school, it has been seen that piracy attracted the most price sensitive ones in a competitive market. It was observed that piracy was beneficial to firms in this case because it removed the price sensitive consumers from the market and this helps firms to have less incentive to engage in self-destructing price competition. To conclude, piracy provides a means to get access to materials which otherwise would not have had a chance to be even explored and would have been dead. Absence of piracy will only make it tougher for any good to survive in the market and expand to wider audiences. Sources: https://www.rt.com/news/music-piracy-online-sales-572/ http://www.opim.wharton.upenn.edu/wise2004/sat612.pdf Show less Reply Valentine Neudt 9 December 2015 The opinion of the general public on piracy is that it is bad for the music and film industry. However, piracy provides a possibility to get certain protected content for free and punishments or fines are seldom given to individual consumers. For them the benefits outweigh the cost, so piracy is widespread in society. As also mentioned on the website…Read moreThe opinion of the general public on piracy is that it is bad for the music and film industry. However, piracy provides a possibility to get certain protected content for free and punishments or fines are seldom given to individual consumers. For them the benefits outweigh the cost, so piracy is widespread in society. As also mentioned on the website of European Consumer Center for Belgium (1), piracy is considered bad for the economy. The three mechanisms in this article want to provide a counterweight to this negative view on piracy. Personally, I’d really like to believe that the mechanisms have a large effect. However, my rationale obliges me to be more critical. Below I explain for each mechanism why I think its positive effects are limited. 1. Once you’ve seen the film/episode of a series not that many people want to see it again. And even if they want to see it again they can just watch the illegal version again. Only people who were very in awe of the film or series will consider buying the legal copy. For music I think the sampling role has a bigger effect. One can listen to the illegal track and if they like, some of the consumers will want to hear it in a high quality, so they’ll be induced to buy the legal version. (This is however only when the quality of the pirated version has a lower quality than the legal copy) 2. I think more research is needed to look if this really makes sure that more people buy the legal version as well. Without piracy, you still have a network but then its only consisting of legal consumers. Legal consumers will convince non-consumers to buy the product. It speaks for itself that the network itself will have a larger magnitude where piracy is present, but one needs to compare the number of legal buyers in the case with piracy to the case without piracy 3. From an economic point of view, I think this is really the biggest positive value that the piracy can bring. Through the complementary goods (concerts, merchandise,…) one can really make the ‘metaphorical pie’ bigger. From a management point of view this makes the business model a lot more complex, one should really see/acknowledge the opportunities that exist. After recognizing the opportunities one should than make decisions on how to exploit them,… In the article is also mentioned in the physical and digital music sales or not negatively affected by piracy. However, research is never perfect and, w.r.t. the digital music research, I think that the potential biases might have a big effect on the result. But this research might be valuable as it poses the idea that the negative effects of piracy might be overestimated. In conclusion, I was happy to read that there are some positive things about piracy as well but I’m still convinced that piracy is not a good thing for the industry and that the positive effects, even though they might me present, are limited. (1) http://www.eccbelgium.be/counterfeiting-and-piracy-s44691.htm Show less Francois Lutz 8 December 2015 A first, interesting question to ask would be : is piracy a reversible phenomenon nowadays? The short answer is no, even though authorities from across the world have been trying to shut down different ways of pirating (unsuccessfully). From the shutdown of Megaupload (and then the rise of Mega.co.nz) to the multiple attempts of controlling the internet through multiple laws…Read moreA first, interesting question to ask would be : is piracy a reversible phenomenon nowadays? The short answer is no, even though authorities from across the world have been trying to shut down different ways of pirating (unsuccessfully). From the shutdown of Megaupload (and then the rise of Mega.co.nz) to the multiple attempts of controlling the internet through multiple laws (more recently, through the “Net Neutrality” tentative), the Internet will always find a way to bypass any constraints put in its way. Multiple alternatives will always emerge, such as VPNs, TORs and crypted torrents. Looking at the effects of piracy now : as mentioned by Prof. Paul Belleflamme and Martin Peitz, we can observe three positive effects that piracy can have on the profits of content producers. To simplify my thought process, I’ll refer to these as following : “The sampling effect, the network effect and the effect on complementary goods” First of all, the results of a study  has been beneficial to “small- and medium-sized companies such as AMC Networks and only marginally hurt large companies like Twentieth Century Fox” . It is clear that the effects pictured above are in action for TV series such as Game of Thrones or any popular TV show for that matter. Communities online are organizing “Rewatch discussion threads” (see https://www.reddit.com/r/gameofthrones/ ), discussing about possible outcomes in future episodes or seasons, and exposing their theories about the grand scheme of the plot. All these communities initiatives are of course fuelled by large amounts of viewership, and generate “hype” about future episodes. They also add a mystical aspect to shows, encouraging purchases of multiple complementary goods. Still in the case of Game of Thrones, very diverse businesses emerged from the show : Exhibitions (https://www.gotexhibit.com/), bus tours around the filming locations (for example, among many others : http://www.mccombscoaches.com/tours/game-of-thrones-tours), etc. These services as well as the enormous merchandising industry have all benefitted greatly from the increased amount of viewers. In another domain, a report from The London School of Economics shows that despite their claims, the music industry did not suffer from such a drastic decline overall. While it is true that their physical CDs sales have decreased, other revenues have massively increased. First of all, the revenues from online music in the UK are now quite higher than the revenues from CDs and vinyl combined. Moreover, the effects mentioned above are clearly playing a part in a second phenomenon : a massive increase in concert tickets revenues. While the sampling effect helps potential new users to become customers, the network effect will develop the attractiveness of the product, as live shows are usually attended by groups of people (families or friends). Increasing the amount of potential users increase the likelihood of attracting people who might go to a concert venue together. The third effect goes without saying, as concerts are obviously complementary goods to music, whether it was pirated or not. Overall, the effect on the music industry seems to be positive. Another study, commissioned by the Dutch Ministries of Education, Culture and Science, Economic Affairs and Justice, has measured a welfare loss for publishers and producers of a maximum of €100 million, while increasing the Dutch consumer welfare by €200 million. All in all, we can say that piracy, although illegal, causes more good than bad. Even though a world without piracy seems inconceivable nowadays, it would be a world probably more boring and less interactive with the community. The accessibility of the content makes it more attractive for the public and fuels the online hype.  Christian Peukert, Jörg Claussen, Tobias Kretschmer. (2015). Piracy and Box Office Movie Revenues: Evidence from Megaupload . http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2176246, consulted on November 7th, 2015.  Matt Ellis. (2014). http://www.fool.com/investing/general/2014/06/13/does-online-piracy-help-boost-sales.aspx , consulted on November 7th, 2015.  Bart Cammaerts, Robin Mansell, Bingchun Meng. (2013). Copyright & Creation : A Case for Promoting Inclusive Online Sharing , The London School of Economics and Political Science, Department of Media and Communications. http://fr.scribd.com/doc/172985274/LSE-MPP-Policy-Brief-9-Copyright-and-Creation , consulted on November 7th, 2015.  Annelies Huygen, Natali Helberger, Joost Poort, Paul Rutten, Nico Van Eijk.(2009). Ups and Downs; Economic and Cultural Effects of File Sharing on Music, Film and Games. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1350451 , consulted on November 7th, 2015. Show less Reply Piracy: is it any good for the artists? | Economia spicciola 8 December 2015 […] Here you find yet another (last one, I promise!) article coming from a comment I produced for the Economics of Innovation course. You can find all the references at the commented article’s page on IPdigIT, at this link […] Reply Hugo De Brouwer 6 December 2015 Piracy has appeared in the last years as a new way of consuming cultural contents such as movies, series, music or even books but also all kind of computer software. Whether this is a good thing or not we have to admit that it is nowadays widely used by the consumers of such goods. It has become a consumption habit;…Read morePiracy has appeared in the last years as a new way of consuming cultural contents such as movies, series, music or even books but also all kind of computer software. Whether this is a good thing or not we have to admit that it is nowadays widely used by the consumers of such goods. It has become a consumption habit; people want to have instant access to those contents from their houses and for free. The question whether this practice is ethical or not seems to be secondary and rare are those who feel guilty about it. Nevertheless, piracy is not necessarily a bad thing. It seems that piracy can act as a promotional tool for the good, making it more famous and more purchased. Piracy can feed the “cultural buzz” which ultimately benefits the producers. But this is not always as obvious as it sounds. It implies the case that at least one of the three mechanisms can be applied. The first mechanism is the fact that illegal copies may play a sampling role leading to a later purchase. The second is that piracy can induce a network effect making the content known by a wider public. And the third mechanism is that piracy can increases the sales of goods that are complementary to the product. Even if those mechanisms can pretty often be applied it’s not always the case. Based on the fact that piracy can increase the producer’s revenue, answering the question whether the absence of piracy would be better than piracy itself is not that easy. As the technology is always getting better, pirated contents are also always getting of a better quality. The difference between paying and pirated contents is becoming narrower. This means that pirated contents may become much more than samples and replace the former products. If this scenario happens to be true, the added revenue generated by the piracy would vanish. Moreover, even if piracy enables the contents to be much easier and faster widespread, it also delays the inflows of money. The first parts of the contents are considered as samples, this means that people doesn’t pay for it. Producers must wait for the second or third part (music track, episode, album, book or even movie) to get money out of it. So even if it’s easier today for the artists to distribute their content and to become famous, it takes longer and it’s more difficult to live from it. It implies that the new artists may struggle to find a funding because of the longer payback period. In the long run, only the one able to take the best advantage of the three mechanisms will survive, decreasing the cultural variety. To conclude, saying that the absence of piracy would be better than its presence wouldn’t be true. The situation is much more complicated than that and a simple yes or no answer wouldn’t be satisfactory. It’s true that piracy may have positive effects but it also represents new threats for the producers of cultural contents. Whether than wondering if piracy should be eradicated or not, the actors of those markets should find solutions to adapt themselves to the new reality. Piracy has become a huge player in the cultural industry and its place is going to expand. Today’s youth is born with the Internet and has always been used to download illegal content. They are the consumers of tomorrow and the odds that they change their purchasing habits are very low. The industry has well understood the situation and is developing alternatives to face this new concurrent. That’s exactly what companies such as Spotify or Netflix are trying to do. Show less Reply Nicolas Van Keirsbilck 5 December 2015 First of all, nowadays, in our so online and connected world, piracy has taken too much place to be erased. Indeed, one out of three internet user has already download illegally, and more than the half of the users are often watching movies or series in streaming. Of course, movies available in streaming could have been bought by the ones…Read moreFirst of all, nowadays, in our so online and connected world, piracy has taken too much place to be erased. Indeed, one out of three internet user has already download illegally, and more than the half of the users are often watching movies or series in streaming. Of course, movies available in streaming could have been bought by the ones who suggest them, but thousands of people are watching these movies without paying anything, so that’s also a loss of earnings. And suing every internet user who had download a file illegally would be way too expensive. Another drawback of piracy could be the closing of almost every DVDs shops. Everybody would rather see a movie for free without moving from home than having to go to a shop and paying to rent a movie. But I think that with the evolution of technology, especially with the emergence of platforms for online movie rentals, this kind of shops would have close anyway. But the piracy also has its share of benefits. Firstly, the “word of mouth” phenomenon. When someone download a movie illegally or not, he speaks about it, to his friends, siblings, co-workers and son on. Then, these people would probably also want to see this movie, and cloud buy it, or download it without paying, but carrying on the phenomenon. And out of all these people, a certain part will surely pay for the movies, providing revenues for the cinematic industry. Secondly, because the movie downloaded illegally are spreading for free, they are also spreading really faster and easier. Then movie with low budget, which sometimes can’t afford advertisements, could be seen by more people and maybe become famous without investing a lot of money. Plus, the sales of complementary products could rise thanks to the sharing of movies or music. These industries make quite a lot of money of all the products that are released with movies or songs, such as clothes, toys, children books, … A last upside is more specific to the music industry. Nowadays, artists make the most part of their revenue in gigs and concert tour. Then being more famous could lead to more people in their gigs, and then even more money. To conclude, piracy phenomenon has advantages and disadvantages, but I think the impact is more positive and no piracy at all could be even worse. A good compromise could be online platforms such as Spotify where you can listen to music for free, but every X songs, you have to listen to an advertisement. And if you are tired of this ads, you can sign up for a paying account. Show less Reply Romain De Becker 5 December 2015 I think the absence of piracy becomes even worse than the piracy itself and the artists & movies producers have found other ways to make money in response to the changing society. In this comment I want to focus on the music industry and show how piracy can be beneficial for the artist. First, I agree with the 3 mechanisms described…Read moreI think the absence of piracy becomes even worse than the piracy itself and the artists & movies producers have found other ways to make money in response to the changing society. In this comment I want to focus on the music industry and show how piracy can be beneficial for the artist. First, I agree with the 3 mechanisms described in the article and I take the example of a singer X. For instance, I can see that if my friends download a song illegally, they will download the next one legally in order to support the artist. Concerning the network effect, I can see this effect with my friends too. If someone has downloaded a song and likes it, he will share it to the others. For the third mechanism, I can give the example of T-shirt sold at the concerts or advertisement made by the singer. To resume: without piracy, my friend would not have purchased this song. So he would not have been able to share it and as a consequence: no song or T-shirt bought for the artist. I think that the Internet and the piracy have changed the music industry. Nowadays, it is easier to produce and distribute its own music. As a consequence, it is easier to be known but there is a lot more of concurrency between the artists. We can see too, that most of the revenue of the artists comes from the concerts and so I think the piracy is very important because it contributes to the network effect (Which contributes to celebrity of the artists) Show less Reply Stefano Caliò 5 December 2015 I am glad to have the chance to express my thoughts on this topic, as it has actually been one which I found myself reflecting on more than once, being it very current and in vogue. This article helped and confirmed several considerations I already had in my mind. I think that we have to distinguish between “early days” piracy and…Read moreI am glad to have the chance to express my thoughts on this topic, as it has actually been one which I found myself reflecting on more than once, being it very current and in vogue. This article helped and confirmed several considerations I already had in my mind. I think that we have to distinguish between “early days” piracy and nowadays piracy phenomena: what I mean is that piracy (at least, speaking of copies of copyrighted material illegally downloaded from the Internet, as counterfeiting any kind of goods is of course a way more ancient usage) was originally a circumstanced habit when the net was in its first days, because of the slowness of the service itself, adding up to the other difficulties pirates faced at the time (as, for example, the then high cost of pieces of hardware functional to pirating, like CD burners). This implies that copies were not diffused as nowadays and that “barriers to entry” to the piracy market probably pushed most people to stick with buying the physical copies of the artworks. After a few years, the costs barriers and the speed of the network moved inversely and piracy diffused more and more, bringing us to the situation we now face. I pointed out this, as I think it is useful to understand the impact on artists: in the old days, it surely had a lower impact on the selling of content, as the practice let (not so many) people avoiding spending money on them, as pirates were precisely look for those very artworks (we can assume this because of the previously mentioned barriers to entry); nowadays, content is extremely easily available to anyone who has an access to the Internet and a device who can connect to it (which is virtually almost 100% of people in the rich world) and therefore people can just browse in search of new content they want to have a look or a listen to, without having to spend a single cent to do so. This brings us to the impact piracy have nowadays: artists can’t rely just on the revenues coming from selling their work anymore, for the reason I just stated, and so they have to make the most out of collateral goods, such as live performances and memorabilia/physical goods. I think this is the main point in establishing how piracy impacts the industry and how would it be like if piracy was not a thing: as David Petrarca pointed out in his (frankly not so shocking, considering the assumptions I just made) statement, this browsing for free content by people can lead to the creation of a fanbase, which might then decide to actually support the artists by buying the content they first downloaded free of charge (of course this is more of an ethical and legal matter, as piracy is a much easier way out, economically speaking, being a “free lunch”) or goods related to the artists, such as clothing or other merchandise covered by copyright. Lastly, in the case of singers and bands, they might want to see a live performance and therefore they would have to buy a ticket. In this sense, it would be interesting to analyse how ticket and merchandise prices moved after the booming of piracy, as, again, they are now the main source of income for artists. Of course, not every industry has the chance to rely on other goods for revenues destroyed by piracy, and for example software is one of these: I don’t think I have ever seen anybody wearing a t-shirt claiming “Photoshop is great!”, for example. Still, software houses probably found a way out, moving to Internet-based solutions which require a subscription and therefore bind users to pay for getting the software. Videogames are a peculiar subset in this industry, as they might benefit from merchandise selling, but again we are observing a more and more frequent change to online services (some of them as “free-to-play” games, due to the presence of advertising in the software, other ones paid by an explicit subscription) or practices such as letting download the game itself free of charge, but putting gamers in a position in which they have strong incentives to buy upgrades of all sorts in order to really enjoy and successfully play the game (they immediately gained the infamous nickname of “pay-to-win”). All in all, in order to make a precise and definitive assessment of the impact piracy had and is having into the industry, we should have a glance on the figures about income from the selling of the content and the one of related goods and “services” (such as live performances). From an only partially economical point of view, though, I think we can freely say that, due to the media which it relies on, piracy brought attention and demand for content that would have otherwise been much less popular (with all the implications mentioned above). Show less Reply Quentin Gilbert 3 December 2015 Before starting, I must admit that the outcome of the studies presented in the article surprised me. Indeed, the fact that piracy has a potential positive effect on legal purchases is surprising but understandable after reading the explanations in the article. Studies show that piracy does not put in danger the movie or the music industry. It might even…Read moreBefore starting, I must admit that the outcome of the studies presented in the article surprised me. Indeed, the fact that piracy has a potential positive effect on legal purchases is surprising but understandable after reading the explanations in the article. Studies show that piracy does not put in danger the movie or the music industry. It might even create a positive incentive to purchase the product legally and three reasons were presented to explain this phenomenon. First, legal copies of the good could be bought later if the consumer enjoyed the content of his illegal copy. The idea is that the good is firstly pirated but is secondly bought legitimately because it was enjoyed by the consumer. Another reason is the network effect which is the increased attraction for the good due to the number of consumers getting it (either legally or not). Lastly, if the piracy product is complementary with a legal one, there will be an incentive to buy the legal good. The criticism was about the fact that those mechanisms would only be theoretical possibilities but after several tests and analysis on the field, it appears that the results confirm the theory. As explained in the article, the study may have been bias due to behavior changes or non-participation of the “heavy downloaders”. But after some investigations on the net, I found several studies which demonstrate that indeed, illegal downloading has no negative impact on legal consumption. “Downloading music illegally does not harm the music industry – in some cases it even helps it – according to a new study by the European Commission’s Joint Research Centre” (1). The study took a sample of some 16,000 Europeans and had as its main objective to find a link between music piracy and subsequent visits to legal digital music stores. It concludes that piracy can actually provide a boost to music revenues online, irrespective of the genre, and that it should not be viewed as a pressing issue by the industry at all. Another paper provides a list of the piracy’s benefits both for firms and for society (2). A last interesting article I found underlines the fact that the operations to shut down illegal streaming sites and data centers are costly in term of resources and they only have a little incidence on online piracy. “The report has concluded that shutting down the site not only made only very little (and short-lived) difference to the amount of pirated content being consumed, it in fact led to some healthy competition in the online piracy world” (3). Sources: (1) https://www.rt.com/news/music-piracy-online-sales-572/ (2) (2) http://lifehacker.com/how-piracy-benefits-companies-even-if-they-dont-admit-1649353452 (3) http://www.wired.co.uk/news/archive/2015-05/15/european-piracy-study Show less Reply Guillaume Duckerts 3 December 2015 Given the actual development of IT-based technologies around the world those days, I believe it is quite unlickely that the absence of piracy become worse than piracy itself. But before looking at this statement, let's try to imagine a world without any piracy. That would imply that all the files, for instance music and movies people downloaded illegally for the…Read moreGiven the actual development of IT-based technologies around the world those days, I believe it is quite unlickely that the absence of piracy become worse than piracy itself. But before looking at this statement, let’s try to imagine a world without any piracy. That would imply that all the files, for instance music and movies people downloaded illegally for the previous year would haveto be destroyed. And that a technology to prevent people to copy any of the CD or DVD that they legally bought on their computer. Because otherwise, people would continue handing over those files to each other by emailing it. That is what peer-to-peer downloading – which is illegal – is actually about. And that also people shouldn’t abuse of their right to use the media too much – and what is this too much? Almost impossible so. Before any downloading, legal or not, there was -and still is- in Belgium the mediatheques, these were library for media files, where each year you had to pay 0.50 euros for copyright in order to have access to a full range of artists, CD, DVD and even video games. Altough 50 eurocents is already something, this is not enough for all those artists to survive. And it is a way to have what you want for free. Big music labels never actually complained about it. So, beside the fact that a world without piracy is almost impossible to implement, let’s look at other models for the monetarization of copyrights in today’s society. I believe the fact that there is no deplacement effect caused by illegal download to legal download or physical music sales. At least not anymore, maybe that was different right in the beginning of the outcome of websites such as Napster. But now, people are so used to get their music for free that most of us wouldn’t buy as much CD’s as we have on our computers, wheter we got it ourselves or from friends who had it before. Quite the opposite, I would personaly never attempt as much concert if I didn’t know that many artists, through websites as youtube for instance – which actually give almost nothing to artists but reputation – which is not illegal, but doesn’t monetarize the industry either. So I think that the all media industry should surf on this wave of mass mediatization of their treasure to build a business model based on the complementary product, as stated in the above article, or on other attributes, such as the confort of use that services such as spotify offer. Show less Reply Léopold Van Oost 3 December 2015 In this article, we learn that piracy might be positive for the entertainment industry. At a first glance, it is a quite surprising conclusion because, most of the time, it is claimed that illegal downloading is something very painful for the industry. And it is actually not false, when someone downloads a song or a movie, he is enjoying it without…Read moreIn this article, we learn that piracy might be positive for the entertainment industry. At a first glance, it is a quite surprising conclusion because, most of the time, it is claimed that illegal downloading is something very painful for the industry. And it is actually not false, when someone downloads a song or a movie, he is enjoying it without paying any fees or any copyrights to the artist or to the distributor. A report of 2009 from the RIAA (Recording Industry Association of America) estimates that the loss of the music industry, since the begin of the illegal downloading, is around the 12,5 billions dollars. They also assume that 71.000 jobs have been deleted in the music industry, once again because of illegal downloading (1). So if we just limit ourselves on those facts, we can say that piracy is bad for the industry. But it is not always the case. Several studies have proved the opposite and some people from the entertainment industry have a positive opinion on the piracy. For example, as mentioned in the article and in other papers, Michael Lombardo is satisfied by the illegal downloading of his TV series “Game of Thrones”. The pirates are also a part of the community around the product, they share their advice to their friends and on social medias. Even if they don’t pay to watch the series, they still generate profit for HBO (2). They are some studies that confirm that illegal downloading can be positive. One of those is a study asked by the Dutch Ministries of Education, Culture and Science, Economic Affairs and Justice. In 2009, they made a big survey on 1500 Netherlanders, using illegal downloading. They found that there is “a welfare transfer from the producer to the consumer.”(3). When the loss of sales for the music industry is 100 millions euros, the increase of welfare of the consumer is around the 200 millions euros. So according to this study, piracy has a positive effect on the economy. So they are two opinions on the subject of piracy. And it is very difficult to say if piracy is really good or bad because it is difficult to compare. Still there are more and more people using illegal downloading to watch movies or listen to music and the phenomenon is now unstoppable. I believe that the entertainment industry have to find new ways to stay profitable. Resources: (1):http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html, Page consulted on the 25/11/15. (2):http://www.wall-street.com/2013/04/03/illegal-downloads-effect-on-entertainment-industry/, Page consulted on the 25/11/15. (3):http://www.ifpi.org/content/library/the-impact-of-illegal-downloading.pdf, Page consulted on the 25/11/15. Show less Reply David Lhoir 3 December 2015 Piracy is nowadays more than ever become a common phenomenon in our society. And I mean it : today, with a little knowledge about the system, you can have for free an incredible amount of goods : of course movies, TV shows episodes, music, but also goods that are more unusual : books, comic books, software (including OS and professional…Read morePiracy is nowadays more than ever become a common phenomenon in our society. And I mean it : today, with a little knowledge about the system, you can have for free an incredible amount of goods : of course movies, TV shows episodes, music, but also goods that are more unusual : books, comic books, software (including OS and professional software), media’s production, scientist’s production (I found the book of Mr.Belleflamme & Peitz “Industrial Organization and Market Strategies” in about 30 seconds…) About the article, I agree with most of the ideas. I just would like to add a little disagrement with the sampling function of the piracy issue: the quality of the pirated goods you can find on the internet is better and better, and we can observe some websites with illegal content making effort to filter the content, and keeping only the best one ! High definitions videos, multiple subtitles track, high audio quality… all of that have become a common thing, for who take the time to find it. I would even say that it is more useful to keep a file on one hard drive, that in a cd/dvd/blueray/… less space taken in the rooms, and no worries about harming the support! I would also like to add a concern I have about the potential of those practices : to me, we need to address a dynamic and longitudinal attention to piracy. And I got two major explanation First, the population is more and more composed by people who are born with the computers, or after. And those people are more likely to have better knowledge of the peer-to-peer technologies, the torrent system…a better experience about which process are more efficient to get illegal copies of goods. Older people can consider that going on Itunes is easier, but a growing part of the population is used to use the web at its full potential, piracy included. This part of the population have hence also been more exposed at this culture of freedom. When I speak with people around me, older people are way more easily chocked by piracy than my generation, myself included I must admit. From an older generation, I suppose that YouTube, Google, and every websites that proposed contents with just a written request were huge revolutions. I was a young child at the time, and I think this ideology of “free digital content” just got implemented in my mind. To summarize my idea, I think that not only younger people have better knowledge about how to download content, but they also have less ethical considerations to do that. The empirical evidence are quite going in that way : In an article of the 2006, Al-Rafee & Cronan show that the regression coefficient of age on digital piracy is -.115. Of course this study is made on younger people (college students with an average age of 23.5 years old), but I think it’s still making a point. Of course piracy can be seen as marginal and even having good sides, but I think we should be extremely prudent with the future evolution of this phenomenon. Source : S. Al-Rafee & T.P. Cronan, “Digital Piracy : Factors that Influence attitude toward behavior”, Journal of business ethics (2006) 63 : 237-259 Show less Reply Carmen Figaredo 1 December 2015 Piracy is nowadays a commonly known fact for the music and video industries. These selling of, let´s call it culture, in digital format has lately increased, constituting a great market share thanks to new technologies. Hence, it is really easy to listen to an album or to watch a film or series without having to get up from your sofa.…Read morePiracy is nowadays a commonly known fact for the music and video industries. These selling of, let´s call it culture, in digital format has lately increased, constituting a great market share thanks to new technologies. Hence, it is really easy to listen to an album or to watch a film or series without having to get up from your sofa. This comfort, without taking into account at first instance piracy as an illegal act, makes sellings increase. And as always, the growth of sellings presume a benefit for markets. Thus, bigger markets and the fact that those products reach a major amount of consumers, makes benefits greater. Piracy, therefore, can be seen as a benefit for the opening of new markets that ultimately is what many companies look at first, later using campaigns to increase consumption of customers that have already entered the market . At first, for example , companies that supply the population with high speed internet , set prices that will surely fall below the actual market price. Otherwise, certainly, many people who are now consumers of this product have not entered it. So, piracy could be seen as a form, unethical if seen like this, to attract customers. But currently the technology is developed to reduce it. Taking the example of Spotify, the actually easy usability of the program and access to millions of songs has made many people access to streaming music, in an immediate moment. Having a “free” account and being able to listen to all that online music, makes the client more “thirsty” and thus more likely to be capted with campaigns to update and upgrade their account to be a “Premium” user with numerous advantages, for a very reasonable price opens. To illustrate this to a real example of how piracy does not always affect in a negative way the market, recently the singer Adele rejected to upload her new album to online platforms, and even though, the results of the release are overwhelming and it has broken records. Thus, in conclusion it must be said that even though piracy is not at first instance something desired by the industry , despite involving certain losses ( if all pirate content is legal economic benefits would be incredibly higher ), it also brings benefits that in the long term make the market grow . Show less Reply Maxime Verheggen 16 December 2014 To begin, the trend to consume illegal products is on an upwarding slope and is not going to be stopped. It's too difficult to prevent piracy and the demand is too high. Most of the people try the free possibilty instead of buying directly the paying version. As economic studies have shown piracy increases the sales of legal business. Due to…Read moreTo begin, the trend to consume illegal products is on an upwarding slope and is not going to be stopped. It’s too difficult to prevent piracy and the demand is too high. Most of the people try the free possibilty instead of buying directly the paying version. As economic studies have shown piracy increases the sales of legal business. Due to several mechanisms piracy does not harm legitimate markets but it helps them. Indeed, in the mass market, the more people know and talk about the product the more sales rise up. Especially when every people are seen like potential consumers. This is what we called the network effects. Besides, marketing technic of giving samples play the same role as the illegal product. It allows a wide range of people to try and test the product even if most of them wouldn’t buy it if it was paying. But consumers can be convinced by this test and after they can purchase the good. This is what some of my friends do for musics. Thirdly, complementary goods can benefit from the buzz on the illegal product. Lot’s of soaps can sells derivated products thanks to the partial popularity that piracy could provide. For exemple after the shut down of Megaupload a lot of independant movie makers suffered and saw their sales decrease. A possibility (eg in the music case) could be to segment the market by offering products with ads for the free version and without ads for the paying one. People who are not willing to buy the product will get the ads and people interrested in the music will buy it. This is a little bit like what offers Spotify. Source: Peukert, Christian and Claussen, Jörg and Kretschmer, Tobias, (2013), Piracy and Movie Revenues: Evidence from Megaupload: A Tale of the Long Tail? Show less Reply Sebastian Ksiezopolski 16 December 2014 As explained in the article, research outcomes indicate that online piracy is not putting producers’ revenue in danger. It is contrary to common belief that availability of pirated copies is not causing reduction of the amount of the official copies bought. Some opinions suggest that piracy could even help the producer to increase the revenue. I believe that we should remember…Read moreAs explained in the article, research outcomes indicate that online piracy is not putting producers’ revenue in danger. It is contrary to common belief that availability of pirated copies is not causing reduction of the amount of the official copies bought. Some opinions suggest that piracy could even help the producer to increase the revenue. I believe that we should remember that two opposing forces are affecting the situation on the market and it is difficult to measure their size. One force is that part of the society will in fact use pirated content instead of spending money to buy it. It is hard to measure how many ‘pirates’ would buy the content if copying it illegally was impossible. Another force is growing popularity in the society connected with pirated content distribution. In this case, we can have trouble in defining how strong the influence of this additional popularity is on the producers’ turnover. As we cannot have exact number for these forces, we always need to base on rough estimates. What would happen if we had no anti-piracy laws at all? I believe that producers’ revenues would go down, as providers of unofficial copies would not be afraid of penalty. Therefore, they could build easier and more user friendly services with content in higher quality. As a result of that, users would have less incentive to buy from the original source. In the opposite situation, which is with an absence of piracy, only a part of people who would use pirated content would pay for it. However, I think that there is no reliable way to test these beliefs, as some sort of anti-piracy law is present everywhere. Even if we could find two opposite situations, it would be impossible to compare due to different local audiences and additional factors. In situation when piracy exists, it is important for the producer to find a way to leverage the additional popularity. For instance, producer may offer special collectors’ editions that has some additional esthetical value as a physical object, contains some additional objects or digital content. Moreover, author of music that is more popular will attract wider audience for concerts and can gain profits through band related goods, such as t-shirts. Also, his personal appearance as a popular person may be valued by commercial directors or events’ organizers. Film producers can also gain from popularity through distribution of film-related goods or spinoffs, such as computer games. What is more, new cinema-related technologies, such as 3D technology, can be fully enjoyed only in the cinema. Part of the audience can just be attracted by the online popularity and consider watching the film in the cinema as the only option for themselves. It is also worth mentioning that concepts of crowdsourcing and voluntary financial contribution are on the rise in the internet. It means that audience might be in the future more likely to give money to chosen author, no matter how the copy of the content was obtained. It would be a very interesting phenomenon to be investigated by economists and internet researchers. I think that influence of the piracy on the revenues of publishers is not obvious subject. Rise of the popularity is always beneficiary, but on the other hand complete lack of protection in the internet might make incentive to pay for the content too low. Show less Reply Beili Zhang 16 December 2014 First of all, it is really important to point that nowadays, whether piracy has good effects or not, it is just too spread to foreseen the absence of it. Indeed, piracy has become a consumption habit: people expect to be able to accede to books, music as well as videos without paying anything and it has been so much engrained…Read moreFirst of all, it is really important to point that nowadays, whether piracy has good effects or not, it is just too spread to foreseen the absence of it. Indeed, piracy has become a consumption habit: people expect to be able to accede to books, music as well as videos without paying anything and it has been so much engrained that in our subconscious that most of the times, we download illegally with only a vague guilt (or not) at the back of our minds. But let’s come back to the subject. Studies these last few years has indeed shown that illegal downloading can actually have positive effects on the industry. One example is in the Japanese anime industry. The animations firms have been able to take advantage of piracy by selling derivative products after the anime were able to widespread all around the world, thanks, partly to illegal downloading which made them easier to access for non-Japanese. In China alone, a country where piracy is really common (1), derivative cartoon products were able to generate an income of two billion yuan in 2003 (2). A Japanese study has also shown that watching illegally anime episodes on Youtube does not negatively affect DVD rentals, and it even appears to help raise DVD sales. In other words, Youtube can be seen as a promotion tool for DVD sales. (3) Another European study which aimed to observe the digital consumption on internet, has shown “that illegal music downloads have little or no effect on legal digital sales. Indeed, a vast majority of the music that is consumed illegally by the individuals in our sample would not have been legally purchased if illegal downloading websites were not available to them” (Martens& Aguiar, 2013) and that “individuals who like music like to consume more of it through the various channels available. This would give rise to a positive relationship between downloading (respectively streaming) and digital music purchases, regardless of whether a complementarity relationship exists.”(Martens & Aguiar, 2013). (4) Furthermore, a study by Robert Hammond has shown that leaking album from popular artists leads to more sales prior to their release leads to more sales: “This exercise predicts that an album that leaked one month earlier will receive 59.6 additional sales.” (5). Some artists have already taken advantages of this aspect by, for example, purposely leaking their album. Popular singer Prince is one of them, as he decided to make his songs available for download on his official website (6). One of the explanation of this effect on album sales can be given by popular artist Drake, which, interviewed on the subject, agreed on the facts that leaks may spur sales: “I agree. I think that giving people the opportunity to judge before they go and buy, I think that can only help. There’s a loyal fan base that’s gonna go and support you just based off the fact that they want to own a copy of your material..” (7) Let’s not forget the books piracy which are not discussed a lot but more common than we know. Some author have decided to go ahead of these problems and take the bull by the horns. They offer their work for free for a limited period or release serials work every weeks and then decide to sell the book when it’s completed. An example is Ilona Andrews, an acclaimed author in Urban Fantasy genre. One of their book, Clean Sweep, has been serially released in their blog, before the final version have been sold. And despite the facts that even know, we still have access to the full version in their blog, they still managed to class the book as the top 3 sales in Amazon as well as Barnes and Nobles in their respective literary genre (8) by creating a loyal fan base through this system. In conclusion, it would be too unrealistic to imagine the absence of piracy today or in the near future and despites the obvious negative effects of illegal downloading for the society, it is undeniable that it can also bring positive results (by raising the sales of DVD, albums, derivated products, creating a loyal fan base which will encourage the artists by going to their concerts, buying their books etc.) on the industries which now have to try to make the best of it by taking advantages of them. Sources: (1) http://www.economist.com/node/21526299 (2) http://www.china.org.cn/arts/2012-01/17/content_24426725.htm (3) http://www.rieti.go.jp/en/publications/summary/11010021.html (4) ftp://ftp.jrc.es/pub/EURdoc/JRC79605.pdf (5) http://www.serci.org/2012/hammond.pdf (6) http://www.gigwise.com/news/79390/new-music-prince-unveils-new-song-breakfast-can-wait (7) http://www.billboard.com/articles/columns/the-juice/465268/exclusive-drake-addresses-album-leaks (8) http://www.ilona-andrews.com/blog/2013/12/05/clean-sweeps-rankings/ Show less Reply Nicolas Bindels 16 December 2014 Before answering properly to the question, I think it can be useful tu distinguish if we are talking of a fictive scenario as piracy never appeared and will not or if piracy appeared like it is the case but will disappear completely. As it seems obvious that something which never happened, and above all will not, could not provoke a worst…Read moreBefore answering properly to the question, I think it can be useful tu distinguish if we are talking of a fictive scenario as piracy never appeared and will not or if piracy appeared like it is the case but will disappear completely. As it seems obvious that something which never happened, and above all will not, could not provoke a worst situation. So in that sens ; we do not need to develop that first fictive situation. We will therefore concentrate ourselves on the second one : piracy appeared in the past, had an impact, and will disappear in the future, in other words : would the absence of piracy become even worse than piracy itself? A good starting point in order to answer that question could be to analyse the reasons why do people used piracy. A first one that I could observe, and the one which gives piracy its name, is the idea behind piracy. Indeed piracy and hacking are based on one ideology : “Everyone has the right to access”. In that sens, thing that are too expensive or not available to some people will be pirated. But if we resolve that ideology problem by making product available for everyone and affordable for everyone we could convert the proportion of people who used piracy because of that ideology problem into legal consumer. By making the product available and affordable for everyone we will compensate the loss conducted with the decrease of the margin by a high level of sales volume. That new kind of business model is possible today at the digital area because the market today is worldwide. Before that kind of business model was not possible and margins were high because markets were local and small which insufflated that ideology of “Piracy”. A second reason and the most important by my opinion is that fact that most of people use piracy because they cannot find product which fits their needs, piracy product fits better their needs. Indeed with a changing world, people’s habits change which create different needs. New startups as Spotify and Netflix have well understand that problem and based all their business model on that idea : once people will have proper product which answer better their needs than piracy, they will switch on. Which lead us to a last reflexion which defend the idea at the end people prefer pay for something than use piracy. Indeed, as people are rational individual, they understand that if they are not paying for something, that thing will disappear in the future as if its creator cannot benefit from its creation it will lead him to a lost of time which will lead him to stop. Moreover, if people are paying for something, they can also expect better level of quality. These two rational facts lead us to the idea that ineluctably, people will prefer to pay for something than not. As a concrete example also taken into the article to illustrate these reflexions, Game of Thrones benefits from its piracy. Indeed, in any case its creators were able to appease the demand (no legal offer to watch G of T in a lot of countries). Piracy had so help Game of Thrones to expand itself beyond frontiers, beyond its creators ability to provide. To properly answer the question asked and based on the reflexion above, we will follow the idea that the absence of piracy cannot be worst IF the channels are there to appease the demand. Otherwise as in any case the demande cannot be appease, the piracy effect is more positive than negative for copyrighters as the effects defended in the article here above. Show less Reply Thomas Boreux 16 December 2014 Digital piracy is nowadays a phenomenon known worldwide and concerns different domains. Earlier, we had to wait the release of the new episode of « Walking Dead » to see the continuation of our favorite serie on TV. Today, the new generation do not bother with the waiting time and dowload the next episode immediately. In the music industry, we…Read moreDigital piracy is nowadays a phenomenon known worldwide and concerns different domains. Earlier, we had to wait the release of the new episode of « Walking Dead » to see the continuation of our favorite serie on TV. Today, the new generation do not bother with the waiting time and dowload the next episode immediately. In the music industry, we had to buy a disc to listen to our favorite artist, and now, several clicks on the internet are sufficient to dispose of all the music we want. Even if this could be very attractive for dowloaders, we forget sometimes the effects on the producers. But, actually, what are the real effects on these industries ? In my opinion, it is possible to distinguish different effects of the digital piracy according to the domain concerned. I will illustrate my point by giving concrete examples. Firstly, let’s speak about the « series industry ». Like I said in the introduction, the younger generation prefer to dowload the new episodes of trendy series rather than buying the dvd’s or waiting the episode on TV. A simple analysis would lead to the conclusion that it has a negative effect since initial demand is fulfilled by illegal downloads. But is it always the case ? HBO Programmer President, Michael Lombardo, said « I probably should not say this, but this is a kind of compliment. The demand is there. And it clearly did not have a negative effect on DVD sales ». I want to complete Michael’s point by saying that there are two types of demand in my opinion: the initial demand ( I would call them the « lovers ») and a new demand thanks to the illegal downloading opportunities (I would call these people the « amateurs »). The introduction of illegal downloads don’t affect so much the sale of DVD, since there is two different kinds of consumers. As Michael Lombardo said, « lovers » keep buying the DVD’s, and the piracy creates a « cultural buzz », which is benefic for the producers. The next example I want to speak about is the music industry. A few years ago, people who wanted to listen to their favorite artist had to buy the disc. Nowadays, it is different. Thanks to some specific webistes (youtube, dailymotion,…) and downloading platforms, everybody can listen for music for free. But does this fact affect the artists? In my opinion, like in the previous case, there are different kind of demands: real lovers won’t stop to buy the music legally. Moreover, CD sales is not the only source of revenues of the artists. Today, the greatest part of artists’ revenue comes from live performances. In this case, the internet plays the role of « advertising » place: artists put their music, everybody can listen to it. Illegal download is the best way to make the buzz, and the revenues will come from live performances and the demand of the « lovers ». There is thus a minimal negative effect, and a visible positive effect. Nevertheless, I want to speak about the example of the computer programs in a professional context. On the contrary to music and movie industry, people buy computer programs because they need them for a specific task, not because they love them. They would thus find the most convenient way to acquire them, and the illegal download replaces thus the initial demand. Since some companies have no other source of profit than the sales of their program, there is thus a negative effect. As a conclusion, I would say that piracy have different effects according to the domain concerned. Paradoxically, there is a « collection » or « fidelity » effect concerning music industry and movies industry that makes the piracy sometimes more profitable thanks to a a cultural buzz, but the contrary can happen for other industries… In my opinion, I think it the only way to limit the piracy is implementing legal measures. Illegal downloading is part of the culture, and it would be difficult to change mentalities. Show less Reply Deraedt Miguel 16 December 2014 First of all, the rise in piracy since 1950 is due to 2 major causes. The first was a drastic change in technologies that made copying but also transmission of pirated goods easier. The second was a change in mentalities that made pirated goods more acceptable. In short, both the supply and the demand for the “piracy industry” have increased…Read moreFirst of all, the rise in piracy since 1950 is due to 2 major causes. The first was a drastic change in technologies that made copying but also transmission of pirated goods easier. The second was a change in mentalities that made pirated goods more acceptable. In short, both the supply and the demand for the “piracy industry” have increased with the results we see today. The development in computers provided security to the pirate and gave him access to an immense base of consumers. As soon as the consumers surpassed the obstacle of not knowing the supplier and the moral dilemma of not paying for a good (there must be a catch somewhere), piracy as we know it was born. Furthermore, the effect from piracy is different in each industry. Its effect depends for example on the degree of substitutability between the pirated good and the original. If the two products are equal, the effect on the industry is mostly going to be harmful due to the disloyal competition of piracy. Paying for a product when you can have it for free (if you do not count the risk of getting a virus) does not seem like a rational move. One of the key characteristics of pirates is that they do not create a new product but only use the existing material created by others. The paradox is that in the case where the substitution effect dominates, pirates damage the industry they need to survive. One of the effects of such damages is that the producers in an attempt to regain their benefits increase their prices. That has the effect of driving away the customers and that creates a vicious circle. For example, the attendance of cinemas is lower than before except for a few blockbusters that still manage to make benefits. Following an article from the Daily Mail, the attendance in the US as plummeted to a 25 year low. There is also the sampling effect that dominates in some industries, for example, video games. This industry has changed its model with the emergence of betas, free-to-play games and an increased differentiation between pirated goods and originals. The effects were an increased participation of the players in the development of the games that did not lower the number of pirated goods but increased the willingness to pay from the consumers. Even if each industry of the cultural world has different characteristics, they should take lessons from the video game industry that has been one of the first to adopt new behaviors to respond to the threat of piracy. In a nutshell, piracy hurts suppliers from the cultural industry by diminishing their profits when the substitution effect dominates. It also provides customers with a larger access to culture, at least in the short term. In the rare cases where the sampling effect dominates, some legitimate suppliers can see their profits increase. Nevertheless, by challenging the rules of the game, the pirates force the suppliers to innovate in their industry which is a good thing. If we do not consider the questions of legitimate property and focus solely on the effects of piracy on the market, the question underlying the debates about piracy is the following one: is the risk of harming the cultural industry worth the possibility of evolution? Sources: http://www.dailymail.co.uk/news/article-2178341/Hollywood-Cinema-attendance-plummets-25-year-low.html -Peitz & Walbroeck (2006) Show less Reply Pierre-Ami Maudoux 16 December 2014 From the article above, we see that far from being a huge threat to the content producers, piracy of music could even slightly increase their sales through, at least, three economic effects. We can then conclude that piracy does not seem to hurt content producers’ profits. However, this is only one possible effect of this new mass-scale piracy trend and we…Read moreFrom the article above, we see that far from being a huge threat to the content producers, piracy of music could even slightly increase their sales through, at least, three economic effects. We can then conclude that piracy does not seem to hurt content producers’ profits. However, this is only one possible effect of this new mass-scale piracy trend and we would be wrong not to consider other effects on the music industry. For example, one could consider the impact of piracy on the volume of new music produced. It would indeed sound reasonable, at first, to think that with mass violation of music copyrights, the incentives to produce new musical content have become lower than ever. After all, the first role of copyright in the music industry is to incentivise producers to make new music by securing the profits they will get out of it. Number, however, are not consistent with this view. In fact, new album releases in the US have more than doubled between 2000 and 2010, particularly benefiting independent artists . We can now make a few observations on the state of the music industry since it started to be impacted by online piracy. First, prices of individual songs and albums have gone down, arguably increasing the consumers’ surplus. Also, profits of content producers do not seem to be negatively affected by piracy. Finally, the volume of music produced is booming, giving a chance to more and more artists. Facing these fact, we are tempted to say “yes, the absence of piracy would be even worse than piracy itself”, with the principal stakeholders taken as a whole (consumers, producers and artists) seeming to be, in the worst case, not worse off than before the piracy era. Some even argue  that most of the protest against the piracy of digital content is spurred by industry studies. Indeed, it would make sense to assume that the main effect that piracy has had on the music industry has been to expose the extent to which people illegally download music that they would not have bought under other circumstances. One can easily understand that this is being seen by the music industry solely as lost sales opportunities, leading them to fight against a digital content piracy movement that simply reminds them that their market could virtually be much bigger than they are now. Any market, however, could virtually always be expanded, but this is indeed not realistic and to think that this will be realised in the music industry by fighting copyright is a clearly naïve view. Source: [1-2]: http://www.forbes.com/sites/erikkain/2012/01/21/doesonlinepiracyhurttheeconomyalookatthenumbers/ Show less Reply Gonçalo Ciravegna da Fonseca 16 December 2014 I am going to start this comment with the definition of piracy. So, piracy is “the act of using and distributing information products without the authorization of the legal owners, in digital formats or using digital technologies”. In fact, piracy has increased significantly in the last few years. Although piracy is considered, by the majority of people, as a negative practice,…Read moreI am going to start this comment with the definition of piracy. So, piracy is “the act of using and distributing information products without the authorization of the legal owners, in digital formats or using digital technologies”. In fact, piracy has increased significantly in the last few years. Although piracy is considered, by the majority of people, as a negative practice, several studies have demonstrated that it has many positive effects in the economy. Effectively, illegal copies of a product can have a marketing role due to the fact that they attract consumers to purchase the legitimate product. Moreover, we can consider that piracy allows markets to offer more diversified products and customers may learn the valuation of the items in a free way so they can analyse if they are willing to buy the legitimate product. Regarding the music industry, as the text stated, there can be a positive correlation between piracy and legal downloads. In my opinion, CDs and DVDs will disappear in a few years because, when we buy a CD, we are obliged to purchase the whole album. There are several alternatives such as the iTunes that allows people to buy songs individually. To conclude, although piracy has both advantages and disadvantages, its positive effects on the profits of copyright owners represent an economic gain. Due to these beneficial effects that I have explored in this comment, I think that piracy is essential to efficient functioning of several innovative markets. Show less Reply Brice vander Borght 16 December 2014 I think that piracy has good and bad part such as every behavior on the internet and absence of piracy will have a lot of impacts to the internet community which is not specially good. To try to answers this question, I will divide my presentation in two parts. On the first part, I will see what the positives aspects are…Read moreI think that piracy has good and bad part such as every behavior on the internet and absence of piracy will have a lot of impacts to the internet community which is not specially good. To try to answers this question, I will divide my presentation in two parts. On the first part, I will see what the positives aspects are for artists and people with hacking. On the second part I will talk about problems which come with piracy. Let’s start this part with an example. A good movie which is hacked a lot, producers will have some money lose but hacker will talk about the film and will push others to see it (on a legal way). Piracy helps movies and music to be known by a lot of people who may not have the chance to access to this kind of culture without hacking. All is not lost for artists, if people are listening to their music (illegally), they will maybe become a fan and decide to buy some concert ticket or derivative products. To conclude this part we can say that the 2 major positives aspects of the piracy are the opening of the culture and for the artists, the increasing of faithful fans. However, there are still ethical problems behind piracy and streaming. People are using something that is not theirs. Uploaders earn money by putting some illegal movies or music on the internet. This situation is really an unfair competition for artists and will not help little labels or artist to develop their art. The other ethical problem come also from that only big labels and artists can survive. As a conclusion to this part, we can say that piracy is not ethic for artist but also for people who lose a part of the culture. To conclude my little reflection, I would like to say that piracy is a blessing in disguise for artist. Internet has been developing like that and change people habits are almost impossible. Show less Reply Alex Angelini 16 December 2014 In my humble opinion as long that piracy increases the number of people aware of the quality of a designated product, the analysis of the "piracy phenomenon" will always have the possibly of producing contradicting results, conditional on the assumptions of the model and the specificities of the market. It is evident that piracy is not "a full-loss" process and…Read moreIn my humble opinion as long that piracy increases the number of people aware of the quality of a designated product, the analysis of the “piracy phenomenon” will always have the possibly of producing contradicting results, conditional on the assumptions of the model and the specificities of the market. It is evident that piracy is not “a full-loss” process and that it can produce both positive and negative externalities related to the product. This means that the complete absence of piracy on a product is better than the presence of it, but only if it is proven impossible that the positive externalities from piracy can be recovered. Let’s take the examples provided so far, starting from Game of Thrones. In this first case it seems that the positive externalities of piracy could easily overwhelm the negative ones, even if we take into consideration the merchandise-side only, the sellings of which increase independently from the type of vision of the Series the consumer had, since more viewers means more demand for the related products (I think that this should hold even if we assume a slightly lower demand for these additional products for the consumers that watched illegally the episodes). Additionally, in terms of advertisement the fact of having a lot more viewers should be always beneficial: as a simple viewer or even as a subscriber, would you be more interested to view (or buy) if you knew that the show had 4.5 millions subscribers or that, based on an estimate, it was viewed by more than 9 millions people? With the second example related to the music industry the results are somehow reversed: with music it is much more difficult to recoup the potential positive externalities of piracy, maybe because with music it is harder to “bundle” your products in a significant and diversified way: with TV series you can sell the related DVDs, gadgets and even soundtracks (all these products gain something from piracy), while with music the choice of gadget-related goods is way more restricted (for simplicity I am assuming that the desire for the original good expires with one-unit consumption excluding the possibility, for those who appreciated the good in the “pirate form”, to desire it later even in the other, legal form). What could always be beneficial to know, independently from the kind of product, is that a big discrepancy between the legal and the pirate market (as in the case of Game of Thrones, with a proportion sometimes of 1:1) could hint to the fact that by slightly lowering prices it could be possible to increase the number of consumers and total profits, by means of “absorbing” part of the illegal market (the part of consumers, at least, that before had the highest-not-sufficient incentives to buy). This kind of reasoning is of course possible if the product is independent from others, similar unrelated goods. For example it would be difficult to put in practice this policy for the same Game of Thrones, sold in the original form only as part of the HBO package, while it should be somehow easier with music (paradoxically) or if systems such as Netflix were vastly implemented – here I am referring more to the DVD-by-mail delivery that to the on-demand streaming – since they could allow a more detailed and customised policy compared to the “traditional” providers. References: http://www.bbc.com/news/technology-20836739 http://techcrunch.com/topic/company/netflix/ Show less Reply Augustin de Bernard de Fauconval 16 December 2014 To begin, I want to say that there is not a clear view about this problem. In my opinion, we should threat with the pros and the cons of piracy in order to determine whether the situation would have been worse without any online piracy. Furthermore, I think that we have to draw some conclusions about the fact that…Read moreTo begin, I want to say that there is not a clear view about this problem. In my opinion, we should threat with the pros and the cons of piracy in order to determine whether the situation would have been worse without any online piracy. Furthermore, I think that we have to draw some conclusions about the fact that piracy is positively growing and that it will remain like this in the future. Let’s then begin with the cons of piracy. In my opinion the biggest disadvantage of piracy is the losses that it inflicts to the producers, the artist and the industry. Indeed, by hacking their song or by watching their movie illegally, you make them “suffer” in an economic point of view. They are performing and they don’t get paid for that performance (in the sense that they don’t get any money from the internet piracy). Furthermore, in a more general way, it always affects the general economy because when you hake something (a movie or a music), you obviously don’t pay any taxes in any kind. But as said in the article, a lot of people that are using piracy would not have used the good (music, movie, shows,…) if they had to pay for it. In that sense, it is really hard to observe the consequences of piracy on the economical losses in the movie and music industry. Next, let’s now deal with the pros. As we saw in the article, piracy can have several advantages. First of all, piracy can have the role of “free advertising” for the producers and the artist. Indeed, we are living in an hyper-connected world where people live on the web and on there Smartphone. How many times did you see a video that was shared on Facebook or listen to music’s that one of your friends has shared? Besides, thanks to the development of Internet, people are more and more focus on the different “viral or buzz phenomena”. Once again this is a benefic externality for artists and music’s producers as it make some artist very famous. The best example that I can gave is the one of the artist “Psy” which song has been seen more than 2 billion times on YouTube ! Furthermore, according to me I think that internet (through piracy) has allowed us to discover a lot of new artist that would never have been discover without that. To conclude, I would say that the situation without piracy would have been worse than with piracy. Indeed, as said in the article, it has not been proved that piracy has been hurting a lot the sales and the growth of the music and movie industry. It is true that it has had a negative impact on the physical CD’s sales but it has also encouraged the digital sales. I want to underling the fact that piracy has helped to discover a lot of new artists and has also helped to make them famous through internet (buzz created and shared by people on the web). Besides, It can also be used to make some free advertising. And this may give them the opportunity to do a concert afterwards. So it could be at the benefit of the artist at the end. Finally, one of the reasons that could explain the growth of piracy is that – according to me – the prices of the movies and the CD’s are really high and that can be explained by the fact that these famous artists are earning a lot of money. When you look at what the actor and famous singer are earning this is insane. The one that are loosing the most from this situation are then the small and unknown artist that lives in the shadows of the famous one. But who knows, one day may be they will be famous thanks to internet and piracy ! Show less Reply Platiau Sylvain 16 December 2014 To answer this question, it is important to understand in wich way piracy can influence the welfare. I will only speak about the producers welfare because it seems obvious to me that piracy can not decrease the consumers welfare (unless if they are catched by anti-piracy authorities). Clearly the most seen and obvious effect is that piracy decrease clearly the direct…Read moreTo answer this question, it is important to understand in wich way piracy can influence the welfare. I will only speak about the producers welfare because it seems obvious to me that piracy can not decrease the consumers welfare (unless if they are catched by anti-piracy authorities). Clearly the most seen and obvious effect is that piracy decrease clearly the direct revenu of producer of films, series and music because of the direct decrease in their sales volume. But piracy has also other indirect effects on selling volume or profits extracted by producers. Like you noted in the articles: – illegal copies can attract consumers and driving them to purchase a legitimate copy later: the negative effect on sales is thus not so sure anymore! It has to be balanced with this positive effects; – many content goods generate network effects (ex: we listen the music that the others listen so we possibly consume this and buy it; an other piracy network effect could be found in software piracy, the more there are pirated the more the product become a “standard” in the way of utilisation and in extensions it provides! – piracy increases demand for goods that are complementary to the pirated content (like films goodies etc.) Even more I think that an important source of revenu from piracy is forgotten. I think that piracy does not increases demand only for complementary goods (like goodies of film etc.) but it increases also positively the direct profit of producers. My startpoint is an evidence: the more a good is pirated, the more it is listened or viewed. So the revenue from product placement should rise a lot with the number of downloading (we see in recent years that placement is also present in music now, I think that this fact goes in this sens). For a singer, we can cleary think that the more he is downloaded, the more he can make pay for tv-show, private shows etc.. Films or series are most of time diffused in US and next in others countries, downloading is a clear indice of popularity and so producers can sale highly pirated films or series at a higher price! An indirect positive effect is that producers can discriminate the consumers and so attract only the ones with the highest ability to pay and extract more margins trough this ones and can profit to the positive effects discussed above. Once again, the indirect effect is positive. But in an other way, we can also think that piracy does not allows price decreasing from films, series and music supports! And I think if the prices were not so high, people would prefer to go out the illegality. In general I think that the positive effects are higher than the negatives ones. So to answer to the question I think the situation would be worst without piracy! And I think the fight against piracy is mainly a fight to conserv the “right” of discriminating customers. One way to see if I am right or not is to see the evolution of number of productions (films, series, musics) sold or the amounts of investments in blockbusters (most pirated films). And I think this continue to increase with the apparition of piracy (even if a counterfactual study should be necessary to compare). I think TV series are not appropriated for this kind of study because it changed clearly (format, popularity etc.) after the development of internet and “great piracy”. Show less Reply Aurélia Job 16 December 2014 Piracy, in the entertainment industry, is uncontestably subject to disputes, dividing consumers into, at least, 4 camps, depending on whether they support pirated content or not and on whether they consume it or not, which is not always correlated. In the same vein, producers’ views on piracy are twofold as it can be likened to counterfeiting of high-end branded material…Read morePiracy, in the entertainment industry, is uncontestably subject to disputes, dividing consumers into, at least, 4 camps, depending on whether they support pirated content or not and on whether they consume it or not, which is not always correlated. In the same vein, producers’ views on piracy are twofold as it can be likened to counterfeiting of high-end branded material goods: sometimes counterfeit products are competitors (substitutes) but sometimes they can be enhancers (complements) to the genuine product. On the one hand, piracy is regarded as a treat to content. Some producers demonize piracy, stressing the decline of the content industry, the loss of control on the content and the drastic change it operates on the market. First, those against piracy assure it kills the content industry, as consumers do not have any more incentive to pay for something they can have for free. Moreover, whenever Pirate Bay or another P2P search or exchange platform is shut down, ten more are opened. In a nutshell, piracy is such as a hydra that you can never get rid of it all. Second, producers have no say on the content exchanged on P2P platforms. It raises challenges to control the quality of the content as some of them are tempered with. If we listen to producers, it is their duty to protect consumers from having bad experiences with illegally obtained content. Third, piracy distorts the market and forces the industry to digitalize content. As such, they have to build legal P2P platforms or cooperate with legal actors such as Apple (iTunes). Furthermore, the content industry is forced to create new labels and to find new ways of marketing new artists and movies. On the other hand, piracy has well-known positive externalities. First, piracy generates network effects that are beneficial to the mainstream content industry. Indeed, piracy allows people who would not have bought the content to be aware of it. In addition, the more people are exposed to the content, the more they will spread the word about it and the more fans there will be. The increasing number of potential fans goes hand in hand with the amount of potential merchandise sold, let alone the increased willingness to purchase the legal version of the initial content. Second, piracy enhances the result of user-experience-oriented marketing techniques. First, the onset of streaming platforms from music major companies such as VEVO increased the data collected from consumers in addition to becoming a platform where consumers could listen to their favorite songs and share their feedback about it for free (well, at least for the cost of 3 min pieces of advertisement they need to watch beforehand). For instance, Amazon’s Kindle book use a specific copy-protected format, but the reader sold by same company supports open formats that allow using the hardware for consuming pirated content. However, Kindle’s official format allows consumers to interact which one another by sharing highlights, notes, etc. This provides an incentive for users who like an illegally acquired content to buy its legal counterpart. Moreover, Kindle put in place a handy and instantaneous way to buy content. As illegal content is often poorly digitalized, it is very easy to get hooked on some book by starting to read its pirated version, then annoyed by the mistypes introduced by poor quality OCR, then to buy it. Another example comes from the music industry. More and more, movie theaters show music performances that counter the downloading of bootleg recordings of live performances. Third, piracy enhances Internet buzz. Indeed, leaks from unreleased movies or musical content gather more people and are eventually relayed on the media. Besides, consumers spread those leaks and can share their opinion on the project before its official launch. Therefore, producers have an opportunity to adjust the content to customers needs. Obviously, the view of piracy as an unfair competitor should be tempered somewhat as piracy remains an opportunity to modernize the entertainment industry and to meet consumers needs for more adapted platforms. Piracy has clear positive external effects and can be used as a complementary tool to traditional marketing techniques. Piracy itself is nothing but a reflection on how the content industry deals with it, as illustrated by the way some protected high-quality content became less desirable to a lower-quality pirated version of it, just because the copy protections created enormous amounts of annoyance for legitimate users. Recent concerns have been raised on whether or not streaming platforms remunerate producers and artists appropriately. This illustrates the everlasting reluctance of some artists and major companies to release some control on how their content is broadcasted. However, one would wonder how it would be possible to adequately compute the compensation they should get from a streaming platform taking into account all the positive externalities they benefit from. Show less Reply Stroobants Benoit 16 December 2014 The world of piracy has always been part of our society and even more these last decades with the growth of Internet worldwide. It become so easy to download a file, a song, an application or whatever it is online that people don’t even think about buying it through a legitimate way. In my opinion people start to develop a…Read moreThe world of piracy has always been part of our society and even more these last decades with the growth of Internet worldwide. It become so easy to download a file, a song, an application or whatever it is online that people don’t even think about buying it through a legitimate way. In my opinion people start to develop a new state of mind that prevails the gratuity and the accessibility of digital goods; even more as millions of human beings download programs illegally. They start wondering why do they have to follow the convenient way to buy a particular good when it’s only one click way from them without spending any money. They create a culture around piracy trying to implement it as a standard in the digital industry. From the lights exposed along the article, this phenomenon can be raise various point of views surrounded by different results coming from scientist’s analysis. Actually, we have noticed that piracy could be impact positively on the sales of the physical goods and even more could increase the demand of complementary goods. As far as I am concerned, since it has become so easy to download files online, I buy much less through legal way than through piracy. For instance if I want to start watching a new series I would prefer to download it online to be sure that it fits with my waiting’s and my personality and at a hence if it does, the physical DVD seems to be the right decision. What a pleasure to watch HD movies offered by a blue-ray and being impressed by the each detail of images on the screen whereas to watch a movie through piracy you have to wait hours of downloading to get the same quality. What I mean is that piracy has no boundaries and it’s a good thing. It gives the pirate a taste of what he is looking for, and at the end the artist will be the first rewarded. Whatever the industry, the originals will always be preferred than the copies. Think about the music industry or the movies industry, which are constantly pirated but does it really fit the needs of fans? Do they no longer go to listen a concert or go to the cinema? I don’t think so… Piracy allows fans to discover novelties they don’t even think about, it allows to develop feelings for a particular artist and so, to buy complementary goods such as mugs, t-shirts, posters, which benefit indirectly the business of these industries. Therefore, I am strongly convinced that young artists don’t have to see piracy as competition at the first stage anymore but more as a complementary wave to their future celebrity and growing success. Show less Reply Chen Jia-Zhun 16 December 2014 These days, downloads had become common. For example, nobody’s asking if people have bought a DVD. They will ask if you’ve got it on your computer which indirectly assume that you’ve downloaded the movie and if he might borrow it. Although, we still don’t know if you have downloaded it legally, the person who asked you this question want it…Read moreThese days, downloads had become common. For example, nobody’s asking if people have bought a DVD. They will ask if you’ve got it on your computer which indirectly assume that you’ve downloaded the movie and if he might borrow it. Although, we still don’t know if you have downloaded it legally, the person who asked you this question want it for free. But is he going to buy it if you say no? Everyone will ask himself if it is really a need or if he just wanted to see it if he can have it free. So the absence of piracy won’t change anything by the fact that even if there are only legal downloading, people will always find a way to go through this and that people will ask himself if he needs it. Plus, before the internet, everyone could also pass through this by having a VCD recorder. However, is piracy really decreasing the benefits. Maybe, but I still wonder if they just put it public online, couldn’t they take an advantage on it? They could for example earn some money with the “views” on youtube. They could make a buzz on the social network or also make some live in order to have more consumers. I think they could be more creative and there is always an innovation to develop. As said in the paper, many content goods generate network effect. Some buzz could come but it is whether a positive whether a negative one. It is then true that it is difficult to say if a movie, a song, etc… will succeed. Another thing is that these buzz could also help some producers or bands. They could become famous quickly and thus have notoriety. Downloading illegally is then nothing for them if it/they can be popular. That could be a bit different for already famous people but a famous band have sold their album for the price of only a single. The fans were so happy that they wanted to pay more. The selling of complementary goods were then interesting. My view on this subject is that piracy is common but only because it is widely spread through the social network and it is not only a matter of legality, it is a matter of innovation and creativity. Show less Reply Andrea Carolina Rosero 16 December 2014 The ultimate concern for companies selling content goods is the impact of piracy on profit. The studies referenced in the article show that in the case of content goods, piracy may have an immediate minor negative effect, but more often has a net positive effect in the long term. If profit increases due to the “buzz” around a product, and…Read moreThe ultimate concern for companies selling content goods is the impact of piracy on profit. The studies referenced in the article show that in the case of content goods, piracy may have an immediate minor negative effect, but more often has a net positive effect in the long term. If profit increases due to the “buzz” around a product, and piracy increases the “buzz,” then there is no need for concern. Additionally, such companies have multiple sources of revenue, including not only CD or DVD sales, but also sales of merchandise, and sometimes live events such as concerts. Therefore, piracy of one good may lead to a purchase of another good (by the same or another person), which is likely to lead to increased sales and profit. Finally, piracy would not seem to increase company costs, as an electronic good requires few to no variable costs. Therefore, it would seem that companies should encourage piracy. However, since piracy is an illegal activity, companies cannot do this. I suggest two company business models which mimic the effect of piracy, but make it legal. First, some musical groups have begun to make their music available via free download on the internet. I heard a radio interview with a musical group (I don’t recall the name of the group), in which the members of the group said that by making their music available for free download, they greatly increased awareness of their music. As a result, more people attended their concerts, and their earnings increased. The earnings increase from concert attendance was greater than the losses from giving away their music for free, rather than selling CDs. Internet dating applications offer another example of how the promotion of a service used for free, increases profit in the long term. For example, the CEO of Tinder stated that his company has “no revenue model” (http://www.forbes.com/sites/stevenbertoni/2014/10/20/tinder-swipes-right-to-revenue-will-add-premium-service-in-november/) The company has aimed to become ubiquitous first, and is now determining how to capitalize on this success—by adding additional services, as reportedly are now being offered via the application. In effect, this is like creating a “buzz” by simulating the effect of piracy first; the application is now free to download and to use. Therefore, not only does piracy boost the income of some companies which sell content goods, but innovative companies should seek ways of legally simulating its effect. Show less Reply Vinayak Tirakaraddi 16 December 2014 I agree with many of the statements that say piracy is not a new trend, but something that has been in existence since people started the crudest forms of having some sort of rights over what they produced and sold. The word piracy has always had a negative connotation, and it is only recently that it has become debatable to…Read moreI agree with many of the statements that say piracy is not a new trend, but something that has been in existence since people started the crudest forms of having some sort of rights over what they produced and sold. The word piracy has always had a negative connotation, and it is only recently that it has become debatable to completely view piracy in negative light. I would like to analyze the effects of piracy, whether positive or negative, from three perspectives, that of producers, “pirates”, and consumers. At first, it might seem that the producers are the one who stand to lose the most from piracy, although some of the positive effects have been highlighted in the article. I feel that in the long run, the effect on producers tends to be negative despite the positive externalities. There are always other ways to improve the popularity or the visibility of your product than letting it just get pirated. A better way would be letting the end consumers sample your product, like the demo versions of computer games or clips of songs before the release of an album. There might have been a few producers to have benefited from piracy, but I think there are far more who have suffered because of it. There are also possibilities where excess of pirated goods might make the actual goods less desirable. While this point is not relevant in entertainment, it is a major factor in other fields like fashion. The pirates, the people who sell the pirated copies, tend to gain the most from this situation. Although they run the risk of being caught by the authorities, the monetary gains from their activities seem to outweigh the risks. Consumers, I feel tend to gain in the short run, but lose in the long run. The short term monetary benefits are obvious, but by not legitimately buying the product, they are not promoting and “encouraging” the producers to come up with more products in the future. Moreover, the markets where pirated goods are traded are unregulated, thus exposing consumers to many hidden risks, especially, in the digital world, where consumers might inadvertently download malicious content that might harm their computers. Piracy, in today’s world has a mixed opinion. I am of the view that we must proceed with caution, and dwell more deeply into the externalities of piracy, before we wholeheartedly embrace it. Show less Reply Aymeric de Pret 16 December 2014 In my opinion the absence of piracy would be a catastrophe for the music, film, etc. industry. Indeed we’re living in a world where every thing needs to go fast and easy of access otherwise people get bored. Even now with illegal downloading, and all the diffusion medias we see trends appearing and disappearing as quickly as they arrived. Therefore…Read moreIn my opinion the absence of piracy would be a catastrophe for the music, film, etc. industry. Indeed we’re living in a world where every thing needs to go fast and easy of access otherwise people get bored. Even now with illegal downloading, and all the diffusion medias we see trends appearing and disappearing as quickly as they arrived. Therefore if a production company succeeds to avoid piracy, it will need to spend much more time and money in order to make its production well known for everyone. Their is thus a considerable chance your product won’t catch the train and will be let behind, forgotten by everyone. But piracy is mostly a good thing in strong complementary markets where you can sell other products by giving access to a first base product. Furthermore, the piracy attracts mostly the customers that have the lowest willingness to pay (price sensitive) and therefore it could result in a lower competition on prices from the firm. So even with a smaller market due to piracy, firms could in certain cases make a higher profit than if their where no piracy at all. Still, it’s not without any reasons that piracy is so much criticized. It has many drawbacks and the “Business Sofware Alliance estimates that there is “$30 billion worth of software in use today that was obtained illegally ». As a company you should be aware that the market you try to sell to will influence the rate of piracy of your product as well. It will depend on the marginal utility of the consumer: If the product you’re selling worth relatively a lot of money for a Chinese buyer, maybe will it be relatively cheap for a American customer. Therefore, there would be more piracy in China than in America. http://www.opim.wharton.upenn.edu/wise2004/sat612.pdf http://ftp.jrc.es/EURdoc/JRC79605.pdf Show less Reply Aurore de Halleux 16 December 2014 I think that the piracy, in the music domain, can harm the artist in a way (not buying CD's anymore) but also help them to become more known... Indeed, if someone listens to music and decides to download it illegally, it increases his/her awareness of the existence of the artist. Maybe the pirate will then buy the complete CD or…Read moreI think that the piracy, in the music domain, can harm the artist in a way (not buying CD’s anymore) but also help them to become more known… Indeed, if someone listens to music and decides to download it illegally, it increases his/her awareness of the existence of the artist. Maybe the pirate will then buy the complete CD or go to concert or festivals, or buy derivative products (t-shirts, posters, etc.). Piracy helps thus the artist to conquer new fans (or at least new listeners). It does not bring money directly but indirectly… Piracy could be seen as advertising: it costs something (the price of the non-sold song) to make the consumer aware of the existence of the product (CD, festival, concert, etc.) which will bring some revenue to the artist (and mainly the production company). However, piracy can also pose an ethical problem. As nearly everything is available on the internet, the competition is not fair anymore for the e-business companies that cannot compete with the phenomena. Piracy could also discourage some small artist that cannot have enough revenues to invest in and develop their art, even if many people like what they do. But in those cases, I think that piracy is rather a way to discover them and then interested persons buy the product or its derivatives. It might be interesting to reconduct the analyses made by Aguiar and Martens (2013) in a few years to see if piracy is still “nearly harmless” for the music industry. Show less Reply Gwenael Bailly 16 December 2014 I will introduce this article with the example of illegal music downloads. According to me, it is very interesting because our generation (20y +) grew up with the rising of the internet and many illegal platforms (as eMule) that allowed people to download protected goods for free. In the beginning of the 21th century, it may be true that illegal downloads…Read moreI will introduce this article with the example of illegal music downloads. According to me, it is very interesting because our generation (20y +) grew up with the rising of the internet and many illegal platforms (as eMule) that allowed people to download protected goods for free. In the beginning of the 21th century, it may be true that illegal downloads have been a real problem for the music industry, and that the ability of download content for free had a big impact on the CD sales. On one hand, lots of specialized stores were affected and had to close because nobody was buying CD anymore. But on the other hand, couldn’t we affirm that those kinds of platforms have revolutionized the shape of the entertainment market? More and more legal platforms and digital stores have opened and allow users to buy protected goods online, creating new jobs and allowing anybody to buy from everywhere across the planet. We don’t say here that this development of the digital markets of the entertainment is due to the piracy, but it is correlated with it for sure. Furthermore, as it is mentioned in the article “Music Piracy: Major Studies Conflicted Over Recording Industry Impact”, a lot of people download illegally just a part of the good (TV show, album) to test it. Indeed, illegal download allows the users to make an opinion over something before buying it and thus, as it is said in this article, it makes a quite good advertising for the good itself. It is now clear that my opinion is the following: piracy does not affect entertainment market negatively. According to me, the consumption of protected goods would not be the same if illegal downloads were not possible and therefore someone who watches a downloaded TV-show does not always affect the sales (not sure he would have paid to watch it). Finally, I will argue that piracy has always existed but with the technology evolving, it is more visible today than 20 years ago. At that time, burning a CD or a videotape was not chocking, but it was some kind of piracy also. Sources :  http://www.forbes.com/sites/michelecatalano/2013/03/25/music-piracy-major-studies-conflicted-over-recording-industry-impact/  http://smallbusiness.chron.com/illegally-downloading-music-impact-music-industry-27748.html  http://www.numerama.com/magazine/25417-le-piratage-n-a-pas-d-effet-negatif-selon-une-etude-financee-par-l-ue.html Show less Reply Carlos del Castillo Garzón 16 December 2014 I am totally in agreement with this article say. I see the illegal downloads as a manner of “tasting” this new song, album, film or chapter of a serie. In my opinion, people only want to buy legally things like these when they want to conserve them. Nowadays, computers break as much as before and we need to repair them…Read moreI am totally in agreement with this article say. I see the illegal downloads as a manner of “tasting” this new song, album, film or chapter of a serie. In my opinion, people only want to buy legally things like these when they want to conserve them. Nowadays, computers break as much as before and we need to repair them or buy new ones and have them in a physical format help us to conserve it. Looking at films and music market I observe that the intermediates try to overvalue the price of these cultural goods and for us, the consumers, this price is above the utility that these goods provoke in us. However, there is a specific case which singers avoid these intermediates, it is called “crowdfunding”. With it singers manage to issue his or her album because this album is paid by the people who want his or her music. These consumers who put their money on his project win the rights of listening the result before anyone or instead of that they obtain exclusive things of the singer: clothes, an autograph, a poster … Later the singer uploads the album for everyone, it is free. These singers only earn money with concerts and for me it is the best way to get that your music is listened by everyone around the world. Another example but, in this case on the film area, it is the online Spanish serie of “Malviviendo” that began with a budget of 40€ and finally it got a huge amount of money from a project of Nokia, Qualid. Show less Reply Ivan De Meunynck 16 December 2014 In my opinion, before considering what would be the result of an absence of piracy, we should take into account the fact that suppressing piracy in its totality seems very complicated. As a matter of fact, one week ago, the most famous platform of "illegal downloads" was closed. But one week later, specialists say that piracy has not decreased at…Read moreIn my opinion, before considering what would be the result of an absence of piracy, we should take into account the fact that suppressing piracy in its totality seems very complicated. As a matter of fact, one week ago, the most famous platform of “illegal downloads” was closed. But one week later, specialists say that piracy has not decreased at all: “pirates” have managed to find other platforms to download. What I want to say by this is that stopping piracy completely would take an enormous amount of time due to the unbelievable quantity of available sources there is. That is why putting an end to piracy won’t happen shortly. Concerning the possible effects resulting from an absence of piracy, I would say that we have to consider two different cases: the organizations which are well established in the market of a “good” that can be downloaded, and the case of the potential new entrants. For the first category, as it is explained in this article, piracy is beneficial (in a very small proportion) but i think its absence would be even more beneficial. This would be the case because a proportion of the pirates would start to buy the goods. But I would be surprised to see a big quantity of them doing so because it would mean they are ready to pay (sometimes important amounts of money) for something they obtained for free before. The situation is clearer for the potential entrants. For them, it can be very difficult to launch their “product” profitably if there is piracy. From their point of view, the absence of piracy would strongly increase their probability to enter the market profitably. For them, piracy is undoubtly a bad thing and it is uncontestable that their situation would be betterd off with the absence of piracy. Show less Reply leonce mpawineza 16 December 2014 Sir Paul Mac Carteny a former member of the beatle on a BBC TV program (BBC click) warned that it is becoming very hard in the modern era for young artists to make money from their music due to piracy and streaming. Its is also being evidenced that some industries especially film and music industries are hugely being affected by…Read moreSir Paul Mac Carteny a former member of the beatle on a BBC TV program (BBC click) warned that it is becoming very hard in the modern era for young artists to make money from their music due to piracy and streaming. Its is also being evidenced that some industries especially film and music industries are hugely being affected by this problem of piracy and investors are no longer willing to put their money or sign artists in this fields because of the problem of recouping their investments.Due to advancement in technology the consumers are easily accessing copyrighted goods for free. On another hand some analysts don’t view piracy to be bad at all. They say that it has indirect benefits depending on the context you view it from. others say that it may affect some industries negatively but positively on the economy because it redistributes incomes . An example given of positive impact piracy has on the revenues of third party companies is that Apple’s iPod might also have benefited from the availability of pirated music. In my opinion piracy can have some indirect benefits by increasing revenues in the sale of complementary products due to increased brand awareness. For instance, companies may experience increased revenues due to the sales of merchandise that are based on movie characters whose popularity is enhanced by sales of pirated movies.” It can be concluded that piracy has adverse effects in some industries but also has some beneficial effects depending on the dimensions it is viewed from. But due to rapid advancement in technology by end users,its going to be hard to combat piracy unless tough measures are implemented globally by all governments. References http://www.bbc.com/news/technology-30388028 https://torrentfreak.com/u-s-government-recognizes-benefits-of-piracy-100413/ Show less Reply Luyanqi Zou 15 December 2014 When I see the the most popular TV series of the moment-"Game of Thrones ", I quickly remind the situation of Microsoft’s market in the China. According to the statistics from CNZZ shows that Windows 7 market share in China was 30.16 percent in May 2013, Windows XP holds 63.7% market share in China, which fully explains Microsoft's operating system…Read moreWhen I see the the most popular TV series of the moment-“Game of Thrones “, I quickly remind the situation of Microsoft’s market in the China. According to the statistics from CNZZ shows that Windows 7 market share in China was 30.16 percent in May 2013, Windows XP holds 63.7% market share in China, which fully explains Microsoft’s operating system has an absolute monopoly position in the China market share. While everyone uses Windows operating system, but few people are willing to buy legitimate software, because people have access to buy inexpensive pirated software. With the continuous development of P2P software, one can easily find more open resources to download from the Internet. Zhang Yaqin, the Former head of R & D department in Microsoft China, said that we have not concerned more about the market share in China, the question was how we could get deserved revenue with our market share. As it mentioned in the Blog, from a theoretical perspective, numerous studies have demonstrated the positive effects that piracy may have on the profits of content producers. For Microsoft, pirated software help they quickly opened and absolutely captured the Chinese market without much marketing expenses. From this perspective, I think Microsoft could also be considered to be benefited from pirated software. By analyzing the results of Nielsen’s survey, I have an assumption that most users of pirated software may be price-sensitive consumers. They will not take the initiative to pay a premium to buy legitimate software when they cannot find pirated software. Therefore I believe that piracy will eventually harm the interests of copyright owners. Every consumer should carefully consider any piracy software which is prohibited by law and illegal download. To counteract piracy and protect the interests of copyright owners, some member states in EU have made laws to prohibit illegal Internet downloads.In Belgium, the law already allows to take action against people who diffuse music or movies. A Flemish company was also sentenced to more than 60 000 euros by a court. In 2009, France also enacted HADOPI Act, the bill established a system to ban the illegal downloading. The system works in this way : Internet users caught in illegal downloading are notified by email of any legal action they might risk. If the user recurrence within 6 months, it may be deprived of internet access for up to 1 year. If illegal downloading contributed the offense of infringement,it would lead to a more serious offense punishable by a prison sentence and a heavy fine. To sum up, Piracy could not become an ally of copyright holders.Any copyright issues should be controlled under the framework of the law. Source: http://www.rtbf.be/info/societe/detail_telechargement-illegal-la-police-peut-elle-debarquer-chez-vous?id=7880955 http://www.ithome.com/html/win7/45929.htm http://www.chinairn.com/doc/40100/149376.html http://www.espace-citoyen.be/dictionary/774-hadopi/ http://vosdroits.service-public.fr/particuliers/F32108.xhtml#N1019B. Show less Reply Achille Klein 15 December 2014 To begin, the piracy is the subject of many researches in the movie, series and music industries and it’s obviously thanks to the technologies growth. Indeed, before the arrival of Internet, it was impossible to see any movies or series or hear any music without buying them legally in shops. Since that time, the piracy has increased and we can…Read moreTo begin, the piracy is the subject of many researches in the movie, series and music industries and it’s obviously thanks to the technologies growth. Indeed, before the arrival of Internet, it was impossible to see any movies or series or hear any music without buying them legally in shops. Since that time, the piracy has increased and we can admit that this phenomenon has some pros and cons. Firstly; it’s obvious that this possibility of seeing the last film of Leonardo DiCaprio for free or listening the last album of Muse without going until the shop is very attractive. A very good point is that once these persons have seen or heard about it, they will automatically speak about around them. These persons will also maybe post some comments or points of view on social networks or on movie search websites. On the one hand, it’s true it’s a profit loss for producers and singers but on the other hand, it’s the best way to attract more people than ever. Moreover, in all these new attracting persons, many of them will probably buy the movie or the CD. To resume, the first person would have probably never bought and never shared these discoveries without piracy. Producers and singers would have never been so much known and finally, they would have never earned such benefits from people who buy the movie, series or CD thanks to the first persons. Secondly, what about the cons and in addition with the loss of benefits of producers and singers, piracy affects the number of employments in all around the world. Indeed, legally sales are decreasing and small shops are not able to bear fixed cost, so, they have to close their doors. Thirdly, it’s true that numbers are astonished. I found another example of the place of piracy in the world of Game of Thrones which is even more impressive than the one in the article: The second episode of season 4 was watched by more than 6,3 millions of viewers on television, downloaded by more than 1,5 millions in 12hours and illegal copies were shared more than 193 000 times. Even if the numbers are so big, in a general way, the positive impacts are bigger than the negatives one. To conclude, for me, piracy has some pros and some cons but the absence of piracy would become even worse than piracy itself except if we think about the employment growth. Show less Reply Ana Martínez Alcaraz 15 December 2014 https://www.youtube.com/watch?v=xuxO6CZptck Although the humor series IT CROWD make a criticism, in a hilarious way, about piracy, the survey mentioned in this article shows a positive correlation between piracy and legal downloads. So we can say that piracy is not the devil that some institutions want to make us think. Regarding the survey, in my opinion it is important highlighting the different results…Read morehttps://www.youtube.com/watch?v=xuxO6CZptck Although the humor series IT CROWD make a criticism, in a hilarious way, about piracy, the survey mentioned in this article shows a positive correlation between piracy and legal downloads. So we can say that piracy is not the devil that some institutions want to make us think. Regarding the survey, in my opinion it is important highlighting the different results obtained in the countries observed. While Germany is the country where the consumers download legally more usually, Spain and Italy have the higher number of illegal downloads. In Spain, surely the case that I better know, recently the Congress approved the past October 30th the new law of Intellectual Property. This law pretends to eradicate the websites that provides links to download or watch online series and films without the author’s permission. One of the most important of this kind of website (seriesyonkis) was voluntary closed on March, while the administrators of one of the others (seriespepito) were arrested two weeks ago for a crime against intellectual property. The one that remains active (Series.ly) is taking off all the problematic links, pretending become a legal website. In response to the question formulated in this article, I do not think that these measures improve the legal sales (of films, in this case) in the way that the Spanish Government want. In the first place, I think that the physical sales are condemned to disappear. The technology has advanced fast and now you can have 2000 songs and watch films in a device that fits in your pocket. People want to have a lot of information in a tiny volume, and this is something that is impossible with a CD or DVD. Furthermore, the CD’s concept is obsolete. You are obliged to purchase the entire album when probably you are only interested in some songs. Legal platforms like iTunes allow buy songs separately. In the second place, in the case of Spain, I think the legislation existing is, in some ways, contradictory in this point. While the new law of Intellectual Property is complicating piracy, two years ago the VAT was raised. In 2012, was possible to purchase a CD for 16euros. Nowadays, this same CD costs 0,41 euros more (18% in 2012, 21% 2014). The same happens with cinema (8% – 21%), ebooks and DVD (18% – 21%). Obviously, and the evolution of the Spanish cultural sector in the last years demonstrate it, raising the price of the culture it is against of its diffusion. Finally, music is art and the main purpose of the art is arrive to the biggest amount of people how it is possible. For this reason, some (mostly unknown) artists offer their songs in their websites for free. In conclusion, my opinion is that the sales of DVD and CD are going to continue decreasing, with or without piracy, but I am not sure about the digital contents. Nowadays, in places like Spain, where the crisis is having strong and dramatical effects in the citizens’ purchasing power, measures like increasing the cultural VAT are diminishing the willingnes and the capacity to pay for music and films. If the piracy disappeared, I am not sure if it would contribute the legal sales. Show less Reply Zhang Xiaomeng 14 December 2014 Piracy takes a large part of market share nowadays. Especially in Armenia, Bangladesh, Georgia and Zimbabwe, all over 90% of the products there are piracies. Piracy range from pharmaceuticals, cosmetics especially the digitally distributed product. For a long time, piracy was against by these industries. However, during these years, some industries especially digital software and music products treat piracy more…Read morePiracy takes a large part of market share nowadays. Especially in Armenia, Bangladesh, Georgia and Zimbabwe, all over 90% of the products there are piracies. Piracy range from pharmaceuticals, cosmetics especially the digitally distributed product. For a long time, piracy was against by these industries. However, during these years, some industries especially digital software and music products treat piracy more kindly as they start to it as a way of marketing. Some studies said one pirated copy does not necessarily mean loss of revenue and it might even help the product from some extent. From the example of the first free copy of e-book, without stopping the fold of unauthorized copies, the book attract more readers and get free marketing for its title. After getting higher reputation and more reading, it reach the top of the ranking list which could help to boost the size of the print number. This way was used largely by some private bands who has no rights for their sounds. By using the free spread share their music broadly on Youtube, they could get more business performance opportunities and have broadly reputation all around the world without any marketing payments. The same with the movie industry, the low-quality copies on the piracy market could help to stimulate the demand of high-quality of genuine DVD and better experiences in the theater. From another hand, piracy could help products occupy more market share to compete with their homogeneous products competitors. Microsoft admits that piracy of official of Microsoft have been admitting that piracy have helped Windows to compete with Linux. It does not says that piracy is a good thing on the market, it still negative effect on patent. With occurring the free music software, the physical selling of the record decrease from $17.5 billion a year to about $15.8 billion a year in 2009. Sales of movie discs are expected to fall by about 20% by 2010. A big portion of this loos is seen as the piracy of DVDs and P2P sharing sites. Production which pay a lot to get patent will lost their revenue, from the statistics of International Data Corporation, lowering global piracy by one point a year would mean $20 billion in industry revenues. However, free achieving of the products is the tendency of future. Entrepreneur could help innovators to get their copy rights by other ways. There are also other ways for the software and entertainments to get income to cover the lost revenue from piracy. They could earn from accessories sold due to hype created about the movie, animate and music. They could also have incomes from selling the ticket of their fan activities and relate shows. Another way is to attract consumers to invest in their productions. One of the animate website Crunchyroll in Japan attract anime fans and venture capitalists who like the passionate community involved with the site. After raising money, they will pay to the creators and marketing. It turns out that anime lovers will pay for content even them available from free version. Even there are several remedies methods for covering piracy loss of digital products, there are still piracy problems for the pharmaceuticals and other physical industry on the market. The main ways to protect patent revenue is to improve the national patent protection mechanisms and find better profitable method to compensate the loss of piracy effect. Reference: 1, Piracy of Digital Products: A Critical Review of the Theoretical Literature (2006) http://papers.ssrn.com/sol3/papers.cfm?abstract_id=889128 2, Is Piracy Just Free Marketing? http://www.jeffbullas.com/2011/05/27/does-piracy-expand-your-market-for-free/ 3, The future of media: It is not piracy, it is marketing https://gigaom.com/2011/05/16/the-future-of-media-its-not-piracy-its-marketing/ 4, Competing with free: anime site treats piracy as a market failure http://arstechnica.com/tech-policy/2011/04/competing-with-free-anime-site-treats-piracy-as-a-market-failure/ 5, Copyright and Piracy https://ocio.osu.edu/itsecurity/buckeyesecure/copyright-and-piracy Show less Reply Julien Horlay 14 December 2014 I’d like to go a little bit deeper about the network effect and discuss about its externalities. First, as mentioned in the text, the more piracy there is on a product, the more it shall be famous and the more likely it shall be purchased legally. In other words, piracy can just make promotions for the product. This can be done…Read moreI’d like to go a little bit deeper about the network effect and discuss about its externalities. First, as mentioned in the text, the more piracy there is on a product, the more it shall be famous and the more likely it shall be purchased legally. In other words, piracy can just make promotions for the product. This can be done by a “buzz effect” such as for Games of Thrones which has been a complete popular success that lead to massive word of mouth between every (future) fans. As an extension, HBO has been basing its profit on external content (such as DVD, poster, clothes,…). According to me, there are two types of consumer in this market and those who buy legally content are more likely to have a higher purchase power and are not familiar with the computer and piracy. I would name them the “old” generation. They will hear from others that the product is good and will not hesitate to buy it physically rather than download it. However I think that piracy suffers from a serious problem which is the quality of the downloaded content. As we all probably know, we can spend a lot of time seeking for a sufficiently good quality film, and sometimes it can be really exhausting. However, buying the legal content will give instantly the video in a perfect quality. It is the same for music, some downloaded song sound horrible compared to the original. As a consequence, I truly think that the people willing high quality product are more likely to buy legal content. In my opinion, to counter piracy, the main actors should focus on the quality of their product and persevere to give punition to pirates. Consulted sources: Music Piracy: Major Studies Conflicted Over Recording Industry Impact http://www.forbes.com/sites/michelecatalano/2013/03/25/music-piracy-major-studies-conflicted-over-recording-industry-impact/ The upside of digital piracy: greater investment in quality http://www.foster.washington.edu/centers/facultyresearch/Pages/piracy-upside.aspx Show less Reply Mathilde Kurz 14 December 2014 I think that piracy has some pros and cons. On the one hand, piracy is a good way for producers to reach a broader audience than they expected. Indeed, I think that when a new film, a new TV series or a new album of a singer comes out, piracy allows everyone to view/listen it and attracts then new consumers…Read moreI think that piracy has some pros and cons. On the one hand, piracy is a good way for producers to reach a broader audience than they expected. Indeed, I think that when a new film, a new TV series or a new album of a singer comes out, piracy allows everyone to view/listen it and attracts then new consumers to buy the legitimate copy. Moreover, piracy allows producers to make free advertising and that is great for them. Social networks can explain that. Indeed, it is more and more common that when someone discover a new film or TV series by piracy and really appreciated it, that person share its discovery his timeline on Facebook or Twitter. In that way, everyone who has relationship with that person can have access to the new film/TV series and can even subsequently buy the legitimate copy. On the other hand, piracy can have bad sides. I believe that, especially on the CD market, artists may be disadvantaged by piracy. I think it mainly started with the launch of MP3 and IPods. Indeed, because this innovation allows people to listen music without having a CD, I think that piracy encourages them to stop buying CDs, which is bad for singers. This phenomenon (downloading pirated music) has growing fast and the music industry is suffering that. To conclude, even if piracy has some disadvantages, I think that the present world cannot do without. As I mentioned, piracy is good both for producers (it creates advertising) and consumers and the music industry might stop suffering piracy with Spotify. Anyway, with a significant presence of Internet in our lives, it is impossible to stop piracy and producers have to deal with that. Show less Reply Mario Medina 12 December 2014 I think whether the piracy gives a positive impulse to legal products or not, it is a phenomenon too big to stop it now, because of the internet, so the best way to combat piracy better than trying to eradicate it, should be figuring out how to obtain an advantage from it, just like the HBO programming president Michael Lombardo…Read moreI think whether the piracy gives a positive impulse to legal products or not, it is a phenomenon too big to stop it now, because of the internet, so the best way to combat piracy better than trying to eradicate it, should be figuring out how to obtain an advantage from it, just like the HBO programming president Michael Lombardo has said, for them the illegal viewers where so attached to the series that later they were buying the original product, for me that’s a great way to aboard the piracy. I really think based on the studies published in the article, that if the music industry and television channels give to their public a free taste of their product (that is to say, listen for free the songs or watch for free some chapters of the series) then the public can decide If they want to buy the original product or not. I also think that if the prices weren´t so high (the DVD´s for example) more people would rather to buy the original stuff avoiding the bother of the publicity you can encounter consuming the product illegally for example. Also as much as the sales have decreased because of the piracy, still there´s a lot of ways for the industry to get profits from their work. For the musician, give a huge concert normally leaves a lot of money; also selling t-shirts of the band or something like that is a way to have benefits indirectly. Maybe your music is not selling because of the piracy, but because of it you´re gaining fans who would go to your concert. For movies is more or less the same, but they get benefits from the movie been aired in movie theaters for example. One good example I can think about is a cartoon named “South Park”, although I personally don´t like it, a lot of people love it and they watch all their episodes, the company who make this series decide to published all their episodes in their website for free, so all their fans can see them whenever they want. Still they keep having a lot of profits, from their products such as clothes, pins or dolls of the personages of the cartoon, and they’re still creating episodes, meaning that the business has not been badly affect because of their web page. (1) It is true that piracy has caused economic loses, but according to Jonathan D. Rose, intellectual property litigator, in the larger picture, a free stream of a show or movie does not necessarily mean the viewer would have paid for the show had it not been available for free. (2) Now here are two facts taken from two surveys and a data-based study: 1) Piracy actually boosts sales, as it is actually filtering the purchases. 2) People would buy more music if it was cheaper and there wasn’t any illegal downloading. (3) Although legal content distribution services like Netflix, Crackle, iTunes, Hulu, Amazon, Epix, and Vudu have again made accessing entertainment content legally more convenient, it is estimated that online piracy costs the U.S. economy somewhere around $250 billion per year. When content is illegally taken and distributed, income stops, jobs cannot be supported, and people are left unemployed. (4) That may be one negative effect from the piracy specially for the people who works in the entertained industry, but maybe it wouldn´t be so much unemployed people if all the revenues were distributed equally, it is incredible how much can an actor or a director earn, and how little the makeup person earn. My conclusion is practically the same than my a boarding argument, it would be easier to fight the piracy obtaining benefits from it, and adapting to the actual world where the people is used to obtain anything easily, cheap and with quality because of the internet. Netflix or itunes have done a good job, but still there are many people who won’t pay for a song or a movie when they can get it for free. (1) http://southpark.cc.com/full-episodes (2) http://www.forbes.com/sites/karstenstrauss/2013/03/06/tv-and-film-piracy-threatening-an-industry/ (3) http://www.forbes.com/sites/michelecatalano/2013/03/25/music-piracy-major-studies-conflicted-over-recording-industry-impact/ (4) http://www.diplomaticourier.com/news/sponsored/2011-piracy-s-ripple-effect-on-the-global-economy Show less Reply Midas De Bondt 8 December 2014 I want to express my thoughts on the question by focusing on one of the effects put forward by Belleflamme and Peitz (2010): Network effects. I will firstly give a short overview of some of the positive effects network effects may have for the legal seller. Afterwards I will perform a deep-dive into two factors that are of particular importance…Read moreI want to express my thoughts on the question by focusing on one of the effects put forward by Belleflamme and Peitz (2010): Network effects. I will firstly give a short overview of some of the positive effects network effects may have for the legal seller. Afterwards I will perform a deep-dive into two factors that are of particular importance nowadays. A first positive network effect is obviously the fact that the demand for the legal good may increase with the number of illegal acquisitions. One example of this practice is, for example, the increased publicity the product might get from the buzz created. But this is far from the only way for the legal seller to benefit from the piracy. Only in the audiovisual sector it is easy to think of complements such as merchandising, subsequent seasons/films/CD’s, books, amusement parks,… for which the demand may be influenced significantly by piracy. When we do, however, take a deeper look into the potential increase in demand for the same legal product because of network effects, there are some factors that may reinforce this demand. A first one that I would like to mention is the difference in behavior between generations. The generations that possess most of the purchasing power at the moment, are not at all the generations that are typically involved in piracy. I can see two important influences coming forward from this. Firstly there will be a group of people that are not part of the downloading generation that will hear from the product through the hype that was created through network effects and piracy. This group will be far more likely to actually purchase the content rather than download it (possibly because of their better financial situation, but also because of their fear for litigation,…). I am certain that there is a large number of parents/grandparents around the world that has bought content they have heard their children talk about after these children saw the content illegally. Secondly I believe that a lot of content has been bought by the beforementioned generations as gifts because the giver has heard about it from people that downloaded it. A second factor that I want to elaborate on is the fact that people nowadays are used to content in very high quality. Downloading content in high quality leaves a more visible digital trace and is thus also easier to find by copyright authorities. For this argument to hold, two conditions have to be satisfied: the trace needs to be detectable (so resources need to be liberated!) and the crime need to be punished (severely enough). I am convinced that neither one of the conditions is satisfied at the moment. If these conditions will be satisfied at one moment in time, I am convinced that the increasingly high quality-demanding population will increasingly shift to buying the legal product. This will at least be the case for the people that would be willing to pay the price the seller charges for it. Obviously this is the only population the seller can target anyway. Show less Reply Laurence Balis 7 December 2014 Although the effects are difficult to be evaluated, I think that piracy has negative effects but also positive ones. When we talk about piracy, everyone sees only its adverse effects such that it prevents the purchase of CDs or DVDs as they are available on the internet or the fact that now the young people are used to download music…Read moreAlthough the effects are difficult to be evaluated, I think that piracy has negative effects but also positive ones. When we talk about piracy, everyone sees only its adverse effects such that it prevents the purchase of CDs or DVDs as they are available on the internet or the fact that now the young people are used to download music or films illegally and receive no consequences for illegal behavior, so why would they stop? But contrary to what one might think, piracy has positive consequences. First, the ability to “try” a series or music before purchasing allows us to judge and whether you wish to see or listen more or not. If this is the case, people prefer to have a better quality and thus go buy series or legally music in a store. Second, and especially for young people, piracy can significantly increase the views of a series for example. Now with all social networks such as Facebook or Twitter, young people communicate what they like, what series they watch or what music they listen. This behavior creates a curiosity in those who do not know the series or creates a desire to continue to watch it so they can discuss about it afterwards on social networks. The removal of piracy would extremely decrease the viewing of the series and therefore, it would be less well known and would be less successful because the information regarding this series won’t be or will hardly be relayed on the Internet. However, I think it is very difficult to assess the benefits or damages of piracy because we can’t say that every viewing on the internet correspond to unsold physical product. Studies conducted on this subject are not always objective because people participating knew they would be observed for their behavior, and maybe they will stop or at least reduce their illegal behavior. Finally, I think that piracy is a kind of intermediary between the physical properties sold in stores and goods available online. Piracy can also be due to the fact that thanks to it, people do not need to move to listen to music or watch their movie or series. The fact that online music is growing will perhaps increase the legal consumption and reduce piracy. But I think this must be set up through a long process because the absence of piracy would be worse than piracy itself. Show less Reply Laura June Clarke 6 December 2014 Piracy is the activity of manufacturing unauthorised copies of protected material and dealing with such copies by way of distribution and sale” 1. Since a long time, there is the general saying that piracy is bad: digital piracy cuts profits, reducing investment in quality, leading to lower-quality products in the market 2. The key elements here are “unauthorized” and “protected” which links…Read morePiracy is the activity of manufacturing unauthorised copies of protected material and dealing with such copies by way of distribution and sale” 1. Since a long time, there is the general saying that piracy is bad: digital piracy cuts profits, reducing investment in quality, leading to lower-quality products in the market 2. The key elements here are “unauthorized” and “protected” which links us to our previous article about patents and protection (see “The economics of copyright protection” 3 and “Secrecy vs. patents. How to choose” 4 of Mr Belleflamme). As mentioned in the article of Mr Belleflamme, several studies and surveys have already prove that without piracy, the physical and digital markets are just slightly affected: 10% decrease in piracy would lead to 0,2% increase in the digital shops and in the physical markets the displacement rate would be slightly above zero. A new study issued by the European Commission’s Joint Research Centre explains that downloading music illegally doesn’t harm the music industry – in some cases it even helps it 5. It actually be a boost to digital incomes online and should not be seen as a threatening problem by the industry at all. But, let’s try to imagine to consequences of the absence of piracy: The digital industry would be less attractive. Refraining accessibility will make people frustrated and therefore will decrease cultural knowledge and access to divertissement, leading to frustration. This could lead as well to boycott and/or disinterested. In presence of piracy there’s a positive effect: Presence of shadow competition between manufactures 2 to induce them to invest in quality, therefore greater innovation and better products for moderated prices. Researchers (Debabrata Dey and Atanu Lahiri from University of Washington Foster School of Business) observed2 several digital goods producers (Microsoft, Electronic Arts, Adobe, HBO and Valve) have invested and increased their R&D expenditures while witnessing a steady rise in global digital piracy. Instead of receding, they were and are innovating. In my opinion, piracy is good but at a certain level. Manufactures would be better of without piracy to get the full control over their profits but these “unauthorized copies market” implies a rise in quality and therefore innovation. Leading to better product at a steady price. Personally, I believe, piracy is as threatening than radio station, which plays songs for free and is available to everyone. Now that each of us has, globally, been use to download illegally, forbidding it would only rouse a general dissatisfaction, disinterest in the digital market and leading perhaps in boycott, which would, as oppose to the initial plan, decrease the industries profit. Everybody would loose. 1. World Journal of Library Administration, UDUAK U. ENANG PhD, CLN & MBUOTIDEM O. UMOH Esq CLN, August 2013, http://acascipub.com/World%20Journal%20of%20Library%20Administration/WJLA_Vol.%201,%20No.%201,%20August%202013/EFFECT%20OF%20PIRACY.pdf , Vol. 1, No. 1, PP: 06- 14, consulted the 06 December 2014. 2. http://www.foster.washington.edu/centers/facultyresearch/Pages/piracy-upside.aspx, consulted the 06 December 2014. 3. IP digital IR, Paul Belleflamme, “The economics of copyright protection”, 02 October 2013, http://www.ipdigit.eu/2013/10/the-economics-of-copyright-protection/, consulted the 06 December 2014. 4. IP digital IR, Paul Belleflamme, “Secrecy vs. patents. How to choose?”10 October 2013, http://www.ipdigit.eu/2013/10/secrecy-vs-patents-how-to-choose/, consulted the 06 December 2014. 5. RT, 21 Mars 2013, http://rt.com/news/music-piracy-online-sales-572/, consulted the 06 December 2014. Show less Reply Peeters Pierre-Yves 6 December 2014 As the text explain, piracy can be good for some content producers. Let's take the example of the series like Game of Thrones. These videos are widdly download, legaly and illegaly. This could be negative for the producers but I personaly think that it is not. Indeed, I am fan of series like Game of Thrones, if I had to…Read moreAs the text explain, piracy can be good for some content producers. Let’s take the example of the series like Game of Thrones. These videos are widdly download, legaly and illegaly. This could be negative for the producers but I personaly think that it is not. Indeed, I am fan of series like Game of Thrones, if I had to pay for it, I would not watch it. But, some day, I could invest in a poster of the serie or a video game. This is how the producers could benefit of the ilegal downloading. More than that, the craze for that kind of series is essential for the producers. They need it to reach investors. For Game of Thrones, the craze is just incredible. Last year each monday (the date the new episode was ilegaly online) was a crazy day for the viewers. Thus, I do agree with the theory and the three mecanism. And I would say that the absence of pircay could be negative for that industry. However this is relevant only for series or movies. Indeed, this theory is wrong when we talk about the music industry. Artists are actually struggling to get the benefits of their creation. Online (legal or illegal) downloading, as the text says is competiting with the physical market. I personnaly think that there is a need to regulate that market. The price online are too low. New artists have nearly no chance to be able to live of their music. In this case the absence of piracy could clearly helped them to dare a carrier in the music industry. Indeed, I would personnaly pay for music which is not the case for videos. Regulators have thus to pay attention to the online music industry. The piracy has to be punished and the price of legal downloading has to be higher. Show less Reply Benefits of piracy? | mainezworld 20 June 2014 […] 2) Belleflamme, P. (2013, December 2). IP dig IT. Retrieved June 19, 2014, from Hidden treasure of piracy: http://www.ipdigit.eu/2013/12/the-hidden-treasure-of-piracy/ […] Reply Shan Liu 11 December 2013 Firstly, the research (Aguiar and Martens, 2013) can be biased in several ways. For instance, if the music is not downloaded at no cost in an online platform like iTunes, it is then viewed as a loss to the revenue. Furthermore, the report "Digital Music Consumption on the Internet: Evidence from Clickstream Data” might have overstated the number of legal…Read moreFirstly, the research (Aguiar and Martens, 2013) can be biased in several ways. For instance, if the music is not downloaded at no cost in an online platform like iTunes, it is then viewed as a loss to the revenue. Furthermore, the report “Digital Music Consumption on the Internet: Evidence from Clickstream Data” might have overstated the number of legal purchases in the sense that they rely simply on the clickstream data, without taking into account the fact that each time you listen to the music or connect to iTunes, iTunes is launched. Hence, the reliability of the report is to be suspected. In fact, there are still a majority of studies which show that piracy has harmed significantly to the music industry. It is not reasonable to argue that each illegal online download of music is a lost to the revenue or attribute the fact that music business revenues were cut in half during a decade when file sharing was burgeoing to piracy. This is ground the music business has covered time and time again, and it’s an “illogical and irritating argument”. Based on the large body of research that has been done on these topics, it is still unclear that piracy has an negative effect on the creation of a vibrant legal marketplace. source: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2132153. http://www.ifpi.org/content/section_news/20130320.html https://www.npdgroupblog.com/driving-under-the-influence Show less Reply De Kock Boris 11 December 2013 I think that we need examine the different type of consumers. Illegal downloading can lead to the loss of young consumers who do not have many resources. In addition, they do not have credit cards to make purchases online. But the resources liberate by the illegal downloading, however those do not go into the CD or DVD can bring resources…Read moreI think that we need examine the different type of consumers. Illegal downloading can lead to the loss of young consumers who do not have many resources. In addition, they do not have credit cards to make purchases online. But the resources liberate by the illegal downloading, however those do not go into the CD or DVD can bring resources to artists or producer. It can be done through the participation of youth in music festivals or the fact that they often attend session’s cinema with friends. This question can be made the object of an Economic studies. Moreover, later the young become an adult with purchase power. This adult will have developed the downloading reflex and he will be accustomed at all at once. This will lead undoubtedly to legal download platforms where the contents are more readily available and faster downloaded. Especially if prices are not excessive. Show less Reply Srikanth Ramanolla 11 December 2013 Piracy is a double edged sword. Studies have shown both the good side and the bad side of this phenomenon. For instance to take forward the Game of thrones example, it is true that in the earlier stages of the series, piracy has indeed helped it in gaining a massive fan base and increased its popularity there by helping the…Read morePiracy is a double edged sword. Studies have shown both the good side and the bad side of this phenomenon. For instance to take forward the Game of thrones example, it is true that in the earlier stages of the series, piracy has indeed helped it in gaining a massive fan base and increased its popularity there by helping the producers indirectly. However three to four seasons down the line when it’s no longer the new wonder kid on the block, every new season and episode will be highly anticipated. The show has already reached its maximum possible viewers.In this scenario Piracy will displace quite a big chunk of the legitimate sales. Studies have shown that while independent and lesser known movies/ underdogs tend to gain from piracy, established movie franchises and blockbusters do lose out on potential revenues. Another industry that is interesting to look at is the video gaming industry where piracy is dreaded by the game studios. The PC Gaming industry which was thriving and expected to grow huge at the turn of the millenium is struggling today. As piracy increased, majority of PC gamers just opted for downloading the ‘cracked’ version of the original game instead of buying an original.As result of it heavy budget games struggled to break even and the studios slowly shifted towards the Consoles and away from PCs. Sony’s Playstation consoles and Microsoft’s xbox have cornered most of the gaming industry Pie as Studios either made their games console exclusives or delayed the launch of the PC version of these games by a few months. Eventually the PC Gaming industry has been marginalized. To summarize, even though Piracy might seem to help the concerned industry in a limited number of ways there are always significant issues of concern that put their potential revenues at risk. Show less Reply Zaniewski Jan 11 December 2013 As it was clearly explained in this article, and as it was showed through several recent studies, piracy has no "negative" impact on the sales. The idea that piracy is strongly harming the entertainment industry has even been proved as being wrong in a recent study made by researchers of the London School of Economics (1). Technically speaking, as piracy…Read moreAs it was clearly explained in this article, and as it was showed through several recent studies, piracy has no “negative” impact on the sales. The idea that piracy is strongly harming the entertainment industry has even been proved as being wrong in a recent study made by researchers of the London School of Economics (1). Technically speaking, as piracy has a (small or big) positive impact on the industry, the absence of it would be globally worse. My view on this subject is that piracy is not only a matter of legality, it is a matter of mentality towards entertainment. Indeed, for many people today, music or TV series are not goods which they would pay for. “It is very easy to have it for free, so why should we pay for it ? Anyway, the producing companies already make a lot of profit through complementary products.” This mindset is maybe true for big companies or well known artists that can wisely use piracy in their advantage as the studies show it. Piracy does not harm this big part of the industry, and this is maybe why the results of the studies are so positive. The problem of this pro-piracy mindset is, in my opinion, for the smaller labels, artists and creators of entertainment. Those who are not famous yet strive to make a living from their activity, and piracy does not help them at all to survive. We can hear a lot of comments against piracy that take those smaller artists as examples because they cannot sell their creations. This is why I would like to introduce in the debate some alternative ways of sharing the creations with the fans with the example of Radiohead. This famous band shared a free album on their website, inviting the people who downloaded it to pay as little or as much as they wanted for the album. This model was severely criticized by many other artists, but the album is the proof that it is possible to share music for free and call to the generosity of the public to make a living from the artistic activity. “The best response to music piracy is to explore new, legal ways to get music into fans’ hands.”(2) (3) The example of Radiohead is not the only solution, it is just a move from a band trying something new. I believe that it is a good path that the people suffering from piracy today should try to follow. To sum up, no piracy would be worse for famous artists, but maybe positive for smaller labels. Anyway, this idea of a world without any piracy is just a dream in our digitalized society. It means that the people who cannot use piracy in their advantage should find more innovative ways to make a living with the fans that want to actively support them. “Radiohead didn’t kill the idea that music should be paid for. What it did do, though, was show that the idea of setting a single, one-size-fits-all price for an album was long overdue a rethink. Not just because a lot of people wanted to pay less or nothing, but because plenty of fans wanted to pay more.” (2) (1) http://www.cbc.ca/news/business/digital-piracy-not-harming-entertainment-industries-study-1.1894729 (2) http://www.nme.com/blogs/nme-blogs/did-radioheads-in-rainbows-honesty-box-actually-damage-the-music-industry (3) http://www.wired.com/listening_post/2007/10/estimates-radio/ Show less Reply Saad Ahmad 11 December 2013 In my opinion the article and most of the comments uncover only one side of the story. For the purpose of this discussion, let me categorize an average consumer of online copyrighted content. 1. Individuals who illegally download music without cognizance of the fact that the practice they are undertaking is illegal 2. Consumers who cannot afford to purchase original content…Read moreIn my opinion the article and most of the comments uncover only one side of the story. For the purpose of this discussion, let me categorize an average consumer of online copyrighted content. 1. Individuals who illegally download music without cognizance of the fact that the practice they are undertaking is illegal 2. Consumers who cannot afford to purchase original content and who justify their actions based on rampant nature of this practice 3. People who use pirated content to preview and select what they like before subsequently purchasing the original content The distribution of consumers into these subcategories varies with the industry and the country.The argument in favor of piracy is primarily based on the economic repercussions of actions of the 3rd kind of user. Unfortunately, the type 1 and 2 customers also form a significant proportion of the online content consumption. This is especially the case in developing countries like India. Hence the economic rationale that piracy will promote ancillary sales fails in countries/ industries whose online consumption pattern suggest predominance of type 1 and 2 consumers. I agree that piracy contributes significantly to the popularity of digital content, but monetizing that popularity requires one to specifically identify and target the type 3 consumer, which in most cases is a difficult task. Also, in my opinion the argument about sales of complementary products is weak. The whole argument against piracy rests on the fact that in presence of piracy the profits get distributed across the spectrum of middlemen instead of the legitimate benefactor i.e. the owner of the copyrighted content. Even if the spread of pirated content promotes the sale of complementary products, it does not contribute to redistribution of profits to the legitimate benefactor, who benefits from the sale of the original content alone, and not that of the complementary product. Show less Reply Daniel Scurtu 11 December 2013 So there's 2 things here: #1 - piracy doesn't hurt legal purchases. #2 - piracy actually may help increase profits To me, talking about this now in such an academic setting is actually funny. To economists in the West, this is ground-breaking research. But I actually was aware of #1 quite a long time ago... maybe... say... in 2000 already? The observation…Read moreSo there’s 2 things here: #1 – piracy doesn’t hurt legal purchases. #2 – piracy actually may help increase profits To me, talking about this now in such an academic setting is actually funny. To economists in the West, this is ground-breaking research. But I actually was aware of #1 quite a long time ago… maybe… say… in 2000 already? The observation actually predates broadband internet, back to the days of CD piracy in the 90s. I don’t mean to brag, but most people from developing countries actually had a much more realistic perception of piracy a decade ago than copyright holders claim today, simply because they had first hand knowledge from the field, and knew what the legal market was like. Kevin Spacey says it very well in this 5 minute video: http://www.youtube.com/watch?v=P0ukYf_xvgc People want content when they want it and where they want it, and they are willing to pay for it. Neflix putting Blockbuster out of business proves that point beyond any doubt. In the music industry in recent years, most piracy turns out to be of music that is unavailable for downloading, as demand for downloadable content is rising rapidly. In the PC game industry, companies tacitly agree with this issue. In the last 5 years more and more companies have made their games available for online purchase and download, to the point where it is now an industry standard. In fact, when you buy some games nowadays, the physical copy is effectively just the product key – you download the game itself online. It’s true, some companies simply use online connectivity as a DRM technique, but it doesn’t detract from the fact that online download demand is rising rapidly. #3 – piracy has positive externalities If we’re talking about other piracy benefits… well… this is kind of beating a dead horse, but there’s plenty of research that indicates the positive externalities far outweigh the loss in profits. In the PC software sector alone, a disproportionately large portion of programmers and designers and artists are from developing countries, and most of them are guilty of piracy at some point in their lives. They acquired their skills by using pirated software, and best case scenario they end up working for the companies they pirated the software from. #4 – people who pirate wouldn’t buy a legal copy even if piracy wasn’t an option Furthermore, in the 90s the issue about piracy was that people who pirated software mostly couldn’t afford buying a licence. For instance, MS Office in the late 90s cost around 300-500 dollars in Romania, where the mode income per month was 300 dollars. The affordability debate has been dropped, as focus shifted to piracy of music and other forms of entertainment, which are considered affordable by everyone, but the fact is that when we’re talking about software, it still remains (the cost and price of video games for instance is increasing, at the moment the mode price is 40-60 euros per title, which was unheard of 5-10 years ago). So in conclusion, based on my experience and knowledge, the positive externalities from piracy of software and media outweigh the minimal losses incurred due to it. If companies were actually objective about it and didn’t obsess so much with monopoly over intellectual property, they’d realize that an extensive IP market beats an intensive one in terms of profit. So in those general terms, look at youtube and music. The availability of so much content is diffusing skills to the general population, and some of them end up starting careers in music due to inspiration they got from other youtube videos, and transparency and exposure due to youtube viewers. A recent article on availability vs piracy; apparently there’s quite a number of these articles, all pointing towards the same conclusion, with music, games, software and TV series especially. http://www.washingtonpost.com/blogs/the-switch/wp/2013/10/15/people-pirate-movies-because-they-cant-get-legitimate-copies/ Show less Reply Benjamin Sommeville 11 December 2013 Piracy has always existed. Especially now, with the Internet, make an illegal copy or an illegal downloading is an easy game. Due to these new technologies and its abilities, I think that people develop a new way of thinking, a kind of “culture of free”. In my opinion, it will thus be impossible to stop piracy. It is therefore necessary…Read morePiracy has always existed. Especially now, with the Internet, make an illegal copy or an illegal downloading is an easy game. Due to these new technologies and its abilities, I think that people develop a new way of thinking, a kind of “culture of free”. In my opinion, it will thus be impossible to stop piracy. It is therefore necessary that even if piracy is an obstacle to the innovation and the intellectual property, it would be better to try to use it as a tool. Then, I totally agree with the three mechanisms which explain the positive effects that piracy may have. Indeed, we always think to the “bad” sides of piracy but never about the positive points. Due to the piracy on Internet, we can discover new products (mainly movies and music) and if it is a good content, that can play a sampling role by attracting consumers and driving them to purchase a legitimate copy later (first mechanism in the article). Moreover, it allows easier for new artists to share theirs artworks and to catch potential buyers. With the example of “Game of Thrones”, we can see that the HBO officials are already adapted to use illegal downloading and use it as a tool to make a bigger profit. To conclude, I really think that firms, in the music and movie industry, would have to adapt their offer with the “culture of free” for all. Already now, with free legal platforms as Spotify, YouTube and some website of streaming, it is freely possible to hear your music or to watch your movie without being in the piracy system. Show less Reply nsiangani Tatiana 11 December 2013 I would like to comment about what the tittle “hidden treasure” could also refer to. Although piracy violates the rights of authors or artists, some actors see their enlarged image and for some producers, it is more important to convey a message even if it implies making less profit, so such their film is transmitted and can be seen by…Read moreI would like to comment about what the tittle “hidden treasure” could also refer to. Although piracy violates the rights of authors or artists, some actors see their enlarged image and for some producers, it is more important to convey a message even if it implies making less profit, so such their film is transmitted and can be seen by a maximum people . A survey of 2,755 American artists from mainly in the field of music and film (areas that have suffered the most piracy lately) shows that they would not be so angry against peer-to-peer. According to this survey, American artists are not as affected as we want to believe, as they admit themselves. Nonetheless, the record labels and film production companies, accusing a shortfall whenever a cd is hacked and put on the net. They are also the ones who strive to seek anticopy protections to preserve the integrity of their sales, not artists. In any case, the issue of Internet piracy focuses on the files protected by copyrights. Thus, actors or artists are not affected, and some prefer to see a picture of themselves develop. It’s also important to not forget role played by ISP (Internet Service Providers). The fact that advertising campaigns for broadband access are often based on the ability to download music and movies is an incentive to piracy! sources: Agnel, P., Grouès,T., and Al. Les conséquences du piratage sur l’industrie du cinéma Show less Reply Yasuhiro Minami 11 December 2013 I think that piracy has bad impact on the sale of DVD, game, music, book and something like that. For me, it would be better if I watched the movies on the Internet for free. So, I think many people first think as I do. This way of thinking has bad impact on the sales. But I really agree with…Read moreI think that piracy has bad impact on the sale of DVD, game, music, book and something like that. For me, it would be better if I watched the movies on the Internet for free. So, I think many people first think as I do. This way of thinking has bad impact on the sales. But I really agree with the idea, “piracy can increase demand for goods that are complementary to the pirated content; the producer is then able to capture indirectly the value that consumers attach to the pirated good”. Because of my experience and of friends of mine. I like the singer whose name is “Nana Mizuki”. She is a good singer. But the first time for my listening to her music is on You Tube. I believe You Tube is not illegal, but sometime we can listen to music for free. And I came to like her song and buy her physical goods, CDs. For my friends’ cases, they often go to her concerts and buy more goods than I do. I think the same situation can be adapted to piracy. I have no theoretical and statistic basis, but I really believe this impact. I also think we should regard about the impact on private works. In Japan the private works are very active. In Japan “Dohjin” which is the category of private works referring to official things such as animations, music, movies and books, is popular. And it makes big economic impact on the society, I heard. For making private works, people should prepare many materials for that. For example, if people want to draw some comics based on some animations, they should buy some special pen and papers for it. And many people like such private works and buy it. So, we can say there are the relationship between demand and supply. If piracy is able people to get more chances to enjoy works, more possibility of this market is generated. What I want to say here is that we can regard this piracy’s impact on other branches like “Dohjin” or other industry, such as press factory, music instrument, cameras and transportation. Of course, it is important and necessary to consider the rights and profits of creators. And on the perspective of the right and profits, piracy is bad and illegal. We must not forget this. So, it must be ruled. But, when I stand on the perspective of “How is the impact on the economy of all over the society.” , piracy has some possibility to make positive impact on it. So, I think the absence of piracy has some possibility of making worse impact on the economy than piracy itself. Please remember that I never recommend you to use piracy. Just I propose an idea. Show less Reply Anissa Belkhazri 11 December 2013 In the field of music piracy, one can notice that piracy can hurt some artists while benefiting some others. Music piracy can hurt less popular artists. On the other side, piracy can benefit the popular ones. At the first glance it may be surprising to know that piracy is beneficial to the most popular artists. In fact, effects of piracy…Read moreIn the field of music piracy, one can notice that piracy can hurt some artists while benefiting some others. Music piracy can hurt less popular artists. On the other side, piracy can benefit the popular ones. At the first glance it may be surprising to know that piracy is beneficial to the most popular artists. In fact, effects of piracy are depending on the artist’s popularity. «The Featured Artists Coalition, the British Academy of Songwriters, Composers and Authors, and the Music Producers Guild, (whose members include Elton John, Tom Jones, Paul McCartney, and Radiohead’s guitarist Ed O’Brian) wrote a joint statement opposing the British legislation against file-sharing» (1). It seems to be profitable to allow a kind of piracy. The loses of revenue by piracy can be recovered by other sources like live concerts. But I think that publishers or labels do not share the opinion of the artists because they see their part of the cake decreasing. I think that to answer the question of whether «piracy become even worse than piracy itself?», it is important to distinguish between the long-run and the short-run effects. In a long run perspective, one may wonder if the music piracy will affect the level of production of music or the incentive to produce. But in a short run term, it seems that piracy increases the consumer welfare but decreases the artist’ s profits. Otherwise, in the field of software, piracy may affect economic growth. In the presence of competition, it seems to be positive to have some piracy because that increases the network effect and thus firms have a motivation to increase their incentive to invest in R&D that may append when the network effect is stronger than the piracy effect (3). From my point of view, the IPRs in the field of production of music or movies lose their meaning in the case of allowing file sharing. References : (1) Amedeo Piolatto and Florian Schuett , Music piracy: A case of ‘‘The Rich Get Richer and the Poor Get Poorer’’, Information Economics and Policy 24 (2012), p. 30–39. (2) Antonio R. Andrés and Rajeev K. Goel, Does software piracy affect economic growth?Evidence across countries, Journal of Policy Modeling 34 (2012), p. 284–295. (3) Dyuti Banerjee, Effect of piracy on innovation in the presence of network externalities, Economic Modelling, Volume 33, July 2013, p. 526–532. Show less Reply De Temmerman Yann 11 December 2013 «So, would the absence of piracy become even worse than piracy itself? I’d be happy to hear your views about that.» => I think it's depend on the people. For the record label, the sellers of CD's,... it's sure that piracy has a negative impact (or they need to innovate). But for the actors, the singers I don't know…Read more«So, would the absence of piracy become even worse than piracy itself? I’d be happy to hear your views about that.» => I think it’s depend on the people. For the record label, the sellers of CD’s,… it’s sure that piracy has a negative impact (or they need to innovate). But for the actors, the singers I don’t know if piracy is a bad thing. It’s maybe a direct loss in terms of sales but it really could increase the notoriety of an artist. With platforms like spotify you can with one click discover songs that you would never have listenned. So you can discover and after in some case buy a CD or a DVD. The revenues of performers are not only the sales in the shops but also all the concerts, festivals, public appareances that they could do. So if an artist has a lot of followers on spotify he wil maybe have more people in front of the scene in the future. Therefore I think that it’s a a present loss but for a future win. It’s the same with the cinema/TV. Mainly for the series TV and the films in several parts (like «Hungers Games», «The lord of the rings»…). Sometimes you don’t go to the cinema and watch the film in streaming. But if you like the film you can buy the DVD for an HD quality. And go to the cinema for the next film. I don’t think that streaming has really a bad impact for the films producers. In the past you expected the film on the TV, now you expect a good internet link … The main fact is that the old format to listen music or watch films are not competitive with Internet and all the HDD, Usb-key, … The sales does not take place in shops but on the Internet. Therefore the songs/movie sellers needs to adapt their selling strategy and develop platforms on the internet where people pay for a song (like Itunes) or view publicity (like Spotify) Finally I don’t think that piracy is a problem in this sectors (cinema, song, TV) because you always lost money but the externalities and the future benefits are so important. The implication is that people needs to question their strategy, their way of selling product. Show less Reply Miguel Moreira 11 December 2013 Piracy is the natural consequence of a world that is every day more globalized and developed technologically, it's a natural reflex of a society that wants to have access to everything, the fastest and cheapest way possible. This phenomenon has some obvious disadvantages, but it also has many also advantages.Regarding the music industry, if piracy is the cause of the…Read morePiracy is the natural consequence of a world that is every day more globalized and developed technologically, it’s a natural reflex of a society that wants to have access to everything, the fastest and cheapest way possible. This phenomenon has some obvious disadvantages, but it also has many also advantages.Regarding the music industry, if piracy is the cause of the decrease in the number of physical CD’s sold, it is also the reason why the artists’ shows sell out in record time, why they can attract thousands and thousands of people. This is all due to the divulgation of the performers throughout the world in a way that a few years ago would be unthinkable. I think piracy was the red alert that society needed against the recording companies, that charged to much because the consumers didn’t have any other choice. In what it comes to me, I am against the concept and the idea behind piracy, however I admit that it was a necessary evil,because it was what lead to the creation of software like Spotify. These new applications are a “low cost” way to get access to the music that consumers want, and are still able to generate rewards for the artists, since that even there is an option that allows users to use it for free, they collect money from the publicity. Relatively to the comment made by the HBO programming president, I believe that the idea that “if the people like it, they will buy it” it’s wrong. It is not rational for a consumer to pay for a good if he is able to have access to it for free, exception made to the people that place some sentimental value in the fact of owing the physical good. One possible explanation for the fact that the sales of DVD’s haven’t decreased is that piracy is a more or less recent phenomenon, and some people are still very resilient to go along with it, and some still don’t have “access” to it. The way I see it, if society keeps evolving towards the same direction as it has been over the past few years, the tendency will be that the people will become less and less “afraid” to stop buying the physical material when they can have access to the content for free. In conclusion, piracy is a bad practice but it was a necessary evil. Now it’s time to figure out how to go around it and make the products reach the consumers in a easy way and at accessible prices, and I believe Spotify is a very, very good start. Show less Reply Haterte Alexandre 11 December 2013 Firstly, the fear of piracy isn't new, as people tend to believe, but comes from way back: "Home Taping Is Killing Music" claimed the British Phonographic industry in 1980, fearing the rise in home cassette recorder. More than 30 years later, we can see that such prophecies have yet to realize. The problem now is that piracy doesn't…Read moreFirstly, the fear of piracy isn’t new, as people tend to believe, but comes from way back: “Home Taping Is Killing Music” claimed the British Phonographic industry in 1980, fearing the rise in home cassette recorder. More than 30 years later, we can see that such prophecies have yet to realize. The problem now is that piracy doesn’t increase in “consumers” but in “consumption”: with the upcoming of the fast internet, more contents have been made available to the priracy consumers, increasing thus individual consumption. In the previous piracy system, the content made available werte thus hits or blockbusters, whereas now we are able to illegaly obtain much diverse content, making it possible for less popular movies, music,… to become widely known. A second misconception is that copyright owners don’t perceive revenues form pirated content. It can also be considered as false as the increase in piracy allowed them to ask what we call copyright levies on all supports (including CD, DVD, and now hard drives), they thus also perceive a small compensation on supports that aren’t used for piracy. This is intersting as the parties that asked these levies are those who opposed the global license From there, we can observe that piracy evolves and make consumer and laws evolve, it is thus impossible to make a final judgment on piracy. For example, not far ago, viewing musing on youtube could be considered as piracy, as the authors didn’t received any compensation. Now, youtube has contracts with majors and artits, paying them according to the number of wiews they generate, and thus the advertisement revenue they bring. This evolution allowed the upbringing of new artists which couldn’t have make it in the previous system. The last misconception is that pirates do not buy content they domnloaded illegally: lots of them are willing to buy if the content reach their expectations. Piracy is thus a way for the paying consumer to fight dispointment about a purchase over which he previously laked information (as he couldn’t wiew the content without buying it), and brings this market to complete information. From there, I am under the impression that the lobbying of the MPAA and RIAA against piracy comes more from the people that are affiliated but not from artist themselves: the biggest threat in this system would be for production or distribution companies, which wouldn’t be needed if the content could be sold direcly to the end user. The other theat for them is that content consumed changed : people wouldn’t now pay for shallow blockbuster, but would most certainly pay for productions with better content. On the other hand, to take back the example of this article, before the TV series, A songs of Ice and Fire was just appreciated by the subculture of the heroïc fantasy fans, which were widely spread. It is thus the growing expectation of these fans for the TV shows that made it a blockbuster through high participation of fans in social medias, but also through the iconization of character in memes. Of course, Game of thrones could have been popular without internet and piracy, but never a blockbuster, as it became known outside of the USA only thanks to piracy during the first season. Lastly, a solution that has been often brought to online piracy is pay per view: if the price isn’t too high, consumers will certainly prefer viewing a legal download/streaming than a pirated one. This could become a solution in the future to maximize income for contents to which the pirate consumer is not attracted enogh to make a “traditional” purchase; but the problem is that with the insecurity that most of the people have on secured data on internet, most of them are reluctant to this system not because they don’t want to pay but because they don’t want to give their credit card number on the internet. So in conclusion, my personal opinion is that piracy will not harm the concerned industries but will certainly change it, as they will have to evolve to meet the new consumption mode of their customers. Show less Reply Massot 11 December 2013 My opinion on the matter is in favor of piracy, that is being able to download the content of the media without the owner having knowledge or without him having anything to say about it. The reason why I have not put the word legal here is that some players actually use this to their advantage, by encouraging the download.…Read moreMy opinion on the matter is in favor of piracy, that is being able to download the content of the media without the owner having knowledge or without him having anything to say about it. The reason why I have not put the word legal here is that some players actually use this to their advantage, by encouraging the download. There are several reasons why this would be done: – Small players not able to compete in the competitive world of music and cinema benefit from this by creating a “buzz”. If I take a simple music as gangham style, it would never have reached my ears had it not been more medias like youtube or similar. He managed to have himself enough support to be considered and now i’m sure his music is making money (TV’s, Radios, Partys, …). – Big players like HBO use this to their advantage to increase their pool of potential buyers. I live in Belgium where a private cable firm like HBO isn’t strong. By actually having their shows downloaded and freely circulated, they benefit from free publicity near an audience that would never have heard of them otherwise. Once that is done, they benefit from the fact that everyone knows they exist, therefore being able to attract consumers or sell more derived goods. – There is a difference between downloading and having the original. If they manage to differentiate this difference a lot, they will win from it. For example having seen the show is a must for a lot of people in other to be “in” and interact with others (talks, jokes,…). Social medias like Facebook encourages this behavior because it is now possible to exactly identify who is a “fan” of the series and who is not. Now in order for you to see the so wanted episode that will boost your social life, it must first be put on the web by a willing payer. Then it has to be diffused a lot in order for it to reach you final computer and this takes time. This time can often go from one to three days, leaving ample time for people, who actually paid for the cable network to brag about the last aired episode. This effect could be even further increased in one doesn’t master english and has to wait for a translation or subtitles to exist. – Finally there’s a difference between having the real thing and experience legally and just downloading it. The reason why people buy a product like apple for example “tech addict” appart, is for the social recognition it provides. The same thing apply’s for channels like HBO, which I happen to come across in nice hotels or with rich friends. So people wanting to show their social status will know about the episode directly when it aires, showing they actually posses the cable at home. I’d like to finish this argument by illustrating it with the most famous example of all time. Microsoft is on more than 90% of the personal computers in the world and is literally dominating the market. The only reason this is true and apple didn’t have the same breakthrough at the time is because Microsoft aloud clones to be made specially in Asia. Doing so brought their vision of the pc everywhere, with it becoming the standard. By allowing illegal “downloads” to be made they brought their product to people with no means to buy it. Following this firms had to adapt and also chose Microsoft because everybody had it and it was therefore easier for them to touch their respective clients. So all in all, I am pro to the existing of “illegal” downloads and would encourage firms to use it as a tool and stop considering it as their enemy. It is however the firms job to differentiate the payers experience from the downloaders one thus creating a new need which is not seeing the episode but having HBO to watch it on. Show less Reply Sourav Das 11 December 2013 Who are the people who resort to piracy? Obviously those who want cheap content. The problem though is that if piracy were not there these people would rather not watch videos instead of shelling cash out for them. So piracy affecting digital video sales dramatically is a myth as explained in the blog. So are these the only people resorting…Read moreWho are the people who resort to piracy? Obviously those who want cheap content. The problem though is that if piracy were not there these people would rather not watch videos instead of shelling cash out for them. So piracy affecting digital video sales dramatically is a myth as explained in the blog. So are these the only people resorting to piracy. Apparently no. New research from Rice and Duke Universities contend that reduction of Digital Rights Management (DRM) can actually decrease music piracy. According to the professors involved, the DRM restricted product is only purchased by legal users and thus only they are affected. Keeping the cost aside, DRM restrictions themselves may get irritating. For instance, in some cases it may prevent users from making backup copies of their music. This may actually l drive the legal users towards piracy. In my opinion, companies should stop complaining and try and use piracy to their advantage. There could be many ways of doing so some of which were listed in the blog. A simple way of leveraging piracy would be to monitor user downloads of music, compile the more popular tunes of a band/album and sell their DVDs as collectors’ items. Or restrict digit music offerings in such a way that they can only be streamed and listened. That would enable the users to sample all of the music and then they can buy those tunes which they like. I think the absence of piracy would lead to the loss of an effective tactic of attracting new customers. Show less Reply Marie Khamphanh 11 December 2013 To me, the absence of piracy is worse than piracy itself. For example, consumers watch series illegally because of the non-availability of these shows in their local TV channels. Indeed, it’s more convenient for them to watch in streaming or download them directly in their computer. The illegal watching avoids the waiting too. In France, viewers have to…Read moreTo me, the absence of piracy is worse than piracy itself. For example, consumers watch series illegally because of the non-availability of these shows in their local TV channels. Indeed, it’s more convenient for them to watch in streaming or download them directly in their computer. The illegal watching avoids the waiting too. In France, viewers have to wait for 6 mouths to watch the series on TV. Moreover, as Paul Belleflamme and Martin Peitz said, it can be a way for the viewer to watch a few episodes of the series in order to know if he/she enjoys it or not. By this mean, viewers can get a little sample of the series. Then, the piracy can be beneficial for the TV channels themselves. In fact, massive views of a series can encourage other persons to actually watch the show. It looks like a network effect where the series become famous thanks to the word of mouth. It’s what happens to the HBO-series “Games of thrones” which is the most downloaded video. I can also add that the quality of the series is more attractive in the illegal network than the legal ones. For example, in France, private channels such as TF1 and M6 offer series platform which offer American series just a few hours after their release in the USA. However, this service is not really efficient because the downloading is quite long and the quality of the video isn’t really great. Finally, the illegal watching of series can boost the demand in complementary goods. Indeed, viewers can buy DVD series or games through the internet and make it benefit to the channel and the producers of the series. Finally, series and more particularly, American ones are watched worldwide, channels should think about another distribution channel such as Internet. For example, the American series “House of cards “is available on the streaming service Netflix. This service releases the episodes at the same time too which limit the waiting time. Then, the viewer can watch the series in a row. References http://www.lsureveille.com/entertainment/piracy-can-be-a-good-thing/article_ea64b1de-5bc1-11e3-98a5-001a4bcf6878.html http://teleobs.nouvelobs.com/series/20131205.OBS8474/house-of-cards-netflix-mettra-la-saison-2-en-ligne-le-14-fevrier.html http://www.ctvnews.ca/sci-tech/piracy-leading-to-huge-overseas-audiences-for-american-tv-shows-1.1464743 http://www.uclouvain.be/cps/ucl/doc/core/documents/coredp2010_60web.pdf Show less Reply Luís Cabral 11 December 2013 First of all, if piracy did not exist, I would not know half of the music I do know, watched half of the movies I watched, etc. In what concerns TV-series, I am not fond of it so I would never pay to watch it, despite I am willing to watch it for free. I think piracy, alongside with YouTube, video…Read moreFirst of all, if piracy did not exist, I would not know half of the music I do know, watched half of the movies I watched, etc. In what concerns TV-series, I am not fond of it so I would never pay to watch it, despite I am willing to watch it for free. I think piracy, alongside with YouTube, video and music-streaming websites have contributed a lot to the evolution, diffusion and innovation of music. The artists who are able to catch the audience, nowadays many are DJs, become rich and famous because everyone listen to the same tracks everywhere. Hence, when they do live acts, they get more money than the CDs they would have sold without piracy and not being so well-known. So, for me it is clear that the famous artists benefit from that, despite the less known ones might be shadowed by the hype. In what regards legal ways of listening to music, if someone values quality, they would always buy CDs or vinyl. If not, they might subscribe a Spotify or similar and pay 6.99€ a month (for Portugal), which is not so cheap taking into account that the average playlist has 170 tracks. That said, if you subscribe Spotify for one year you will pay 83,88€, or approximately 0,50€ per track, regardless of whether you change your playlist tracks or not. On the other hand, if you buy a CD with 15 tracks for 15€, you pay the same amount as in ITunes. All in all, only physical stores may complain about piracy, as far as they are the ones who do not get paid, while artists always find another way. As far as films are concerned, there are also Spotify-like websites for films. If they pay for the copyrights and still make money, why should they be worse than piracy? If the people from the industry are so worried and losing so much money, why don’t they pay some kind of Steam to protect their copyrights? Are piracy and modern technologies harming the artists themselves or rather the industry that was built to support and take advantage from music? I see it as a market development and I see this discussion as people from the oil industry going against renewable energies. There is a clear conflict of interests: culture diffusion vs. money. Show less Reply Julien van Cottem 11 December 2013 Piracy for intellectual property is theft… Sure but the society has evolved and the physical support is not anymore the main support. In the era of digital, Wi-Fi and clouds for data, physical support seems even obsolete and now everything is easily sharable. Because piracy does not only involved illegal contents but also official goods that has been shared between…Read morePiracy for intellectual property is theft… Sure but the society has evolved and the physical support is not anymore the main support. In the era of digital, Wi-Fi and clouds for data, physical support seems even obsolete and now everything is easily sharable. Because piracy does not only involved illegal contents but also official goods that has been shared between consumers. In this context, the customers’ behaviour has changed. Hopefully for film and music industries, “heavy” illegal downloaders (who make profits from their downloading) remains a little part of the population but about every one can have free access to any content they desire to consult. Nowadays, it becomes inconceivable to buy a physical support without knowing about the content. Moreover, people who couldn’t enjoy music or films because of money have access now and the “network effect” allows actual buyers to be comforted in their purchasing. Piracy, or what I prefer to call “global sharing”, allows us to purchase exclusively what we need thus what meets our utility. Then, the industries have a more precise idea of what they have to supply on the market. I think it is better for both side of the product. In our precise numeric world, if piracy has to disappear tomorrow, it will harm the industry more than they probably expect. Show less Reply XIEWEN YU 11 December 2013 My opinion about the question is that the absence of privacy is better than piracy itself. There are five reasons to support my opinion from my research. First of all, the reason why more and more illegal music downloading appears in the market can be reasonable understanded for market demand. Due to the natural relationship between market demand and supply, more…Read moreMy opinion about the question is that the absence of privacy is better than piracy itself. There are five reasons to support my opinion from my research. First of all, the reason why more and more illegal music downloading appears in the market can be reasonable understanded for market demand. Due to the natural relationship between market demand and supply, more and more suppliers chose to give consumers the opportunities to download the music illegally. It must give some benefits to the certain suppliers who are provide the service on the internet. Without paying certain amount of money, consumers can get more chance to know different kind of music as well as singers. From the music companies’ point of view, it is more easier for them to increase exposure of new-promoted singers who are lesser-known by the consumers. It may provide better platforms for businesses to earn more money from relative commercial activities of these artists. Secondly, music company can easily get the information about the interest tendency of the audience from vast data basis on the internet. If the company charge money from music downloading, the company may investigate the tendency inaccurate and unilateral because lack of enough amount of consumers. On the one hand, it reduces the cost of market research of the music businesses. On the other hand, once analyzing consumers well, the company can adapt the strategy to the market as soon as possible. It orientated the company earning more profits and market shares in the long period. Thirdly, many audience can not afford the fees for downloading the music. Nowadays, the development speed of music as well as the appearance of new singers are quicker and quicker. It can be a large amount of money to pay for ‘heavy downloaders’. Music can be less functional as a kind of entertainment tool. Furthermore, there is no definite relationship between decreased CD sales and illegal music downloading. ‘ A correlation between decreased CD sales and illegal music downloading does not mean that one caused the other. Alternate explanations include increased sales of DVDs, computer games and other entertainment and the availability of legal MP3 downloads of singles rather than entire albums.’Finally, it brings a large challenge for the internet industry. It can be hard for the internet engineer to block the illegal downloading effectively. In conclusion, I think the absence of privacy can be positive in several aspects. Companies can figure out other ways to earn the economic benefits by using illegal downloading as a useful tool. reference http://www.ehow.com/facts_5565142_illegal-music-downloading-effects.html Show less Reply Mariama Dicko 11 December 2013 The traditional view on piracy is that it is harmful. The main argument is that potential consumers get to consume illegal products that are substitutes to the legal ones. This argument is based on the assumption that there is a significant "displacement rate". Recent studies' results - as those presented by Waldfogel (2012) - suggest that such assumption may not…Read moreThe traditional view on piracy is that it is harmful. The main argument is that potential consumers get to consume illegal products that are substitutes to the legal ones. This argument is based on the assumption that there is a significant “displacement rate”. Recent studies’ results – as those presented by Waldfogel (2012) – suggest that such assumption may not be correct. Indeed, the displacement rate is only slightly above zero – meaning that the substantial part of the products consumed illegally would simply not have been purchased in the absence of piracy. As a free alternative, the existence of piracy does not guarantee that there is a willingness to pay. The figures linked to illegal consumption do not reveal consumers’ buying intentions, only their interest. Furthermore, Aguiar & Martens (2013) stated that they have not observed significant effect of illegal downloading on legal digital music consumption. Even if these surveys may have suffered some biases, the results support the idea that piracy may not impede the consumption of legitimate products. On the contrary, Aguiar & Martens (2013) noticed a weak positive correlation. It appears that the negative effects of piracy may have been overestimated. Now, the challenge is to assess whether the positive effects (the sampling role, the network effect and the increase in complementary goods’ demands) could compensate the negatives ones and even overcome them. Piracy allows a broader diffusion and appreciation of the products, copyrights holders could benefit from these free advertisements afterwards; moreover it is a “signal”, a proof that there is an interest from potential consumers, as a result, the rights holders are more credible, they get to convince and mobilize resources for further projects. Considering those aspects, the absence of piracy may not be the optimal case. Show less Reply Ankit Gupta 11 December 2013 I would like to start with the point of need that made piracy so prevalent. One of the main reasons of piracy has been the unavailability of the legitimate copies to the mass either because of limited copies or limited capacity of the consumer to buy such a product. But later on – the experimentation also made piracy a trend.…Read moreI would like to start with the point of need that made piracy so prevalent. One of the main reasons of piracy has been the unavailability of the legitimate copies to the mass either because of limited copies or limited capacity of the consumer to buy such a product. But later on – the experimentation also made piracy a trend. Hence, the introduction of Piracy in itself defines that the demand of product has been more than the actual sales. Now, considering the three mechanisms discussed in article – it is clear that piracy does complement to the legitimate product. Considering a new product in market – If I were a consumer, I would want the sample of the product to be available to me in free to experience it before I actually buy the product. And if that product sample is not available, it is more likely that I would switch to some other product. This is how Piracy is acting as a catalyst of sales to legitimate product – making the mass experiment.The more the consumers – the more the legitimate consumers – a positive effect of Piracy. Also, if one version of music/game is pirated, it does trigger legitimate sale of the next version before it gets pirated because some consumers just can-not wait. One of the clear positive ways – Piracy is complementing the legitimate product. In aggregate I would agree that the absence of piracy is worse than the piracy itself. Show less Reply Hexin Shi 11 December 2013 In my opinion it is very difficult to say that piracy will bring positive or negative effect totally. I think it will bring positive and negative at the same time. Take music record industry for example, illegal CD will benefit consumers and illegal manufacturer obviously and at the same time it will have a positive influence on legal manufacturer. Specifically, on…Read moreIn my opinion it is very difficult to say that piracy will bring positive or negative effect totally. I think it will bring positive and negative at the same time. Take music record industry for example, illegal CD will benefit consumers and illegal manufacturer obviously and at the same time it will have a positive influence on legal manufacturer. Specifically, on the one hand, rampant piracy disrupt the market order ,violate the interests of intellectual property owners ,weak the enthusiasm of creative people and destroy the industries’ cultural. Since the cost of illegal CD is much lower than the legal one (because no R & D costs), so the supply elasticity of piracy CD much higher than the original CD, so it’s supply curve is very flat. It means equilibrium price of pirated CD is far below the international equilibrium price. In this case, there are plenty of legitimate trade can not be traded. It make consumer surplus increased, piracy producer also won producer surplus, but for legal producers it means lost. On the other hand, it will bring some positive effect to legal producers. I am totally agreed with “illegal copies of a content good can play a sampling role by attracting consumers and driving them to purchase a legitimate copy later.” The sale of piracy CD will attract a lot of consumers (because the lower price), it will help consumers to know the CD and give information to consumers. Then if consumers very like this CD or singer, they will buy a legal one to support this CD, it will benefit legal producers. Because the piracy CD is just like free advertisement, it makes consumers to know this CD and singer. In conclusion, piracy will benefit consumers (because the lower price) and illegal producers (because no R&D cost), however it will benefit legal manufacturer (because piracy will attract a lot of consumers and make them to buy a legal product later). Show less Reply Labye Stéphane 10 December 2013 I am strongly convinced that piracy was a true ally for the entertainment industry. I employed a past tense because I think that illegal download might live its last days. This could be the result of two combined realities. On one hand, piracy has suffered these lasts years from a more restrictive legislation. To support this, let me take the example…Read moreI am strongly convinced that piracy was a true ally for the entertainment industry. I employed a past tense because I think that illegal download might live its last days. This could be the result of two combined realities. On one hand, piracy has suffered these lasts years from a more restrictive legislation. To support this, let me take the example of a well-known story that has gone all around the world: the Megaupload case. You will find in this article all the interesting facts (http://www.net-actuality.org/billets/263-affaire-megaupload-tout-ce-qu-il-faut-savoir.html). Regarding what does the creator of Megaupload incur in terms of consequences, I think this might discourage many to do so. Moreover, several websites (such as Pirate Bay) have been closed due to their illegal contents regarding the Belgian legislation. On the other hand, I guess that the entertainment industry has changed a little bit its strategy by trying to exploit more the potential of the Internet. For instance, the Majors of the musical industries have reached agreements with Deezer or Spotify (websites who share music legally), thereby trying to recover some lost profit. Another clear example is the development of the video on demand. More and more video content is now available thanks to this technology. Furthermore, the likely arrival of Netflix in Belgium will also probably democratize the video on demand (see http://trends.levif.be/economie/actualite/entreprises/netflix-pourrait-debarquer-en-belgique-avant-la-fin-de-l-annee/article-4000306320285.htm). To conclude, I would say that piracy has been a stepping stone for the development of what I would call the “new entertainment industry”. On that way, I believe it was a positive thing. Show less Reply Eva Leclercq 10 December 2013 For me, piracy induces two opposed effects and it would be difficult to determine which one is more powerful. On the one hand, it has been proved that piracy causes economic losses in the music and movie industries for example and also eliminates jobs every year. In fact, few people would pay for something they can get for free. But…Read moreFor me, piracy induces two opposed effects and it would be difficult to determine which one is more powerful. On the one hand, it has been proved that piracy causes economic losses in the music and movie industries for example and also eliminates jobs every year. In fact, few people would pay for something they can get for free. But from an ethical point of view, it would be logical to pay for a song that we like, for a movie that we enjoyed or for a software that is useful. We value these goods and we would be annoyed if they were not produced but we refuse to pay for them and to contribute to their creation. Moreover, in the long run, if nobody is ready to pay for music, movies or software, the production of these kinds of good will be endangered. On the other hand, I agree with the different elements cited in the article in favor of piracy. The exposure of the products increases and people that would not have known the product without the internet will maybe buy it. It is also easier for new artists for example to reach people who will spread the word around them. Furthermore, some users see piracy as a way to sort out good games from bad games before making a purchase. Finally I would say that piracy does exist and that it would be difficult to stop it. It would thus be better to cope with it and even to use it as a tool. In fact, I think that efforts made to prevent piracy are pointless and correspond maybe to an old way of thinking. Managers need to adapt to their environment instead of wasting their time and money to change the situation. Competing with piracy instead of fighting against it would help manager to better understand how to react and which actions could be successful. Show less Reply Oleg Nikolaiko 10 December 2013 Piracy is absolutely not a new phenomenon, but it started growing very fast since Internet exists, due to the technology, make a copy of something is an easy-game. In my opinion, piracy is helping artistic professions very well by expanding the market for artworks (Music, cinema…). I totally agree with the three mechanisms of Mr. Belleflamme which explain the…Read morePiracy is absolutely not a new phenomenon, but it started growing very fast since Internet exists, due to the technology, make a copy of something is an easy-game. In my opinion, piracy is helping artistic professions very well by expanding the market for artworks (Music, cinema…). I totally agree with the three mechanisms of Mr. Belleflamme which explain the positive effects that piracy may have on the profits of content producers. Each artwork is something new, it is not like the bread which you buy every day and always has the same taste, so, it makes us hesitate to buy because we may not like… But due to the piracy we can discover it, and it gives a chance to not well-known artists to be shared and to be discovered by a lot of people who have never had the slightest idea to buy their album. That corresponds to the meaning of the producer of the Game of Thrones from the post. Some rapports stress a negative effect of the piracy which is of course the losses that it provokes. But who loses first it is the state, which does not affect the tax, second can be the disk shops, and surely all those who get rich on the backs of artists. But it arises so much the social welfare by extending their choices, and it makes growing the industry. The government and not only, always try to stop the piracy. They think that if someone who downloads something illegally would buy the legitimate item if the first solution was impossible, but it’s obviously false. If the piracy will no more exist, the population will just consume less, and have a more limited cultural choice. http://www.key4biz.it/download/free/news/doc_3.pdf Show less Reply Domien Frederix 10 December 2013 I think that a certain amount of piracy will always be there because it always has been there (Democracy of Sound: Music Piracy and the Remaking of American Copyright in the Twentieth Century, by Alex Sayf Cummings, Oxford University Press). This is one of the consequences of the inherent social nature of music: people like sharing music throughout the ages.…Read moreI think that a certain amount of piracy will always be there because it always has been there (Democracy of Sound: Music Piracy and the Remaking of American Copyright in the Twentieth Century, by Alex Sayf Cummings, Oxford University Press). This is one of the consequences of the inherent social nature of music: people like sharing music throughout the ages. In fact, the history of music piracy can be traced back to the 1870’s. The debates around copyright and piracy are therefore not new. They have been there since the inception of sound recording. Copying sheet music, for instance, is a very old form of music piracy, trading mix tapes in the 20th century is another example of piracy. Turning music into intellectual property has always been conceptually complicated: copyright was only extended to music in the 1970’s, before that pirates had to be prosecuted under common law or statutory bans on unfair competition. Lawyers were once reluctant to turn music into intellectual property because they did not want to harm consumers by throttling creativity. They wanted to prevent monopolies in the music industry. Re-recordings of famous hits were even a major source of income for record labels in these times. The development of rap, for instance, in the 80’s and 90’s relied on a large number of old samples from famous artists. One could argue that the internet is just a modern form of piracy, which is an old phenomenon. One way to minimize piracy would be to fight free music with “free” music. Over the years many initiatives have been taken to considerably strengthen copyright law ( the Digital Millenium Copyright Act of 1998,Hadopi in 2009 in France, etc.). Regardless of this, shares of online music sales have significantly increased in industrialized countries. Online streaming services such as spotify and deezer realized that the market for free music was not yet saturated : they both offer a freemium model. The freemium model offers a free and a premium service. This is very different from for instance iTunes since it monetizes on users with a low willingness to pay. The firm chooses the number of restrictions that limit the use of the free version. Imposing stronger restrictions on the free users (such as strongly limited listening times) can affect piracy since these users can choose to turn to piracy. This model also has other advantages such as the potential sampling effect (the number of premium users, but this has also an effect on the level of piracy), the network effect (shared playlists) and an increase in demand for complementary goods. Notice that these are all advantages of piracy as described by the author here. This freemium model can therefore be a viable substitute for piracy. The authors (see reference) show that it is not optimal to increase restrictions too much, which challenges recent changes in restriction policy that greatly limit the use of the free subscription in online services proposed by Spotify or Deezer. This has important policy implications. The freemium model can be seen as a substitute for copyright. The recent European successes of Spotify and Deezer suggest that freemium models are excellent market-based alternatives to fight online piracy. Fighting Free with Free: Streaming vs. Piracy, Preliminary draft, Christine Halmenschlager (Université de Paris 2, ERMES) Patrick Waelbroeck (Telecom ParisTech), 2012 Show less Reply Defoy Gilles 10 December 2013 I want to answer with a massive no to this question because I think it’s based on studies which can be easily criticised. The first studies tell us that what has been illegally downloaded wouldn’t have been legally buy. Indeed, the listening utility of ONE music track is very low. We can easily get over it, we don’t need it. But…Read moreI want to answer with a massive no to this question because I think it’s based on studies which can be easily criticised. The first studies tell us that what has been illegally downloaded wouldn’t have been legally buy. Indeed, the listening utility of ONE music track is very low. We can easily get over it, we don’t need it. But the music consumers’ computer hard drives are full of illegal thousand music tracks. The combined utility, in this case, is so very high. All music lovers can’t get over all their tracks and would be obliged to buy some of them. Music is a very popular hobby. Unfortunately, there are too many different music styles. So we can’t find everything we want on radio. If people want to listen to the music they like, without piracy system, they would be obliged to go to the disc shop or buy it online. In consequence, we can think that, on the opposite of the Aguiar and Martens studies tell us, there is a lost profit for the music industry because of piracy. According to me, the main problem is the way they analyse their data. Indeed, the legal digital music consumption and the illegal one are 2 different ways to consume music. People who illegally consume music are persons who massively consume music. The quantity of music they have is too expense. They couldn’t handle it. So, if a system allows them to, time to time, not pay, it will be stupid to not use it. At the end of the day, this procedure is applied nearly every time because nobody has enough money. The illegal downloader will think that he spends enough money in artists’ shows where he was because he illegally downloaded their work. This kind of people perfectly plays their sampling role to attract other people as the economists think. As for the legal downloaders, they are people who buy music as they buy a car : they test it and listen to criticisms before spending their money. They made a reflective purchase which takes place online because it’s easier and faster than the disc shop. So, we can see the effects of one group on the other but I think comparing them is non sense Show less Reply Cibuabua Yves 9 December 2013 Nowadays, due to the highest level of internet connections, it becomes more easier to watch movies, series in streaming, download freely some intellectual property goods as music, videogames, softwares, books, etc. These piracy downloads have some negative impact on sales of the real products. If individuals were fined because they downloaded files which are protected by copyrights it…Read moreNowadays, due to the highest level of internet connections, it becomes more easier to watch movies, series in streaming, download freely some intellectual property goods as music, videogames, softwares, books, etc. These piracy downloads have some negative impact on sales of the real products. If individuals were fined because they downloaded files which are protected by copyrights it could help to fight against piracy. It was shown that people who regularly download music for example are more likely to buy CDs. If piracy could be eliminated, one can not say that all the people who use pirated products will switch to buy the legitimate products. There is also network effects, some people just consume a product because it’s a trend. It helps to promote the serie for example, this way, the copyright holder could use this reputation to create some alternative products surrounding the main one. And for experience good, it would increase the willingness to pay of the consumer and the number of people wanting to buy it. But piracy has also negative effects by decreasing the demand for the legitimate item. The demand is splinted into two. People have the choice between legitimate or pirated products, but whether piracy exists, it is also because, the true intrinsic value of the music item is smaller than its price, so they switch to the pirated products. In my point of view, piracy is complement to the legitimate product. Show less Reply De Greef Thibaut 9 December 2013 To answer to the question, I don’t think so. According to me, in aggregate, piracy has a negative impact on the record industry. If you take a look to datas about downloading (billions downloadings per year) you could make a quick interpretation about the impact and the loss that piracy represents for the record industry but, in fact, the question…Read moreTo answer to the question, I don’t think so. According to me, in aggregate, piracy has a negative impact on the record industry. If you take a look to datas about downloading (billions downloadings per year) you could make a quick interpretation about the impact and the loss that piracy represents for the record industry but, in fact, the question is more complex than that. Indeed, there wouldn’t be so much downloadings without piracy simply because consummers are getting songs they wouldn’t listen to if they were not free. People listen more to music with piracy because there are able to constitute a larger music library. I so introduce what can be a positive impact of piracy on the record industry. By a larger spreading of music, it’s easier for little artists to be known and piracy has thus a great impact on their sales. This impact is different on blockbusters because they don’t need the “marketing” effect that piracy can provide and piracy has thus as only impact for them to allow consumers to download freely their work. So, this effect is not totally positive and depends on the artist/ label etc. Besides, even if the analysis of Aguiar and Martens concludes that illegal downloading has a positive impact on legal downloading, I think that it has a positive impact only since illegal download websites exist. According to me, population is constituted by a proportion of people not willing or able to pay and a proportion of people that are risk adverse or willing to pay for music. Those people have their own reasons to prefer illegal or legal music but make a choice between both and rarely go from one side to the other one. An increase of illegal downloads, is followed by an increase in the chances that the song is downloaded due to the marketing effect. But I think that all the positive effect that piracy provide are not large enough to compensate the loss caused by it. Without illegal download sites, less people would listen to music but there would be more people paying for it. To conclude, I would say that the economic model where artists and labels earned money by the sale of songs is endangered. In the future model, the download website will be an instrument to spread music all over the world. Artist will then earn money by concert, radio, the use of their work in movies, commercials etc. The sales of songs will only represent a little part of their revenue. Show less Reply Jean-Benoit Valschaerts 8 December 2013 I think that piracy affects legitimate industries positively in most case, and anyway, especially in the music and film industry, there's no way to fight it because there are a lot of other business models that are more profitable than the actual, taking the spendings on fighting piracy into account. In most cases, especially in mass-market products for which every inhabitant…Read moreI think that piracy affects legitimate industries positively in most case, and anyway, especially in the music and film industry, there’s no way to fight it because there are a lot of other business models that are more profitable than the actual, taking the spendings on fighting piracy into account. In most cases, especially in mass-market products for which every inhabitant of this planet is a potential customer, piracy increases the coverage of the products, the author refers to it by ‘network effects’. This increases in the same time also the coverage of customers that buy a legitimate copy. It is comparable to a marketing campaign, giving samples to a wide range of the population that would anyway not buy the product, helps promote it and make customers that are ready to pay for it, want it. Of course there will always be a fair share of canibalization, so firms should try to find a solution to better differentiate customers that are ready to pay. But in the century of the internet, it is very difficult to control who can get illegitimate versions. Another solution would be for the firms to propose different versions of the product. One could be free for download, but with ads to help to pay for it. So people who are not ready to pay for a copy would still be able to get it for free and people that are ready to pay for it and are easily bothered by ads would be ready to pay for a copy without ads. This is just my opinion on how companies can adapt their business models to maximise their profits while adapting to the current situation. A wider creative solution to fight contrefeit products, would be that the legitimate companies produce themselves “contrefeit” products with a defect and the bring the flawed products on the black market. Customers ready to pay for the legitimate product but who could find a cheaper pirated version, will then lose faith in the side-market and might return to the regular market. Meanwhile, the ones who have a contrefeit product, but were in any case not interested in paying for that product, will still be fine with a slightly flawed version and still participate in the promotional network effect. So to conclude, I’m persuaded that piracy does not in general harm firms if they can adapt their business model to it. As studies showed, revenues of small and mid-size movie producers, that account for the major part of the films produces, where lower after the close-down of Megaupload, the famous cloud service for watching pirated versions of movies. It appears that only blockbusters benefited form it, probably because more people absolutely want to see the ‘must-watch’ movies, but maybe profits of blockbusters would have been higher if the producers had their own streaming websites where people could watch the movie while paying with ads? Source: Peukert, Christian and Claussen, Jörg and Kretschmer, Tobias, (2013), Piracy and Movie Revenues: Evidence from Megaupload: A Tale of the Long Tail? Show less Reply Lancelot d'Aubreby 7 December 2013 I think that the positive effects from piracy compensate its negative effects. Indeed, many people need to try something before purchasing it. They won’t take the final purchasing step without having the experience of listening/watching some media content. They are hesitating and thus need to be reassured regarding this issue before taking their final decision. Also, when people download illegally some…Read moreI think that the positive effects from piracy compensate its negative effects. Indeed, many people need to try something before purchasing it. They won’t take the final purchasing step without having the experience of listening/watching some media content. They are hesitating and thus need to be reassured regarding this issue before taking their final decision. Also, when people download illegally some material, they will often find songs or videos from the same category that they wouldn’t have seen if they had bought it legally. When you download something on internet, there is very often a message appearing making a list of what consumers with the same profile as you also downloaded. As downloading illegally is free, many people will also download the similar media content, in contrary of the legal market where consumers most usually won’t take any risk. It creates a kind of network effect thanks to this online mouth-to-mouth. Thus, illegal downloading allows some artists to be much more famous than they would have been without piracy. If the music industry lobby can forbid completely piracy, then the ones who were the less interested won’t buy the real CD/DVD. So, the artists are losing some people that will talk around them about their work. By forbidding piracy, they simply lose one part of their target people. The only people that will buy the CD/DVD have to be very interested, but I still don’t think that it will compensate the losses of the network effect made by piracy and the costs of building up an efficient ant-piracy strategy. Furthermore, it is demonstrated that the people who download illegally are also the ones buy the most (http://ecrans.liberation.fr/ecrans/2007/11/05/pirater-plus-pour-acheter-plus_957846?page=article). Even if they don’t buy the CD, they will go to the concert. In fact, piracy can also be seen as one more channel to reach the consumers. Show less Reply Sailesh 7 December 2013 The answer is that it depends, simply because while piracy may have its benefits, there are those who suffer losses as well. It has been established by now that the losses faced by the entertainment industry is no where near what had earlier been claimed. Not, however, that this does not mean there are no losses, just not as much…Read moreThe answer is that it depends, simply because while piracy may have its benefits, there are those who suffer losses as well. It has been established by now that the losses faced by the entertainment industry is no where near what had earlier been claimed. Not, however, that this does not mean there are no losses, just not as much as previously thought. Equally, there are sections of the industry that clearly benefit from piracy. I think the truth about benefits of piracy is most likely somewhere in between. On one hand, we have blockbuster movies that fans wait for in anticipation. If online piracy did not exist, a vast majority of the fans would probably watch the movie through “legitimate” means, such as in the theaters or via authorized renting channels. Piracy makes this content available to a lot of fans who might otherwise have spent money on it, leading to losses to the industry. On the other hand, there are (low budget?) movies that are not marketed heavily, and therefore, capture the attention of only a small minority. The network effects mentioned in this article probably come into play in such a scenario. A person hearing about a relatively unknown movie from a friend (who watched it illegally) might spend money to watch it legitimately. This extra revenue is a bonus – in the absence of online piracy, the person would not have heard of the movie and would not have spent money watching it. A study jointly conducted by Copenhagen Business School and Munich School of Management show exactly this result. They find that online piracy actually increases revenues for small and mid-range movies, even though it might lead to a drop in revenues for blockbuster movies. There is also a short paper by Gu and Mahajan that shows that piracy is beneficial to firms when the marginal utility of money to customers is sufficiently higher than it is to some other customers. This is exactly the case in most of the developing world. Considering that a greater proportion of that population has started watching shows that otherwise are shown exclusively in the developed world, this result has implications for revenue generation from these countries. Piracy, therefore, helps in promoting content from unknown or independent artists, or of off-beat projects. The losses to blockbusters are probably balanced out by the exposure and revenues to other movies, and from revenues from customers with lower purchasing power. On balance, I think the net effect is beneficial, because there is a much wider variety of art that is accessible to us. Finally, the revenue/diversity logic is not the only way that piracy can be beneficial. For a long period of time, piracy filled the needs of consumers who found the timings of movies and shows too rigid to match their schedules. Equally, there were others who did not want to purchase a package bundle to watch only one show (example: you need the entire HBO package to watch Game of Thrones). online streaming from websites such as Hulu or even Netflix is a response to this problem. Therefore, one could argue that online piracy led to this technological innovation. Show less Reply Antonio Ouwerx José de Mello 7 December 2013 In my opinion, in a near future the context will be completely different. Downloading music and videos will be no more something done by people or an issue thanks to the extension of internet’s increasingly availability, capacity and quality; soon everyone will be able to listen easily to streamed music as if it is a downloaded one. Therefore, one day…Read moreIn my opinion, in a near future the context will be completely different. Downloading music and videos will be no more something done by people or an issue thanks to the extension of internet’s increasingly availability, capacity and quality; soon everyone will be able to listen easily to streamed music as if it is a downloaded one. Therefore, one day we could see an absence of illegal pirating/downloading. Internet has revolutionize the way how companies are doing business, selling their products/services and it has allow the blooming of new business models; free as business model has never been so successful as nowadays (i.e. Skype, Facebook, Google, etc.). Internet has also become a tool for businesses to differentiate themselves from competition. Everything is easier for companies through internet and software sophistication. Thus, the perception of the real created value is constantly changing. In the example of the music industry, if I desire to compose music I can! To create a song, we do not need to be anymore a great singer or an experienced musician. I could just grab my computer make a song thanks to an app, post it in Youtube or Soundclound and even give people a free access to download it. Internet as diminish the barriers of the music industry and increase the audience, we see more and more new artist and new songs. This increased competition and the very existence of internet are pushing artists to give their music work for free as a promotion of themselves for the only purpose of reaching the biggest audience possible. Nowadays, artist create revenue throw other value propositions (concerts, festivals, private concerts, etc). Possibly the market will continue going in this direction. I believe this new kind of artist have understood that their music is not their selling product but eventually their performance on a stage is much more likely to bring a value that could be remunerate. Last decade, we can observe a very important rising of revenues done through artist’s performances. These performances have compensated a significant share of their revenue losses due to illegal downloading. Nowadays, being an artist is much more than just making music, actually people start to value more and more the artist’s ability to offer a great performance. Artist put their own music on Youtube for free listening, so for what reason downloading it should be a concern. May be because internet is not yet the perfect mean to listen to music everywhere and whenever you want but that time is coming! To put in a nut shell, yes I believe the absence of piracy could have a negative impact on the music industry, it means the impossibility to reach such big audiences that eventually promotes their music and indirectly increase sells. Still I see piracy has illegal, for the simple reason that the majority of artists do not perceive music as free content. This perception is changing and going in a new direction. Last but not least, I truly think the absence of piracy is an inevitable future and we just have to wait until a considerable upgrade of internet, in terms of its geographic availability and its capacity. This means the day when streaming could crush downloading. Show less Reply Bertrand RIbonnet 4 December 2013 I think that we can find arguments going in both directions while addressing the benefits of piracy. First, I think that the study conducted by Aguiar and Martens (2013) could lead to extremely different conclusions if it was repeated in a few years. Indeed, I think that the biggest part of the population downloading illegally on a regular basis is…Read moreI think that we can find arguments going in both directions while addressing the benefits of piracy. First, I think that the study conducted by Aguiar and Martens (2013) could lead to extremely different conclusions if it was repeated in a few years. Indeed, I think that the biggest part of the population downloading illegally on a regular basis is composed of people under 25. I also believe that they won’t lose this habit when their purchasing power will increase (and thus give them the opportunity to buy more legal copies) since the illegal content is immediately available in opposition to DVD’s for example. Moreover, there are more and more illegal copies released in high quality. In my opinion, the increase in illegal downloads has no effect on the sales of legal copies because these acquisitions are made by different shares of the population. The grown-ups keep buying legal copies while teenagers acquire it illegally and would not buy it if they had to pay for it. An increase in illegal download thus has no impact on the purchasing of legal copies. But as these teenagers of today will be the grown-ups of tomorrow, they could see a drastic drop of legal sales in the future. So the industry could suffer from piracy. On the other hand, piracy can have a positive impact on the industry. One effect of being able to get content for free is that you tend to consume more of this content than if you had to pay for it. We could imagine for example that the music/series producers release for free on the Internet to induce a mass consumption and then get their revenues from advertising (compulsory to be able to see the content). Another argument calling for piracy is the fact that gratuity enables small productions to have a visibility and fans that they would not have if people had to pay and thus chose between several contents. As argued in the article, the positive impact can come later by inducing fans to get a legal copy. To conclude, I think that piracy in itself is illegal and thus should not exist. However, we could consider the possibility for the legal proprietary of the content to release it for free on the Internet (as shown above). Show less Reply Delinte Jérémy 4 December 2013 I am really convinced that piracy brings positive effects for consumers and in certain cases for companies. For example, piracy could bring some benefits for the video game industry. Indeed, games are generally expensive and gamers who don’t know a game want to try it and download it before spending a lot of money in a purchase. If they appreciate…Read moreI am really convinced that piracy brings positive effects for consumers and in certain cases for companies. For example, piracy could bring some benefits for the video game industry. Indeed, games are generally expensive and gamers who don’t know a game want to try it and download it before spending a lot of money in a purchase. If they appreciate the game, they will buy it and they will take advantage of all additional services offered by the legal video game like an online experience, add-ons, online supports, and so on. To illustrate more scientifically this last example, I found a recent study about the “Effects of Piracy on Quality of Information Goods” (Lahiri and Dey 2013). These researchers reveal that a certain level of piracy could have some positive effect. Some companies argue that losses due to piracy imply lower investments in R&D. Recent academic research on piracy of information goods (e.g., Cho and Ahn 2010, Jain 2008) supports this point of view. The logic being that piracy decreases return on investment in quality which, in turn, leads to lower incentives to invest in quality. The Lahiri and Dey’s study shows some examples that explain the opposite. In fact, some companies like Adobe, Valve or HBO invest more in R&D to offer innovative services for fighting piracy. Concerning HBO, it provides their content through HBO’s cable TV channels or via its new Internet protocol television channels. These additional offerings have reduced piracy and brought in new subscribers. Others examples are given in this study. Finally, Lahiri says “(piracy) still does the job of injecting competition into the market, and competition is good for consumers”. I agree with this and companies are now competing against piracy by providing quality products. Now, they have to provide better products than those available free on the Internet. Hence, it implies more innovative products and more innovative services and this is good for consumers. References: – Atanu Lahiri, Debabrata Dey, (2013) Effects of Piracy on Quality of Information Goods. Management Science 59(1):245-264. http://dx.doi.org/10.1287/mnsc.1120.1578 – http://www.foster.washington.edu/centers/facultyresearch/Pages/piracy-upside.aspx Show less Reply Duvivier Julien 4 December 2013 Internet was built to easily share data and communicate. So it’s the essence of internet to share and gratuity is the norm. The e-business is still a novelty and faces two kinds of buyers: the one who comes on the website just to buy and already knows the company and the one who go web browsing. The first one will…Read moreInternet was built to easily share data and communicate. So it’s the essence of internet to share and gratuity is the norm. The e-business is still a novelty and faces two kinds of buyers: the one who comes on the website just to buy and already knows the company and the one who go web browsing. The first one will always pay as it’s the purpose of his visit but the second one is like the pedestrian who walk in front of the store, he is only a potential buyer. So that, when companies claim that there are losing customers it will be better to say that they are just losing some potential sells. The question is how to catch this potential buyers, how to convince them to pay for the product. The thing is that a lot of customers want to pay. Some restaurants have no price on their menu and people only give a reward which they think is fair and it works! So as the internet is different from the “real life” it needs new business models based on the voluntarism of the buyers. Some website like http://www.yourmusichall.com are example that internet user are ready to support and pay for music. Open source is another example that it’s possible to be profitable on the internet. As internet become a more and more important part of our life, companies can’t ignore it and have not only to transpose the old business models but to create new one. People still value the products and are ready to pay for it. The payments means need to be adapt and become as easy as in real life. No piracy would simply mean that the value for your product is below zero, people don’t want it even if it’s free. Piracy is a good indicator to measure popularity and to spread your product over the entire internet. Then once people like what you do, you just have to convince them that you need them. Show less Reply Jori Sihvonen 3 December 2013 Piracy has always existed, and I believe it always will exist! People have always copied books, music notes (ancient piracy), verbally told stories and taped music from the radio. Internet has just made it a serious international problem. Sylvain Choquet pointed out a few of the problems related to piracy and I would like to make my post a sequel…Read morePiracy has always existed, and I believe it always will exist! People have always copied books, music notes (ancient piracy), verbally told stories and taped music from the radio. Internet has just made it a serious international problem. Sylvain Choquet pointed out a few of the problems related to piracy and I would like to make my post a sequel to his. First of all let us consider television programs like the Game of Thrones, which was used as an example in the post. It airs in the United States, and then Europeans and the rest of the world have to wait to see it from their television providers. This lag period has been months usually, and during this time the buzz has been forgotten. Also if a person reads US magazines, websites or fansites of the show, or even IMDB, the risk of spoilers is huge, thus lowering the chances of the series to be popular in the new market area. The reason why I believe piracy has been increasing lately is mainly because there is no real other option if one “lives in the wrong country” and wants to follow a certain tv-series. Piracy is showing tv-stations and media houses the direction of development: people want to decide when they are watching and what instead of sitting every Thursday at 9 to watch the new episode. As an example of an attempt to provide a better service, HBO opened a streaming service in the Nordic countries, where they have HBO series legally available within hours after the US premier. But again, this is not available in Belgium. The Nordic countries are usually in the forefront of such launchings in Europe as fast broadband internet has high penetration rate. HBO Nordic is something that can counteract and fight piracy and thus increase legal internet purchase. With this service one can legally be a part of the buzz created around the show, and live an international life. The problem with piracy has been the fight against it, which resembles the problems with protection of patents and R&D spending. The traditional media companies have been fighting piracy, when they should have been developing better services, which are not yet present in most of the countries (e.g. Netflix, Spotify, Amazon Prime, HBO Nordic, Hulu etc.). For instance Spotify was founded by few geeks from Sweden, not a media house. Netflix was also an independent company of the media houses, and now they are producing also award winning TV series. The media industry as a whole has been changing with the dawn of the internet era, and the traditional media houses have not been able to follow up. Also in the music industry the ways of earning have changed, and now concerts play a larger role in making famous musicians rich (this has lead to constantly increasing ticket prices). The absence of piracy would lead to much lower consumer choice and social welfare. Piracy can be the only way to listen to some foreign music, watch a movie or series in the original language with your own subtitles. Piracy can also teach people languages, as they will probably watch the movie in original voice, and maybe have subtitles in their own language. It is often said by the organizations fighting against piracy that the economy loses X amount of dollars due to piracy, but I believe that those dollars or Euros are spent on other things, and the economy as a whole does not lose. The absence of piracy with current legal competitors would be worse as the consumer choice is lower, but if there would be better “easy access” legal service providers where you would have the “all the world’s music and videos” at your hands anytime, it wouldn’t be a problem, as there would be no need for piracy as you could have everything legally, and I think people would be willing to pay for this better service. Show less Reply Willems Margaux 3 December 2013 After reading this text I think on one hand that piracy can play a positive role in the industry in terms of "advert". Of course if a lot of people speak of a film, a series or a song, this is a good way to promote them. People who didn't know these films can now have a debriefing, an opinion…Read moreAfter reading this text I think on one hand that piracy can play a positive role in the industry in terms of “advert”. Of course if a lot of people speak of a film, a series or a song, this is a good way to promote them. People who didn’t know these films can now have a debriefing, an opinion and maybe the desire to buy it legally, because there is less risk to buy, the product is known before the buying. The best advert is the others and their point of view. In general we trust more a friend, a member of our family than the real advert of the firm concerning the film or the song. The experience is the best way to prove that the product is good or not and if many people have this experience it means that the product is very good! On the other hand, regarding the past, where the downloading was not so easy in the music industry and maybe not possible, the music firm didn’t expect a free advert. It means that people who wanted to try a song didn’t have other choose than buy it. Advertising was done in a different way but legally. Moreover, hear about illegal downloading can give bad idea to people who buy legally in general. If all you friend download their music illegally, you maybe want to do the same and then you represent a loss of sale. It’s a dark side but not the biggest one. Finally, I think that it is possible to survive without piracy because it is said in the text that illegal downloading doesn’t mean a huge loss in sales. The only “bad” impact I see is the loss of free advert from experienced people, which represent a considerable advantage for the industry. Therefore, we can live without piracy and without huge side effect. Show less Reply Ruben Savelkoul 2 December 2013 I am convinced that piracy has a positive effect, especially on the music industry. Not only do I agree with the theories that predict positive effects in the blog post, I believe there is another important consideration that is often overlooked. I will focus on the music industry to explain my view. Piracy provides a much more diverse market. Musicians could…Read moreI am convinced that piracy has a positive effect, especially on the music industry. Not only do I agree with the theories that predict positive effects in the blog post, I believe there is another important consideration that is often overlooked. I will focus on the music industry to explain my view. Piracy provides a much more diverse market. Musicians could not reach a lot of people in their target audience before piracy, as it was much more difficult to diffuse their music to the audience. People could not hear the music unless it was played on the radio or featured in some other media. Therefore, only a select group of artists, favored by the influential media, could reach the public on a large enough scale to profit from it. Now that, because of piracy, music is spread very fast among likeminded people, a lot more musicians reach the best part of their target audience. While there is no empirical evidence, I am very much convinced that because of the sharing of pirated music, a lot of artists are reaching the benchmark where they can make a living of their music. So even if the big earners in the music industry would lose money because of piracy, which is not clear, I think it has a very valuable side effect by letting more people be profitable in the industry. Lastly, because more artists can cater their very diverse music to the entire world, the public has a much broader selection to choose from. It is of course very hard to valuate this, but I think everyone would agree that this too is a positive effect. While I only explained why piracy is beneficial in the music industry, I am convinced that there are more industries that are ‘plagued’ by piracy where the same logic applies. There may however be industries that do not benefit from piracy at all and would be better off without it. Show less Reply Sylvain Choquet 2 December 2013 Depending on the method used to dissuade piracy, answers will be differents. If the aim is to block any websites that allow users to have access to illegal goods (music, films or books), that will simply not work because users will always find a way to go around those barriers. A positive way to dissuade piracy is through online streaming music (such…Read moreDepending on the method used to dissuade piracy, answers will be differents. If the aim is to block any websites that allow users to have access to illegal goods (music, films or books), that will simply not work because users will always find a way to go around those barriers. A positive way to dissuade piracy is through online streaming music (such as Spotify) that allow the consumers to hear, and more importantly discover, music and remunerate the artists. These services, in my opinion, have a positive value for artists because they allow a fair remuneration (cutting the majors sometimes) and allow new artists to be discovered. These discoveries can lead to purchase of albums, or to presence in the concerts. Some artists have even put their album available for free online (Gorillaz is one major example), mainly because they believe it attracts more consumers, people that would have not buy their album maybe. In the case of movies, or tv shows, piracy is another phenomenon. Mainly because it allows consumers to shortcut the traditional mean of diffusion (DVD, Blu-ray, and cinema). Those that download films may have seen it in cinema and want to have it because it was good, or they do not have money to go to cinema (less to buy the DVD). And piracy could allow a larger diffusion of media (that is the free spirit of piracy as defended by some). Tv shows are probably the best example of international diffusion. They are mainly produced in the united states, and not available before months or even year in the rest of the world. Illegal download is a mean for fans to follow their favorite tv shows in the same time as the US, or to have access to original version (and not translated version). And Tv shows do not suffer from piracy since their main revenue source is through diffusion. However Netflix could probably become the savior of the movie industry (as Spotify could be to musical industry), by allowing consumers to watch movies for barely nothing and redistributing money to firms. Finally I would like to express two points: First, that piracy is a major phenomenon now, but only because it is widely spread and that we can quantify it. Previously other means of illegal possession were available, such as recording movies when aired on the television, or music. Or copy of audio or video cassettes could be made. Secondly, that piracy could be a good thing for consumers, in a creative way. Because they have access to TV shows, movies or songs, the only way for artists and producers to attract them to legal means (TV broadcasts or concerts) is to be sufficiently entertaining, or offer a particular live experience. And this could lead to an increase in creativity (The show breaking bad is a good example, for its bad guys), and less commercially oriented shows, musics and films. Show less Reply Leave a Reply Cancel reply Your email address will not be published. Required fields are marked *Comment You may use simple HTML tags to add links or lists to your comment:<a href="url">link</a> <ul><li>list item 1</li><li>list item2</li></ul> <em>italic</em> <strong>bold</strong>Name * Email * Notify me by email when the comment gets approved.