What Does On-line Piracy Cost?
The actual cost on-line piracy poses on the U.S. economy is a debatable, and at times, difficult figure to pin down. As stated in the previous post, on-line piracy is a growing concern. That is something all parties can agree upon. The more difficult task at hand is to determine how to interpret capital losses.
Recording Industry Association of America: The RIAA feels on-line piracy is a punch to the side of the U.S. economy. They state piracy cripples those who invest much of their lives to produce quality music/art. According to a credible study by the Institute for Policy Innovation, piracy costs the U.S. economy $12.5 billion per year, eliminates 70,000 jobs, and takes away $2 billion in lost wages.
MPAA
Motion Picture Association of America: The MPAA, like the RIAA, has a firm stance against piracy. According to the MPAA, the motion picture industry provides the U.S. economy $175 billion annually, employees roughly 2.1 million workers, and contributes $15 billion annually to federal and state tax coffers.
The RIAA and MPAA feel industry contributions to the U.S. economy and American entertainment, provide great benefit to the U.S. society and culture. Piracy is devastating to all parties involved and should not be underestimated or under-calcualted.
Many opposing views state piracy has a minimal impact on the U.S. economy and entertainment industry as whole. According to an article found on washingtonpost.com, the actual capital cost is up for interpretation. The film and music industry may calculate losses based on overall value of that particular film or song. However, the opposition states more times than not, the film or song would not have been purchased if it were not free. This point-of-view is difficult to asses. The fact of the matter is the song or film isn't free and a monetary value has to be placed on the production.
Overall, piracy is a real issue that affects industries, jobs, economies, and lives. Once again a common ground needs to be found in order to establish a standardized interpretation of monetary losses. We look forward to your comments and feedback on blog 2!
Next time: SOPA/PIPA
(I do not own any of the following information. It is simply being used for educational purposes only.)
Sources: http://www.riaa.com/physicalpiracy.php?content_selector=piracy_details_online ; http://www.mpaa.org/policy ; http://www.washingtonpost.com/blogs/wonkblog/post/how-much-does-online-piracy-really-cost-the-economy/2012/01/05/gIQAXknNdP_blog.html
Great article! But there are arguments in favor of software piracy. Some people say that piracy provides better exposure for the company producing the software. For example, people argue that Microsoft benefited a lot from pirated versions of its operating systems because piracy dramatically increased their market share - more and more people are using their software. In fact, according to Techdirt.com, Jeff Raikes, head of Microsoft’s business group, at a recent investor conference said that Microsoft is against piracy, but if you are going to pirate software, it hopes you pirate Microsoft software. What do you think about that side of the argument?
ReplyDeletebkassahu
I think that argument is very compelling and demonstrates a different view that maybe isn't typically associated with piracy...very well done! It is interesting to see this view by Microsoft...against piracy in general, but if your gonna do it, do it with our product. Reminds me of the Dos Equis commercials..."I don't always drink beer, but when I do, I drink Dos Equis"
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