Ed Parnell's Cunning Plan

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Piracy cut in half in France, yet music and movie revenues fell | Techi.com

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France made waves in the P2P industry by implementing a controversial graduated response program in 2010 that was designed to reduce the amount of illegal downloads by establishing progressively-harsher penalties on file sharers. The results were strong, as shown in Hadopi’s report, with file-sharing activities traffic slashed by two-thirds in 2011. However, the goal of increasing revenues in the French music and movie industries did not materialize and revenues fell in both industries.

The French music market fell 3.9% in 2011 while the video market fell 2.7%.

As Ernesto of TorrentFreak says, “If we follow the logic employed by the anti-piracy lobby during the past decade, this means that piracy is actually boosting sales.”

The declines in revenue were inevitable and will continue as technology makes it less-expensive to be entertained. Legal downloads and streaming services do not generate the revenue nor the profits that DVDs and CDs once did. The obsessive pursuits by governments, lobbyists, and anti-piracy organizations are wastes of energy when the real challenge the industries face are evolutionary. They are simply not adapting fast enough.

Piracy has an effect on music and movie sales in the same way that smoking has an effect on a person’s health. The problem is that the industries have a much bigger problem with understanding the way that their customers operate today and onward into tomorrow. If piracy is like smoking than lack of innovation is like a bullet wound. When you’re getting shot, you don’t take time to quit smoking.

via Piracy cut in half in France, yet music and movie revenues fell | Techi.com.

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Written by edparnell

April 2, 2012 at 12:32 am

Posted in Money, Movies, Music

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