| MPAA Loses $6.1 Billion, Calculator, to Piracy |
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MPAA RELEASES DATA FROM PIRACY STUDY Comprehensive Snapshot of Film Theft Provides International Anti-Piracy Roadmap Washington, D.C. - - The Motion Picture Association of America, Inc. (MPAA) today released new information about piracy from a comprehensive study done by LEK Consulting that the association is using as a roadmap to help fight piracy worldwide. The study was commissioned for use as an advocacy tool to illustrate for governments around the world the need to thwart copyright theft, which directly impacts economies in countries from the United States to China. It provides specifics about which countries have the biggest problems with piracy, the impact on the economy, losses to industries in various countries as well as losses to the major studios, and a profile of the typical pirate. It also reflects a more complete picture of piracy because for the first time, losses due to Internet piracy are measured. They have lost 6.1 billion dollars to piracy in 2005, indeed. Lets look at some historical figures, courtesy of Box Office Mojo and my clever cut & paste skills:The film industry is a thriving economic engine that generates jobs and exports in countries all over the world, said MPAA Chairman and CEO Dan Glickman. We are calling on governments internationally to continue to work with us in limiting the impact of piracy on local economies and the film industry. Movies are a valuable product and intellectual property must be respected. This study will help us better analyze and focus our efforts to fight movie theft. According to the study, MPAA studios lost $6.1 billion to piracy in 2005, which is consistent with a piracy study conducted by Smith Barney in 2003 that predicted the motion picture industry would lose $5.4 billion to piracy in 2005. Of the $6.1 billion in lost revenue to the studios, $1.3 billion came from piracy in the United States and $4.8 billion internationally, with nearly half of that loss occurring in Europe. About $2.4 billion was lost to bootlegging*, $1.4 to illegal copying* and $2.3 billion to Internet piracy*. In the U.S., illegal copying and distribution is more of a problem while internationally, illegal downloading and bootlegging is more prevalent. The countries where movie piracy is occurring most prominently are the China, Russia, UK, France, Spain, Brazil, Italy, Poland and Mexico. The MPAA recently provided international data from the study to the Office of the U.S. Trade Representative for use in preparing its annual report on worldwide intellectual property rights. The average film copyright thief is male, between the ages of 16-24 and lives in an urban area. College students in the U.S., Korea and Hungary contribute the most to each countrys individual loss. The 16-24 age range represents a disproportionately high percentage of pirates, especially downloaders, across the 22 directly researched countries. It is even higher in the U.S., where the same age range represents 71% of downloaders. The findings in this study reinforce the need for a multi-pronged approach to fighting piracy, said Glickman. As an industry, we have to continue to educate people about copyright laws and the consequences of breaking those laws. At the same time, we have to provide legitimate, hassle-free ways for consumers to obtain movies at a reasonable cost. In the meantime we will continue to work with governments and law enforcement around the world to ensure copyright law is prevalent and enforced. Previous MPAA studies have only included information on hard goods piracy and have been based on supply rather than demand. This study is the first of its kind and will provide a measure of piracy for MPAA in the future so the association can continue to build on its recent successes. # # # Contacts: Kori Bernards or Elizabeth Kaltman (LA) (818) 995-6600 John Feehery or Gayle Osterberg (DC) (202) 293-1966 *Bootlegging: Obtaining movies by either purchasing an illegally copied HS/DVD/VCD or acquiring hard copies of bootleg movies. *Illegal copying: Making illegal copies for self or receiving illegal copies from friends of a legitimate VHS/DVD/VCD *Internet piracy: Obtaining movies by either downloading them from the Internet without paying or acquiring hard copies of illegally downloaded movies from friends or family.
Indeed, the 2005 gross sales were lower than 2004. Also lower were the total number of released movies, though one could very well argue that it isn't that far off. However, it is a contributing factor. Still, to say that they have lost $6.1B is to say that the MPAA and its member companies could have collected nearly $15B if there was no piracy, a statement that everyone except for Glickman would see as an outright falsehood. Another number that has been left out of the mix from 2003 and up is the number of screens. If the number of screens is going down (as it was from 2000 to 2002), that means that some people will have to travel farther to see a movie. In the little town I live in, we were without a movie theatre for over a decade, with the closest decent theatre being a 2 hour round trip. That will also lead to decreased revenue. But if we neglect to give them the numbers, maybe they won't mention it? It is tough to say when piracy really became an issue for the MPAA. File-sharing certainly wasn't as big an issue for them as it was for the RIAA in the late 90's due to the huge file-sizes and the lack of high-speed connectivity in many areas. Perhaps it became more of an issue a year or two ago. Oh wait, but those were banner years for the MPAA! Draw your own conclusion, but mine is that this study is bunk. Add this page to your favorite Social Bookmarking websites          Add your comment
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