Hollywood Says Piracy Has Ripple Effect

ColinPL writes to mention a Washington Post article about a new study backed by Hollywood on intellectual piracy. The study, which they're presenting to lawmakers today, claims that piracy has a ripple effect on the economy. According to the study, lost revenues may have as much as three times the impact previously imagined. From the article: "Lawmakers and federal agencies such as the Justice and State departments have helped Hollywood battle physical piracy -- specifically, counterfeit DVDs. But now the stakes are especially high for entertainment companies as they sell more of their products online in the form of digital songs, movies and other intellectual property. Internet piracy may be tougher for lawmakers to conceptualize, entertainment companies fear."

Hollywood economics

[AlzaF]

Hollywood needs to start getting its house in order before it can critise piracy for it's falling profits. http://www.nytimes.com/2006/08/19/business/media/1 9hollywood.html?ex=1313640000&en=a3d7d097e8c79a00& ei=5088&partner=rssnyt&emc=rss [nytimes.com]

Ripple Effect BS

[minerat]

The multiplier effect Hollywood is referring to is a well known economic priciple. Basically money spent in the economy has a ripple effect greater than its actual amount (money spent helps pay someone's salary, who then uses the money to go out and buy goods, etc). The assumption they're erroneously making is that the money not being spent on movies because of piracy (and let's face it, they grossly overestimate that by claiming that every pirated copy is a lost sale) is not being spent elsewhere in the economy instead, thus making ZERO NET IMPACT on the economy as a whole - it's just Hollywood that loses out as spending shifts to different areas.

Re:The entire movie industry

[Sathias]

The more money the movie studios get, the more money that gets given to actors. More disposable income in an actors hand's means they will snort more coke. Buying more coke means drug dealers get more money, which means the cash goes into the black market. And if the government is to be believed, it will end up in the hands of terrorists.

Do your part for the War on Terror now, download some .avi files!