I think everyone here is missing the absolutely amazing fact that this report points out. It isn't that "piracy" doesn't hurt the entertainment companies. It is the absolutely amazing fact that "piracy" is in fact a profit center for the entertainment companies. "Piracy" actually makes the entertainment companies more money. It seems very counter intuitive, but then many things about buying habits and marketing are counter intuitive.
Most people here have not applied any logic to see the underlying issue presented. If "piracy" was only about cost and nothing else then "pirates" would buy far fewer titles than average consumers because they would get everything for free. If they get everything for free and can save it to a DVD or CD why in the world would they ever buy anything? The reality is because it has very little to do with price. Logically "pirates" have to be completely stupid if they are buying anything when they can get it for nothing. So you have to ask why the logic is off. Why are they buying if they can get it for nothing and the quality is exactly the same? Why exactly would they pay when the risk for getting an exact copy is so very low to pretty much non-existant? The reason clearly must be that cost is not the issue and that there is some underlying reason that causes them to spend money when there is absolutely no need or logical reason for them to spend any money at all. This is the **HUGE** point that most have missed entirely about this report. People who have absolutely enormous amounts of exact copies of media available to them at no expense are still spending more than average consumers. That is a giant red flag against piracy. If they even spend the same amount as average consumers that would still be a giant red flag. There is more going on here and this proves that "piracy" absolutely does not cost the entertainment industry anything, in fact it is a profit center for them.
That is correct you read that correctly. This report absolutely logically proves that "piracy" is a profit center for the entertainment industry. There is absolutely no logical way to argue otherwise. If "piracy" causes more money to be spend by those doing "piracy" then it absolutely must be a profit center given that it is causing increases in sales. To argue otherwise is logically inconstant and it is lying. Entertainment companies have known this since the days of LP records. It is absolutely not something they want the general public or law makers to know because it would completely ruin their campaign to demonize "piracy' in order to get what they want for other reasons. There is a reason there have been very few convictions for individual "piracy". It's because they know it isn't a problem, and that they only have to do a very very few select legal cases to point at to get law makers to give them what they want. They want more control over the distribution channels that they know they are loosing now and probably will loose even more in the future. So they are trying to con law makers in to passing laws that are really designed to give them more legal control over distribution channels especially for the future. The entertainment companies are scared to death that they are the whip and buggy makers of this generation and that the market is going to leave them in the dust. The reality is that is exactly what is going on and the market is trying to leave them in the dust because they add no value to the product and only increase costs as a middle man. The current markets and the Internet in general are all about removing as many middle men as possible to reduce costs and this includes entertainment companies, rather than the artists themselves.
Entertainment companies are about to be completely screwed in a few short years. You can already setup a full music studio in your basement with $2000 or less and product the exact same level of product as the big studios. That freaks out the record companies and producers big time. High end professional digital movie cameras are getting better and better every year as well as cheaper. There are already a lot of directors and indie people using digital cameras to produce movies. Robert Rodriguez already shoots all of his movies on digital camera. That is how he did Sin City. He does all his music on a computer. He edits the whole thing on his computer. You can even do all the special effects needed on your computer, look at Sanctuary, Sky Captain and District 9. You can build a full production studio/company for under $10,000 at most $25,000 for extra cameras and just rent a giant warehouse to do the green screen shooting. There are a lot of movie theaters that are going to pure digital projectors that use computer files rather than tape or film. So the indie films could just send the movie as a finished file to theaters to show and not have any film/negatives costs. They can also then release the movie the same time world wide to everyone all at once. Then they can release the DVD 6 months later world wide and not worry about having to do staged releases by region. DVD replication is cheap and there are dozens of companies that do it for about $1-$2 per DVD unit, the same format and box as current movie DVDs. As you can see it has gotten to the point where technology has reduced costs so much and given professionals and the public cheaper and better tools to create their own movies, music, books or whatever. It won't be long until the entertainment companies are clearly a thing of the past. They add absolutely nothing to the end product and only increase it's costs. They are a clearly a middle man and the market forces will remove them. That is one of the things the Internet does best is to remove as many middle men as possible to reduce costs to consumers. The Internet is In fact already in the process of doing just that. That is what is scaring the entertainment companies to death, and keeping them up late at night. "Pirates" are the last thing they are actually worried about.