The report, called "Facing Piracy: Digital Theft in the Filmed Entertainment Industry," explores the causes of piracy, its financial consequences, and ways to address it.
WASHINGTON--The film industry had better take some lessons on piracy from the beleaguered music business.
That's the cautionary message from a new study by Deloitte & Touche. The report, called "Facing Piracy: Digital Theft in the Filmed Entertainment Industry," explores the causes of piracy, its financial consequences, and ways to address it.
Deloitte estimates global piracy revenue losses at $13.6-$15.1 billion dollars a year for the entire entertainment industry.
The report opens with a warning that, "(F)ilmed entertainment executives only have to look at the music industry to see the dangers of insufficient action. Take digital piracy seriously, or lose billions as well as fundamental control of the value chain."
Piracy in the film industry is caused by the growth of broadband use, the advancement of compression technologies (specifically DivX video codec, "the MP3 of video"), and the rise of peer-to-peer networks, the study says.
The plague of piracy, the report posits, is motivated by the skewed perception that pirates hold of the entertainment industry. "If people feel they are being ripped off, they are more willing to feel they are entitled to 'get even.' The entertainment industry is widely perceived to be rolling in cash," the report states.
To combat piracy, the study suggests litigation, education, restructured pricing, improved security of master film copies, and increased collaboration between studios.
As for the Recording Industry Assn. of America's suits against peer-to-peer users, Ken August, leader of Deloitte's Pacific Southwest Media & Entertainment Practice, comments, "(I)f the legal landscape shifted and the burden was pushed down onto the ISPs, things would change almost overnight."