Wednesday, January 5, 2011

Has online piracy killed the entertainment industry for good?

Since the creation of the World Wide Web, issues with copyright infringement and online music piracy issues have been increasing in what seems to be a never ending snowball effect. The U.S. government has tried to do its part to correct this growing problem, shutting down sites like Napster, and more recently Limewire, but for every site shut down it seems that one or two (or ten) pop up in its place.



But you can't blame the government, how are they supposed to stop something that occurs all over the world? A new bill called the Combating Online Infringement and Counterfeit Act is geared toward cracking down foreign websites that participate heavily in bootlegging and copyright infringement. For more information on this bill, check out this article in the Los Angeles TImes. This U.S. bill is a strong step forward since many foreign countries like China - and not only the U.S. - contribute to a significant amount of the expanding infringement practices. However, as always with issues as complex as online music piracy, it will have issues of its own, and by the time legislation works out all the kinks in the bill, online infringement "pirates" will probably have found new loopholes that make the bill out of date, and thus, ineffective.

Even if the U.S. government did come up with a bill that magically fixed all of the online infringement issues we see today, is it still too late? We as consumers have all felt the power of being able to get free music, and movies, and software in mass quantities at the click of a button. Will the world be able to go back to the way it was, with people spending $20 dollars on a single DVD or CD? Most people refuse to even purchase songs for the measly price of $0.99 cents on iTunes! So even if every infringement website in the world is somehow shut down by government, it is unlikely that the entertainment industry will snap back to the way it was before the Internet. The industry is not (and will never be) dead, but it will also never be the same.


- JB

5 comments:

  1. JB, I don't think that filesharing and piracy has "killed the entertainment industry for good". I feel that it has forced the industry to adjust to the new Internet age. Prior to filesharing the major labels had a virtual stranglehold on popular music. Now that users online are getting their music virtually and not from buying physical cds just changes their business model. If the music industry finds a way to monetize the act of accessing music online for free for the end user then it can be sustainable. Ad based Internet radio such as Pandora is one such example. Perhaps labels can set up websites where their artists' music can be streamed for free, with limited commercial interruption.

    The entertainment industry, although down, is not out. People will still pay money to see their favorite acts live. All this means is that there is a shift from most of the money going to the major labels and more ending up in the pockets of the artists. Remember that most recording artists only get the minimum statutory rate of $0.09 per song on an album sold. That's not a lot. The more of an artist's music that is out there due to filesharing increases the amount of fans going to see them live. This means more ticket revenue for the artist.

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  2. Online piracy has forced the industry to a complete new outlook on how to approach business but at the same time it has given artists a new platform to portray their work and given them the potential to reach people that they otherwise would not have been able to. I agree with you in regards to the fact that regulation is needed in order to prevent abuse and safeguard the rights of intellectual property owners, and that a worldwide consensus is key in order to achieve a safe and fair environment for both the consumer and artists. In my blog, Tracing Marketing I discuss some of these issues especially from the European Union standpoint, where they are attempting to have one regulation that guides the Intellectual property online issues.

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  3. I agree with you in the fact that even if the US government did find a way to magically fix online infringement, it would be so difficult for consumers to go back to purchasing CDs and DVDs and spending a ton of money on music. This is a major problem, however, because downloading music online is illegal, but I'm almost positive that people know at least one person who is involved with downloading music online. Check out my blog for more information on online music piracy.

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  4. I agree with you that by the time to bill works out all of its problems, new loopholes will be formed to work around that bill. It will always be a chase game of cat and mouse with music piracy always finding ways to work. The one problem I find with the bill is that it attempts to shut down websites that support or provide a medium for online sharing. The question that I have is how does the United States government have jurisdiction if a website is outside of the United States? Can they still shut down a site that is not operating within the boarders? I don't know if the bill would be any help if said file sharing sites were outside of the United States. Whatever the case, file sharing will always be a problem, it will just be a issue of how much it can be controlled.

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  5. I definitely agree that the music industry will never be the same, even if by some magical hypothetical means the government was able to truly crackdown on the piracy matter. We as consumers have changed mentally when it comes to the way we regard media. I am one of those who still finds it much to be paying 1 dollar per song, just because everything is available for free, you lose grasp of what really is a realistic price. I feel the only way to combat music piracy is to move with it, rather than chase after each program and network. Governments and record labels must seek to be 5 steps ahead, rather than 2 steps backwards if they are ever going to hope for a "win".

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