Director Speaks of Piracy's Necessity

Lexi Alexander, a Hollywood director, spoke out against the anti-piracy piracy work. She specifically called out the MPAA and the arrest in Sweden of Pirate Bay co-founder Peter Sunde. While she never states that she condones piracy, she acknowledges that anti-piracy legislation and safeguards promote the act more than discourage it, explaining that even she has resorted to piracy. Alexander finds major issue with the money Hollywood is willing to spend fighting piracy ($19 million in one year alone to support SOPA), but condemns them for not making content available because "we still can't watch most programs from back home, even though we're willing to pay good money for it.”

“For every IP block, DRM and who-knows-what security feature Hollywood spends thousands of dollars and hundreds of hours on, some piracy kid will undo it for free and within a couple of minutes,” says Alexander on her blog.

Alexander said she thinks piracy is necessary because of country content restrictions, and that while the wealth piracy begets for the pirates isn’t right, the freedom of access to content is.

“Piracy has NOT been proven to hurt box-office numbers - on the contrary, several studies say it may have boosted the bottom line.”

Alexander is the first person I've come across to argue the side of the pirates while living the life of the content-makers. I found her points to be relevant and thought-out, particularly the idea that even if a person does pay for services, it can still be impossible to legally obtain some content. My family pays for Amazon Prime, Netflix, and Hulu, yet there are still countless shows and movies that we can't find and are therefore unable to watch. Not only is it frustrating for consumers but also it is harmful to the success of productions.

Source:

Gibbs, S. (2014, July 10). Hollywood director: piracy is necessary, and doesn't hurt revenues | Technology | The Guardian. Retrieved from http://www.theguardian.com/technology/2014/jul/10/hollywood-director-piracy-is-necessary-and-doesnt-hurt-revenues

BitTorrent Claims Users Have Higher Rate of Purchasing Movies Than Average Internet User

In a survey of 2,500 users, BitTorrent discovered that its users are more likely to purchase or rent movies than the average Internet user. In fact, according to the results of the survey, which was conducted in September, 60 percent of its users said they bought or rented movies in disc format, and 52 percent said they had bought or rented at least one movie in the past month. This news is seen as unusual because, as discussed in a previous post, BitTorrent is a file-sharing website typically associated with piracy; meanwhile, this survey suggests that BitTorrent users aren't as illicit as they are made out to be.

Broken down by activity in the past year, 47% of respondents said they watched a movie in the theater; 38% said they bought a DVD or Blu-ray Disc title; 23% utilized a subscription streaming service; 23% bought a digital movie; 22% said they rented a disc; and 16% said they bought a transactional VOD movie rental.

The platform said 52% of 2,500 respondents in an online survey conducted in September said they bought or rented at least one movie in the past month. Another 16% said they acquired or rented at least one movie in the past few days; 12% in the past week; and 17% in the past six months.

BitTorrent said users spend an average of $54 a year on movies, with 35% of respondents spending more than $100. Notably, 60% of respondents said they buy or rent movies on disc.

I find it fascinating that BitTorrent users are being shown in a positive (for the industry) light, as most articles condemn them as pirating, heartless criminals with no concern for the laws of the land or the jobs in the industry. Those who pirate films are usually viewed as unwilling to spend money on the media they claim to appreciate, which can be true (I mean, hey, money isn't easy), but I believe this survey shows that while these users may pirate films, they are also willing to support the things they really love.

Source:
Gruenwedel, E. (2014, November 25). BitTorrent: our users buy/rent more movie discs | Home Media Magazine. Retrieved from http://www.homemediamagazine.com/research/bittorrent-our-users-buyrent-more-movie-discs-34690

Cinedigm uses BitTorrent to Advertise Arthur Newman

Cinedigm is a movie distributor that was in charge of the independent film Arthur Newman. The company partnered with a shocking group, though: BitTorrent. BitTorrent is a file-sharing network, but it is commonly known for acts of piracy. However, on April 22, 2013, four days before the premiere of Arthur Newman, Cinedigm teamed up with the network in order to advertise for the movie by offering a free seven-minute clip of the film on the website.

Movie studios lost nearly $2 billion in revenue on potential disc sales for the top 10 pirated movies of 2012, according to a recent research report, which cited data from BitTorrent.

The analyst believes Cinedigm didn’t opt for Facebook and YouTube to promote “Newman” (besides cost) due to the fact visitors to those social media sites are looking for something other than movies. Meanwhile, people primarily frequent BitTorrent to watch movies — for free.

“We’re able to connect Cinedigm with real movie fans that actively support content creators and by doing so BitTorrent can demonstrate how we add value through continued innovation,” said Shahi Ghanem, chief strategy officer of BitTorrent, in a statement.

If Cinedigm had been looking for a shocking act of publicity, it certainly got it. After hearing and reading big businesses complain about piracy and condemn the websites that either passively or actively allow it, I am quite surprised Cinedigm was willing to fraternize with this "enemy." However, I think it was a smart move to get word out to movie-goers, especially so close to the release date. 

Source:
Gruenwedel, E. (2013, April 22). Cinedigm, BitTorrent partner for new Colin Firth, Emily Blunt movie | Home Media Magazine. Retrieved from http://www.homemediamagazine.com/digital-evolution/cinedigm-bittorrent-partner-new-colin-firth-emily-blunt-movie-30224

U.K. Student on Trial for the First 3D Camcorder Piracy Case

Ciprian Florea, a 28-year-old film technology student in the U.K., is being accused of creating a camera that can record 3D movies and intending to record the movie Gravity. The device comprised of two high-definition camcorders placed in a custom-made box that recorded with the necessities of creating the left and right eye effect for 3D images. Movies have been "bootlegged" since cameras could be snuck into theaters; however, this is the first case where a person has allegedly attempted to record a 3D production. Florea's defense is that he brought the camera in but had no intention of using it to film Gravity.

Florea, a student of film technology at Birmingham City University, is said to have hired two special high-definition cameras the day before his arrest. These had been placed in a custom-made box in order to record the left and right eye as required for 3D imaging. 

With no specific “camming” legislation available to the prosecution, Florea stands accused of possessing a 3D camera with intent to commit fraud, i.e the recording and subsequent distribution of the movie.

It's fascinating to be around during a time when technology is developing faster than the media can keep up with it. After researching piracy for several weeks now, I have read about people and organizations accused of various different forms of piracy (see the nine types) and the repercussions for those actions; I have also read and watched several critiques of the film industry and its reactions to these pirates, and it is quite clear that the industry can't get the legislatures to keep up with the increasing abilities of consumers. It seems much more reactive than proactive. After all, the U.K. didn't even have a simple way to charge Florea.

Source:
A. (2015, January 6). First 3D camcorder piracy case: student on trial | TorrentFreak. Retrieved from http://torrentfreak.com/first-3d-camcorder-piracy-case-student-on-trial-150106/

The Nine Types of Internet Piracy

The Software and Information Industry Association (SIIA) is "the principal trade association for the software and digital content industry." Its main job, as stated on its website, is to promote, protect, and inform the industry. As such, it has stated and described the nine forms of Internet piracy: Auction Site Piracy, Classified Ad Sites, Newsgroups Piracy, FTP (File Transfer Protocol) Sites, P2P (Peer-to-Peer), Torrent Sites, Sharehosting Sites, IRC (Internet Relay Chat), and Cracks/Serials Sites.

BitTorrent has grown in popularity to become one of the most common protocols for transferring large files; by some estimates it accounts for almost 35% of all traffic on the entire Internet.

An even greater number of websites and internet forums exist solely to archive and share such links-these sites are often referred to as "link sites" or "indexing sites."  This type of file distribution has grown to such a large volume that it has eclipsed the remaining P2P filesharing services.

I had previously only been aware of P2P, as it is so often mentioned in news articles when discussing piracy, and Torrent Sites, as they are so often discussed in the hallowed halls of high school. While they are not all relevant to film piracy (e.g. Cracks/Serials Sites are used to eliminate the limit on the number of computers a software can be installed on, such as the Microsoft Suite), it is still fascinating to see the various methods people use in order to obtain certain goods.

Source:
Internet Piracy - SIIA: Software & Information Industry Association. (n.d.). Retrieved from http://www.siia.net/index.php?option=com_content&view=article&id=337&Itemid=350

The Only Explanation for the Large Economic Effects of Piracy is Copyright Math (TM)

Rob Reid presents a TEDTalk on the concept of "copyright math;" that is, the math the MPAA (Motion Picture Association of America) and RIAA (Recording Industry Association of America) use to determine how much money is lost because of pirating. With a comical twist, Reid explains that the MPAA estimates that over $58 billion are lost to the U.S. economy every year because of content theft.

A slide Reid used to convey the absurdity of the MPAA's claim.

Because this isn't just the hypothetical retail value of some pirated movies that we're talking about, but this is actual economic losses. This is the equivalent to the entire American corn crop failing along with all of our fruit crops, as well as wheat, tobacco, rice, sorghum -- whatever sorghum is -- losing sorghum.

The movie folks also tell us that our economy loses over 370,000 jobs to content theft, which is quite a lot when you consider that, back in '98, the Bureau of Labor Statistics indicated that the motion picture and video industries were employing 270,000 people.

In a February New York Times piece, an MPAA spokesman did his best by attributing the eye-popping $58 billion sum to “piracy’s impact on a range of tangentially related industries — florists, restaurants, trucking companies, and so on.”

Reid does a great job of presenting this information in an understandable and often humorous manner. This is a difficult topic: maybe because it's genuinely hard to create these estimates or maybe because the MPAA makes it difficult, as Reid suggests. Either way, it's undisputed that it is not easy to pin down numbers for job loss in the industry or revenue loss; however, the suggestion that florists and restaurants should be included in these considerations is clearly the MPAA grasping at straws to prove their point.

Source:

Reid, R. (2012, March 20). The numbers behind the Copyright Math | TED Blog. Retrieved from http://blog.ted.com/2012/03/20/the-numbers-behind-the-copyright-math/

Sony Pictures was Hacked and Five Films were Released. Is North Korea to Blame?

Sony Pictures Entertainment was hacked on November 24 by the Guardians of Peace, according to The Chicago Tribune. The group left the note "Hacked by #GOP" and a red skull on the screens after they came back online and claimed they would release "secrets" they took from the servers. While no link to North Korea has been discovered as of yet, Sony is suspicious the government, considering their blatant anger at Sony's new film The Interview (see trailer below), where two people are hired to kill Kim Jong Un. Since the hack, at least five new movies have been released online and are now the subject of massive pirating.

The image that appeared on the screens of Sony computers on November 24.

"Fury" has been downloaded by over 888,000 unique IP addresses since showing up on peer-to-peer networks on Nov. 27, according to piracy tracking firm Excipio. That's high enough to be the second most downloaded movie currently being pirated, and it's not out of movie theaters yet.

KCNA, the official news agency in isolationist North Korea, quoted a Foreign Ministry spokesman in June as promising a "merciless counter-measure" if the film is released.

While terrible from an international relations standpoint, I find this situation to be fascinating from a sociological standpoint (and from the safety of being across an ocean, of course), especially since Sony said they would confirm the accusation that the North Korean government was involved in the hack. The attack proves just how powerful media is and the profound effect it can have on not just an individual's emotions but also on entire governments. Yet the release of the five films is baffling, if #GOP really was working for North Korea, unless the group just did it to distract and mess with the company; after all, the notice it left on the computers is quite vague.

Source:

Tribune Wire Reports. (2014, November 29). Sony looks for possible North Korea link in hacking, movie leak - Chicago Tribune. Retrieved from http://www.chicagotribune.com/news/weird/chi-sony-north-korea-hacking-20141129-story.html

PIPCU Arrests Two Men Suspected of Stealing and Uploading The Expendables 3

A high-quality copy of The Expendables 3 became available online on July 25, despite the U.S. premiere set for August 15, according the BBC. The Police Intellectual Property Crime Unit (PIPCU), the U.K.'s anti-piracy police, have arrested two men, aged 36 and 33, for stealing the film from Lionsgate Films' cloud-based system and subsequently uploading it to the Internet. The company claimed spread of the copy cost them millions just in the U.K. This case is viewed as "a litmus test for measuring the impact of piracy," considering the film was short about $10 million, according to the projected earnings.

Head of Pipcu, Det Ch Insp Danny Medlycott said of the action: "Today's operation shows you the significant impact intellectual property crime has on our creative industries, with millions of pounds being lost as a result of criminal actions.

Research in 2011 from Carnegie Mellon University suggested that when a film is pirated prior to its release it loses up to 20% of its potential revenue. 

It is astounding how much revenue The Expendables 3 theoretically lost, especially when looking at X-Men Origins: Wolverine, which seemed to be unaffected by the release of its unfinished copy. The weird part about the situation is that these two men in their mid-30s who live in separate parts of the U.K. hacked into Lionsgate Films' cloud and stole the entire, completed film and then released it onto the Internet, free of charge. Despite the unusual circumstances of the arrested couple, PIPCU seems to be doing well since it received £3 million from the Intellectual Property Office to fund itself until 2017.

Source:

BBC News - Suspects behind Expendables 3 leak arrested in UK. (2014, November 25). Retrieved from http://www.bbc.com/news/technology-30192568

Piracy in the U.K.: Harming More Than Those on Top

The Guardian's article, "Movie piracy: threat to the future of films intensifies," discusses the ramifications of piracy in the film industry, particularly with independent films. When people pirate films (which 30 percent of the U.K. population does, according to Ipsos), they reduce the profits of the films; however, this does not harm the income of the big executives, as most people think. The minimal profits of indie films means buyers are less likely to take risks on such films. This not only means less support to independent film makers but also means production companies will put out more sequels and films that follow the same format, thus creating a more boring or repetitive film industry, and this also applies to television shows. The other large, negative effect of piracy is on the people in the credits at the end of a production, such as makeup artists and costume designers. Also, the websites people download/stream from as well as the producers of counterfeit DVDs are making profits, which can be traced to organized crime rings.

"Distributors are not able to take the risks they used to. What this means to the consumer is not that some producers don't get rich, it means the product doesn't get made," [head of the Independent Film and Television Alliance Jean Prewitt says.]

"One may think an individual act of piracy doesn't matter, but if that becomes a way of life then the value of intellectual property becomes eroded, shows like Downton Abbey won't get made," [executive producer of Downton Abbey Gareth Neame says.]

"The audiovisual industry supports hundreds of thousands of people's livelihoods and if the industry has trouble supporting itself, it's going to put people out of work," [managing director of eOne Films UK Alex Hamilton] says.

This article proposes ramifications of piracy that I had not considered previously, namely the ideas that independent films will go un-produced and the risks posed to more "bottom of the totem pole" positions. Considering how repetitive productions have been getting recently, we are in need of indies now more than ever; just look at how successful 12 Years a Slave and The Wolf of Wall Street were. Also, the film industry is enormous, so when it starts cutting jobs, that effect can be felt across the nation. However, the industry itself can take action against piracy, more than just sending out letters, as the article proposed. Downton Abbey, for example, premiered in the U.K. in September but doesn't premiere in the U.S. until January. American fans who don't care about pirating have been keeping up-to-date on the episodes and probably won't re-watch them in January. So not only is pirating of the show rampant in the U.S. but also the ratings will be lower when it is legally released because many watchers will have seen it already. And this phenomenon is not unique to this show; it occurs when any production (even in the music industry) is released at different times to different nations. This is not to excuse piracy, but it is a side of it the article neglected to discuss.

Source:
Lodderhose, D. (2014, July 17). Movie piracy: threat to the future of films intensifies | Film | The Guardian. Retrieved from http://www.theguardian.com/film/2014/jul/17/digital-piracy-film-online-counterfeit-dvds