MPAA study: '05 piracy cost $6.1 bil
Study: Piracy cost $6.1 bil
May 3, 2006
The MPAA released its first comprehensive study of movie piracy late Tuesday, estimating that the major studios lost $6.1 billion last year to bootlegging, illegal copying and Internet piracy.
The study, which was done by LEK Consulting, marked the first time that the MPAA has put a formal number on the cost of Internet piracy -- $2.3 billion in annual losses. Previous studies focused only on what the MPAA termed "hard-goods" piracy.
The trade group also commissioned the study as a roadmap and advocacy tool to help convince governments around the world to step up the fight against piracy.
"We are calling on governments internationally to continue to work with us in limiting the impact of piracy on local economies and the film industry," MPAA chairman and CEO Dan Glickman said. "Movies are a valuable product, and intellectual property must be respected. This study will help us better analyze and focus our efforts to fight movie theft."
Results from the study were recently provided to the Office of the U.S. Trade Representative for use in preparing an annual report on worldwide intellectual property rights.
Of the $6.1 billion in piracy losses, $1.3 billion occurred in the U.S. and $4.8 billion internationally, almost half of it coming from Europe.
About $2.4 billion was lost to bootlegging, $1.4 billion to illegal copying and $2.3 billion to Internet piracy. Illegal copying and distribution were more prevalent in the U.S., while illegal downloading and bootlegging were the primary piracy forms internationally.
China, Russia, the U.K., France, Spain, Brazil, Italy, Poland and Mexico were the countries where piracy was more prevalent, the MPAA said.
The study also found that the average movie pirate is male, age 16-24, and lives in an urban area.
This demographic group represented a disproportionately high percentage of pirates, especially downloaders, across the 22 researched countries. In the U.S., this group was said to represent 71% of downloaders.
"The findings in this study reinforce the need for a multipronged approach to fighting piracy," Glickman said. "As an industry, we have to continue to educate people about copyright laws and the consequences of breaking those laws. At the same time, we have to provide legitimate, hassle-free ways for consumers to obtain movies at a reasonable cost."
The study, which was done by LEK Consulting, marked the first time that the MPAA has put a formal number on the cost of Internet piracy -- $2.3 billion in annual losses. Previous studies focused only on what the MPAA termed "hard-goods" piracy.
The trade group also commissioned the study as a roadmap and advocacy tool to help convince governments around the world to step up the fight against piracy.
"We are calling on governments internationally to continue to work with us in limiting the impact of piracy on local economies and the film industry," MPAA chairman and CEO Dan Glickman said. "Movies are a valuable product, and intellectual property must be respected. This study will help us better analyze and focus our efforts to fight movie theft."
Results from the study were recently provided to the Office of the U.S. Trade Representative for use in preparing an annual report on worldwide intellectual property rights.
Of the $6.1 billion in piracy losses, $1.3 billion occurred in the U.S. and $4.8 billion internationally, almost half of it coming from Europe.
About $2.4 billion was lost to bootlegging, $1.4 billion to illegal copying and $2.3 billion to Internet piracy. Illegal copying and distribution were more prevalent in the U.S., while illegal downloading and bootlegging were the primary piracy forms internationally.
China, Russia, the U.K., France, Spain, Brazil, Italy, Poland and Mexico were the countries where piracy was more prevalent, the MPAA said.
The study also found that the average movie pirate is male, age 16-24, and lives in an urban area.
This demographic group represented a disproportionately high percentage of pirates, especially downloaders, across the 22 researched countries. In the U.S., this group was said to represent 71% of downloaders.
"The findings in this study reinforce the need for a multipronged approach to fighting piracy," Glickman said. "As an industry, we have to continue to educate people about copyright laws and the consequences of breaking those laws. At the same time, we have to provide legitimate, hassle-free ways for consumers to obtain movies at a reasonable cost."
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