Piracy In The Movie Industry

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The movie industry is one of the largest economic sectors in America. Despite of its importance, it is not free of challenges and problems; one of the principal problems that threatens the production of movies is the raising piracy. How does piracy harm the movie industry? Does a popular movie sequel will never come true because of piracy? The answer to these questions not only reveals how fan you are of good movies, but also how negative piracy is for film production. Movie piracy is harmful to the movie industry in America because the loss of income by movie producers reduces their incentive to create more movies, jobs in the movie industry are lost, and it causes a higher cost for the movies for the consumers, even though not every pirate …show more content…
When movies are not produced or the production’s budget is reduced, the loss of income causes the producers to hire fewer actors, extras, and to reduce other expenses. Furthermore, salaries are also threatened as indicated by Karsten Strauss of the Forbes magazine: The loss of income caused by piracy threatens the salaries of the workers in the film industry because their salaries are part of the cost that movie producers try to reduce (Strauss). In other words, to reduce their costs, producers choose to hire extras instead of hiring additional actors, or they refrain to expend in high-end visual effects to save the costs of these services. In addition, the movie industry directly hires actors, visual effects, and hairdressers, and it indirectly affects food suppliers, banks, and even real estate. Finally, a report published by Siwek says it clearly: “movie piracy causes a total lost output for U.S. industries of $20.5 billion per year, thwarts the creation of about 140,000 jobs and accounts for more than $800 million in lost tax revenue” (Siwek). According to Ahrens, this report released September 2006, funded by NBC Universal and the MPAA, and used the U.S. Bureau of Economic Analysis model to calculate the potential ripple effect of those lost sales, factoring in lost jobs, worker earnings and tax revenue (Ahrens). Conclusively, the loss of jobs affects not only the movie industry, but also numerous …show more content…
In addition, to fight piracy, movie theaters employ a very popular technology known as infrared spectrum, which projects an infrared beam of light, invisible to the spectators, on the theater’s screen; this equipment does not permit the movie to be recorded by camcorders or video cameras. However, this technology, used by movie theaters to fight piracy, is expensive; as a consequence, this higher cost is ultimately reflected in higher ticket prices. Moreover, a reduction of ticket sales by an unfair piracy competition causes the theaters to rise their ticket prices to cover their invariable expenses. On the other hand, it may be true that not every pirate view represents a lost sale, but most of these pirate views are lost sales. In other words, the net effect of piracy in the sales of movies is negative and harms the theaters’ income. In other words, pirates not only harm the movie industry, but everybody’s entertaining. As a consequence, piracy damages the movie’s production in quality and quantity, causes people to lose their jobs, and negative affects everybody’s cost of going to the

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