logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 

Equities – Your destination to connect with the growth investment community.

How Much Do Brands Pay for Pirated Content Views?

By  +Follow July 3, 2014 6:30AM
Share:
Tickers Mentioned:

Pirated content, Pirate bay, MegaUpload, Piracy Universe, copyright infringement, VeryCD, BtChina

Despite a growth of legal channels for watching shows online, the volume of pirated content, pirated movies, TV shows, music, books and video games is growing rapidly. Pirated content viewers are largely condemned for stealing, as its assumed they engage in copyright infringement. From a moral standpoint, it’s easy to argue that producing or viewing pirated content is disrespectful to the authors or brands that create it. But financially, do brands really make less money because of pirated content consumption? Morality aside, maybe that's another story. 

Companies and Governments Trying to Uproot Piracy

According to a study called "Sizing the Piracy Universe" from NetNames, both the number of internet users who regularly pirate content and the amount of bandwidth consumed from pirated content increased significantly between 2010 and 2013, and the internet-based infringement continues to grow at a rapid pace. 

Major corporations have made a concerted effort to try to decrease pirated content online. In 2012 Google (GOOG) said that the company was modifying its search engine to penalize websites suspected of posing pirated content. Payment processors like PayPal, Visa and American Express agreed in 2011 to stop processing transactions for sites distributing pirated content.

Many pirated content consumers use cyberlocker, a third-party file sharing service, to download and upload movies and music. In January 2012, the Hong Kong-based MegaUpload was closed and sites associated with Megaupload were shut down by the United State Department of Justice for copyright infringement. From 2011 to 2013, thanks to international law enforcement efforts, the number of cyberlocker use dropped 8%. Worldwide, even countries like China, which is notorious for culture copyright violations, also issued regulations trying to uproot pirated and unauthorized content and shut down several major peer-to-peer file distribution hubs, including VeryCD and BtChina. 

However, in the US, bills like SOPA (Stop Online Piracy Act) and PIPA (Protect IP Act) died in Congress in 2012 after massive opposition (actually led by Google, with help from Wikipedia) in the name of protecting internet freedom. 

For sites like YouTube, a hotbed for users to generate mash-ups (mix of copyright content by fair use) also have a blurred line in copyright infringement. And that's another story in terms of whether the content is pirated or fair use. In addition, BitTorrent websites with its peer-to-peer distribution system still exist, survive and even thrive with never-decreased need for free content. 

Pirates Are Being Punished Severely

There's been several major pirate channels to open up to fill the demand. There’s the above mentioned BitTorrent, and then there's what is probably the most famous, The Pirate Bay. Established in 2001 by a Swedish anti-copyright organization and start web service in 2003, today’s Pirate Bay website provides access to all around the world.

The website was outlawed multiple times, once move the server to Netherland, and has been involved in as well as bring users many lawsuit cases in its history. For example, in 2009, Stockholm district court sentenced four founders of The Pirate Bay to one year in prison each and handed out a total of $3.6 million in fines. In 2006 the US government pressured the Swedish government and threatened to blacklist the Swedes within the World Trade Organization if Sweden did not deal with the website.

Legitimate services, including Netflix (NFLX) and Amazon.com (AMZN) , are certainly affected to some extent by pirated content views. The financial loss results from customers turning to pirate websites for free content. Recently, a 27-year-old New York man was accused of uploading Ultimate Fighting Championship content to The Pirate Bay and Kickass Torrents which were worth more than $32.2 million. The man, Steven Messina, had uploaded 141 UFC presentations to those file-sharing sites under the name of “Secludedly,” and provided a PayPal donation link to keep his business. 

The world seems to be showing little tolerance towards piracy. However, are brands like Netflix, Amazon, and even the UFC losing as much money from piracy as they claim?

Piracy Loss Could Be Converted to Revenue Opportunities 

Despite assumptions about how "bad" piracy can be, some argue that piracy loss can actually convert to revenue opportunities. According to a recent study conducted by Verance Corporation, an estimated 94% of American consumers viewing pirated movies are also buying legitimate copies of content. Namely, most of consumers in the US viewing pirated movies are actually "dual consumers."

The survey identifies six distinct categories of consumers of pirated movies:  "Occasionals" or "dual consumers" who prefer to watch legitimate copies but will view pirated content if possible, and  "Convenience Streamers" who are mostly avid movie viewers with a preference for viewing via streaming. When subscription services fail and pirate channels are available, they will turn to the more convenient option.

There’s more. There’s the "No Big Deals" who see no harm to watch pirated content, but still willing to spend money for theater experience; "Content Enthusiasts" who tend to allocate a portion of their budgets to legitimate movies; "Cost Sensitives" who buy legitimate copies based on moral considerations; and "Library Builders" who collects both legitimate and pirated copies in order to build a collect that can be viewed through multiple devices. 

In all categories, there are no individuals who strictly depend on pirated content and never pay for it. The study found that people "steal" not because they cannot afford legitimate copies, but because pirated content is convenient. 

Although it can be considered immoral to view pirated content, from the perspective of copyright holders, including major and independent studios, content providers and content retailers, sometimes piracy loss actually can be converted to revenue opportunities. 

Even if pirated content is illegal and immoral, it does not mean it translates into brands losing money. In a circuitous way, they might even get revenue opportunities out of this behavior. Then, is this one of the reasons brands turning a blind eye to pirated content consumption? Maybe yes, but don’t say it out loud.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for goog
INDIGO[blue]
3 May 15 12:35:42
Google $GOOG Diversity Program http://t.co/UeH5Pa8uq3 Please open your eyes @Tim_Cook!!!
Bradley
3 May 15 12:33:13
Catch a winner in LIVE CHAT $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCtpHR http://t.co/XdC5UILHmZ
Muzaffaruddin Alvi
3 May 15 12:32:03
RT @globalwideviews: Behind every decision, there is data & analytics http://t.co/KAbCse2pEI #Twitter #TWTR $TWTR #CorpGov #CEO #Goog $go…
StockBoardAsset
3 May 15 12:27:52
$SOCL Social Media Creation of a trend. Monitoring Industry: http://t.co/PqbjuwI3ZR $FB $TWTR $LNKD $GOOG http://t.co/hsK9K2H3Mr
Xavier Henriquez
3 May 15 12:27:11
RT @WSJ: What Google, Facebook and Viber are doing to help track Nepal's earthquake survivors: http://t.co/e39Kk9tf2T $GOOG $FB
lolade dosumu
3 May 15 12:24:35
RT @howardlindzon: Honestly surprised that google has not bought #meerkat and just plugged it into YouTube or just fight its battles with m…
royfberger
3 May 15 12:19:07
Logging into Option Millionaires LIVE chat NOW! http://t.co/p8xsJwhCQG $GOOG $AAPL $VIX #stocks #daytraders http://t.co/uqv50d6d5O
Quartermaster
3 May 15 12:18:56
RT @howardlindzon: Honestly surprised that google has not bought #meerkat and just plugged it into YouTube or just fight its battles with m…
Gary Nielson
3 May 15 12:15:02
Snapchat, Twitter, and Facebook are at war over the future of news #journalism $FB $TWTR $LNKD $GOOG http://t.co/K1Vt53VJqL
howardlindzon
3 May 15 12:06:15
Honestly surprised that google has not bought #meerkat and just plugged it into YouTube or just fight its battles with media for them $goog
OM_giveaways
3 May 15 12:01:14
Learn stock technical analysis and charting. http://t.co/6TAu75F3hy $AAPL $GOOG $JRJC $LIVE $INTC $TWTR http://t.co/bSgBLmoz5z
SayNoToPlusnet
3 May 15 11:56:45
Hayul #Hayul Emylers: NWBO Northwest Biotherapeutics, Inc. Yield Click Here -> http://t.co/dHBBwiz2Kh Trending $NWBO $C $JNK $GOOG #NWBO…
IH News Desk
3 May 15 11:56:34
PG Procter & Gamble Co. Last Trade Click Here -> http://t.co/aZ5NI3BIGN Trending $PG $CELG $GOOG $SNGX #PG #stock #tradeideas
Emylers
3 May 15 11:56:04
NWBO Northwest Biotherapeutics, Inc. Yield Click Here -> http://t.co/Xv7DOYQgFw Trending $NWBO $C $JNK $GOOG #NWBO #share #investing
Stock Forums
3 May 15 11:52:09
GOOG Google Inc. - Class C Message Board Posts Click Here -> http://t.co/enP3qfmmv8 Trending $GOOG $XGTI $DD $GOOG #GOOG #pennystocks…
IH News Desk
3 May 15 11:52:08
$GLW Percent Change Updated Sunday, May 3, 2015 2:11:02 PM $GALE $GOOG $DBA $BIIB http://t.co/wMV2Uuiyv9
FortuneCookieStocks
3 May 15 11:25:47
Enjoy #money yourself while you $goog can. @YangTerrence @kimonolabs https://t.co/wV7dPQjnT1
Penny Stock Secret
3 May 15 11:19:46
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/NovWYe2RAx .. $IBM $GOOG $AAPL
John MacArthur
3 May 15 11:17:44
RT @REalBillStoller: SolarCity And Google's Nest Labs: What Are They Working On? $GOOG $SCTY $VSLR http://t.co/70mA4dmAUo via @benzinga #…
FortuneCookieStocks
3 May 15 11:15:08
Friends $goog #trade long absent are coming back to you. @sigure_mikan https://t.co/wV7dPQjnT1
Penny Stock Secret
3 May 15 11:11:59
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/SVqoMkrw2z .. $TRX $AAPL $GOOG
TalkMarkets Recap
3 May 15 11:09:03
#Twitter Recently Lost $750 Million, But Are They Still A Good Buy? $TWTR $GOOG http://t.co/37VheGZPvn
LJ Keane
3 May 15 11:04:01
$GOOG $GOOGL $AAPL The Week Ahead Webinar : May 5th, 2015 - Update from Option Millionaires - Stock Options Chatro... http://t.co/LXZOhsvEia
Clayton R.
3 May 15 11:03:46
$GOOG http://t.co/zzGEvirsQD GM Cuts Price On Next-Gen 2016 Chevrolet Volt: Will It Move The Needle? http://t.co/azDWWMqYtW
Stock Hobbit
3 May 15 11:02:11
Logging in now to live stock chat http://t.co/ndv5bWOOj4 $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/lJYkncf7ka
DennyT
3 May 15 11:02:04
VRX.TO Vanguard Total Stock Market ETF Investor Opinions Click Here -> http://t.co/xxtqvRGjU7 Trending $VRX.TO $GOOG $DIG $TECL…
Ariez Dustoor
3 May 15 10:55:04
RT @davidlee: Good article on my good friend Don Harrison who buys companies for $goog #sycophant_tweet http://t.co/QKfkHHeGYR
Penny Stock Secret
3 May 15 10:53:59
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/SVqoMkrw2z .. $ERBB $BBDA $GOOG
Rosner Stocks
3 May 15 10:52:18
$ABX Stock Price Updated Sunday, May 3, 2015 12:59:22 PM $KR $ABC $GOOG $X http://t.co/YlXOMzCqhK
jim50
3 May 15 10:52:03
GOOG Google Inc. - Class C % Change Click Here -> http://t.co/74cZkCD4Kt Trending $GOOG $BABA $ITB $BRK/B #GOOG #finance #stocks
PolgarStocks
3 May 15 10:51:05
$Y Investor Opinions Updated Sunday, May 3, 2015 1:07:09 PM $XIV $GOOG $XLK $ISIS http://t.co/NclmorEO8m
Carlos García
3 May 15 10:49:46
Behind every decision, there is data & analytics http://t.co/KAbCse2pEI #Twitter #TWTR $TWTR #CorpGov #CEO #Goog $goog #Earnings #yield
Apple News Outlet
3 May 15 10:43:47
RT @Stockology101: Icahn calls Apple a rare 50-year success: [at Financial Times] - Apple is the sort of com... http://t.co/r6xiCfm14H $AAP…
Bradley
3 May 15 10:41:08
Helpful video for stock options beginners!! http://t.co/8g4lUZPHEF $GOOG $AAPL $GOOGL $AMZN $FB $FEYE $FXCM http://t.co/sOfTK0ggP6
The Stock Professor
3 May 15 10:40:00
Icahn calls Apple a rare 50-year success: [at Financial Times] - Apple is the sort of com... http://t.co/r6xiCfm14H $AAPL $GOOG $PCLN $K
Penny Stockington
3 May 15 10:39:35
Our Winning Stock Alerts Gained Over 3115% In 6 Months! Huge News: http://t.co/bsG1ysXGSP $AMZN $MCOX $GOOG
Stock Dawgzz
3 May 15 10:38:32
Our Penny Stock Picks Gained 1472% In 2 Months! Get Access To Our New Picks Early: http://t.co/cyLjru6AEk $TRX $AAPL $GOOG
Apple News Outlet
3 May 15 10:38:29
RT @Stockology101: Reasons Apple's Shares Fell Post Its Earnings Results: http://t.co/4oPu1lImHv $AAPL $GOOG $PCLN $K
Stock Rocket
3 May 15 10:35:31
Our Stock Pick On $THCZ Is Up 587.69% From Our Initial Release! Major News: http://t.co/Wvu7rPUNzU $DPM $FRAK $GOOG
Terrence Yang
3 May 15 10:32:53
“@davidlee: Good article on my good friend Don Harrison who buys companies for $goog #sycophant_tweet http://t.co/0Vwgi7H6a8” #sycophantRT
シグレ@ドラマ〜
3 May 15 10:32:01
日本では普及しないかも $goog
Penny Stock Secret
3 May 15 10:27:41
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/NovWYe2RAx .. $DPM $FRAK $GOOG
ForexTradingUnlocked
3 May 15 10:27:28
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/s6GEGf0uNT
Penny Stock Secret
3 May 15 10:21:59
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/SVqoMkrw2z .. $AMZN $MCOX $GOOG
dailystockplays.com
3 May 15 10:21:43
$GOOG Hammer Candlestick and Golder Cross $GOOGL http://t.co/J7XksNqrGN
Fred Fore
3 May 15 10:13:59
$GOOG online stock traders get their trading information here - No Login Required - http://t.co/aiAQHyvXG6
Sergio Gambarelli
3 May 15 10:11:39
$GOOG - This Struggling Industrial Giant is Gearing up to be the Next Technology Star http://t.co/ZDEEijXLzs
Ruben
3 May 15 10:11:38
$GOOG - This Struggling Industrial Giant is Gearing up to be the Next Technology Star http://t.co/YuGTwBRrqk
Stocks News&Markets
3 May 15 10:11:37
$GOOG - This Struggling Industrial Giant is Gearing up to be the Next Technology Star http://t.co/37Tvjvn6uN
john smith
3 May 15 10:11:35
$GOOG - This Struggling Industrial Giant is Gearing up to be the Next Technology Star http://t.co/LxH4TqNz1x
				
				
By  +Follow July 3, 2014 6:30AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN