By Stefanie Olsen, 9 July 2004 08:55
NEWS One in four people online has illegally downloaded a feature film - and it's cutting into box-office and DVD sales, the Motion Picture Association of America (MPAA) said in a study.
A survey of 3,600 internet users in eight countries showed that as many as 50 per cent had downloaded copyrighted content in the last year. Of those people who have downloaded films, 17 per cent said they are going to the movies less often, and 26 per cent said they bought fewer DVDs, according to online researcher OTX, which conducted the study in partnership with the MPAA.
The trade group did not have box-office sales figures for 2004. But global movie admissions were down by four per cent in 2003 to about 1.57 billion, compared with 1.64 billion in 2002, according to research provided by the MPAA.
Still, from 1993 to 2004, admissions have gone up 27 per cent, by 330 million, and DVD sales and rentals have shot up by 50 per cent from 2002 to 2003, the research showed.
The primary concern, the MPAA said, is as broadband internet connections spread faster to countries around the world, more people will take to illegal downloading. For example, an estimated 98 per cent of South Korea's population uses broadband. Nearly 60 per cent of the population has reportedly downloaded movies, and one in three say they go to the box office less often, according to the survey.
Matthew Grossman, a spokesman for the MPAA, said: "It's not hard to imagine as other countries become increasingly broadband based we'll see more of this happen."
There are approximately 29.2 million broadband households in the US, according to market researcher The Yankee Group.
Also of concern is consumers' attitudes. The study found that 69 per cent of those surveyed don't believe downloading movies is a major concern in today's society. Little more than half of people who have already downloaded films online expect to continue to do so, and 17 per cent who don't already do it, plan to. Also, 38 per cent of those surveyed said it was OK to download a film before it's released in theatres.
For this reason, the MPAA has launched a worldwide campaign to monitor online film-downloading more closely and educate people on the implications of pirating movies. It has created movie trailers to warn people against illegal downloading and making pirated copies of films, among other tactics.
The study was conducted with residents of Australia, France, Germany, Italy, Korea, Japan, the UK and the US.
Stefanie Olsen writes for CNET News.com
Comments
There are 8 comments. Join the discussion
1. anonymous
If you rent a DVD/video, how much does the film company get?
I would willingly pay the £1 (I suspect it is) to be able to download and view films.
Another reason for not buying DVDs: Why are they more expensive than VHS? - because people still pay it.
Why don't cinemas use their computerised seat booking? Because they can sell you food/subject you to adverts if you have to turn up early because you have no reserved seat.
Why do they charge a booking fee when ordering on-line/by phone? Because they can.
Why are films released at different times in different countries? Because we put up with it. Even films made here with UK actors are still released in the US first.
2. anonymous
Why spend all that time searching for movies and then downloading them when its much cheaper to buy the 'pirated' version? The pirate version comes in a nice display box and I usually get it before the box office release (or shortly after the premier launch)
3. Goten Xiao
"If you can't beat them, join them."
Why don't all these governing bodies just stop whining about people downloading movies AND SELL THEM ONLINE AS FILES?
This saves on packaging costs, shipping costs, *some* advertising costs, plus it means the film gets out to more people quickly.
4. John H
I simply do not believe this "statistic".
The most recent <a href="http://www.clickz.com/stats/sectors/geographics/article.php/5911_151151">estimate</a> I can find gives the number of worldwide internet users as 934 million as at September 2004. So, supposedly, 200+ million people have downloaded movies online.
But then the only people who can download movies are those with broadband connections, and the <a href="http://www.itfacts.biz/index.php?id=P2302">estimate</a> for broadband users is around 150 million. Perhaps a quarter of <i>them</i> (i.e. around 4% of total internet users) have downloaded movies, though even then I'm sceptical.
Finally, this approach to persuasion is always counterproductive - "don't do it, because lots of other people are also doing, so no-one will really think badly of you, and your chances of getting caught are minuscule... erm..."
5. anonymous
many people download films that aren't yet released, but then buy them once they are available anyway, same as music in the UK. What's the point of playing songs on the radio, that aren't relased for 6 weeks. No wonder people download them!!
6. D.McLennan
It is all very well blaming copyright breach on the down turn in sales and receipts. Has anyone stopped to consider that this may not be a result of piracy, but a consequence of too many mediocre films being released. The more poor movies the public experience in sequence, the less inclined they will become to seeing any more. Maybe the MPAA should advise its member to focus less on lost profits by channelling them to their core business - movie making, not piracy fighting!
7. anonymous
I always download files, to test them.
if i really like them, i will support them and buy the cd online.
likewise i download movies and if i really like them i will go and buy them.
There are existing statistics that say that most people are like me and that "piracy" increases sales in this manner
8. anonymous
The main reason we do this is because the box office cost so much here in England. If I could watch a movie without being ripped off by there stupid pricing then of course I would. Why watch a poor quality copy at home when you can catch the bog screen.