Movie Industry Sues File Traders Too

By Richard Menta 11/04/04

I find it curious where the movie industry gets its claim that file trading of films cost them $3 billion dollars annually. The reason is because every year they keep setting records at the box office including this year. Where is the loss?

As for DVD sales they skyrocketed 66% last year and about another third this year. Where is the loss?

The answer is there is no loss, only more profit and, thanks to DVD, an extra huge growth in revenues not seen since the early VCR days. The $3 billion is made up - fiction - a big number some executive pulled from their ear and are passing to the press as truth. The most important thing is the number is big.

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Based on that fiction, the Motion Picture Association of America (MPAA) is now going to sue file traders as the Record Industry Association of America (RIAA) has. I find that ironic because the RIAA's efforts have proven to be a failure.

Of course the RIAA's press spin says it is a huge success, just look at how KaZaa's traffic has dropped in half since they started the suits. These statements have consistantly ignored the fact that the eDonkey network alone gained that much audience during this period, showing that all consumers did was shift to another product. Overall, file trading as a whole has increased again this year.

But the MPAA believes in the RIAA fiction, numbers as self delusional as the $3 billion figure the MPAA throws out to us in the press.

I wonder what would happen to General Motor's stock if they claimed that the industry lost $3 billion in car sales because of file trading? Such a statement would be as accurate as the MPAA's, because like the MPAA's there is no basis.

Heck, such a statement can be used to blame the failures of any industry. Enron? It was file trading that caused to fail. WorldCom? File trading led to drug use and company theft.

Hmmm, the universal scapegoat for bad business practices. That is something the MBA in me can appreciate.

But the movie industry is making more money than ever. If that isn't mendacity I don't know what is.

Oh well, I guess I can play that game too.

Today MP3 Newswire announces that file trading has saved the movie industry by driving increased box office revenues and DVD sales.

The proof. Why increased sales, duh?


Other MP3 stories:
iPod Killers for Christmas Part I
iPod Killers for Christmas Part II
iPod Killers for Christmas Part III
iPod Killers for Christmas Part IV

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