Hypothetically, two movies come out on the same day: The Wolf of Wall Street and the new Transformers. You are allowed to see one in an IMAX theater and you will illegally download the other one online. Most people would choose Transformers over The Wolf of Wall Street due to the fact that there are robot dinosaurs and everyone else is going to see it in theaters. Those robot dinosaurs will look a lot cooler in a theater rather than on a laptop. Many people then realized how lacking the movie really was after walking out of their local theater’s showing of Transformers: Age of Extinction. Meanwhile, many of the same people went on to watch The Wolf of Wall Street online to realize that it was actually a really good movie. Most people don’t realize that this is at all a problem, and at first glance it’s not. However, after more in-depth research, the problem soon becomes apparent. Transformers: Age of Extinction only gained an 18% rating on Rotten Tomatoes (Transformers, Rotten Tomatoes), one of the most critical and most trusted film-review sites online. The Wolf of Wall Street, however, gained a 77% rating on the same site (Wolf of Wall Street, Rotten Tomatoes). It was also nominated for five different Academy Awards. The Wolf of Wall Street is clearly the better film. Yet, besides the fact that Transformers was clearly not a great film, it somehow managed to be named the highest grossing film worldwide of 2014 and earned over one billion dollars in the Box Office (2014 Worldwide Grosses). The Wolf of Wall Street went on to be the most pirated film of 2014 with over 30 million illegal downloads (Spangler, 1) and didn’t even gross $117 million, giving the producers and the studio under $17 million after the production cost, which is not a much of a profit at all for such a high-budget film.
Piracy has become more of a problem in the past decade than it ever has before, specifically movie piracy. In fact, a study from Columbia University came out recently that said at least 45% of US citizens pirate movies actively, but that number bumps up to 70% if you include the younger demographics as well (Mick, 2). This act of pirating is growing more and more common every year and most people do it mindlessly, not realizing what it costs. Everyone has seen the text at the beginning of movies saying “Piracy is not a victimless crime,” and this is completely true. Piracy is extremely harmful to the movie industry and its effects are larger than anyone could imagine.
One of the other common ways for a movie to be pirated is for it to be digitally hacked. This one has become more common lately as technology improves. One of the most extreme and recent examples was the Sony hacking. Though some people will claim that Sony faked the hacking, evidence shows that they were legitimately hacked. During this hacking, many of Sony’s movies were released illegally online, such as Annie and Fury (Note: Annie had not even been released yet). A hacking involves someone digitally cracking into the studio or company’s computer system and taking the movie from their files. This logically would actually decrease a movie’s Box Office revenue by even more than someone’s recording of the movie would because it’s a better quality.
There are more ways to watch a pirated movie other than just downloading it online. In fact, some people tend to start their own pirating businesses. It’s very inexpensive and easy for a person to start one of these businesses. More recently, people only need to buy a bunch of blank DVD’s, the same amount of DVD cases and a computer that can burn a DVD. From there, they must find a source to get the pirated movies from. Sometimes they will personally film them in a theater, or find a hacked or leaked version online and download it. After that, all they need to do is download the stolen films onto their blank DVD’s and sell them to anyone who is willing to purchase it. Within a short amount of time, this person has made a great deal of money that should have gone to the movie studios.
In many cases, piracy of a film will even damage the likeliness of a franchise sequel. For example, the Kick-Ass movies came to an end due to lack of funding from piracy. According to ChloĆ« Grace Moretz who stars as “Hit-Girl” in the series, Kick-Ass 2 was one of the most pirated films of 2013 despite having an extremely low Box Office Revenue (Highfill). Because of this, the plans for the third movie in the series have been cancelled. Whether or not you like the Kick-Ass series, it is clear that piracy has become a serious problem and will only continue to damage the film industry.
Piracy has become more of a problem in the past decade than it ever has before, specifically movie piracy. In fact, a study from Columbia University came out recently that said at least 45% of US citizens pirate movies actively, but that number bumps up to 70% if you include the younger demographics as well (Mick, 2). This act of pirating is growing more and more common every year and most people do it mindlessly, not realizing what it costs. Everyone has seen the text at the beginning of movies saying “Piracy is not a victimless crime,” and this is completely true. Piracy is extremely harmful to the movie industry and its effects are larger than anyone could imagine.
But Where Do These Pirated Movies Come From?
There are many different ways that people pirate movies. One of the most classic ways people pirate is by “leaking” them. This involves a person going into a movie theater with a camera or a phone and recording the movie as it plays. It is usually a poor quality, but many people still download these recordings anyways instead of going to see it in a theater. This usually occurs when it is only in theater since that is the only version most people are able to see. Sometimes these leaks occur before the movie is even premiered, often because it is filmed during a special premier before the opening night. This is referred to as a pre-release, and they tend to result in a 19% decrease in how much the movie makes at the Box Office (Hart, 2). Many people defend pre-releases because it gives a movie more publicity so more people would want to see it, but the facts state otherwise. Leaking a movie that’s in the theaters always tends to decrease how much the movie makes regardless of when it is released and sometimes even leads to the movie not even making as much as there was put into it.One of the other common ways for a movie to be pirated is for it to be digitally hacked. This one has become more common lately as technology improves. One of the most extreme and recent examples was the Sony hacking. Though some people will claim that Sony faked the hacking, evidence shows that they were legitimately hacked. During this hacking, many of Sony’s movies were released illegally online, such as Annie and Fury (Note: Annie had not even been released yet). A hacking involves someone digitally cracking into the studio or company’s computer system and taking the movie from their files. This logically would actually decrease a movie’s Box Office revenue by even more than someone’s recording of the movie would because it’s a better quality.
There are more ways to watch a pirated movie other than just downloading it online. In fact, some people tend to start their own pirating businesses. It’s very inexpensive and easy for a person to start one of these businesses. More recently, people only need to buy a bunch of blank DVD’s, the same amount of DVD cases and a computer that can burn a DVD. From there, they must find a source to get the pirated movies from. Sometimes they will personally film them in a theater, or find a hacked or leaked version online and download it. After that, all they need to do is download the stolen films onto their blank DVD’s and sell them to anyone who is willing to purchase it. Within a short amount of time, this person has made a great deal of money that should have gone to the movie studios.
What Kind of Effect Does it Have?
Most people would just say that pirating has a small effect on the industry and that the studios already have enough money. They believe watching a movie online isn’t going to hurt anyone. The Motion Picture Association of America looked into this belief and discovered that piracy costs around $20.5 billion annually in the United States alone (Plumer, 2). In fact, a study back in 2005 estimated that a 10% decrease in worldwide piracy, including both film and music, over the course of four years would add 1.5 million jobs, $64 billion in taxes and $400 billion in economic growth (Kai-Lung). That, however, was ten years ago and is outdated. Those numbers are likely to be much higher today due to inflation and an increase in popularity of the film industry. This means that the studios are making much smaller amounts of money than they should be making from their films due to piracy.Quit Talking Numbers. How Does it Effect My Movie Experience?
The decrease in money from studios will often decrease the quality of other movies and even sequels, but more often it will decrease the quantity. A studio is much more likely to throw all of their money into the next big franchise sequel than give half of it to the franchise and the other half to a movie like Twelve Years a Slave simply because Twelve Years a Slave won’t sell as well in theaters as the franchise movie will. Movie studios and production companies don’t look at reviews and DVD sales nearly as much as they look at the Box Office Revenue, or how much it makes in the theater.In many cases, piracy of a film will even damage the likeliness of a franchise sequel. For example, the Kick-Ass movies came to an end due to lack of funding from piracy. According to ChloĆ« Grace Moretz who stars as “Hit-Girl” in the series, Kick-Ass 2 was one of the most pirated films of 2013 despite having an extremely low Box Office Revenue (Highfill). Because of this, the plans for the third movie in the series have been cancelled. Whether or not you like the Kick-Ass series, it is clear that piracy has become a serious problem and will only continue to damage the film industry.
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