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http://torrentfreak.com/piracy-isnt-hurting-the-entertainment-industry-121003/

Piracy Isn’t Killing The Entertainment Industry, Scholars Show

Ernesto
October 3, 2013
81
Digital Economy Act,
UK
The London School of Economics and Political Science has released a new policy 
brief urging the UK Government to look beyond the lobbying efforts of the 
entertainment industry when it comes to future copyright policy. According to 
the report there is ample evidence that file-sharing is helping, rather than 
hurting the creative industries. The scholars call on the Government to look at 
more objective data when deciding on future copyright enforcement policies.

Over the past years there have been ample research reports showing that 
file-sharing can have positive effects on the entertainment industries.

Industry lobbyists are often quick to dismiss these findings as incidents or 
weak research, and counter them with expensive studies they have commissioned 
themselves.

The London School of Economics and Political Science (LSE) jumps into the 
discussion this week with a media policy brief urging the UK Government to look 
beyond the reports lobbyists hand to them. Their report concludes that the 
entertainment industry isn’t devastated by piracy, and that sharing of culture 
has several benefits.

“Contrary to the industry claims, the music industry is not in terminal 
decline, but still holding ground and showing healthy profits. Revenues from 
digital sales, subscription services, streaming and live performances 
compensate for the decline in revenues from the sale of CDs or records,” says 
Bart Cammaerts, LSE Senior Lecturer and one of the report’s authors.

The report shows that the entertainment industries are actually doing quite 
well. The digital gaming industry is thriving, the publishing sector is stable, 
and the U.S. film industry is breaking record after record.

“Despite the Motion Picture Association of America’s (MPAA) claim that online 
piracy is devastating the movie industry, Hollywood achieved record-breaking 
global box office revenues of $35 billion in 2012, a 6% increase over 2011,” 
the report reads.

Even the music industry is doing relatively well. Revenue from concerts, 
publishing and digital sales has increased significantly since the early 2000s 
and while recorded music revenues show a decline, there is little evidence that 
piracy is the lead cause.

“The music industry may be stagnating, but the drastic decline in revenues 
warned of by the lobby associations of record labels is not in evidence,” the 
report concludes.


Music industry revenue



The authors further argue that file-sharing can actually benefit the creative 
industries in various ways.

The report mentions the success of the SoundCloud service where artists can 
share their work for free through Creative Commons licenses, the promotional 
effect of YouTube where copyrighted songs are shared to promote sales, and the 
fact that research shows that file-sharers actually spend more money on 
entertainment than those who don’t share.

“Within the creative industries there is a variety of views on the best way to 
benefit from online sharing practices, and how to innovate to generate revenue 
streams in ways that do not fit within the existing copyright enforcement 
regime,” the authors write.

Finally, the report shows that punitive enforcement strategies such as the 
three strikes law in France are not as effective as the entertainment 
industries claim.

The researchers hope that the U.K. Government will review the Digital Economy 
Act in this light, and make sure that it will take into account the interests 
of both the public and copyright holders.

This means expanding fair use and private copying exceptions for citizens, 
while targeting enforcement on businesses rather than individuals.

“We recommend a review of the DEA and related legislation that strikes a 
healthy balance among the interests of a range of stakeholders including those 
in the creative industries, Internet Service Providers and internet users.”

“When both [the creative industries and citizens] can exploit the full 
potential of the internet, this will maximize innovative content creation for 
the benefit of all stakeholders,” the authors write.


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