Some companies just get it
How do you fight piracy? Do you go after the fans of art? Or, do you go after the pirates themselves?
Last week, Warner Bros. and Paramount Pictures decided it was time to go after the pirates, and fight fire with fire.
According to an AP article: Paramount Pictures will sell DVDs through Warner Bros. outlets in China to fight rampant movie piracy by bringing low-cost legitimate goods quickly to market.
Warner, Paramount and Paramount's Dreamworks affiliate are selling new titles for $3 in China as little as two months after their U.S. theatrical release, the companies said. They said that will be the earliest release and lowest price in any market worldwide.
According to the article, China is the world's leading source for illegally copied movies, and pirates can get DVDs on the street less than a week after a title’s release abroad and months before a legitimate DVD is available. Pirated DVDs sell for as little as 68 cents.
What does this mean? Well, entertainment companies are starting to realize that their products are not, despite what some people thing, necessities. Therefore, as disposable income diminishes, the cost of unnecessary things has to come down as well.
The cost of pirated products drives the market. If you had a choice between a really great, and legal copy of a DVD, for $20, or a decent illegal copy of a DVD for $2, chances are you’ll choose the cheaper version – despite the fact that it was made illegally.
But, if the cost of a pirated DVD and a legitimate DVD are comparable, customers will always pick the higher-quality product for a slightly higher price.
These companies have the right idea. To put piracy out of business you have to treat it like a legitimate competitor – and beat it at its own game.
Will this ever come to the U.S.? Probably not anytime soon. We’re still willing to buy DVD’s for $20-$30. But once we make the conscious choice to cut our discretionary spending, these companies will probably change their tune.
Now if the music industry would take notes from the movie industry on how to deal with pirates, the world would be a much happier place.
Last week, Warner Bros. and Paramount Pictures decided it was time to go after the pirates, and fight fire with fire.
According to an AP article: Paramount Pictures will sell DVDs through Warner Bros. outlets in China to fight rampant movie piracy by bringing low-cost legitimate goods quickly to market.
Warner, Paramount and Paramount's Dreamworks affiliate are selling new titles for $3 in China as little as two months after their U.S. theatrical release, the companies said. They said that will be the earliest release and lowest price in any market worldwide.
According to the article, China is the world's leading source for illegally copied movies, and pirates can get DVDs on the street less than a week after a title’s release abroad and months before a legitimate DVD is available. Pirated DVDs sell for as little as 68 cents.
What does this mean? Well, entertainment companies are starting to realize that their products are not, despite what some people thing, necessities. Therefore, as disposable income diminishes, the cost of unnecessary things has to come down as well.
The cost of pirated products drives the market. If you had a choice between a really great, and legal copy of a DVD, for $20, or a decent illegal copy of a DVD for $2, chances are you’ll choose the cheaper version – despite the fact that it was made illegally.
But, if the cost of a pirated DVD and a legitimate DVD are comparable, customers will always pick the higher-quality product for a slightly higher price.
These companies have the right idea. To put piracy out of business you have to treat it like a legitimate competitor – and beat it at its own game.
Will this ever come to the U.S.? Probably not anytime soon. We’re still willing to buy DVD’s for $20-$30. But once we make the conscious choice to cut our discretionary spending, these companies will probably change their tune.
Now if the music industry would take notes from the movie industry on how to deal with pirates, the world would be a much happier place.
posted by Eric LaRose at
4:53 PM
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