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IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
IT in Business - Digital Piracy
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IT in Business - Digital Piracy

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  • 1. Digital Piracy in Movie Industry
    By Group 1:
    Erick Prajogo
    Kanishk Kansal
    Ankit Manral
    Prajakta Thakur
    Harish Guntuku
    Gaurav Bhandari
    1
  • 2. Topics
    Introduction
    History of piracy
    How piracy is done
    Ripple effect of piracy
    Prevention of piracy
    2
  • 3. Introduction
    Digital is defined as anything “available in electronic form, readable and editable by computer”
    Piracy is defined as “the unauthorized reproduction or use of a copyrighted book, recording, television program, patented invention, trademarked product, etc.”
    Digital + Piracy
    It shall, therefore, turn into “the unauthorized reproduction of a copyrighted material available in electronic form, readable and able to be manipulated by a computer.”
    3
  • 4. Deep Impact
    Top pirated films of 2010
    Avatar - 16,580,000
    Kick-Ass - 11,400,000
    Inception - 9,720,000
    Shutter Island - 9,490,000
    Iron Man 2 - 8,810,000
    Clash of the Titans - 8,040,000
    Green Zone - 7,730,000
    Sherlock Holmes - 7,160,000
    The Hurt Locker - 6,850,000
    Salt - 6,700,000
    • Digital Piracy has become a menace to the entertainment business
    • 5. It is estimated that as of 2005, almost $3.5 billion dollars annually is lost in the film industry
    • 6. Piracy affects 99% of people in the entertainment industry who don’t make huge salaries.
  • History of Digital Piracy
  • Influencing Factors
  • Piracy is a crime
    "My friend can't afford it so I thought I'd be nice and send him a copy"
    "I thought that as I'd paid for it, it was mine to do whatever I liked with it"
    "I thought it was okay cause it was free"
    I Din’t know !
    Use any excuse you like!
    It changes nothing ! They don't absolve you of the crime!
    7
  • 25. Two ways of doing Piracy
    • Hard Copy Piracy (Physical Goods)
    • 26. Soft Copy Piracy (Electronic Files)
    How Piracy is Done
    8
  • 27. Hard Copy Piracy
    Cinemas: Films recorded in Cinema copied to different formats.
    Screeners & Digi-Masters: Screeners are sent to territories for audio dubbing and subtitling. Obtained by pirates and copied to different formats.
    Press & Check Discs: These are the sample discs sent to the press and DVD industry insiders.
    Parallel Imports: Release on different dates for different territories
    Copies of legally obtained DVD: Purchased on the open market and reproduced to distribute on the internet or as copied discs.
    9
  • 28. Soft Copy Piracy
    Peer to Peer Technology: A type of network that allows users to access parts of each others hard drives
    Streaming Media: Sound and videos that are transmitted on the internet in streaming
    Internet Relay Chat: A system for internet chatting where users exchange information and digital content in real time to one another
    File Transfer Protocol: Allows users to download files from other computer on the internet
    10
  • 29. Hollywood Revenues
    Source: ABN-AMRO
    11
  • 30. Ripple Effect of Piracy
    Lost output for U.S. industries of $20.5 billion per year
    Thwarts the creation of about 140,000 jobs
    Accounts for more than $800 million in lost tax revenue
    12
  • 31. Effect of Hard Copy Piracy
    46% revenue from DVD sales
    DVD making cost minimal
    Piracy impacts DVD sales directly
    Big impact on the bottom line
    Estimated loss $3-3.5 Bn per year
    Source: Deloitte Survey
    13
  • 32. Effect of Soft Copy Piracy
    Possible loss of $3-4 bn per year
    Precise estimates difficult
    Many users may not necessarily buy the movies otherwise
    Source: Deloitte Survey
    14
  • 33. Prevention of Piracy
    Law Enforcement
    Technology, Digital Watermarking
    Change business model of movie industry, taking learning from Hulu.com and Netflix
    15
  • 34. 16
    Copyright Infringement
  • 35. Law Enforcement
    Charges were filed in January 2008 against Pirate Bay. Total of 34 cases were filed , 21 related to music 9 to movies and 4 to games.
    Damages worth nearly USD 14 million was imposed on Pirate Bay
    All four founders were sentenced to 1 years in jail
    17
  • 36. Law Enforcement, cont.
    Mininova was ordered by Dutch court in August 2009 to remove all copyrighted work from its website
    18
  • 37. Law Enforcement, cont.
    Napster was a popular P2P music sharing service started by Shawn Fanning
    Metallica filed lawsuit against Napster in 2000
    Various companies sued Napster under US DMCA
    In March 2001 , Napster was ordered to pay USD 31m
    19
  • 38. Technology
    Digital Watermarking
    20
  • 39. Process of embedding information into a digital signal in a way that it is difficult remove
    No distortion of original Video
    21
  • 40. Types of Digital Watermarking
    Visible
    Invisible
    22
  • 41. Copyright Protection System
    23
  • 42. Digital WaterMarking Life Cyle Phase
    24
  • 43. Change Movie Industry´s Business Model
    In 2009, movie industry in America withhold the availability of new DVD release to rental service, RedBox and Blockbuster
    Try new distribution channel, internet
    25
  • 44. Focus shift to internet & digital technology
    Box office sales will be hurt
    DVD sales will decline
    Take the learning from TV industry, Hulu.com
    The same model can’t be used in movie industry
    26
  • 45. Box Office’s Gross Sales
    27
  • 46. Netflix business model
    Offers on-demand video streaming via internet and DVD-by-mail rental
    8$ per month
    Focus on back catalog, instead new content
    Netflix have to wait few months after DVD release
    28
  • 47. Similar Services to Netflix
    Amazon video on-demand, $3 pay-per-view
    29
  • 48. Similar Services to Netflix
    Blockbuster on-demand, $3 pay-per-view
    30
  • 49. Movie industry should adapt
    They want to protect the DVD sales
    Use internet channel
    Allow on-demand streaming to get new title faster
    Further decrease price for digital copy
    31
  • 50. Conclusion
    Piracy is a Crime
    It was a long war between movie industry and piracy
    Box office sales will stay high, DVD sales will decline
    Law, Technology, and movie industry should work together to prevent piracy
    32
  • 51. Q&A
    Any Questions??
    33

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