This document discusses digital piracy in the movie industry. It begins with definitions of digital and piracy. It then discusses the history of piracy from the 1970s to modern peer-to-peer networks. The document also examines the impact of piracy through lost revenue and jobs. Both hard copy piracy through illegal DVD copying and soft copy piracy through illegal downloads are described. The document concludes by discussing efforts to prevent piracy through law enforcement, digital watermarking technology, and changing the movie industry's business model to embrace online streaming services.

1. Digital Piracy in Movie IndustryBy Group 1:Erick PrajogoKanishk KansalAnkit ManralPrajakta ThakurHarish GuntukuGaurav Bhandari1

2. TopicsIntroductionHistory of piracyHow piracy is doneRipple effect of piracyPrevention of piracy2

3. IntroductionDigital 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 + PiracyIt 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 2010Avatar - 16,580,000Kick-Ass - 11,400,000Inception - 9,720,000Shutter Island - 9,490,000Iron Man 2 - 8,810,000Clash of the Titans - 8,040,000Green Zone - 7,730,000Sherlock Holmes - 7,160,000The Hurt Locker - 6,850,000Salt - 6,700,000Digital 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 PiracyEntry of PCs – 1970

7. Open Reel tape decks

8. Casette Deck

9. Floppy Discs

10. VCR

11. Bulletin Board System

12. Compact Disk

13. Internet

14. Napster

15. Peer-to-Peer Network

16. DVDInfluencing FactorsFactors influencing Piracy

17. Age

18. Cultural Differences

19. Gender

20. Legal

21. Economics

22. Market factors

23. Situational factors

24. Educational Level 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 PiracyHard Copy Piracy (Physical Goods)

26. Soft Copy Piracy (Electronic Files)How Piracy is Done8

27. Hard Copy PiracyCinemas: 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 PiracyPeer to Peer Technology: A type of network that allows users to access parts of each others hard drivesStreaming Media: Sound and videos that are transmitted on the internet in streamingInternet Relay Chat: A system for internet chatting where users exchange information and digital content in real time to one anotherFile Transfer Protocol: Allows users to download files from other computer on the internet10

29. Hollywood Revenues Source: ABN-AMRO11

30. Ripple Effect of PiracyLost output for U.S. industries of $20.5 billion per yearThwarts the creation of about 140,000 jobsAccounts for more than $800 million in lost tax revenue12

31. Effect of Hard Copy Piracy46% revenue from DVD salesDVD making cost minimalPiracy impacts DVD sales directlyBig impact on the bottom lineEstimated loss $3-3.5 Bn per year Source: Deloitte Survey13

32. Effect of Soft Copy PiracyPossible loss of $3-4 bn per yearPrecise estimates difficultMany users may not necessarily buy the movies otherwise Source: Deloitte Survey14

33. Prevention of PiracyLaw EnforcementTechnology, Digital WatermarkingChange business model of movie industry, taking learning from Hulu.com and Netflix15