Disney and the Pirates of the Industry
As a global company with high interest in both the music and film industries, it is essential that Disney deal with media piracy effectively. With Internet access increasing globally, piracy has the potential to create huge financial losses for Disney. In order to adequately deal with this problem, it is necessary to comprehend the history and evolution of piracy, its impacts on music and film industries, and its effect on the development of innovative business strategies. This brief will address various issues relating to media piracy in order to make insightful recommendations.
II. Factors in the Evolution of Media Piracy
A major issue in business today is the
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An average of 500,000 copied movie files are downloaded on the internet every day (Warner 2006). All these figures should be alarming to Disney, as a corporation involved in both the music and motion picture industries. Yet, the latest trends in the industries indicate a shift towards digital distribution of media, which may help to resolve some of the problems. Digital media will be discussed more thoroughly below. IV. Conflicting Interests in Media Piracy The views about media piracy can generally be divided into three groups: consumers, governments and industry. From the consumer perspective, online media piracy is considered to be a means of attaining popular music and movies through the internet without having to pay for them (BBC News 2002). A survey performed by the Recording Industry Association of America found that ¼ of consumers do not buy new music because they are downloading or copying the music for free (RIAA 2005). Many consumers do not consider illegal downloading to be a “crime”, whereas the music and film industries view it as a direct threat to IP. In addition, current consumer preferences reflect a widespread demand for American culture in music and movies. Thus, online piracy is a means by which developing countries can access American culture, even if they cannot afford to purchase the media legally (Smiers 2006).
From the industry point of view, media piracy is blamed for a continuous decrease in sales. Corporations within