Internet Piracy, the problem that isn't

Internet Piracy is not as big of a problem as it is made out to be. A recent study by The London School of Economics has revealed that teens who illegally download music, movies and TV shows are more likely to purchase content than those who do not. Perhaps this can be attributed to a "try before you buy" mentality or a frustration with the sometimes sub-par quality of pirated media.

Whatever the case, those in charge of the legal distribution of media content need to adopt a new perspective of online piracy and it would be in their best interest to cease the senseless lawsuits against internet sites that enable digital media piracy.

Initially, targeting Torrent websites has seemed to be the most viable option for piracy opponents. Instead of going after the imperceptible number of users that would be nigh impossible to corral and punish, they have attempted to cut off the head of the dealers. Unfortunately, this is a losing battle against a hydra, "cut off one head and two more shall take its place!" As soon as a torrent site is shut down, there are more in the wings ready to rise up and it won’t be long before the defeated dealer rises again with a slight change in moniker or a new signature at the end of their URL. The point is, fighting internet piracy is not just a losing battle but a pointless one. 

As a marketing major, one of the key concepts that we are taught as the new philosophy of good marketing is to understand what the customers want and provide tailored solutions that provide so much value that customers will be happy to pay for it. Then follow up to make sure they are satisfied, thus providing more value. Marketing is all about nurturing relationships with customers.

In the same way, the entertainment industry needs to provide more value to their customers. The 4 P's of marketing are Product, Price, Place and Promotion. One reason for customers engaging in internet piracy is that they feel that the product does not warrant the price of the entertainment. There is a discrepancy in value provided to the customer.

 For instance, many new movies are released in Blu-Ray/DVD/Digital Copy Combo packs at $19.99 to $29.99 in brick-and-mortar retail stores, while the digital only copy available through online outlets such as VUDU, Amazon and Xbox Video are the same price. So you get less value, i.e. no physical DVD or Blu-Ray, for the same amount of money. An argument can be made that the reason for this is that they are providing value through instant download of the product but I would consider that to be a stretch.

Do not misunderstand me, I am not saying that internet piracy is right and that legal distributors should give up entirely. What I am saying is that something is not adding up. Maybe the entire industry is set for a restructuring where A-list actors get a smaller chunk of change. Perhaps a reduction in price may lead to a monumental increase in sales that would lead to greater profits.

What ever the case, research shows that the entertainment industry continues to grow and Box Office sales have been at all time highs. Continued growth is expected in the entertainment media industry and the problem of internet piracy is exaggerated.

With any problem it is important to look for the best solution, not the most obvious. Piracy opponents should use this as an opportunity to explore new solutions, such as new revenue models for distribution, like the many subscription and ad based revenue models such as Netflix, Hulu, Youtube, Amazon Prime Music, etc. Innovative solutions can solve problems and understanding what customers want and providing them with value. Good marketing is all about listening. Listen to what internet piracy is telling you.