How the govt cracks down on the piracy of films.
What do Bill’s provisions entail?
The Bill has two parts. The first part seeks to form film piracy illegal and therefore the second details punishment for an equivalent. The amendment requires the insertion of a substitute section (section 6AA) within the Cinematograph Act to ensure that unauthorized recording is prohibited, usually in movie theatres. Another section requires the introduction of penal provisions for breaching section 6AA provisions. “If any person contravenes the provisions of section 6AA, he shall be punishable with imprisonment for a term which may extend to 3 years or with fine which may reach 10 lakh rupees or with both," it says
How big a threat is film piracy?
In keeping with a document by way of Irdeto, a global answers issuer in virtual platform protection and media and entertainment, the Indian media and enjoyment enterprise loses $2. Eight billion of its annual revenue to piracy. India is among the highest five countries in peer-to-peer downloading. According to a study by Envision Ltd, a firm providing customized brand and trademark monitoring services, Indians are the most important group of tourists to Indian content-focused torrent sites and also constitute the most important or second-largest group of individuals who visit major international bit-torrent sites like Mininova, Torrentz and therefore the Pirate Bay.
Part of the matter is that a lot of consumers of illegal content don't realize the potential negative consequences for the industry. the truth is that losses just like the ones for Expendables 3 trickle right down to directors, actors, et al. who miss out on royalties that might have otherwise accrued from legal consumption. Lower residuals also hurt the pension, welfare, and benefits of many workers behind the scenes. it's tough to quantify the losses supported a hypothetical non-piracy scenario, but let’s set the record straight on two issues:
Studios lose with piracy: A recent meta-analysis of peer-reviewed studies reveals overwhelming evidence that piracy financially hurts movies. Some argue that there are not any losses, but the peer-reviewed research leaves little doubt that illegal file-sharing displaces paid consumption.
The magnitude of the losses: Rigorous academic studies estimate conservative losses in box office revenues and digital sales at about 10%, so more realistic estimates should be higher. A 2014 peer-reviewed study at Carnegie Mellon found that piracy before release results in 19% additional box office losses relative to post-release piracy.
For example, supported these conservative numbers, Expendables 3 lost about $100 million dollars thanks to piracy. I assumed box office losses of 10% (base) plus a further 19% thanks to pre-release piracy and a tenth loss in digital sales. I used the reported $206 million in the worldwide box office and assumed similar digital sales of $200 million (this data isn't public).
With a $100 million loss on 70 million pirated copies, it's a few $1.40 loss per pirated copy. consider $1.40 as a conservative estimate of infringers' true willingness-to-pay for the movie, on the average . Without access to pirate copies, 70%-80% of the infringers would have just skipped it, and therefore the remaining ones would have watched the movie in theaters at $7 or waited for a digital copy at $5.
The consequences
Many think naively that studios can't be hurt an excessive amount of , because in any case , you hear mostly about the films that make many many dollars. But the truth for several filmmakers is that they often survive the sting , seeking financing to supply quality content, and enduring high uncertainty about whether or not they are going to be ready to pay off debt and have any profit left. Given the high fixed charge of manufacturing a top quality movie, losses from piracy are often the difference between making a profit or not. Avi Lerner, the producer of Expendables 3, paints a dark picture: “If piracy continues to be rampant like this, then in four to 5 years it'll be the top of the independent film business as we all know it and therefore the studios are going to be making way fewer films then they are doing now.”
The problems that piracy generates are particularly problematic for brand spanking new and independent filmmakers, who don’t have the support of major studios. Independents typically seek funding before production from film distributors and exhibitors worldwide, a practice referred to as presale financing. Many of those deals are struck at AFM, which is organized by the Independent Film and tv Alliance (IFTA).
What do Bill’s provisions entail?
The Bill has two parts. The first part seeks to form film piracy illegal and therefore the second details punishment for an equivalent. The amendment requires the insertion of a substitute section (section 6AA) within the Cinematograph Act to ensure that unauthorized recording is prohibited, usually in movie theatres. Another section requires the introduction of penal provisions for breaching section 6AA provisions. “If any person contravenes the provisions of section 6AA, he shall be punishable with imprisonment for a term which may extend to 3 years or with fine which may reach 10 lakh rupees or with both," it says
How big a threat is film piracy?
In keeping with a document by way of Irdeto, a global answers issuer in virtual platform protection and media and entertainment, the Indian media and enjoyment enterprise loses $2. Eight billion of its annual revenue to piracy. India is among the highest five countries in peer-to-peer downloading. According to a study by Envision Ltd, a firm providing customized brand and trademark monitoring services, Indians are the most important group of tourists to Indian content-focused torrent sites and also constitute the most important or second-largest group of individuals who visit major international bit-torrent sites like Mininova, Torrentz and therefore the Pirate Bay.
Part of the matter is that a lot of consumers of illegal content don't realize the potential negative consequences for the industry. the truth is that losses just like the ones for Expendables 3 trickle right down to directors, actors, et al. who miss out on royalties that might have otherwise accrued from legal consumption. Lower residuals also hurt the pension, welfare, and benefits of many workers behind the scenes. it's tough to quantify the losses supported a hypothetical non-piracy scenario, but let’s set the record straight on two issues:
Studios lose with piracy: A recent meta-analysis of peer-reviewed studies reveals overwhelming evidence that piracy financially hurts movies. Some argue that there are not any losses, but the peer-reviewed research leaves little doubt that illegal file-sharing displaces paid consumption.
The magnitude of the losses: Rigorous academic studies estimate conservative losses in box office revenues and digital sales at about 10%, so more realistic estimates should be higher. A 2014 peer-reviewed study at Carnegie Mellon found that piracy before release results in 19% additional box office losses relative to post-release piracy.
For example, supported these conservative numbers, Expendables 3 lost about $100 million dollars thanks to piracy. I assumed box office losses of 10% (base) plus a further 19% thanks to pre-release piracy and a tenth loss in digital sales. I used the reported $206 million in the worldwide box office and assumed similar digital sales of $200 million (this data isn't public).
With a $100 million loss on 70 million pirated copies, it's a few $1.40 loss per pirated copy. consider $1.40 as a conservative estimate of infringers' true willingness-to-pay for the movie, on the average . Without access to pirate copies, 70%-80% of the infringers would have just skipped it, and therefore the remaining ones would have watched the movie in theaters at $7 or waited for a digital copy at $5.
The consequences
Many think naively that studios can't be hurt an excessive amount of , because in any case , you hear mostly about the films that make many many dollars. But the truth for several filmmakers is that they often survive the sting , seeking financing to supply quality content, and enduring high uncertainty about whether or not they are going to be ready to pay off debt and have any profit left. Given the high fixed charge of manufacturing a top quality movie, losses from piracy are often the difference between making a profit or not. Avi Lerner, the producer of Expendables 3, paints a dark picture: “If piracy continues to be rampant like this, then in four to 5 years it'll be the top of the independent film business as we all know it and therefore the studios are going to be making way fewer films then they are doing now.”
The problems that piracy generates are particularly problematic for brand spanking new and independent filmmakers, who don’t have the support of major studios. Independents typically seek funding before production from film distributors and exhibitors worldwide, a practice referred to as presale financing. Many of those deals are struck at AFM, which is organized by the Independent Film and tv Alliance (IFTA).
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