Freakonomics & Online Piracy

No one really knows how much online piracy costs the various industries claiming injury (motion picture industry, gaming industry, recording industry, etc.). As Kal Raustiala and Chris Sprigman of Freakonomics write:

Unlike stealing a car, copying a song doesn’t necessarily inflict a tangible loss on another. Estimating that loss requires counterfactual assumptions about what the world would have been like if the piracy had never happened — and, no surprise, those most affected tend to assume the worst.

SOPA and PIPA were overreactions by industries that themselves can’t figure out how much piracy is costing them so they just through out a really big, scary number and claim thousands of jobs lost and everyone climbs on board.

Make no mistake. These industries are under attack but not by online pirates. Traditional business models that in the past produced healthy profits and plenty of money to spread around are about to be disrupted by the likes of Apple, Amazon.com, YouTube, Facebook, NetFlix etc. What else is a poor struggling industry to do but buy legislation they think will put more money in the coffers. We all know that they’re misguided and operating under false, unprovable assumptions but our purchased, I mean elected officials just aren’t smart enough to understand the reality. Or they just don’t care.

Advertisements

2 thoughts on “Freakonomics & Online Piracy

  1. Google

    Just wish to say your article is as astonishing.
    The clarity in your post is just excellent and i can assume you are an expert on this subject.

    Well with your permission allow me to grab your RSS feed to keep updated
    with forthcoming post. Thanks a million and please keep up the enjoyable work.

  2. Audra

    I see a lot of interesting articles on your website.
    You have to spend a lot of time writing, i know
    how to save you a lot of work, there is a tool that creates readable,
    google friendly posts in couple of seconds, just search in google –
    k2 unlimited content

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s