Friday, August 30, 2013

Who Says the Economy Does Not Lose Any Money To Film Piracy?


The Institute for Policy Innovation claims that film piracy is costing the U.S. economy $20.5 billion annually.
But seriously as I read on Cheezburger, it is misleading, because that sum also returns to boost the economy as the pirates invest or spend the billions of dollars in the same economy. So, who are the real losers?

Photo Credit: We Know Memes.

The Motion Picture Association of America funded a report that found that piracy was costing studios $6.1 billion a year. So, if the U.S economy is losing $20.5 billion annually and the studios lose only $6.1 billion annually, what of the remaining $14.4 billion?

“It says that a dollar less in film spending actually has a larger impact since it impacts other parts of the economy,” said Koleman Strumpf, an economist at the University of Kansas School of Business. “But if file-sharing leads to less spending on films, consumers have more money to spend which will completely offset these effects. There is no multiplier effect at all.”

Poor countries have more piracy because media costs too much -- report.

The Top 10 Most Pirated Films of 2012

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