vs.

The Internet(Andrew Currah)

Anne Zozo, SID: 310061377, szoz3534@uni.sydney.edu.au

The Studios

Criminalizing File Sharing

“The natural tendency of these firms is toeliminate the unauthorized use of theirintellectual property, and in turn, maximizethe economic value of each product.” (p. 442)

The Internet and P2P

• Democratizes production, invigoratescreativity

• Matching of supply & demand in distribution• Decentralized data exchange, relative decline

in centralized control• Copying = no rivalry or scarcity

Copying is not theft! http://thepiratebay.org/blog

P2P put to right use

• DRM technology:Access rules when, where, how

• Flexibility• Cost efficiency, higher revenues predicted,

consumer rewards possible• Four business models prove legal and

economic incentives

Behaviour of Oligopolies

• Protect spatial and temporal structure(Release Windows)

• Home entertainment and DVD• Short-term planning, neglecting potential of

new market (gatekeepers)• Reflect, defend, and enforce existing

structure of industry

http://www.youtube.com/watch?v=e1mmUs68T_4&feature=related

Reasons for such Behaviour

1. Legal and territorialstructure of assetownership

2. Protecting “ReleaseWindows“

3. Vested interests4. Risk-averse executives

What happened since 2006

• iTunes‘ deal with the studios• Blockbuster Video goes down

• 1980s:“Home taping iskilling music”

• Pirates want toliberate

• MPAA lawsuitraised awareness

• Pirate Party• MediaDefender

affair• ...

Discussion

• Copying is no theft but does the communicationstrategy of the studios actually make us feel guilty?

• Is history repeating itself?• Do you think consumers will actually upgrade their

DVD collections by buying the films they alreadyhave again in high definition?

• Considering the The Pirate Bay-case – do youthink, the public can influence the studios?

• Is digital media really controllable?