Pirating films hurts profits, deincentivizes movie-making

In a November 10 staff editorial (“Selling Legal Downloading”), the Crimson Staff was harshly critical of the film industry’s recent announcement that it will begin to sue those who steal movies online. I write today to briefly explain why we have chosen to take this action.

In many aspects, the decision to sue those engaged in illegal file-swapping is hardly a revolutionary step for the film industry. For decades, the Motion Picture Association of America (MPAA) has fought piracy in many forms, embracing new technologies and movie formats while addressing the challenges these new developments bring—whether on celluloid, television, cable, satellite, videocassette or DVDs.

The upcoming litigation is only one aspect of our efforts to combat the very real threat of online film piracy. For example, our industry has been engaged in a multi-million dollar public education campaign on this issue that has included in-theater trailers, television public service announcements as well as online and print advertising. Additionally, all of the studios are greatly invested in the search for more secure technological protections to better support online distribution of motion pictures.

Another key component to addressing piracy is the development of low-hassle, fairly priced alternatives to stealing. The Crimson editorial suggested that our industry is averse to embracing the full potential of the online film market. This simply isn’t the case. After all, the name of the game in Hollywood is getting people to pay to see the films our community creates. That is why the film studios I represent have played a key role in the development of legal online movie services such as MovieLink, CinemaNow and Moviebeam.

However, the finest business model, be it online or “bricks and mortar” cannot take root and flourish if it is expected to compete with somebody giving away the same product for free. It simply defies logic and the reality of basic economics. The average motion picture costs $102 million to make and market. If the illegal swapping of movies online is allowed to reach the levels that nearly devastated the music industry, who will invest such sums to create movies in the future?

As that famous Harvard graduate John Kennedy once said, “the time to fix the roof is when the sun is shining.” Unauthorized file-swapping is a viral threat that we must bring under control now—before it becomes “acceptable” to new generations of computer users. Individuals must realize that there are real consequences when you steal copyrighted works.

I do believe that the 21st century information age will bring a new golden age for Hollywood and for consumers of movies worldwide. However, it will only do so if we address the intellectual property challenges that have gone hand-in-hand with the boom of technology. Failure to address this challenge could take away the magic and the mystery of movies. And that’s something none of us want to see happen, which is why I am committed to making sure that the MPAA is helping to lead the charge to get us to this future.

DAN GLICKMAN

Nov. 17, 2004

The writer is the President and CEO of the Motion Picture Association of America.