Wednesday, August 12, 2020

TorrentFreak's Latest News

 

High-Quality Piracy Boosts Box Office Revenues in Opening Week, Research Finds
Ernesto Van der Sar, 12 Aug 10:32 PM

pirate bayThe vast body of academic piracy research has shown that illegal downloading can affect legal revenues in a variety of ways.

Many studies have focused on a negative effect, but there are positive links as well. How piracy interacts with sales often differs from situation to situation.

These finer nuances are intriguing and important to obtain a better understanding of the piracy phenomenon. With a newly published study, researchers from Eastern Michigan University and the University of British Columbia have just added another piece to the puzzle.

In a paper titled, 'Latent Estimation of Piracy Quality and its Effect on Revenues and Distribution: The Case of Motion Pictures', Anthony Koschmann and Yi Qian looked at the link between the volume and quality of pirate downloads to see how this affects box office revenues during and after a movie's release.

The researchers use data from The Pirate Bay to measure the supply (seeders) and demand (leechers) of pirated movies. They also scanned the pirated movie titles to get an indication of the quality. The term 'CAM,' referring to camcorder versions, is seen as low quality, for example, while BDRip points to a high-quality Blu-Ray source.

High-Quality Increases Box-Office Revenue

One of the main findings of the study is that an increase in high-quality piracy is linked to an increase in legal box office revenue during the opening week of a film.

"We find that a 1% increase in the quality of the pirated copies, conditioning on a level of piracy downloads (leechers, or number of users downloading the illegal file), corresponds on average to a 0.52% increase in revenues in the launch period," the researchers write in their paper.

While it may sound counterintuitive that piracy of high-quality movies leads to increased revenues, the researchers offer a plausible explanation. They believe that, early on, many consumers lack information on new movies. These high-quality pirate downloads can, therefore, be seen as a sampling tool.

The Positive Effect Reverses

The same mechanism can also explain the second major finding of the study. After the opening week, the positive link between high-quality piracy and box office revenues starts to reverse into a negative one.

"Post-launch shows a 1% increase in the quality of illegal copies, conditioning on a level of leechers, associates with a -0.38% decrease in revenues," the researchers write.

Researcher Anthony Koschmann informs TorrentFreak that this effect is likely driven by product uncertainty. Early on, high-quality piracy copies act as a 'promotional' tool, but as time passes, pirate downloads mostly cannibalize sales.

"When products like movies launch, product information is limited; higher quality copies provide more information about the product, which reduce uncertainty and encourage consumers as a sampling mechanism. But after launch, more information permeates the market, so higher quality copies function more like substitutes," Koschmann tells us.

Real World Implications

The researchers believe that their findings can help movie industry executives to make more informed decisions. For example, they can afford not to loosen their anti-piracy efforts during opening week. At the same time, they can release better 'samples' themselves in addition to the traditional two-minute trailers.

"Producers can create their own derivations of the genuine good; this creates an opportunity to encourage the right kind of sampling and discourage the wrong kind of cannibalism," the paper reads.

As with all research, the findings also raise further questions. For example, this study focused on downloads from The Pirate Bay, and it's unclear if the same is true for other types of piracy, including streaming.

There's also the possibility that other variables play a role in the observed findings. The researchers did their best to rule out several alternatives through their statistical modeling, but follow-up research is always welcome.

The research, which hasn't been peer-reviewed, is published by the National Bureau of Economic Research (NBER) as part of its working paper series.

From: TF, for the latest news on copyright battles, piracy and more.

BREIN Planning to Tighten The Noose on Pirates & Intermediaries
Andy Maxwell, 12 Aug 10:59 AM

BREIN logoFounded before Napster, BREIN has forged itself a unique niche in anti-piracy enforcement.

It not only tackles smaller-scale distributors and facilitators of infringing content, but has also obtained some of the most important legal precedents against the largest of targets, ones that will carry momentum for years to come.

For these reasons and more, it's always prudent to keep an eye on what BREIN is doing. The anti-piracy outfit is loved by some and hated by others but if nothing else, BREIN is more open and pragmatic about its activities than others operating in the same space. And BREIN is always busy, as its latest six-month update reveals.

Coronavirus Hasn't Slowed BREIN Down

Perhaps unsurprisingly, BREIN begins with an observation concerning the coronavirus, a pandemic that has touched everyone in some way but the creative sectors perhaps more than most. In normal times, many pirates justify pirating music, for example, by choosing to support their favorite bands at live gigs, paying entrance fees and buying merchandise. As BREIN points out, in most countries those options have now been taken away.

"Gigs are no alternative to loss of income due to illegal streaming and downloading, and certainly not with Corona slashing into the income from gigs. Piracy and Corona is a double whammy," BREIN writes.

The world of cinema has been affected too. It's not uncommon for people to complain about overcrowded cinemas with expensive snacks that take advantage of consumers, so an occasional free download is an antidote to that. Now, however, cinema revenues are taking a battering everywhere and even affecting the supply of fresh movies on pirate sites.

'Street' Level Enforcement Activities

With this backdrop, BREIN says it has carried out almost 250 actions thus far this year against those offering pirated content for free. It's also removed more than 765,000 search results pointing to illegal content and made more than 1,000 "interventions" on online auction sites to remove adverts offering illicit content.

BREIN says that most of these matters are settled out of court, often concluded with an agreement to stop certain activities. In other cases, financial settlements are reached along with compensation for legal fees. Other matters can see BREIN's lawyers go head to head with defendants' who want to put up a fight, but end up changing their minds "at the eleventh hour" after incurring more costs, the group says.

BREIN also has plans to deal with frequent and long-term uploaders. The plan was first aired in 2016 and while it has taken action against numerous individuals since, its large-scale "awareness project" has yet to appear. According to the anti-piracy group, an announcement on that will be coming soon.

Enforcement Activity Against Intermediaries

Tackling smaller-scale infringers is often the 'bread and butter' work of many anti-piracy groups but BREIN has a reputation for hand-picking certain cases in order to set legal precedents. For example, it was BREIN's work that led to a definitive ruling from the EU's highest court that users streaming unlicensed content to their homes are breaking the law, something that was previously considered a gray area. The illegality of selling pre-loaded set-top boxes was also confirmed.

BREIN says it is now engaged in legal action with the aim of compelling Internet intermediaries, which currently enjoy limited liability, to cooperate more in anti-piracy matters, including providing identifying data on their users/customers.

"Intermediaries must cooperate in enforcement, not only in the event of shutting down or blocking [services], but if necessary also by providing identifying data. Intermediaries for suppliers of illegal offerings or providing access to such offers must also have reliable identifying data [of users/customers], otherwise the 'perpetrators' can pass through elsewhere anonymously," BREIN writes.

"If intermediaries have their services resold by others – we have already seen this almost as standard with Dutch 'hosting' providers, who therefore advertise themselves as an 'access' or 'upstream' service – then they must oblige their contracting parties to verify their identity per perpetual clause from corporate customers."

Whether BREIN will achieve these goals will remain to be seen but the group has a reputation for persistency.

Way back in 2010, BREIN went to court to try and force Ziggo, the Netherlands' largest ISP, to block The Pirate Bay. Via an interim order, the group already managed to block the site and 258 mirrors and proxies in 2019 alone but this June, BREIN finally obtained the ruling it was looking for, opening up the possibility of wider blocking in the Netherlands.

"We have a 'building block' strategy in which we gradually build case law that assists our enforcement measures. You can point back to this in the future," BREIN explains.

"We will also go to the highest European court for this, and not without success. That can be a long-term process. Even though a lot has been gained in recent years, not only in the legal field, but certainly also socially and politically, we are far from there," the group concludes.

From: TF, for the latest news on copyright battles, piracy and more.

 
 
Powered by Mad Mimi®A GoDaddy® company

No comments: