A unique and honest look from a Digital Strategist's perspective at the Content and Consumer Electronic industry's quagmire resulting from a fear of disruption and an inability to adapt to technological change...
Wednesday, August 22, 2007
The True Cost of Sound Recording Piracy to the U.S. Economy
Executive Summary Text: “Piracy” of recorded music costs the U.S. sound recording industries billions of dollars in lost revenue and profits. These losses, however, represent only a fraction of the impact of recorded music piracy on the U.S. economy as a whole. Combining the latest data on worldwide piracy of recorded music with multipliers from a well established U.S. government model, this study concludes that recorded music piracy costs American workers significant losses in jobs and earnings, and government’s substantial lost tax revenue.
“There is little debate that U.S. sound recordings are “pirated” in vast numbers in the U.S. and in international markets. Piracy of these works harms the intellectual property owner, who loses the revenue that would have been gained had the legitimate recording been purchased. These “direct” losses, however, represent only part of the story. Piracy also causes significant and measurable harm to the “upstream” suppliers and “downstream” purchasers who also would have benefited from the sale of legitimate, copyright protected sound recordings. Indeed, the harms that flow from pirate activities produce a cascading effect throughout the economy as a whole. These harms include lost output, lost earnings, lost jobs and lost tax revenues.”