Jul 9 2004

Illegal Movie Downloads Are Growing, Hollywood Says

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Movie pirates buy fewer DVDs and attend fewer threater screenings, an industry-sponsored survey says. Story by: Tony Kontzer

Despite the movie industry’s efforts to nip online piracy in the bud, the Motion Picture Association of America says its worst fears are coming true. People are illegally downloading more movies, and as a result they’re paying to view movies less frequently, according to a study conducted by the MPAA and online research firm OTX.

The study, released Thursday, indicates that nearly a quarter of Internet users have downloaded unlicensed copies of films, and that half of those did so for the first time within the past year. It also found that more than one-fourth of downloaders are buying fewer films on DVD and videotape, and 17% say they’re attending fewer theater screenings.

Not everyone is convinced of the veracity of the findings. Jim Burger, an attorney with the Washington, D.C., law firm Dow Lohnes & Albertson, says the study lacks any empirical evidence. Burger has been representing tech vendors in their negotiations with Hollywood over how copy-protection technology should be deployed and who should pay for it.

“It is impossible to tell with any clarity that this is a valid study,” says Burger. “It’s interesting, but as far as I can tell, it may be picked out of the sky.” He says the MPAA is essentially making a connection between users saying they’re downloading more films and the fact that Hollywood saw a 3% drop in box office sales in 2003, when the two things may be unrelated.


Read the full story at InformationWeek.

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