One of the assumptions that Hollywood and the music industry make is that those that pirate movies and music will also buy it if there was no other alternative. So when they say a certain amount of money was lost from piracy, they're just blowing smoke.
Especially in Hollywood where there has been a monopoly of six global media companies holding market share of 96% in the box-office and 98% of the national televsion advertising dollars, it is really not true.
What is really great is that monopoly is unfolding and breaking down right in front of our very eyes. The major reason this is happening is because it is growing increasingly difficult to attract any type of mass audience anymore through the old mass marketing model. That along with the fact that almost every movie now being made doesn't turn a profit on the theatrical run itself, most make their profit on the resultant DVD sales.
With digital technology here to stay, it looks even tougher in the years ahead. Even the magazines can't count on their breaking news not being digitized and sent over the web. Look at this cease-and-desist order my colleague Chartreuse received for posting the Brangelina photos of their baby that People magazine paid millions for their exclusive. By time the picture was pulled, who knows how many had copied it and who it was sent to.
They can sue all they want, but once something is out on the Internet it is too late. From there it can be shared peer-to-peer and anybody interested will watch or view it.
It is strange to see how Hollywood doesn't get it and take advantage of this potential marketing bonanza. There are so many ways they could go "oops" and have a free marketing campaign that would bring better results than those old made-up ones we've all grown tired of seeing.
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