PIRACY IN MUSIC INDUSTRY

Piracy in Music Industry

Introduction

Piracy is copyright protected digital goods is large and growing problem in music, computer programs, video games and film industries. Digital piracy includes the purchase of counterfeit goods at a discount to the price of the product by copyright and illegal file sharing copyrighted material on peer-to-peer networks on your computer. The International Federation of the Phonographic Industry (IFPI) claims that about 34% of all recorded music products are sold worldwide in 2004 were pirated copies and that piracy costs the industry a $ 4.6 billion a year(O'Hara Brown 2006 ). Not included in these figures, the cost of sharing files over peer-To-Peer networks that IFPI blames fall in global music sales by 22% between 1999 and 2004. According to the OECD study, 2.6 billion songs are downloaded each month by more than 90% of the files sometimes violate copyright laws.

According to one estimate shows that online file sharing reduced CD sales between 2000 and 2003 by as much as 30%, or about $ 4 billion a year (Adrian 2009). In the software industry, Computer, Business Software Alliance study suggests that the software costs $ 32 billion pirated in 2005. The share of software piracy ranged from a low of 21% in the U.S. up to 90% in China and 92% in Vietnam. In the film industry is also growing piracy ions. Motion Picture Association of America estimates that piracy costs the industry about $ 3 billion per year figure does not include the cost of Internet piracy.

The volume of the piracy problem could get more in the next decade. The rapid spread of broadband Internet connection and the growth of peer networks make it much easier to download large files such as video games and movies; there are fears of a higher level of piracy. Negative Impact On The Music Industry

Each year, the industry loses about $ 4.2 billion to piracy worldwide (O'Hara Brown 2006 ) .Music pirates are the first to lose, since the recording industry and law enforcement officials to crack down across the world. In crime and you'll pay a fine or do time. Consumers also lose because the shortcut savings enjoyed downloading music to drive up the cost of legitimate product for everyone.

Honest retailers (who even before the products they sell) lose because they cannot compete with prices offered by illegal vendors, illegal or free download. Smaller business, the fewer jobs, the jobs are often filled with young adults.

Eighty-five percent of recordings released do not generate enough income to cover its expenses. Record companies depend heavily on favorable fifteen percent of the records to subsidize less profitable types of music to cover the costs of developing new artists and keep their business running. Thieves and downloaders are often not targeted at eighty-five percent; they go straight to the top and steal the gold. Finally, and perhaps most importantly, creativity loose. Musicians, singers, composers and producers receive no royalties and fees they've earned( Marshall ...