Author Of iPhone Pirating App Angry That His Own App Was Pirated
from the you're-doing-it-wrong dept
Filed Under: app, crackulous, iphone, piracy
stories filed under: "piracy"
Stardock Apparently Didn't Get The Memo About Piracy Killing The PC Gaming Market
from the conventional-wisdom-is-wrong-again dept
For the past year or so, we've been hearing all this hand-wringing about how piracy was killing the PC gaming market. The only problem with that claim was that the data actually said the exact opposite. In fact, companies that bothered to embrace fans and treat them right, rather than whining about piracy and making life difficult for users, found that they could do quite well. For example, we talked about Stardock, a company that did everything "wrong" if you went by the conventional wisdom of the video gaming industry. It didn't use DRM. It sold PC games. It kept prices low. It focused on connecting with consumers and understanding what they wanted, rather than coming down off the mountaintop with the "perfect game." And it worked. Despite being easily "pirated" the company got its games into top retailers and became a top seller.That was a few years ago, even before the more urgent warnings from the "big" video game companies about piracy killing the PC gaming industry. So what's Stardock doing? Thanks to reader Lucretious for sending in the news that Stardock is rapidly expanding and planning new PC games. Yes, some of this is due to a local stimulus package that it's taking advantage of, but if piracy were really killing off the PC gaming industry, the company wouldn't be investing so heavily in new PC games, would it? Once again, we're seeing that companies that treat consumers, fans and users as people, and not thieves, discover that there are plenty of business models that work great.
Filed Under: pc games, piracy, video games
Companies: stardock
NY Times Buys Bogus Movie Industry Complaints About Piracy
from the let's-get-real... dept
The NY Times is running an article entitled "Digital Pirates Winning Battle With Studios." From the title, it's pretty obvious what it's about -- but the article seems to take a lot of talking points from the movie studios. It's not hard to figure out the main source of the article: NBC Universal's Rick Cotton is quoted throughout. Cotton is a lawyer who has proven time and time again that he's a bit clueless when it comes to business. It's unclear why NBC keeps having him comment publicly about business issues. Every time he does, it just gives people more reason to realize how poorly NBC Universal is managed. Cotton was the guy who proudly talked about how NBC made it more difficult for people to watch the Olympics. He's also the guy who (with a straight face, we believe) claimed that the US gov't should shift Justice Department money from stopping real crimes to focus on copyright infringement because (no, really) doing so would help poor corn farmers who went out of business because people weren't buying movie theater popcorn anymore. Apparently people who watch movies at home don't eat popcorn (and apparently, he forgot to check and discover that corn farmers have been doing quite well lately).How he has any credibility on these issues is beyond me.
But, the NY Times reports, without a hint of skepticism, about the fact that The Dark Knight was so widely available online, representing a huge failure for the industry. You know which important part the reporters left out? That it was also the highest earning movie of the year. In other words, piracy is not the problem. People are plenty willing to pay to go to the movie theater if you give them a good reason to do so. In fact, The Dark Knight did a good job of that, offering special IMAX showings that you absolutely couldn't recreate on your computer screen or big screen TV.
Did the NY Times point this out? Nope, it said that the downloads were "a visible symbol of Hollywood's helplessness against the growing problem of online video piracy." No. That's not true at all. It was actually a visible symbol of the fact that the existence of free downloads is not the problem so long as the industry actually makes an effort to give people a good reason to pay.
Then, the reporters note that "each episode of "Heroes," a series on NBC, is downloaded five million times, representing a substantial loss for the network." Substantial loss? Really? Can they actually back up that statement? The people who are watching this show are fans of the show who want to consume the product from NBC. Downloading the show is a way for them to stay engaged -- making them more likely to later watch the show on TV (with commercials) or on sites like Hulu. It makes them more likely to go out and buy a DVD later. Or to engage in any of probably 1000 business models that could create compelling tie-ins with the show. Those business models aren't difficult to come up with, and we'd be more than willing to help, if NBC Universal just gives us a call. Nor does the NY Times mention that one of the big reasons why Heroes is downloaded so frequently is because NBC's braindead decision to not let Hulu be watched outside the US. Only an entertainment industry lawyer could think that having more people want to watch your show represents a "loss."
It's an opportunity.
It's really sad that the entertainment industry keeps trusting execs who view such opportunities as threats, and that the media takes their word for it.
Filed Under: movie industry, movie studios, piracy, rick cotton
Companies: nbc universal
Sports Game Streamers Aren't Pirates, They're Underserved Customers
from the express-written-consent-is-for-schmucks dept
Like the leaders of many pro sports leagues around the world, the people who run English Premier League soccer are worried that the proliferation of sites that stream their games online will hamper their ability to get broadcasters to sign multibillion-dollar TV rights deals. Now the league says it's planning "an aggressive campaign to protect its intellectual property rights" to protect the TV deals. It's the usual stuff: more cease and desist letters, balanced with calls for governments to get more involved and for ISPs to become copyright cops. The article in The Guardian says that the league is "terrified of following the path of the music industry, which saw its business model collapse after it failed to combat digital piracy."This is typical rhetoric, painting the recording business' problem to be inadequate technological and legal defenses against piracy. It's plainly obvious the issue for the music industry is the failure to adapt its business model to changing times -- and the same could be said for many sports leagues. While the leagues seek to crack down on streaming sites, their existence merely points out missed opportunities for the leagues and their teams to generate business. People don't choose to watch these streams instead of attending a game, or in lieu of watching a crystal-clear legit TV feed in a bar or with friends; they watch them because they're the only option. If piracy is as rampant a problem as groups like the Premier League suggests, it's not a problem -- it's a captive market upon which the league (and perhaps its broadcast partners) should capitalize.
Filed Under: piracy, sports
Companies: premier league
Techdirt Still Doesn't Have To Pay Out Up To $1 Million Since The BSA Hasn't Paid Out Either
from the up-to-trickery dept
The BSA sure does love to use bogus numbers. Usually, it's with its stats on "piracy" that are so ridiculously misleading it's amazing that the press reports them as fact so often. However, it also gets away with a silly gimmick where it promises to pay out "up to $1 million" for snitching on your employer for using pirated software. Except, of course, the fine print reveals that the "up to" part is really important. Basically, the BSA gets to decide how much it pays out -- and you can bet that it's not anywhere close to $1 million. In fact, in response to the BSA's program, we promised to pay out up to $1 million to anyone who could prove the BSA paid any individual $1 million. It looks like we're safe again. In 2008, the BSA paid out -- in total -- $136,000 to 42 different people, making an average of $3,200. The BSA is now pitching that as a way to make some extra money in a down economy -- though, I would imagine that losing your job after tipping off the BSA might create a bit more hardship than $3k covers.Filed Under: bogus numbers, piracy, software
Respected Dutch Researchers Note That Piracy Has A Positive Impact On The Economy
from the well,-look-at-that... dept
Stanley de Vries wrote in to let us know that TNO, a respected Dutch research firm has come out with a large, 142-page, report about piracy, commissioned by the government, where it noted that piracy appeared to be net beneficial for the economy -- as opposed to some other studies you may have heard about from the entertainment industry. You can download the full report as a PDF, but it's in Dutch. Some translated news stories cover the high points. The report notes that there's little evidence that downloading is the cause of CD sales falling -- noting indications that downloaders actually buy more music on average, and that a much more likely reason for CD sales declining was that people had finished "re-buying" all the CDs they had owned on cassette before that format was killed off. Stanley was also kind enough to translate a few excerpts from the first 5 pages (meaning there's still plenty more to go through):"The economic effects of file sharing short- and long term are strongly positive" [Interesting approach here: They give the well-being of people also economic value...]
"With regards to the music business we can say that downloaded recordings are not necessarily a lost sale"
"Lot's of people download for free to learn about new music and eventually buy when they like it"
"The calculations of the industry [about the losses caused by illegal downloads] are not necessarily correct because they are based on a lot of assumptions and contain a lot of uncertainties because underlying data is not known with any accuracy"
(So far we were still only on page 3)
"Downloading goes hand in hand with buying"
"Among downloaders of music and movies, the percentage of buyers is as high as among non-downloaders and with games the percentage of buyers is even higher"
"People that download music visit concerts more often and buy more merchandise"
"The practice of file sharing implicates that the producers [their definition is a bit vague here] need to change their business model"
"That is why innovation of the business model is now of the utmost urgency"
Filed Under: economic impact, piracy, research
Companies: tno
UK Government To Force ISPs To Become Copyright Cops
from the whose-side-are-they-on? dept
Like other industry trade groups around the world, the British Phonographic Industry, that country's RIAA equivalent, has been pushing for British ISPs to become its copyright cops, something a number of ISPs have refused to do. After some threatening noises from British politicians, some ISPs relented, and now, the government is set go all the way by forcing the ISPs to play ball. The FT reports that a draft government report says that a new agency called the "Rights Agency" will be established, and it will oversee regulations forcing ISPs to inform customers who download copyrighted material that they're breaking the law, and keep tabs on their downloading activity, and turn these records over to record labels or other groups who get a court order for them. Apparently the government took these steps because the labels and ISPs couldn't come to an agreement on how to deal with file-sharing, and says its goal is to get the industries to share responsibility. It's not clear why the British government saw the need to intervene here, and when it says "share responsibility", it's not at all clear what it's asking the music business do to. To the contrary, all these regulations seem to do is put responsibility on ISPs to support the record labels' foundering business model. Will the British government take similar steps to protect all of the country's other failing businesses? Or do the record labels, for some reason, deserve this special treatment?Filed Under: copyright, isps, piracy, regulations, uk
Learning How To Benefit From Piracy Is Not The Same As Endorsing Piracy
from the basic-logic-101 dept
John Gunn, the General Manager of a DRM company, alerted us to a blog post he wrote taking me to task for the post I wrote last week concerning a software developer who didn't freak out when his app was cracked, but used the experience to learn what the market wanted from his app. Gunn's post is slightly odd, and a bit troubling to me, in that he says that, by showing how this developer learned to use the piracy to his advantage, I "crossed the line" I have always avoided, and "actively promoted the criminal act of software piracy."This is both wrong and misleading at the same time. First, my position is nothing new. I have always said that content creators need to learn how to take advantage of unauthorized access. In fact, that's been a common theme throughout this site from the beginning. Saying that content creators can and should learn to take advantage of such things (and then highlighting those who do so successfully) is, in no way, condoning the actions of those who partake in unauthorized file sharing. My position has always been directed to the content creator, and both recognizes the reality that unauthorized file sharing exists and will not go away, and then looks at ways to use that to your advantage, knowing it's there.
Gunn's second point is to claim that there are "far more efficient and reliable methods" for a developer to get feedback from the market. That may be true (though, actually, I doubt it), but again it doesn't change the fact that unauthorized access will occur. And, given that, why wouldn't you want to take advantage of it? Nothing about using piracy for market lessons is mutually exclusive from those mythological more efficient and reliable methods. Then, Gunn goes back to the old, disproved claim of DRM defenders: that the only real message from pirates is people want stuff for free. Considering just how often we've shown examples of people happily paying for things they can get for free when given a reason to buy, rather than being treated as a criminal by DRM providers, it's simply a myth.
Finally, Gunn, posts a series of questions for me:
Why use the denigrating term "freaking out" to describe software publishers who act to protect their assets and revenues by using an effective DRM solution or by pursuing action against people that steal from them? Wouldn't you do the same?The term "freaking out" was descriptive and, I believe, accurate. Many software developers get so focused on unauthorized access and file sharing of their software that they miss out on the fact that there are business models they could adopt where that issue goes away. They miss out on the fact that throughout history, so called "piracy" has almost always opened up new, and much larger, markets. So, "freaking out" is proper. It shows a response that is out of proportion with what would be a reasonable solution, such as figuring out a way to take that activity and use it to their own advantage.
As for the issue about "protecting assets" using "an effective DRM solution... against people that steal from them?" Well, the answer should be obvious. First, it's not about protecting assets. It's about limiting activity of customers. Limiting activity of customers is the same thing as limiting your market and making your product less valuable. If you're in business, your goal should always be making your customers more satisfied and more interested in doing business with you, rather than "protecting" or limiting. As for an "effective DRM solution" well, such a thing has never existed, so I don't know what he's talking about. Finally, as someone who claims to be a regular reader of Techdirt, it's odd that he would call unauthorized access "stealing." It's not. Claiming it is doesn't change things at all. In fact, claiming it is stealing makes it nearly impossible to figure out a way to respond reasonably and leads to, yes, freaking out.
And, finally, to the question "wouldn't I do the same?" The answer is no. I wouldn't (and don't) limit my customers. I'd put together a business model where it doesn't make sense to do so. I would put together a business model where I get benefits the more my content is spread widely -- rather than taking an adversarial stance against my customers. Plenty of folks are doing so today, and are finding stronger and better relationships with their customers and bigger and bigger businesses. And, when my customers do something new and unique with my content, I'd learn from it and encourage it in order to make my future work that much more valuable.
Filed Under: drm, john gunn, market feedback, piracy
Software Developer Realizes That Pirates Are Giving Him Market Feedback
from the about-time dept
One of the more important points made in Matt Mason's book, The Pirate's Dilemma is that piracy almost always is a leading indicator for what the market wants, but isn't being delivered. This is a point that's extremely difficult for those whose content is being pirated to grasp -- because their natural reaction is to feel like a victim, rather than the recipient of useful market data. So, it's great to see that's not always the case. A couple people have sent in a story about a pair of small time iPhone developers who recently discovered that their iPhone game had been cracked and a ton of people were downloading it for free. Rather than freak out about it, the guy had an open conversation with the cracker who explained why he did it. Basically, he said he was disappointed with the fact that many games did not live up to the quality level promised, and a cracked version let them try before they bought. The developer actually felt that was a good point, and is now looking into alternative business models for his app, including a try-before-you-buy option, or an ad supported version. It's also worth pointing out, by the way, that the day that the app was getting pirated a ton, it also brought in more sales than usual...Filed Under: feedback, piracy, video games
Despite Whining About Piracy, Secondhand Sales, Video Game Sales At All Time Highs
from the well,-look-at-that... dept
We've been noting how both the movie industry and the music industry had terrific years in 2008, despite the public perception being passed around by certain legacy companies in both industries that they were being decimated by "pirates." Apparently the same is true in the video game industry as well. Dan writes in to let us know that, at least in the UK, video games sales were at a record high, despite all hand wringing about the need for DRM and how piracy and secondhand sales have been destroying the industry. Once again, it seems like if you just put out a good product and give people a reason to buy, they're more than willing to do so. Still, how long will it be until we hear UK cultural secretary Andy Burnham declaring that the video game industry needs special protection against the scourge of piracy?Filed Under: competing with free, piracy, uk, video games
