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February 5, 2009

Broadband, Know-How and Free Time (Because of the Downturn) [3:08 pm]

Leading to the movie industry’s “Napster moment?” That’s the contention of this article: Digital Pirates Winning Battle With Studios (pdf)

[M]any industry experts say the practice is becoming much more prevalent. “Streaming has gotten efficient and cheap enough and it gives users more control than downloads do. This is where piracy is headed,” said James L. McQuivey, an analyst at Forrester Research. “Consumers are under the impression that everything they want to watch should be easily streamable.”

[...] The Motion Picture Association of America says that illegal downloads and streams are now responsible for about 40 percent of the revenue the industry loses annually as a result of piracy.

“It is becoming, among some demographics, a very mainstream behavior,” said Eric Garland, the chief executive of BigChampagne.

Note that, somehow, BigChampagne continues to find a business model.

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