@Disch
You're mixing up physical items with digital information. That isn't a fair comparison.
It costs extra money and labor to produce more bread. It costs absolutely nothing to copy an mp3. There's no direct loss involved with file sharing.
If a baker could, in fact, make infinite amounts of bread with no additional cost or labor, then yes, I would certainly say he should give it away for free if that's what was expected. |
Nonsense; it IS a fair comparison: to have an income, a baker must sell bread; to have an income, an artist must sell CDs.
Regardless of the marginal cost of another loaf of bread/CD, in the end, it's still "Total income - total cost = profit/loss". Whether that "total cost" comes from a small cost per loaf or a very high but one-time investment, ultimately doesn't matter.
The income side is equal for both types of commodity: price x sales. I'm convinced that piracy
does reduce sales and there is no logical reason to believe otherwise. [cfr below]
That sounds backwards to me. Wouldn't a reduced price in one area force a reduction of price in another for them to stay competitive? |
That's not the point I was making. [Also, mind that "reduce price to stay competitive" is the best predictor for a failing business, but that's another story.] My point is: if you have two viable alternatives for a single "need", a cost decrease in one makes the other one more expensive in a relative way. That's obvious, but let's look at the consequence:
Compare renting a movie (€5) versus seeing it at the Cinema (€10) [fictional numbers to make a point. You can change the € to $ if that makes the math easier for you]. You can look at it two ways: "for only €5 more, I can see this movie on a much bigger screen!", or "for the same price, I can see two movies!". You can decide for yourself whether a double price is worth the experience of seeing it on the big screen.
Now renting a movie becomes cheaper: €2 per movie. Suddenly, seeing it on the big screen costs €8 extra, or in other words: you can see 5 movies at home for the price of 1 movie on the big screen. The price of the cinema ticket hasn't changed, but suddenly it's 5 times more expensive than a regular movie! Suddenly, that big screen seems like a big investment. Suddenly, people will find it ridiculous to pay €8 for a bigger screen.
At its limit, when one alternative becomes €0, many people will find it ridiculous to pay for a movie, regardless of screensize. Sure, some will think "it's just €10", but "the law of alternatives" is one of the most important for any business: regardless of how good your value/price is, a crappy but free alternative will mess up your business.
The general argument against it is that file sharing going to cause these industries to collapse. But that's crap. Case in point is that it's been around for well over a decade now and the industries are alive and well. |
That's bogus reasoning.
a) Filesharing is still a niche-problem. Two years ago, piracy was done by nerds exclusively. Now, it's becoming more mainstream, because the IT generation has hit the college age, where every penny saved is a penny you can spend on booze. Every day, piracy grows.
b) Piracy grows slowly, because it's illegal. Those that know how to do it feel safe enough to keep doing it, but very few people get into it by themselves. Generally, people get introduced/taught by a friend, thus it spreads by word of mouth. Because it still has the tag of "illegal", people generally don't spout it around. The last year that's been changing, with complete computer-illiterate people posting it up on Facebook and such. The taboo is slowly fading, which means that the growth rate will increase rapidly.
b) Businesses don't collapse from one day to another. They have reserves, and incomes from other activities. Even if all their new games get pirated, they'll still have some income from older games, especially if they're subscription based games. Profit margins are still decreasing, which will ultimately lead to losses, less investors, etc. To claim "They won't go bankrupt because they haven't gone bankrupt yet" is completely ridiculous.
Anyway, I'm fully against SOPA/PIPA. I just don't think they should make piracy legal. Once there is no law against it, it doesn't take long for something to become accepted and then frequented. Think of divorce: when the church opposed it, there were none. When people stopped caring about the church, it didn't take long for the taboo to be lifted, and now divorce rates rise every year. (Not judging divorce here; I'm glad the taboo is gone and people don't stay together to avoid the shame.)
Humans claim to have a sense of morality, but ultimately it's consequences we care about. If suddenly murder was no longer illegal, do you think people wouldn't murder because "it's bad"?
Summary:
-I believe piracy
does hurt companies/artists/working people.
-I believe piracy is a growing problem, and the growth rate is increasing.
-I believe legalizing piracy would be stupid; it would cause piracy to grow much faster, drastically increasing the impact it has on the entertainment [and other] market[s].
-I don't believe SOPA & PIPA are the way to do it.
-I believe it's up to the artists/publishers/industry to find ways to dissuade piracy, by finding a way to make the "genuine" experience more than the "downloaded" experience.