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Movie Piracy Rising Faster than Predicted

May 4, 2006

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The Motion Picture Association of America (MPAA) says its studies show film studios lost $6.1 billion to piracy last year -- $1.3 billion of it pirates in the United States and $4.8 billion internationally.

As the MPAA sees it, illegal copying and distribution is more of a problem in the U.S. while internationally, illegal downloading and bootlegging are more prevalent.

The countries where movie piracy is occurring most prominently are the UK, China, Russia, France, Spain, Brazil, Italy, Poland and Mexico.

The MPAA delayed releasing the study because the results were much worse than expected -- about 75% more than previous estimated losses of $3.5 billion. The losses are coming not only from lost ticket sales, but from DVD sales that have been Hollywood's cash cow in recent years.

"The film industry is a thriving economic engine that generates jobs and exports in countries all over the world," said MPAA Chairman and CEO Dan Glickman, a Kansas Congressman and Secretary of Agriculture before becoming Hollywood's chief lobbyist.

"We are calling on governments internationally to continue to work with us in limiting the impact of piracy on local economies and the film industry. Movies are a valuable product and intellectual property must be respected. This study will help us better analyze and focus our efforts to fight movie theft," Glickman said.

The average film poacher is male, between the ages of 16-24 and lives in an urban area. College students in the U.S., Korea and Hungary are the biggest offenders, the study claims.

The 16-24 age range represents a disproportionately high percentage of pirates, especially downloaders, across the 22 directly researched countries. It is even higher in the U.S., where the same age range represents 71% of downloaders.

"The findings in this study reinforce the need for a multi-pronged approach to fighting piracy," said Glickman. "As an industry, we have to continue to educate people about copyright laws and the consequences of breaking those laws. At the same time, we have to provide legitimate, hassle-free ways for consumers to obtain movies at a reasonable cost," said Glickman.

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