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File Sharing and the Revenue of the Creative Industries

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File Sharing and the Revenue of the Creative Industries
File Sharing and the Revenue of the Creative Industries
Introduction
File sharing hosts, who provide online storage to share various files ripped from media like recorded music, films, and books, have been considered as a type of internet piracy that threatens the creative industries, including films, music, software, and books. (Van Eijk, 2011) However, after the shutdown of Megaupload, one of the most popular file hosting site, a series of ripple effect happened, causing several other file sharing hosts either deleted their files, or set up an access restriction. (Peukert and Claussen, 2012) It appeared to be an impact on the internet piracy and the revenue of the creative industries would go up — But it didn’t. According to Peukert and Claussen (2012), for example, the revenue of the film industry have decrease ever since Megaupload’s shutdown.
The purpose of the essay is trying to analyze the relationship between the internet piracy via file sharing hosts and the revenue of the creative industries — how does the former interact with the latter — and a solution to resolve the declined revenue of the creative industries.
Internet Piracy and File Sharing
As its name suggests, “Internet Piracy” refers to manufacturing and distributing unauthorized copies, ie. “pirate copies”, on the Internet. (Panethiere, 2005) While the term “File Sharing” means to share a file with another person physically, such as storing and distributing a file in a CD, DVD, or a drive, or via uploading to the Internet to be downloaded. Since people can get various files distributed without any authorization from the internet for free via file sharing host, file sharing have been considered as an act of Internet Piracy (Van Eijk, 2011), especially by the creative industries, or sometimes “cultural industries”, industries that produce commercial entertainment, such as films, music records, publishing, and broadcasting, which is distinct from “arts”, including visual and performing arts,



References: * The American Assembly (2012) Where do Music Collections Come From? At http://piracy.americanassembly.org/where-do-music-collections-come-from/. "Accessed" 10 July, 2013. * Van Eijk, N. (2011) File Sharing. At http://www.ivir.nl/punblication/vaneijk/pe432775_en_reV-fin.pdf. "Accessed" 10 July, 2013. * Galloway, S. and Dunlop, S. (2007) A Critique of Definitions of the Cultural and Creative Industries in Public Policy. International Journal of Cultural Policy, 13(1), pp. 17-31. * Hammond, R.G. (2013) Profit Leak? Pre-Release File Sharing and the Music Industry. At http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2059356‎. "Accessed" 10 July, 2013. * Horkheimer, M. and Adorno, T. (2002) Dialetic of Enlightenment, Stanford: Stanford University Press. * Levine, R. (2012) An Online Piracy Thriller Chills Techdom, Bloomberg Business Week, 4264, 30 January, 2012, pp. 37-39 * Oberholzer, F * Panethiere, D. (2005) The Persistence of Piracy: The Consequences for Creativity, for Culture, and for Sustainable Development. 13th Session of the Intergovernmental Copyright Committee. * Pavlov, O.V. (2005) Dynamic Analysis of an Institutional Conflict: Copyright Owners against Online File Sharing. Journal of Economic Issues, 39(3), pp. 633-663. * Peukert, C. and Claussen, J. (2012) Piracy and Movie Revenues: Evidence from Megaupload. At http://ssrn.com/abstract=2176246. "Accessed" 10 July, 2013. * Smith, M. and Telong, R. (2010) Piracy or Promotion? The Impact of Broadband Internet Penetration on DVD Sales. Information Economics & Policy, 22(4), pp. 289-298 * 「違法ダウンロード刑罰化の効果」ファイル共有ユーザーが大幅減、しかし音楽配信売り上げ回復せず

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