Video Business is reporting that the U.S. economy lost $20.5 billion due to piracy, according to studies released last week.
“The LEK figure of $6.1 billion in lost revenue does not provide a full picture of the effects of movie piracy,” the IPI study says. “In particular, it does not include losses sustained directly by ‘downstream’ industries like motion picture theatrical exhibitors or the video industry legitimately selling or renting U.S. films to consumers. In addition, the LEK figures do not include all of the secondary and tertiary losses sustained by the many U.S. industries that would have supplied inputs directly to the motion picture industry, the industry’s direct suppliers or to the suppliers of those direct suppliers.”
Estimating those additional losses using the standard economic models brings the total losses suffered in the overall Hollywood economy to $18.6 billion.
They're using incredibly inflated numbers to get the government to take away our rights, when they should be figuring out how to best serve their customers. Stop wasting time on worthless encryption and spyware that only hurt paying customers (or suing grandmothers), and give us an incredible selection of movies on a wide variety of platforms. If you serve your customers and not your fears, the the money will follow.