[billmalarky]

Devils Advocate: The alternative of "not consuming" digital products is less valuable to creators than "consuming for free."

Allow me to reference a very famous Bill Gates quote on Chinese piracy of software:

"And as long as they're going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade."

There are more ways to monetize a media property than pay-per-view so to speak. Merchandising is a big one, not to mention word of mouth marketing.

[colmvp]

I don't know. I think there is a difference between applications and platforms like Adobe Software and Windows which often get pirated but at times hugely cost prohibitive to new entrants (e.g. students, young people) vs pirating movies/shows. I'm persistently left unconvinced by moral arguments on show/movie piracy, especially in an age where there's no shortage of new content being created, be it on YouTube, your local bookstore, or your RSS feed. I still have a huge backlog of podcasts/books to catch up, let alone movies I still haven't seen.

[billmalarky]

I'm not trying to make a moral argument one way or the other.

My point is strictly relating to the business end result of the following three alternatives:

1) DO pay for and DO consume digital product.

2) NOT pay for but DO consume digital product.

3) NOT pay for and NOT consume digital product.

Only alternatives #1 and #2 provides a way to monetize the consumer, either via direct monetization of the product (ie pay-per-view) or indirect monetization (ie merchandizing, willingness to pay for new versions of the product in the future, etc), or by leveraging that consumer as a marketing agent to bring in additional consumers (ie that consumer's best friend ended up being monetizable when previously they would have never heard of your media property).

Because there is no expense to the business when a digital product is pirated, then intelligent business management would always prefer option 2 to option 3. That said, business management cannot publicly endorse this preference without the threat of converting #1 consumers into #2 consumers (which are still more valuable than #3 but arguably less than #1).

[BashiBazouk]

The other aspect is which of alternatives #2 and #3 point out through tracked metrics that a business decision may not be working as intended? itunes, Netflix and others have reduced piracy, if this kind of balkanisation of content shows a large uptick in piracy, are they likely to back off of it more so than just reduced viewership?

[ryanbrunner]

Regardless of whether there's a moral argument or not at the individual level, at an aggregate there's plenty of evidence to suggest that piracy will be widespread so long as the legal channels to obtain the content are more cumbersome.

There's a clear correlation between ease of access and reduced piracy in music and games. TV and movies are in a funny place right now where in some ways the situation is arguably worse than it was 10 years ago - back then you could be reasonably assured that you could find whatever you wanted at Blockbuster and it would work in your DVD player. Nowadays finding which providers have the rights to the content you want to watch, and whether they can be watched on your proprietary devices can be a nightmare.

Meanwhile, the piracy route for the most part works completely seamlessly. Using Popcorn Time for me is a better experience than the legal route - that's indicative of major problems.