Films are being sold with a higher profit margin on the internet and on cable than on regular DVD. Jeff Bewkes of Time Warner said that each movie purchased electronically produces $13-$14 in profits for the studio while a DVD is about $10. Along with the increased profit margin Bewkes also noted that the increase in availability of content online, especially high-definition downloads, has lessened online piracy. Bewkes is quoted as saying that piracy has “flattened out” over the past 18 months. For the movie industry that is great news as piracy over the last decade has caused major concern for studios who were afraid of suffering a similar fate of the music industry.

Taking the example of the music industry to film studios are working hard to get as much content available as easily as possible to the consumer. Apparently people will buy movies if they have the option in front of them and are simply more likely to get illegal copies when the only other option is to go to the store and try to find a physical copy.

As pay-per-view technology increases and content levels increase I predict online piracy not just flattening out but over the next 5-10 years taking a slow move downward. There will always be a certain level of piracy in the online world but I think we’ve reached our ceiling.


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