DVD copying in the US, UK
It's been an article of faith for the entertainment industry that unauthorized copying = lost sales. The MPAA seems to be the market leader on this front, citing mind-boggling estimates of the billions of dollars in revenue siphoned off by piracy. This week, Futuresource Consulting Ltd., a UK research firm, released a study that purports to confirm the conventional wisdom, at least in part. According to the study, about a third of those interviewed said they had made copies of pre-recorded DVDs in the previous six months. That's up from about a quarter in 2007. Had they not been able to make those copies, a high percentage of those surveyed -- 77% in the U.S., 63% in the U.K. -- would have bought at least a few of them. Strong stuff, but not surprisingly, there are some notable caveats.
First, the research was financed by Macrovision, a U.S. company that makes anti-copying technology. Second, the DVDs most frequently copied were discs owned by the person doing the copying. Third, the reasons most often cited for copying were time- or place-shifting and making a back-up (evidently, many of those burning discs have small children at home). About half the respondents cited those rationales, which aren't nearly as corrosive to the market as wanting to build one's video collection (the reason given by 12% of the respondents in the U.S. and 6% in the U.K.) or making copies for friends (7% in both the U.S. and the U.K.) And third, the sample sizes were pretty small by the time the blockbuster questions about purchase intent were asked -- a mere 815 people in the U.S., 314 in the U.K. (The sample sizes the previous year were even smaller.)
My bigger complaint with the study is that it didn't look at the other side of the coin -- how purchases might increase (and unauthorized copying deterred) if Hollywood made it easy for consumers to make a handful of copies for personal use. Here's Futuresource's bottom line:
In conclusion, as studios’ revenues from DVD are in decline, protecting revenues is even more vital than 12 months ago. The study showed that the number of people admitting to copying prerecorded DVDs has increased since 2007. The vast majority of these copiers admit they would purchase at least some of the titles on DVD if they had not been able to copy them - clearly indicating the significant levels of lost revenue due to home copying.
However, the survey also shows that copying is confined to a minority of users, and that most of those users are motivated to copy for seemingly legitimate purposes. So an alternate conclusion is that enabling at least some copying would make discs more valuable to the public. And higher perceived value usually translates into higher sales.
Besides, it's not clear how the studios can stop the motivated minority from duplicating disc. Hollywood had counted on the next generation of home video -- high-definition discs -- being more resistent to copying. The two layers of copy protection on Blu-ray discs -- AACS and BD+ -- do have a significant advantage over the scrambling technology used on conventional DVDs: they can be updated to prevent a breach on one movie or device from affecting other titles or products. The problem, though, is that hackers claim to have already busted through the protection, starting a cat-and-mouse game that the studios were hoping to put off for at least a few years.

If millions of pounds are being lost on pirate DVD's why does the 'DVD Industry' not spend a serious load of cash on ensuring that Knock-Off Nigels are punished, taken out and made an example of.
Lets see rewards offered for every name handed in that leads to a conviction!
Let them be named and shamed in the local cinema, video hire shops, etc - or lets see them listed at the begining of movies as part of the 'It is illegal to copy....'
I am sick to death of seeing mobiles being used whilst driving. Of illegal CD downloads ... and this illegal activity is purpertrated without any fear of being caught! It makes me hopping mad.
Disrespect & lawlessness is rife. Punishment for law breaking needs to be taken seriously. Until then, threatening DVD pirates is as useful and effective as a chocolate teapot!
Posted by: Petra | July 10, 2008 at 03:51 PM
When a product, such as a DVD, is sold the buyer obtains a certain property right. The content industry, however, is redefining the rules to say that the product is only being "leased" or "licensed" and that you are subsequently bound by these unilaterally created onerous rules. They then use the changed rules, which they created, to whine on how the purchaser is then stealing from them. The reality is that these companies are stealing from us and depriving us of a property right to the products that we have bought.
For example, DVDs should not be restricted by region, we should be able to make back-up copies, we should be able to time shift, and we should be able to play them on any device.
Posted by: Steve R. | July 11, 2008 at 07:20 AM
How biased can a study be? If people are renting and ripping for personal use, this only drives Hollywood's rental licensing fees for DVD content.
There seems to be no middle ground between a fair business model and the consumer's fair use rights. The copyright holders need to be protected, but it's not fair that consumers have to pay multiple time for the same content. You should be able to pay for one movie one time and be able to watch it's on all different formats and devices. We should NOT have to pay multiple times for DVD, HD DVD Blu-Ray, iPod, PSP, mobile phones, etc. etc. Until a fair business model is developed, there will always be DVD copy software programs out there like 1 Click DVD Copy and DVDneXtCopy that enable users to rip, convert, burn and copy DVD movies. BTW, all the best DVD best burning programs are listed, ranked, reviewed and compared side-by-side at: http://www.dvdxcopy.com
Posted by: DVD Copy | July 11, 2008 at 09:25 AM
Who the heck did they survey? In a world where half of VCR's are still blinking 12:00 (or were, before DVD took over) it strains believability that 1/3 of the population are copying DVD's. I question whether 1/3 of the population even have the necessary equipment, never mind the tech savvy or the inclination, to do this. All in all, this research is highly suspect without some additional information about the population studied.
Posted by: Chris F. | July 15, 2008 at 05:38 PM