Home » Media companies use piracy to improve their business

The Economist has two articles showing the lighter side of piracy, reveal how media and software companies are using file-sharing systems to help their businesses.

Music companies find out which bands are popular using file-sharing statistics tracked by companies like BigChampagne.  These statistics help decide tour locations and target advertising dollars.

Movie and TV companies are using file-sharing statistics from BigChampagne to set advertising rates for online video sites like Hulu.

Software also benefits, as Bill Gates says “It’s easier for our software to compete with Linux when there’s piracy than when there’s not.”  90 percent of PCs in China use Windows from mostly pirated sources. Gates recognizes long term revenue increases from loyal Microsoft users than if the company fought piracy, pushing companies to free alternatives.

While admitting piracy helps their businesses, these companies continue to fight file-sharing in every possible way.  Piracy needs to stop being scapegoated, but rather embraced as a competitor - something to learn from and beat at its own game.

[Via Against Monopoly]

| | | |

| Print | Subscribe | Post comment

No Comments Yet

You can be the first to comment!

2 pings

Prove lawsuits make business sense | Prodigeek says:
April 18th, 2009 at 10:10 pm

[...] are even examples of companies embracing piracy to improve their [...]

[...] It’s impossible to filter the he-said she-said right now, so instead let’s look at all the good that can come from the RIAA looking at Last.fm’s data. First, it’ll be almost impossible to make any case based on the data – Last.fm shows what music people listen to, but not the source (whether its legal or pirated). Instead, the RIAA could use this massive amount of data on real listening behavior to find new revenue streams and marketing opportunities. The RIAA could see exactly who likes one thing and then listens to another, helping to plan concert schedules and other events (like they already do with piracy data). [...]

Leave a comment

Comments can contain some html.
Names and emails are required (emails aren't displayed).

Please log in for comment posting ease.
Click here to register.