Home » Media companies use piracy to improve their business

July 22nd, 2008

Categories: Internet, Legal issues, Movies, Television

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]

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