Internet Piracy Most Harmful to Global Film Industry: Rocsearch ReportOctober 9th, 2007 by admin
Like tooth decay is to dental health and will eventually cause you to have teeth implants, that is what piracy is doing to the film industry.
RocSearch, a fast-growing, UK-based, business research and analytics firm, released a report analyzing the global film industry from 1995 to 2005.
This RocSearch report analyses the global revenues that come from the worldwide production and distribution of movies. It places individual focus on different countries and their level of investments.
The study explores the globalization of cinema with comparison of the key filmmaking territories and profiles of the major production houses. A PEST analysis and a future outlook of the worldwide film industry have also been presented.
The report notes that the global film industry is highly concentrated with Hollywood studios dominating all the major markets such as Europe and Japan. However, the Asia Pacific region accounted for the majority (59.9%) of world cinema admissions in 2005.
RocSearch analysts forecast that, barring some radical changes in government policies, the industry is likely to experience single digit growth over the next four to five-year horizon and post revenues exceeding US$110 billion from US$21.5 billion in 2005.
The report findings reveal that Internet piracy is the leading cause of harm to the industry than any other mode of piracy and, in 2005, MPAA studios lost US$2.3 billion worldwide to internet piracy.
The report also analyzes the effects of popularity and competition from other modes of delivery channels like DVD and VCDs. It throws light on the use of technology by major companies to develop new revenue models and reduce distribution costs.