Академический Документы
Профессиональный Документы
Культура Документы
Economic consequences
of movie piracy
CANADA
Contents
Key findings.......................................................................................... 3
References ......................................................................................... 10
Impact of motion picture piracy | Canada Report 3
Key findings
A joint study undertaken by Ipsos and Oxford Economics on behalf of the CMPDA: Canadian Motion Picture
Distributors Association (CMPDA) has indicated the scale of harm caused by movie piracy to the Canadian
economy in the 12 months up to Q3 2010, amongst adults aged 18 years and over.
The approach taken in building up these estimates offers a conservative view of piracy and does not treat
every pirate view as a lost sale. As such, readers should consider these as indicators that piracy is at the
very least causing this level of harm.
Economic impact of movie piracy on Canada: Level of piracy and impact on movie industry:
12,600 Full Time Equivalent (FTE) jobs were Direct consumer spending losses to the movie
forgone across the entire economy (equivalent industry, i.e. cinema owners, distributors,
to over 12 times as many as the 1,000 jobs cut producers and retailers, were C$895m - well
by Hudson's Bay Co. at the height of the over the annual revenues of Cirque du Soleil
recession in February 2009) including over (C$768m) in 2008.
4,900 forgone directly by the movie industry and Considering all forms of movie piracy
retailers. These impacts of piracy on (downloading, streaming, buying counterfeit,
employment persist as long as piracy persists. borrowing unofficial, burning), an estimated
Allowing for effects on other industries, some 133m pirated movies were obtained or watched
in the 12 months up to Q3 2010 amongst
C$1,803m in Gross Output (Sales) was lost
Canadian adults.
across the entire Canadian economy.
In volume terms, downloading and streaming
This was equivalent to a loss of GDP of C$965m
films is the most prolific method of piracy, with
across the Canadian economy – reducing
particularly high levels of activity amongst males
national economic growth and Canada’s ability
aged 18-24 years (42% participating in the last
to invest in its future. year).
Tax losses are C$294m, representing money Just under half (48%) of all people consuming
that government could employ for other social pirated movies claim they would have paid to
uses in areas such as education and health view the movie via an official channel had the
care. unofficial channel not been available.
C$1,803m C$965m
Gross Output (Sales) loss GDP loss
to Canadian economy
C$294m 12,600
Tax loss Jobs (FTE) forgone
4 Impact of motion picture piracy | Canada Report
Step 1: Step 2:
Measuring the direct consumer spending loss Measuring the “ripple effects” (also known as
to the movie industry and retailers from movie “multiplier effects” or “flow on effects”) of the
piracy based on survey work undertaken consumer spending loss to determine the
specifically for this study total economic losses from movie piracy
across the entire Canadian economy
Impact of motion picture piracy | Canada Report 5
Approach
The approach for measuring direct consumer of losses across a range of formats including:
spending losses to the movie industry is based on cinema revenue, DVD/Blu-ray sales and rentals, TV
the analysis of results from a nationally Video on Demand (TV VOD), downloads and
representative telephone survey of 3,325 adults streaming video.
aged 18 and over conducted by Ipsos in June to The size of this loss is significant and is well over
September 2010. Further details are provided in the annual revenues of Cirque du Soleil (C$768m) in
Annex 2.
2008 or nearly C$27 for every man, woman and
The survey results show that amongst the adult child in the country.
population of Canada in the 12 months up to Q3
Direct losses to the movie industry are divided
2010, an estimated 133m pirated movies had been
across the three main forms of piracy, with the
viewed or obtained in this period.
highest losses from digital piracy at C$413m,
The survey also shows that just under half of all C$326m from borrowing or viewing pirated copies
pirate consumers would have paid for an official and C$156m from physical piracy.
version of the movie had they not been able to
pirate.
Direct consumer spending losses to the movie industry from piracy (C$m)
Value of direct losses
C$895m Internet VOD / stream
Translating this pirate activity C$28m
Download
TV VOD
into financial loss indicates C$118m Disc rental (DVD / BD)
Disc sales (DVD / BD)
C$59m
that the direct consumer C$92m
Cinema
However, these losses will also flow through from Putting some of these figures into context:
the movie industry to other industries, as the movie
The total Gross Output (Sales) loss is C$1,803m
industry reduces its own demands for Canadian
- equal to nearly C$54 for every man, women
goods and services. This can be modelled as a
and child in Canada.
“demand shock” to the rest of the economy through
an input-output model. The loss in GDP of C$965m is a direct blow to
national economic growth and reduces
The input-output analysis indicates that movie
Canada’s ability to invest in its own future.
piracy in the 12 months up to Q3 2010 produces a
total (i.e. direct, indirect and induced) loss in The forgone employment of 12,600 (FTE) jobs is
Canadian national Gross Output (Sales) of equivalent to over 12 times as many as the
C$1,803m, a loss in GDP of C$965m, a reduction in 1,000 jobs cut by Hudson's Bay Co. at the
taxation revenue of C$294m and forgone height of the recession in February 2009.
Moreover, unlike the impact
Total economic losses to all industries due to movie piracy* of the recession, the impact
of piracy will not pass but
C$1,803m Induced impacts 12,599 jobs
Indirect impacts will persist, impacting on
Direct impact
(movie industry and retailers) employment as long as
C$617m 5,024
piracy persists.
C$965m The tax loss of C$294m
C$363m
2,658
C$349m esents money which
represents
government could employ
C$198m
C$294m
C$822m 4,916 for other social uses in
C$419m C$85m
C$46m
C$164m areas such as education or
Gross Output (Sales) GDP loss Taxes Jobs (FTE) forgone health.
Source : Oxford Economics/Ipsos
*Chart Note: While the direct consumer spending loss of $C895m is inclusive of Federal Goods and Services Tax (GST) and
Provincial Sales Tax (PST), this was adjusted to exclude these taxes for modelling purposes. This produced the direct
consumer spending loss figure of C$822m indicated in the chart. Annex 1 provides further details. The tax impacts are
inclusive of GST and PST (as well as of direct and corporation taxes).
**Chart Note: Totals may differ from the sum of the individual figures due to rounding.
Impact of motion picture piracy | Canada Report 7
1. Allowance for "sampling" effects – some potential moviegoers may go on to watch official versions of
films after previewing pirated copies. Therefore, some allowance was also made for these potential
“sampling effects” (i.e. viewing a film officially after initially viewing a pirated copy) in the survey work.
Respondents were asked if they had also viewed an official version of the film they had pirated and, if so,
their responses were not included as a
part of “lost revenue”. Some 34% of Allowances made in estimating direct losses
respondents said that they viewed an
official version of a movie after
watching a pirated version. All pirate views (100%)
The wider losses must also be considered as when major industries, such as, the film industry and retailers
face a consumer spending loss, such as those resulting from movie piracy, the effects ”ripple" across the
entire economy. The estimation of such total economic impacts is known as economic impact analysis. The
chart indicates how direct impacts (such as an increase in movie piracy) can flow through to industries
across the economy in the form of indirect and induced impacts.
References
Organisation for Economic Co-operation and Development (OECD) (2010a) The OECD summary measure of benefit entitlements,
1961-2007 sourced from http://www.oecd.org/dataoecd/52/9/42625593.xls
Statistics Canada (2009) Consumer Goods Rental Survey 2008, Catalogue 63-239-X