Piracy to Blame for $12 Billion Loss
August 22nd, 2007 | by Bloddard |The widespread availability of illegally downloaded content has taken a major toll on the corporations that produce this content. According to the U.S. Bureau of Economic Analysis, bootlegging has lead an annual losses of $12 Billion in revenue and over 70,000 jobs.
“Each year, according to the study, global piracy produces the following effects:
- The recording industry loses $1.6 billion to bootlegged CDs and $3.7 billion to illegal downloads and file-sharing; related businesses, including music retail outlets, lose an additional $7.2 billion, bringing the total loss of potential revenue to $12.5 billion.
- Some 22,860 new jobs are not created in the music industry, and an additional 44,200 are not created in related industries, totaling 71,060 unrealized jobs in the U.S.
- Workers in the music industry and related industries do not see an additional $2.7 billion in income.
- Accordingly, federal, state and local governments do not realize an additional $422 million in tax revenues.”
Most people criticize the attempts made by companies, to keep the general public from being able to freely move music, movies, and software around; but the fact is that this is a major problem. A problem that from a certain perspective, drives the economy and companies have to be aggressive and ruthless when it comes to dealing with it.
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