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Online Piracy: Threat To The Entertainment And Software Business

1597 words - 7 pages

Online piracy is being a threat to the business of the music, movie, and software industries. From Dictionary.com (n.d.), the definition of piracy is the unauthorized reproduction or use of a copyrighted book, recording, television program, patented invention, trademarked product. The focus of this paper is in the music, software, and e-book industries.

Importance of Online Piracy to the Field of International Management
The problem with online piracy is that companies are being affected by it and billions of dollars in revenue are lost (Upshaw and Babin, 2010).
The authors mentioned that the psychological and ethical reasoning permits piracy to remain an accepted behavior (Upshaw and Babin, 2010).
International business is interested in reducing software piracy rates (Hamister & Braunscheidel, 2013).
Music Industry
According to Upshaw and Babin (2010), states that it takes moderately a shorter time to pirate music due to the ease of downloading and sharing online than other forms of digital files, such as a software.
Their study focused on information on causes, attitudes, and reasons for online piracy, which can help companies be better prepared to face piracy and stimulate legal commerce of their products. They proposed that secondary incentives, which may be harder to pirate or may not be pirated, would possibly make sales more competitive with the “free” offerings of piracy.
As well as tying and online store to a software that manages music and playlists would likely increase sales. So the authors assume that a hardware associated with a particular software, like the popular iPod hardware and iTunes software combination of Apple Corporation may convey consumers with an easier, more trustworthy, and preferable alternative to online piracy.
Companies will have to offer a product that has more value than what is available through the free offerings on the internet if they are unable to stop piracy or they will risk being driven out of business. Even though digital music sales may be increasing, file-sharing is causing a decline in the sales of the music industry.
The Recording Industry Association of America (RIAA) that’s defending the record companies has filed for lawsuits against people, firms, and universities who are involved in allowing the illegal distribution of copyrighted goods. The music industry cannot file lawsuits against every music pirate. Even if they could increase the total amount of lawsuits, a lot of money would be lost and would not come into view as a practical solution to encourage music sales.
iTunes does offer several other benefits over file-sharing and bit torrent sites, such as assured quality of music, the capability to sample songs, and the presence of a music store within the same piece of software that manages playlists and music library.
Goldman (2010) said that the music industry was worth half of what it was a decade ago and the drop does not look like it will be slowing down anytime soon. As Goldman...

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