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YOUR FRIENDS' ACTIVITY

    Youth shaping future of online TV, movies, music

    CHICAGO (AP) — Young people want their music, TV and movies now — even if it means they get these things illegally.

    A recent Columbia University survey found, in fact, that 70 percent of 18- to 29-year-olds said they had bought, copied or downloaded unauthorized music, TV shows or movies, compared with 46 percent of all adults who'd done the same.

    With such an entrenched attitude, what can be done about widespread online piracy?

    Certainly law enforcement has gone after scofflaws like these, hitting them with fines and, in some cases, even jail time. Congress is considering controversial anti-piracy bills that would, among other things, forbid search engines from linking to foreign websites accused of copyright infringement. And there are lawsuits pitting media heavyweights against Internet firms — notably Viacom's billion-dollar litigation against YouTube.

    But here's a radical notion to consider: What if young people who steal content weren't viewed as the problem?

    What if they and advocates for maximum online access could persuade the entertainment industry to loosen its tight grip on its coveted, copyrighted material — quite the opposite of what the industry is trying to do right now?

    "The real problem is not pirates downloading illegally, but a failure to innovate on the part of the content providers," says Steven Budd, a law student at Drexel University in Philadelphia.

    Like it or not, that's how a lot of people of his generation view the situation. And some experts think they're gaining clout, as they insist on easy access to music and other content while the Internet world loudly protests anti-piracy legislation that it says unfairly puts the responsibility of policing piracy sites on search engines and other sites.

    "We've seen the emergence of a real social movement around these issues," says Joe Karaganis, vice president of The American Assembly, a public policy institute at Columbia University, which oversaw the recent survey, funded by a grant from Google.

    He's talking, in part, about "blackouts" staged by popular Internet sites that included Wikipedia, the user-generated online encyclopedia, and Reddit, the social news website. With support from Google, Facebook and Twitter, they were protesting the proposed federal anti-piracy bills.

    But here's the surprising part — a lot of young people don't necessarily expect to get movies, TV shows and music for free.

    "I do think people would pay for this content if it's reasonably priced and it's available when they want to watch it," says Srikant Mikkilineni, a law student at Drake University in Des Moines.

    Not wanting to mar his law school record, Mikkilineni pays for the songs, movies and TV shows he downloads. But he does so grudgingly. "Right now, they want us to pay multiple times for the same content," he says, complaining that that's not reasonable.

    If he buys a DVD, for instance, it's $15. He can watch it on his laptop — but it's illegal for him to copy it in order to watch it on his iPod or smart phone.

    Many young people point to Apple's iTunes service as a model that could be replicated by other entertainment companies.

    "iTunes changed the landscape for music because it made it far too convenient and much easier than downloading music through alternative methods (even illegal ones)," says Matt Gardner, an information technology student at Rochester Institute of Technology in New York.

    But even more than convenience, a recent study at Duke University found that cost was the major factor that drives college students to copy entertainment content illegally. Researchers there found that the lower the students' income, including their parents' income, the more likely they were to search for free, illegal options.

    To address the issue of cost, the study's authors suggested that universities consider making licensing agreements with services that sell entertainment content so that students could get a discount.

    Cornell University is one institution that has experimented with this. From 2004 to 2006, an anonymous donor paid for two years' worth of Napster service for Cornell students, but students ultimately declined to have their student activity fees raised to continue the service because the music couldn't be played on all devices, according to the Duke study.

    There are those who doubt that students would pay for content they can pirate, especially when the habit has become so ingrained.

    "Nobody's going to pay you for something they can get for free," says Glenn MacDonald, an economics professor at the Olin School of Business at Washington University in St. Louis.

    So he asks: What if you gave music and movies to consumers for free, or asked them to pay what they thought the content was worth?

    Some bands such as Radiohead are already doing that — in essence, using their songs to build a following and entice people to pay to see them in concert and, once there, to buy their merchandise.

    The song becomes the ad, MacDonald says. Or a movie on the small screen becomes the driving force for a line of merchandise or drives the wish to see it again on a big screen in 3-D or at a special theater event. A free clip from a TV show seen online draws viewers to the show.

    "It's like a bar. They give you the peanuts so you buy the beer," MacDonald says.

    He notes that music companies already take a cut of money made from concerts, merchandise and endorsements. So he thinks that should, at the very least, offset the cost of the recorded music to consumers, who've been increasingly willing to pay big prices to see artists live.

    "Music companies would be better served by increasing their focus on how to make artists' music, and especially their concerts, even better," MacDonald says.

    Nice thought, but not realistic, says Thomas Carpenter, general counsel for legislative affairs for the American Federation of Television and Radio Artists, a union that represents people working in the entertainment industry.

    As it stands, he says 90 percent of the earnings that a musician currently makes under a recording contract is tied directly to royalties from sales, including lawful downloads. For actors, he says, it's about 50 percent.

    "There's a lot at stake — much more than most people realize," Carpenter says.

    And he adds, "You have to be paid in order to be good. You have to use the funds from your projects to fund your future creativity."

    Still even some people who've spent their careers defending copyrights say it's time to find some middle ground.

    "It really is a failure to come up with practical, reasonable models for sales and distribution," says Michael R. Graham, a Chicago attorney who specializes in trademark and copyright law. "There's a real disconnect."

    Like many, he thinks iTunes has set the standard for the future.

    Another possible approach: licensing agreements — with online services, for instance, paying a fee to content creators so they can provide it to consumers for free or for a monthly subscription fee.

    Popular options, so far, include online music streaming services such as Spotify and Pandora. Others point to movie and TV services such as Netflix, though some complain that content on Netflix's online streaming service is still too limited. Hundreds of thousands of people also quit Netflix last year after it started charging more to those who wanted both the streaming service and DVDs sent to them in the mail — another indication of just how much impact the public can have in these matters.

    A major lawsuit now before a federal appeals court has put a spotlight on these issues.

    Viacom Inc. is appealing a lower court ruling that found YouTube, Google Inc.'s popular video sharing service, is protected from copyright infringement claims. Viacom claims that YouTube is making millions when people post copyrighted videos —including some shows Viacom owns. YouTube says it forces people to remove the content when discovered, as the law allows.

    During October proceedings before the 2nd U.S. Circuit Court of Appeals in Manhattan, Judge Roger Miner asked, "How in the world can damages be computed here?"

    "The number could be quite large," said Viacom attorney Paul Smith.

    Miner responded: "Maybe what you're really looking for is a license agreement."

    Smith said that was possible — an outcome that some would consider a win for those who want greater access to content on the Internet.

    Whatever happens, college student Omar Ahmad says the entertainment industry has to realize that people his age aren't likely to change their piracy habits, even with the threat of more serious punishments that Congress is considering.

    "They're going to continue doing it — that's the truth," says Ahmad, a senior at Seton Hall University who's also manager of the New Jersey school's radio station.

    Karaganis at Columbia agrees that young people and the Internet community in general have proven they can influence the entertainment industry, whether it likes it or not.

    "Change is inevitable," he says. "The question is how quickly will it happen — and how much of a fortress will be built around intellectual property in the meantime.

    "Now, I think all bets are off."

    ___

    Martha Irvine can be reached at mirvine(at)ap.org or via http://twitter.com/irvineap

     

    31 comments

    • why I like iPad  •  Toronto, Canada  •  3 mths ago
      Radio and TV. It's not illegal to copy for personal use as per court rulings in the past. If you are repackaging and reselling to make a profit, that is another matter. BTW, how many times do we have to keep buying the same piece of music or movie when they changing the formats every few years?
    • Carson  •  3 mths ago
      "Young people want their music, TV and movies now — even if it means they get these things illegally." Welcome to 1999, Martha.
    • High  •  3 mths ago
      I feel for independent artists but, they tend to be more innovative with their approaches to making money. Large industries could care less about. A lot of the middlemen involved in distribution channels are obsolete. No industry has ever worried about the constitutional implications of collecting, sharing, selling and reselling of our personal information. Generations of people's habits and incomes have been tracked and utilized for companies own benefit. These large industries have had no qualms stealing from artists either. Why should anyone care about their intellectual property all of a sudden?
    • Tommy  •  Phoenix, Arizona  •  3 mths ago
      For the prices they charge to see a movie, who is the real thief?
      • Kerry M 3 mths ago
        I don't mind the $12 or $14 ticket. I do mind the $5 soda.
    • gary  •  Hagerstown, Maryland  •  3 mths ago
      Older model for you. Free music all day, every day. Is this some new radical idea? No, it was what we expected from good ol' am radio in the 'good old days'. They made money and legends then,what happened? And think back, why did the slim, one peice dvd cost so much more than vhs tape ( a bulky, some what complicated and complex item.) They got greedy, and it made a bad impression with their customers.
    • M M  •  3 mths ago
      Most "piracy" if logical fair use. Fair use laws need to be updated to reflect modern technology and consumption. If you don't want people to talk about and share CLIPS of your content, don't publish it. It's free advertising ya idiots...

      Most people have no issue, whatsoever, giving money to the content CREATORS. You know, the people who actually made what you're watching/playing. They just don't give a crap about the publishers and idiot executives that do little of anything but somehow think they're entitled to most of the profits. In fact there are many things being sold in which the original content creators don't see a single penny. THAT'S the REAL crime...
      • RejectPartyDogma 3 mths ago
        True. When people do things like posting video clips containing copyrighted content, that is certainly advertising for the copyright holder - it gets the content in front of more eyeballs that may then pay for the real deal. The problem is that the media companies don't see it that way. Their narcissism leads them to obsess about a different aspect, which does have legitimacy if taken on it's own. What they see is that _their_ content is posted on YouTube, but because it draws people to view YouTube, _their_ content_ is putting money in YouTube's pocket that they think should be going in their pocket instead. YouTube is getting money put in their pocket as a result of content that belongs to copyright holder without compensation for that benefit to the copyright holder.

        But this is what happens with "selection bias". Their narcissism makes them obsess over one view and missing a completely different view that is probably actually providing a net benefit that they can't see because their narcissism won't allow them to see the benefit they are actually receiving. They only see the money going in YouTube's pocket but have a blind spot that they can't see the advertising benefit. But the judge's comment seems like a good idea - what they need, perhaps, is a licensing contract to address their legitimate concern that YouTube is profiting on copyrighted material. But then could it not also be said that the money YouTube makes is simply the "cost" of that advertising they receive? But then a licensing agreement might help to codify that advertising benefit and cost thereof so they could grasp that concept. But then again, they may be too narcissistic to "get it" even when spelled out in an licensing agreement drafted and offered by YouTube.
      • mj4 3 mths ago
        Your view of how any content is created and the costs involved is simplistic at best. If everything is free, there eventually won't be any content.
    • Washu  •  3 mths ago
      I wish the Entertainment industry as a whole would see that they are pushing lack luster products and services out for high prices. If they want to stem online piracy then they need to offer better service and products and lower the price. Offer something better than what the pirates can give...then you will see less pirating. Ex. I would love to stream the latest Movies on my TV at home the same day they come out in theaters for a cheaper price than a cinema ticket.
      • Michael 3 mths ago
        I do not mind the whole going to the cinema thing. I do mind that I cannot stream or do On Demand when the movie hits the shelves. I would pay for Netflix if I could stream. I would pay for the movie through On Demand if it was cheaper.
    • oldman  •  3 mths ago
      Eventually what will happen is all media will move to "the cloud", and it will become illegal for consumers to own media.
    • Lou  •  Ashburn, Virginia  •  3 mths ago
      Regarding the entertainment companies it's all about control. They want to tell you what to buy in the "artist's" they produce and then tell you when and on which device you can use the material you purchased. I have a major problem with that because if I buy it - it is mine and I will do what I wish with it. If for example, I buy a Ford vehicle Ford has no right to tell me which road or highway I can drive my car on. The same principal should apply to all purchased media - its a right of ownership.
    • Michael  •  Pompano Beach, Florida  •  3 mths ago
      I personally have no problem paying for a movie or music. The real problem is I can never find the remixed song I want and I cannot find the newest movie that just hit the shelves. Mainly the movie industry will not allow Netflix to host a new movie once it hits DVD/Blu Ray which is ridiculous.

      The reason I download illegal content is 1. I cannot find the exact song 2. The newest movie is not available through On Demand or it is not available through Netflix. One reason I cancelled my Netflix account.

      The music and movie industry needs to get with the times.
    • ArindamB  •  3 mths ago
      Looking at that graph, I couldn't help but think: 'Young Americans should teach their elders how to download stuff for free.'
    • david  •  Richmond, Virginia  •  3 mths ago
      "If he buys a DVD, for instance, it's $15. He can watch it on his laptop — but it's illegal for him to copy it in order to watch it on his iPod or smart phone."
      THAT IS NOT TRUE - where did you get that information from???
      When you buy a CD or DVD you are really buying a license for the content on that disk. Not for the media form in which that content is transferred to you. You ARE legally allowed to make copies or backups, I believe up to 3, of that content. What would be illegal is for you to then distribute those copies to others.
    • Zhimbo  •  3 mths ago
      Give people a legal means to watch something, they'll do it. Why make people wait months and months for the DVD release date? Just make the shows available online for pay or free with commercials. The dinosaurs in the boardroom need to catch up or get out.
    • Henry  •  3 mths ago
      Well how are the current prices for movies and such not considered stealing?
      • RejectPartyDogma 3 mths ago
        What? Are they holding a gun to your head and taking your money and forcing you to watch movies and such? If you think it costs to much, you can simply not watch movies and such. But if you choose to pay and watch of your own free will, it can hardly be called stealing. It's not you movie and you don't have some right to be allowed to watch it. It's not your right to decree it should be made available at some price you prefer. It's _their_ movie and _their_ right to set whatever price they wish. It's your choice to pay and watch or to not pay and not watch if you think the price is too high and not worth it.
      • RejectPartyDogma 3 mths ago
        ...and you might say that if they set it to be arbitrarily high then no one will watch their movies. That's true. But it's still their right to set whatever price they want. If they are willing to have no one watch at the price they want, that's their right. It is also their right and their choice if they want to charge a lower price or not to have more people choose to watch, and if so by how much.
    • Shao Z C  •  Los Angeles, California  •  3 mths ago
      I'm not sure if you can directly relate free as theft. iTunes, Amazon, and Google gives away free songs every week/month. So they could acquire it legally for free. I'm willing to wait a few years to get Wonderwall - Oasis for free.
    • LJ  •  Miami, Florida  •  3 mths ago
      The answer is relatively simple: It is the distributors/big studios present a major cost layer that gets a huge portion of the revenues from the artists' work. With everything being so much better promoted and distributed via online and more organic methods, there is little or no reason for this to remain the case.

      Remove - or at least greatly decrease - that layer and artists and customers will be happier, and receive better value.
    • RejectPartyDogma  •  3 mths ago
      Very good article. I hope media honchos read it and take it to heart.

      I think there are a couple ways that the media industry is cutting itself off at the knees. Both have to do with their controlling, obsessive fear that someone somewhere might listen to a song or watch a TV program or movie without paying for it. They obsessively try to control every dime's worth of media consumption and lose out on major revenue opportunities as a result. I think it's also somewhat narcissistic that they seem to think piracy is _all_ about _stealing_ content. I think the reality is that it has a lot to with not so much the media itself but the ways in which it is consumed. I think if people were simply given a legitimate means and opportunity to pay for consuming media how they want to, it would alleviate a lot of the problem. The the media companies, in their ARness, can't let go and embrace the means of consumption that people want, so the people resort to piracy to utilize those means of consumption.

      For example, I would like to see a study of how the advent iTunes affected piracy. Once people had a legitimate means to pay for music the way they wanted to consume it, did piracy wane? How much revenue was lost in their resistance to such channels of distribution that could have instead put money in their pockets had they embraced it from the beginning instead of going on the attack? Sure it's not going to eliminate piracy because there will be those for whom it is about getting it for free. But that has always been and always will be the case. At some point you just have to accept some degree of "piracy" as the cost of business. The alternative is what? To not offer the content for sale because someone somewhere might get it without paying for it? And loose out on that revenue for fear that someone might not pay? Because making it inaccessible would be a way to cut down on piracy, but it also eliminates an opportunity to generate revenue. It's like not opening a store for fear someone might shoplift.

      Another problem is their obsessive fear that new means of consumption will cannibalize their "institutionalize" distribution channels. That is a legitimate concern, but the reality is that new technologies are going to render those "institutionalized" channels obsolete anyway. They can resist new distribution channel opportunities and hitch their wagons to those increasingly irrelevant "institutionalized" channels and watch their revenues become increasingly irrelevant, or they can embrace the new channels. They may make more or less money than before, but resisting new means of consumption and clinging to outdated means is just a sure way to ensure revenues decline the most. No matter how obsessively they cling to outdated means of consumption, it is _not_ going to sustain revenue.

      Their narcissistic obsessiveness leads them to see piracy as a challenge to be stamped out. They way it needs to be seen; however, is as a signal that there are new revenue opportunities that they could leverage if they would just get past their pucker factor and _embrace_ these new opportunities to generate revenue rather than going on the attack. They aren't going to go away and they can't stamp them out so they might as well find ways to embrace them and make money rather than fight them and lose that revenue opportunity. While I don't agree with piracy, I do see it as a well deserved "punishment" for resistance to giving consumers what they want.
    • Kirk  •  3 mths ago
      What about independent musicians who don't have any ties to the "entertainment industry" who just want to sell their music? We're not talking about rich superstars who are already known, but new artists and independent artists without a record deal with a big label. Should they be happy to have their music stolen? Mind you, they're not going to be doing any big tours where they can sell out arenas. They just want to sell CDs and downloads. Is there no protection for them? Don't they deserve to make any money for their work? There's an awful lot of this "music belongs to the people, man" stuff going on, but I wonder if these thieves are willing to work for free like they expect musicians to. When plumbing and car repair and dentistry "belong to the people, man", I'll stop asking these questions. Meanwhile, I never get a satisfactory answer to any of them. Why do artists get spit upon by those who don't depend on taking a chance on themselves? I'm a musician. I'm not rich. Why shouldn't I deserve to make a living?
      • Amish 3 mths ago
        Not an issue. How many music files from independent musicians do you find on, say, pirate bay with enough seeders to make downloading practical? I highly doubt there is a single unsigned, independent musician out there who would be rich if piracy didn't exist. You certainly aren't going to be making a living selling singles on Reverb Nation or other online distributors if no one knows who you are. Someone like you should be glad if a lot of people are pirating your music, as that means you are gaining a following and can sell out clubs and sell merch. A club artist that sells online does so because they direct audiences and facebook followers to their online distribution channel. If someone decides to upload that file to an international piracy site, there will be like one seeder for a week, and then maybe two leechers stuck at 95%, and then it will drop off altogether.
      • tjmwerewolf 3 mths ago
        What Amish said............
      • Dreamer 3 mths ago
        When i was in a band doing gigs etc i spent a lot of time around" independent musicians" and what you`re saying sounds like a line from a record label.After gigs most bands would hand out their cds for FREE!, new artists can`t make much money from cds and their songs its all about getting exposure it`s standard practice.The record companys wouldnt like you to know this though, because looking after independent artists is there latest lie to stop people pirating lady gaga songs
    • Cybernoni  •  Melbourne, Australia  •  3 mths ago
      All young people want is to have what they want when they want it. It doesn't have to be music or films, it is anything. It is also a sign of the times, the only child, lack of siblings makes for a very selfish society. Technology has the potential to increase educational levels and develop some brilliant minds. But, I am seeing the both sides of the coin. As a teacher I see the usefulness of technology, as a grandparent and guardian I see the obsessive behaviours that use of the computer and or electronic games creates. Chn don't go out to play football, cricket or netball anymore. In school yards I see chn with their electronic devices playing games or "socializing". Not only does technology impact on mental alertness and skill, it also impacts on physical health. It is sad to think that the only "friends" many will have as they grow will be those who they meet on sites like "Facebook" Social skills come from meeting others face to face.
    • Evreux  •  Sacramento, California  •  3 mths ago
      Youth shape the future of EVERYTHING. That's how it's the future.
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