Where IFPI’s CEO John Kennedy talks about how big of a threat The Pirate Bay is to the record industry and also says he does not really know what torrents are and how the site or even a p2p client functions
The Pirate Bay trial resumed yesterday with John Kennedy, Chairman and CEO of the International Federation of the Phonographic Industry (IFPI) giving testimony in the case.
Kennedy claimed that the Swedish BitTorrent tracker is responsible for massive losses in revenue suffered by the entertainment industry and huge damages to marketing plans of record labels.
He was quoted by Zeropiad as saying: “It deters people from buying music online, as well as new ventures and retailers wanting to enter the digital music market. There are also the wasted costs of marketing and of developing new artists, and a range of other costs, such as engineering and production.”
When asked to speak about studies which showed that p2p is actually beneficial for sales and helps promoting artists, Kennedy called the view old-fashioned thinking saying that things have changed a great deal since 2003-2004.
He was further inquired about the similarities the notorious file sharing website and Google search engine share, and pointed out you cannot compare the two: “We talk to Google all the time about preventing piracy. If you go to Google and type in Coldplay you get 40 million results – press stories, legal Coldplay music, review, appraisals of concerts/records. If you go to Pirate Bay you will get less than 1000 results, all of which give you access to illegal music or videos. Unfortunately The Pirate Bay does what it says in its description and its main aim is to make available unauthorized material. It filters fake material, it authorizes, it induces.”
Kennedy pointed to the great threat The Pirate Bay is increasingly turning into: “They are proud of this with their statistics – there are 22 million users, 1 million visitors each day, 1.6 million .torrent files and they say they are responsible for 55% of BitTorrent traffic. They pride themselves on the quality of what they deliver.”
When it came to referring to the compensation the record labels demand from The Pirate Bay founders (a total of €2.1 million relating to a sample of 23 titles) Kennedy called them “justified and maybe even conservative because the damage is immense.” The thing is that in spite of his statement there’s still no clear way of telling how that figure was come to and how anyone can deduce the exact losses caused by the site to the industry’s pocket.
Although Kennedy noted that the transition from physical to digital music had a significant impact on the business there was neither an exact figure of the loss this change translated into nor any touch in his speech of the music industry’s failure to cope with the transition in question. (photo credit: http://drlol.ru)
To Be Continued…
Check also – Episode I, Episode II, Episode III, Episode IV, Episode V, Episode VI