Advertising Sustains Piracy, A Google/PRS Study Claims
Filed under: Announcements & Events, Entertainment Industry, File-Sharing Programs, Networks & Services, Legal P2P News & Issues
Google, in collaboration with PRS for Music, conducted a study called “The Six Business Models For Copyright Infringement”. Here’s what they found out.
According to the report a key source of revenues for websites “thought by major rights holders to be significantly facilitating copyright infringement” is advertising. This will likely start a heated debate, rather than calm things down.
Their report is based on a research by Detica, while the data was offered by FACT, the Premier League, UKIE and The Publishers Associations. It classifies piracy websites as such: Live TV Gateways, P2P Communities, Subscription Communities, Music Transaction, Rewarded Freemium, and Embedded Streaming.
There are two important discoveries concerning the music sector. The first highlights the importance of advertising (funding 86% of peer-to-peer community websites). The second reveals the importance of search engines for Music Transaction sites – meaning that their users are more likely to find out about the service via a search engine.
Our research shows there are many different business models for online infringement which can be tackled if we work together,” said Google’s Theo Bertram.
“The evidence suggests that one of the most effective ways to do this is to follow the money, targeting the advertisers who choose to make money from these sites and working with payment providers to ensure they know where their services are being used.”
Robert Ashcroft – head of the PRS for Music – hopes the report will reach the British government.
“Sites involved in copyright infringement are businesses with real costs and revenue sources. They receive subscription or advertising revenue, pay their server or hosting costs but fail to pay the creators of content on which their businesses depend,” he said.
“Not all of these business models are the same, and the Government now has the evidence to understand which policy levers to apply to deal with these different businesses effectively.”