Saturday, 6 April 2013

Why don't the Anti-Piracy campaigns realise that if they stop piracy, the companies will not earn profit?

Why don't the Anti-Piracy campaigns realise that if they stop piracy, the companies will not earn profit?


Business Software Alliance and IDC find that $30 billion worth of software in use today was obtained illegally.



The objective of anti-piracy is to convert these losses into firm profits. By reducing the number of users who pirate products, the firms are expected to see increased number of paying customers and achieve high profits. In addition, piracy attracts more price sensitive customers, in which can cause negative affects on sales as they will cause bad publicity on the price and therefore psychologically not liking the thing they have bought. In effect, decreasing sales. Piracy could be beneficial to firms in this case because it removes these customers from the market, therefore reducing firms’ incentive to engage in self-destructing price competition

Piracy could be beneficial to firms if there is a significant relative difference between the marginal utility of money of two types of consumers.

The fact is piracy increased publicity, and therefore in a business view increases profits. Most, nearly all users of 'Pirated' Software do not make money from it. Most people after downloading the software will buy it to support the developers. If software costs $400, most people with torrent it and use it, because they cannot afford the pay an insane price. If they were not aloud to torrent there will be an increase in price competition and prices will lower. With a lowered price, maybe sales will increase but no more will be earned as it will cause an equilibrium effect.

In my opinion i believe that the reason why they want this stopped is because they are greedy and the figures seem that if it's stopped they will earn billions more, but they will not. Logically and mathematically piracy is beneficial. Removing file sharing sites will not stop anything, at most it causes a nuisance. Removing copyrighted material from sites, may be necessary is extreme cases. At most just create filters, but removing these sites is just not needed.

P.S - this has nothing to do with me being a nonsensical tirade, in detail. I am not a thief,objecting to laws being finally enforced. At a hole theft is when you leave the original owner without the 'thing' in question.

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