Since the advent of the Internet, companies in the entertainment industry have argued that piracy has hurt the entertainment industry because users are not paying for the content they watch.
In Spreadable Media: Creating Value and Meaning in a Networked Culture, Shoemaker writes how Jason Mittel wrote that his using file sharing to watch the first season of Veronica Mars, “actually offered more value to the industry.” (Shoemaker, 115). His claim was that because he was watching it outside the Nielsen system, he wasn’t watching commercials and “his viewing factors didn’t fall into the elaborate exchange of audiences between networks and advertisers via the currency of ratings.”
In 2013, Yahoo News reported that piracy is not hurting the profits of the entertainment industry, based off a study put out by the London School of Economics and Political Science (LSE). In their story, they quote Bart Cammaerts, one of the authors of the story, who says, “Contrary to the industry claims, the music industry is not in terminal decline, but still holding ground and showing healthy profits. Revenues from digital sales, subscription services, streaming and live performances compensate for the decline in revenues from the sale of CDs or records.”
Is pirating having a negative effect on the entertainment industry, or is it creating more profit for the industry because more viewers are watching the content, ultimately leading to a higher demand for advertisements?