What is the Future of Piracy in the Gaming and Media Industries?

cairo140

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The question is simple. Considering current trends and past history, how will Media (herein used to denote the corporate distribution of music, movies, DVDs, games, etc.) adapt to the phenomenon of Piracy?

Although piracy has been around since the beginning of time, it became overwhelmingly powerful around the year 2000, when broadband internet access was widespread among developed countries. This, along with first-generation popular P2P file-sharing applications, caused the widespread distribution of pirated media.

Furthermore, applications distributed on CDs had very little means to prevent burning. Many forms of media at the time had no means of encryption or authentication, opening the door to sharing through private copying. Worse yet, the number of individual or groups illegally copying media and distributing it to the public at a cost were growing exponentially.

Those trends caused the media distribution companies to look into piracy-prevention services. The most popular copy-prevention program is Safedisc, developed by Macrovision. Safedisc used authentication of a hidden encrypted digital signature to initialize an application, and added "weak sectors" to a disk to make it much harder for conventional burning programs to burn a copy-protected disk.

Pirating developed to cope using CD/DVD-images (which when mounted to virtual CD/DVD programs like Daemon Tools, bypass most Safedisc features). These, in conjunction with applications and replacement executables capable of bypassing the remaining Safedisc encryption checks on mounted CD/DVD images, allowed nearly all existing media to be very easily copied and distributed over broadband internet.

Another means that the industry has employed to fight against piracy is using license keys. The activation keys that are verified offline will be, are, and have always been vulnerable due to distribution of license key generators. License keys verified over an internet network have been slightly more effective, but still vulnerable due to replacement executable files.

Perhaps the most effective piracy prevention tool to date involves a constant internet link. This was made popular first by a system called Battle.net used by the Blizzard company. Each installation would install a unique encrypted license key file on the hard disk. Whenever a user attempted to connect to the multiplayer network online, the key would be verified. If ever two such keys simultaneously tried to access the online server, the particular key would be banned from the server, thus disabling a user's access to a large portion of the game.

This has been taken further by Massively Multiplayer Online games (especially Role Playing Games), which require a user to constantly pay a monthly price (with the exception of some games like Guild Wars) in order to access the service. There do exist several viable ways to bypass this very effective anti-piracy measure involving fixed executables, registry edits, and proxy servers. However, these bypass methods are neither safe nor easy to use, so piracy in these circles is very sparse.

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In any case, piracy is still a very prevalent phenomenon in today's world of media. Although I addressed primarily games, many of the identical copy-protection methods have been used on movies and music CDs to varying degrees of effectiveness.

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Recently, it seems as if, in spite of advancements in anti-piracy technology, a few developments seem to lean popular media towards the opposite direction.

Firstly, open-source programming and licensing, which has existed for quite some time (since way back in the old days of Red Hat Linux), is popular on many internet-based and a few offline-based applications and games. Many new media releases have makers who declare their willing forfeiture of rights and privleges their work, thus making the particlar item public domain. Michael Moore did this unofficially with the DVD-release of "Fahrenheit 9/11," despite constant pressure from film-based anti-piracy organizations. Recently, Stardock, the maker of Galactic Civilizations II was linked to implicitly encouraging and providing opportunities for "illegal" distribution of their software. Historically, the company, like many other smaller ones, has focused less on investing in copy protection, and allowed the nature of piracy to take its course.

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So now we are back at the original question. What is the future of piracy in media? Will it get bigger? Smaller? Professionally-managed? Or will software companies eventually prevail and manage to eradicate piracy? I'd like to know your opinions.:scan:
 
Games companies are fighting back. StarForce, one type of copy protection, is particularly intrusive and annoying. On my system, it cause my DVD-Drive to run slowly, resulting in poor DVD playback. I've heard other stories about PCs with StarForce not shutting down completely (i.e. logging off, but the power staying on), corrupted system files, slow boots, etc.

My answer? Don't buy StarForce-protected games! Pirate them!
 
I used to pirate media. Once I actually began to PRODUCE media, I totally changed my mind :)

My stuff is aparently on limewire now, because somebody bought our CD, and shared it. They can also just burn the cd and pass it around. Now, if I was a multimillion dollar recording artist, this wouldnt be a big deal...but I'm not, and merch sales are prob around 60% of my income as far as music is concerned. On one hand, it does help with exposure....on the other hand, I dont get any money!

The people who get screwed are smaller, indie-lable type groups. Adding copy protection on media is pretty expensive...I looked at it, and it would make my CD production costs jump from around a buck per CD (not counting label), to around 4, since I dont have the benefit of a label to mass produce these and drive down the costs. That expense gets passed on to the customer, and then everybody loses. One of my favorite bands, The Pietasters, had to stop touring for a while, because members had to get second jobs. Why? The band was popular and well known, but their CD sales were killed by college kids downloading them.

Certainly, Im not at the point where music downloading is hurting me personally, because my operation is still small scale...but I'm a little upset by it for principle's sake. Its not a good way to "stick it to the man"

I think programs like Napster and Itunes provide a good comprimise for customers, and they ought to use those services instead of things like Limewire. You get a good selection, the songs are cheap, and you can try before you buy. Perhaps other media will go that route.
 
The day will come when you buy a USB memory stick with the game imbedded on it. As cheap as they are getting I don't think it will be long.
 
MattBrown said:
On one hand, it does help with exposure....on the other hand, I dont get any money!
But you do get money from exposure, if those people then go and buy a CD, or see you perform, or go and tell other people about you. Certainly I've done that.

And any copy protection that prevents me mp3-ing the CD I've bought will mean it gets returned to the shop as defective goods.
 
mdwh said:
But you do get money from exposure, if those people then go and buy a CD, or see you perform, or go and tell other people about you. Certainly I've done that.

And any copy protection that prevents me mp3-ing the CD I've bought will mean it gets returned to the shop as defective goods.

But see, if somebody pirates my CD, they arent going to buy it. They already have the songs. The lyrics sheet and CD label arent enough to justify somebody spending 5 bucks (plus shipping, if they dont live in Central Ohio) on a CD they already own.

Its possible that they might come see us. At the moment, that doesnt *really* help me, because I dont get paid per ticket...I just get a flat fee. Eventually, with more money, I could tour more...but if nobody buys the CD, I can't pay for transportation costs (which are expensive). Gas is 3 bucks a gallon...with 3 or 4 vans, going far away really adds up. Studio time costs a gazillion dollars. Equipment is really expensive as well.

Making music costs a lot of money. It isn't fair to shortcharge the musician. It doesnt do me any good if folks out in Sacramento California like my band, if I can't go over there and pay for a ticket to get a gig, and they don't buy my CD or shirts.
 
MattBrown said:
But see, if somebody pirates my CD, they arent going to buy it. They already have the songs.
They might download only some of the songs, then buy the CD. Or download one CD, but buy others because they like it. That's how I've done things.

Its possible that they might come see us. At the moment, that doesnt *really* help me, because I dont get paid per ticket...I just get a flat fee.
Although presumably it affects you indirectly - if you can draw more people, surely you're more likely to be hired, and can charge hire prices?

Making music costs a lot of money. It isn't fair to shortcharge the musician. It doesnt do me any good if folks out in Sacramento California like my band, if I can't go over there and pay for a ticket to get a gig, and they don't buy my CD or shirts.
Well yes indeed, it doesn't help you if people don't buy your music (whether or not they've downloaded it).
 
mdwh said:
They might download only some of the songs, then buy the CD. Or download one CD, but buy others because they like it. That's how I've done things.

Although presumably it affects you indirectly - if you can draw more people, surely you're more likely to be hired, and can charge hire prices?

Well yes indeed, it doesn't help you if people don't buy your music (whether or not they've downloaded it).

Like most bands with some bussiness sense, we have a few tracks from the CD for free download on our website or myspace, if you'd like to "try before you buy". There is NO excuse to download other songs, unless you're just a cheap bastard who doesn't like to pay things.

The connection which you speak of MAY occur, and in the long run, it likely will. However, not everybody who downloads is going to show up, buy a ticket, buy a shirt or stickers, etc etc. Those guys steal, and since its impossible to track who came because of downloading what, I have to write things off as a loss.

If 60% of people download my music for free, with this vauge promise of "I'll pay for it later", I cant afford to make music anymore, and neither can most indie bands, or small outfit programs, or whatever. You have to pay for it then, or you dont get my product.
 
I think the "glory days" of internet-based piracy will be over soon. There is a great deal of money being lost by wealthy companies with lawyers. But they could help their own cause by making CDs and DVDs cheaper...
 
The question is simple. Considering current trends and past history, how will Media (herein used to denote the corporate distribution of music, movies, DVDs, games, etc.) adapt to the phenomenon of Piracy?

Roving bands of death squads.
 
Eventually all peer to peer software will be banned, but BitTorrent is here to stay.

Really there is no quick solution, rather than offering different ways for user to purchase legally software, and encouraging them to purchase instead of illegaly acquire. I mean right now it is almost impossible to legally download the movie; and there is no "plan" that would be cheap for high-volume customers.
 
the future of pirates=:satan:
 
zulu9812 said:
Games companies are fighting back. StarForce, one type of copy protection, is particularly intrusive and annoying. On my system, it cause my DVD-Drive to run slowly, resulting in poor DVD playback. I've heard other stories about PCs with StarForce not shutting down completely (i.e. logging off, but the power staying on), corrupted system files, slow boots, etc.

My answer? Don't buy StarForce-protected games! Pirate them!

StarForce is not made by the game companies. It is actually made by a bunch of Russian hackers who used to make viruses.
 
What companies are gonna have to do is sell something other than 'the license to install one copy of this program on your computer under these strict conditions'.
 
Comraddict said:
Eventually all peer to peer software will be banned, but BitTorrent is here to stay.
you do know that BitTorrent is p2p, right? how will it stay when all others will be banned?

To some degree Piracy will always exist, but I think that it'll decline a bit in the near future. One big problem IMHO is that the companies are indirectly fueling piracy by selling copy-protected software/music that's effectively crippled....Personally, I just decided to never buy music with one of these abominations on it, but I know plenty who just pirated it instead....
 
Look at how the papers are reacting to the internet. They used to get thier cash by disseminating information - a task that is now all but redundant due to the internet. The Gardian now publishes stories first on-line to boost internet advertising revinue, has the job sections and specific pull-outs and a tabloid section to boost hard-copy sales etc etc.

The Arctic Monkies published first and for free on the net and when they did go hard copy the first two singles went in at no1 and the album holds the record for fist week sales for a debue. The big music companies have to realise they cant hold people to ransome any more, and everyone else had better see which way the wind is blowing.

Movies with a symeltanious worldwide release dont get pirated nearly as much. People want to see a movie and if they have to wait six months odds are they have already seen it. Generally if a movie is good people will happily pay it see it on the big screen, but not to see a movie they have already seen on a rubbish avi. Releaseing dvd's at the same time or soon after the big screen release means that people who want to see it at home will go and buy it. Give the people the oppertunity to pay for what they want - you cant push them round any more.

Softwear has to either be completely or significantly on-line, or offer extra value with a licence. Big companies arent able to beat the distributed innovation of thousands of small-group hackers. Just like the right always say how private industry competing will beat a gov deciding. Otherwise they have to realise they are effecivly asking for the money, and many will pay but many will not.

To try to fight the freedom of information the digital revoloution is pointless and self defeating. Just like the tax man makes deals with the uber rich because otherwise they just both give all thier money to accountants.

Its a brave new world, and trying to swim against the tide will only end in ruin.
 
MattBrown said:
Like most bands with some bussiness sense, we have a few tracks from the CD for free download on our website or myspace, if you'd like to "try before you buy". There is NO excuse to download other songs, unless you're just a cheap bastard who doesn't like to pay things.
That's good - many if not most bands don't do that.

The connection which you speak of MAY occur, and in the long run, it likely will. However, not everybody who downloads is going to show up, buy a ticket, buy a shirt or stickers, etc etc. Those guys steal, and since its impossible to track who came because of downloading what, I have to write things off as a loss.
The comparison is not to "people who download and don't buy your stuff and would never buy your stuff", but "people who download, and would have bought your stuff had they not have downloaded".

The former group make no difference either way. Whether the latter group outnumber the group of people who download and then buy your stuff, we can't be sure. But it's absurd to suggest that every download falls into the category of "doesn't buy your stuff, but would have done if they didn't download".

And I presume we're not talking about stealing here (i.e., people stealing physical CDs themselves) - that's a different debate altogether.

If 60% of people download my music for free, with this vauge promise of "I'll pay for it later", I cant afford to make music anymore, and neither can most indie bands, or small outfit programs, or whatever. You have to pay for it then, or you dont get my product.
So why do you have a few tracks available for download at all? Are you losing money everytime someone downloads?
 
Two things:

1. Piracy has a bright and shadow side and the press and the industry as a whole focus on the shadow side in stead of the bright side:

- free global exposure
- global consumer base

Artists have always made money from gigs, not from selling records. You can't pirate a good live performance.


This bright side is not exploited well/at all, hence point 2:

2. I think all industries should think from the consumer's perspective and not as much from the business perspective. The current business perspective is totally unrealistic.

- people don't buy when they have downloaded
- sales are down
- regional releases

remedy: prices up to make up for losses and make the consumer jump through hoops with all kinds of protection schemes :crazyeye:

what is wrong:

- there is so much below-par stuff out there which is sold for a price which is too high. People are not going to waste their hard earned cash for something they might throw in the corner after one view/listen/hour of play, even if the artists/programmers have worked hard for it as well.
- prices are too high in general. People are more willing to take risks if the losses can be bared.
- release stuff at the same time. Regional releases suck. If Americans can get a DVD or a game, it's expensive to import it. To make it worse, I can't even import American DVD's since I have a Region 2 player. How am I supposed to watch Chappelle's Show or Entourage for example?

solution:

- More global releases (less patience needed, less temptation to download stuff in stead of waiting for months)
- Lower prices (you need to sell more copies, but owning a fysical product is much cooler than a digital copy)
- More respect for consumers. Pirated movies have the warnings and compulsary trailers stripped. Pirated games have the compulsary CD/DVD-check removed. Pirated music can be played everywhere without the risk of compromising your PC

A lot of people are tempted by piracy and the industry does not realize that the ball is in their court to change all this.... :confused:
 
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