News

By Chris Ortman, VP Communications & Corporate Affairs, CreativeFuture

Piracy is a problem that affects the creative communities: major studios and networks, mini-majors and independents, distributors and exhibitors, book publishers, major and independent record labels, businesses that service the industry (caterers, florists, stylists, travel agents, etc.), as well as producers, directors, actors, writers, musicians, composers, recording artists, songwriters, authors, set builders, and every individual creative professional. Independent films are especially vulnerable to piracy’s impact because their production budgets are smaller. When pirates profit from stolen creative works, creatives lose their fundamental right to be compensated for their work.

So how do pirate sites make money?: Illegal pirate sites make millions of dollars from advertising or by selling monthly “premium” subscriptions that are processed by major credit cards. The statistics are astounding—a recent study looked at a sample of nearly 600 for-profit pirate sites and estimated $227 million in annual advertising revenue, a significant portion coming from major brands. 

Another study that looked at the top 30 subscription-based cyberlockers found that major credit card companies contributed to nearly $100 million in annual profits. Many pirate sites appear legitimate because they feature ads from well-known brands and major credit card companies are processing their subscription payments. This seemingly legitimate veneer can attract well-intentioned consumers who want to do the right thing, but are confused about which sites are legal and which ones host pirated content.

What’s being done?

In today’s digital age, audiences demand more control and choices over how, when, and where they view creative content. As technology evolves, creative industries are responding and embracing new digital distribution models that provide simple, convenient, and legal access to content.

For example, services such as Hulu, Netflix and Amazon Prime have been widely embraced by consumers, while new streaming apps such as HBO Now and CBS All Access provide easy access to programming without a cable or satellite subscription.

On a near daily basis, new innovative options for legally consuming creative content are being introduced to audiences and new titles are being added. On the advertising front, because of the complex way online advertising is sold, marketers have previously been unable to prevent their ads from appearing on sites that profit from stolen creative works.

The advertising industry has a new, voluntary initiative, the Trustworthy Accountability Group (TAG), an innovative program to provide technical tools to help advertisers keep their good ads off bad sites. This makes it more difficult for pirate sites to profit from stolen creative works – and helps advertisers protect the integrity of their brands.

Is anyone paying attention?

Yes. Non-profit coalition CreativeFuture is mobilizing the creative community to speak up about the value of creativity—and speak out against the harm caused by piracy. By advocating for policies and solutions that will stop the flow of money to pirate site operators, CreativeFuture is leading the effort to take the profit out of piracy and protect the fundamental rights of all creators to deter-mine how their works are distributed.

For example, CreativeFuture recently rallied more than 100 members of the creative community to sign a letter to U.S. Senator Patrick Leahy (D-VT) thanking him for his leadership in urging the credit card industry to implement voluntarys steps that can prevent their services from being misused to fund pirate sites. In addition, Creative-Future is a very active participant in the festival circuit, such as Sundance and SXSW, meeting face-to-face with creatives across all disciplines to educate and mobilize the community on matters of piracy and the advocacy role creatives can play. Youth outreach is also critical to CreativeFuture’s mission.

By supporting a non-profit organization called iKeepSafe and their “BEaPRO” K-12 curriculum, CreativeFuture is raising awareness among youth about the cultural, ethical, and economic implications of creative ownership—instilling a greater respect for artists and the creative process.

What can I do?

The for-profit theft of creative works jeopardizes the rights of creative individuals, puts jobs at risk, and undermines the creative economy. The creative community needs to mobilize and take part in the conversation. To learn more about the role you can play and what’s being done, visit www.creativefuture.org. The job you save could be your own.

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Chris Ortman has more than ten years of experience in progressive American politics. He spearheads communications for CreativeFuture, a coalition made up of more than 400 companies and organizations – encompassing film, television, music, and book publishing – that promotes the value of creativity, expanded digital access to legitimate content, and the fundamental right of creators to determine how their works are distributed.