Introduction
File sharing hosts, who provide online storage to share various files ripped from media like recorded music, films, and books, have been considered as a type of internet piracy that threatens the creative industries, including films, music, software, and books. (Van Eijk, 2011) However, after the shutdown of Megaupload, one of the most popular file hosting site, a series of ripple effect happened, causing several other file sharing hosts either deleted their files, or set up an access restriction. (Peukert and Claussen, 2012) It appeared to be an impact on the internet piracy and the revenue of the creative industries would go up — But it didn’t. According to Peukert and Claussen (2012), for example, the revenue of the film industry have decrease ever since Megaupload’s shutdown.
The purpose of the essay is trying to analyze the relationship between the internet piracy via file sharing hosts and the revenue of the creative industries — how does the former interact with the latter — and a solution to resolve the declined revenue of the creative industries.
Internet Piracy and File Sharing
As its name suggests, “Internet Piracy” refers to manufacturing and distributing unauthorized copies, ie. “pirate copies”, on the Internet. (Panethiere, 2005) While the term “File Sharing” means to share a file with another person physically, such as storing and distributing a file in a CD, DVD, or a drive, or via uploading to the Internet to be downloaded. Since people can get various files distributed without any authorization from the internet for free via file sharing host, file sharing have been considered as an act of Internet Piracy (Van Eijk, 2011), especially by the creative industries, or sometimes “cultural industries”, industries that produce commercial entertainment, such as films, music records, publishing, and broadcasting, which is distinct from “arts”, including visual and performing arts,
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