So it’s happened. France has just adopted a law allows their government to cut off the Internet connection of illegal downloaders. This paves the way for other countries to have a government agency dedicated to tracking down Internet pirates. 

Users will receive two emails and a certified letter if they are caught downloading illegally. If they are then caught downloading that year, their Internet access is toast. It will be cut off for 2 to 12 months, however, the user has to keep paying for the service. Although it’s a little draconian in my opinion, it is a much easier punishment to swallow than getting sued for thousands of dollars by record and film industry associations, the current trend in the US at the moment. 

It’s not right to steal other peoples hard work. Artists, musicians and film producers deserve to be rewarded for their efforts. What makes me shake my head is the slow pace at which these industries are responding to technological change, and more importantly, their customers.    

French music and film industry lobbyists used alarming figures to press their concerns about how illegal downloading had been impacting their business – CD and DVD sales are down more than 60% in the past 6 years in France – making the causal connection that online piracy is responsible. The same arguments are being made here in Canada and the US. I think they’re twisting the facts. Yes, online piracy has made a definite impact on sales of CDs and DVDs but it’s not responsible for all of the decline. There are other major factors outside of piracy:  

1. Distribution methods have changed. We’re not tied to physical media anymore. People are now downloading and paying for millions if not billions of songs digitally. They prefer to use devices like iPods and other digital music players to listen to their music. And when it comes to movies, millions of consumers now watch and pay for movies through various other distribution methods, including pay-per view services through TV providers and through online rental stores.
2. Media consumption has changed. CDs and DVDs are competing not only for our dollars, but more importantly, our time. Since the Internet has transformed society with instant access to content 24/7, people, surprisingly are now spending more time online, than they are watching television, or going to movies.
3. Format wars. Over the past 5 years we’ve seen confusing format wars for physical media standards, including SACD and DVD-audio on the music side (which never really went anywhere), and Blu-ray vs HDVD on the video side. These format wars have done nothing for consumer confidence in choosing new media, and have made them hesitant to buy media because of misinformation and fear that they may choose the wrong side. 

Recent technological advances, especially digital technology and the Internet, has fundamentally changed society, and the business of media distribution. If more time is spent finding ways to give consumers what they want, instead of treating them like children and taking their internet access away, the music and film industries will find that they can more than make up any "piracy losses" with new revenue streams.