Tuesday, March 26, 2013

Indie Film Distributor Spends Half Her Profits Sending DMCA Takedowns, But Is It Worth It?

Some interesting information was found and reported by Baldaur Regis and AC in the post's comments Mike detailing the work not as cunning accomplice of an industry that has published three commentaries that three different > from the same IP address

The original article in the Wall Street Journal quoted Kathy Wolfe, filmmaker and director of Wolfe Video, who said he spent a surprising amount of fight against piracy money.
Last year, Kathy Wolfe, owner of a small American independent film distribution company, Wolfe Video, found more than 903,000 links to unauthorized versions of films, which are sold worldwide for $ 3.99 per download. She feels she has lost more than $ 3 million in sales in 2012, due to their content stolen first 15 titles. In addition to that, she spent more than $ 30,000 per semester, or about his winnings, only to send notice of withdrawal of their titles.
$ 30,000 is a lot to spend fighting
nothing
, let alone something as nebulous as piracy. That he was "half" of their income is even more surprising, with the CA to report an easy path that could double your money.

wait. You mean you could double your profits by just do something? ** This is actually a riot.

Although it is not as simple as that, there is some truth in this assertion. This sparked my curiosity. If someone has spent half of their income dropped connections, must have seen
something
justify the expense. A business does not just throw half of your earnings into a hole unless the hole is even throwing money away. I thought there must be a corresponding increase in sales, and sensitive to that. So I sent Kathy Wolfe to get some details about its efforts to fight against piracy.

'm Tim and I write for Cushing techdirt.com. I was wondering if you might be able to answer some questions about his ongoing fight against piracy. What struck me was the fact that he spends about $ 30,000 / year. send notice of withdrawal. (Via WSJ, and Digital Music News)

While I appreciate your interest in preventing his films are distributed in this so I'm having a hard time believing that these costs generates a return on investment is worth it. I was wondering if you could shed some light on this area.


Do you see a positive return in terms of increased sales?




Is it enough to compensate, up $ 30,000 / year. expenses?

If it does not generate additional sales needed to justify the expense, which is the reason to be continued this effort?



Thanks in advance for any information you can provide. I am trying to set up an article about spending their efforts to fight against piracy, so if there is something you prefer to organize (the exact number of sales, etc.), I can understand. What I really want to know before writing this post is your opinion on this very expensive anti-piracy risks, especially those who have seen the benefits, financial or otherwise, since the search began.

His first reaction was brutal and nothing but informative.

Hi Tim,



I would be happy to discuss with you. Basically, effortless reversal that would be out of business. I have over 100 films to protect.





Kathy


one hand, it said would be happy to discuss. In addition, the phrase sounded like half of the findings was developed and three-quarters closed door. I sent again pressing for more details.



Thanks for responding.



What I wonder is whether this effort has really no effect on the correlation of sales. I guess the debate moves on "rhetoric" at this stage. He spends $ 30,000 / year. in this product. If checked again and spent $ 15,000, you feel sales will be reduced to half of its previous level?



What had noticed before deciding to continue these efforts in the fight against piracy? As you say, without issuing demolition would be out of business, it was obviously a turnover drop quite remarkable. Have you started with less effort and see no improvement, then decided to expand? Or did you put my best (financially) in this effort from the beginning?


Again, I am very curious if there is a significant increase in sales. To get rid of it entirely to bankruptcy takedowns agree with you, but the rear scale to reduce their sales? Never been temporarily reduced effort and no increase or decrease in sales? At this point, Kathy became suspicious and asked me to explain who he was and what he would do with the information (in almost exactly these terms) . So I explained again, break it down further.



What I'm trying to do is get your perspective on this issue. Obviously, you think spending $ 30,000 / year. in the fight against piracy investment.I my worth, assuming you have collected data over the years shows that such expenses bear fruit.





I put together an article on the fight against piracy. I'd like your opinion before writing this post because I actually like to have inside. All I can do now is speculate. I have rarely seen someone out to quote an exact figure on the fight against piracy costs, so this potential is a very interesting article. We have all heard that the big studios spend "millions" fight against piracy, but the numbers rarely provided to the effect that these efforts have on sales. If something is offered, is aggregate equally vague.





I have no interest in overthrowing their efforts. You are the copyright owner and you do what you think is best for your business. However, as a business owner, I have to believe that you set this plan in the years to see the best return on your investment - and these are the numbers I'm interested in.
'also curious as to how they arrived at the "$ 3 million lost" in 2012 due to piracy (such as appointment you the news article digital music efforts), but that is of secondary interest.

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