unit 1.docx
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unit 1.docx
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unit1
(CBS) SummerhasalwaysbeenaprofitableseasonforHollywood,asmillionsofpeoplebuyticketstoseenewblockbustermovies.
ButthissummerisalsoatimeofworryandfearforAmerica'sfilmstudios,becausethepiratesoftheInternetaregainingonthem.
AlmosteverynewfilmcannowbefoundontheInternet--anddownloadedforfreeassoonasit'sreleased,andsometimesevenbefore.
AsCorrespondentLesleyStahlfirstreportedlastyear,itmaybeillegal,butit'sbecomingeasierandeasiertodo.
ThepeoplerunningAmerica'smoviestudiosknowthatiftheydon'tdosomething-fast-theycouldbeinthesameboatastherecordcompanies.
Butwhat'sreallyatstakeforthemovieindustrywithallthispiracy?
?
Ultimately,ourabsolutefuture,?
saysPeterChernin,whoruns20thCenturyFox,oneofthebiggeststudiosinHollywood.
HeknowsthepiratesoftheInternetaregainingonhim.
?
Ithinkit'sprobablyinthehundredsofthousands,ifnotmillions,?
saysChernin.?
It'sonlygonnagrow.SomebodycanputaperfectdigitalcopyupontheInternet.Andwiththeclickofamouse,sendoutamillioncopiesallovertheworld,inaninstant.?
Andit'sallfree.Cherninorganizeda"summit"betweenstudiomogulsandsomehighschoolandcollegekids--thepeoplemostlikelytobedownloading.
?
Andwesaid,?
Let'scomeupwithachallenge,'?
saysChernin.?
Let'sgivethemfivemovies,andseeiftheycanfindthemonline.Andweallsataroundandpickedfivemovies,fourofwhichhaven'tbeenreleasedyet.Andthenwecamebackhalf-an-hourlater.Theyhadfoundallfivemoviesthatwegavethem.?
Didthesekidshaveanysensethattheywerestealing?
?
Ithinktheyknowit'sstealing,andIdon'tthinktheythinkit'swrong,?
saysChernin.?
Ithinktheyhaveanattitudeof,?
It'sthere.?
?
AnInternetcopyofthehitmovie,"Signs,"starringMelGibson,wasstolenevenbeforedirectorM.NightShyamalancouldorganizethepremiere.
Infact,Shyamalansaidthefirstbootlegcopyappearedafewweeksbeforethepremiere:
?
BeforetheInternetage,whensomebodybootleggedamovie,theonlyoutlettheyhadwastosellittothosevendorsonTimesSquare,wheretheyhadtheboxessetupoutsideandtheysay,?
Hey,wehave"Signs"-it'snotevenoutyet.?
Andyouwalkbyandyouknowit'sillegal.Butnow,becauseit'sthedigitalage,youcanseeacleancopy.It'snolongerthekindofthesleazyguyinTimesSquare,withthebox.It'sjust,oh,it'sonthisbeautifulsite,andIhavetogo,?
Click.?
"
Sohowdidthishappen?
?
Throughanabsoluteactoftheft,?
saysChernin.?
Someonestealsaprintfromtheeditor'sroom;someonestealsaprintfromtheperson;thecomposerwho'sdoingthemusic...stealsaprint,makesadigitalcopy,anduploadsit.?
Digitalcopieslike"TheMatrixReloaded"havealsobeenbootleggedfromDVDssenttoreviewersoradagencies,orcirculatedamongcompaniesthatdospecialeffects,orsubtitles.
?
Theotherwaythatpre-releasedmoviesendup(stolen)isthattherearelotsofscreeningsthathappeninthisindustry,?
addsChernin.?
Peoplegotothosescreeningswithacamcorder,withadigitalcamcorder,sitintheback,turnthecamcorderon...?
Itusedtotakeforevertodownloadamovie,butanyonewithahigh-speedInternetconnectioncannowhaveafull-lengthfilminanhourortwo.
Infact,therearemanyWebsiteswherehackerswillannouncetheirpiracyreleases,saysRandySaaf,whorunsacompanycalledMediaDefenderthathelpsmoviestudioscombatonlinepiracy.
StahlaskedhimtoshowherKazaa,whichhecalls"thelargestpeer-to-peernetwork.?
It'scalledpeer-to-peerbecausecomputerusersaresharingfileswitheachother,withnomiddleman.AllKazaadoesisprovidethesoftwaretomakethatsharingpossible.When60MinuteswentonlinewithSaaf,nearlyfourmillionotherKazaauserswerealsothere,sharingeverykindofdigitalfile.
?
Audio,documents,images,software,andvideo.Ifyouwantedamovie,youwouldclickonthevideosection,andthenyouwouldtypeinasearchphrase,?
saysSaaf.?
Andbasicallywhatthisisdoingnow,itisaskingpeopleonthepeer-to-peernetwork,?
Whohas'FindingNemo'?
"
Withinseconds,191computerssentananswer:
"Wehaveit."
Withcrisppictureandsound,?
FindingNemo?
wasdownloadedfreefromKazaaamonthbeforeitsreleaseforvideorentalorsale.
Andnow,youdon?
tevenhavetowatchamovieonalittlecomputerscreen.Onthenewestcomputers,youcanjust"burn"themovieontoaDVDandwatchitonyourbig-screenTV.
Andthat'sadaggerpointedrightattheheartofHollywood.?
WheremoviesmakethebulkoftheirmoneyisonDVDandhomevideos,?
saysChernin.?
Fiftypercentoftherevenuesforanymoviecomeoutofhomevideo...sothatifpiracyoccursanditwipesoutyourhomevideoprofitsorultimatelyyourtelevisionprofits...?
Andasmoviescontinuedtobemade,Shyamalansaystheywouldn'tbeanygood,becauseprofitswouldbenegligible,sobudgetswouldshrinkdramatically:
?
Andslowlyitwilldegradewhat'spossibleinthatartform.?
?
Technologyalwayswins.Always.Youcan'tshutitdown,?
saysWayneRosso,Hollywood'senemy.Theycallhimapirate,butofficiallyhe'sthepresidentofGrokster,anotherpeer-to-peernetworkthatworksjustlikeKazaa.
60MinutesdownloadedGrokster?
ssoftwareforfreeandaskedRossoquestionsabouthisnetwork.
?
We'relikeradio.We'readvertisingsupported,?
saysRosso,whoestimatesthat10millionpeoplehaveusedGrokstereachmonth.
Hesayshehasnowayofknowingwhatpeoplearedownloading,?
andwecan'tstopit.Wehavenocontroloverit.?
AndRossohasthelawonhisside.AfederaljudgehasruledthatGroksterandotherfile-swappingnetworksarenotliableforwhattheirdownloadersaredoing.
?
Sowe'recompletelylegal,andunfortunatelythisissomethingtheentertainmentindustryrefusestoaccept,?
saysRosso.?
Theyseemtothinkthejudge'sdecisionwasnothingbutatypo.?
Thestudiosareappealingthatcourtruling.Andtheymayfollowthemusicindustryandbegintosueindividualswhodownloadmovies.
Butthey'realsofightingthepiratesinotherways,withadsaboutpeoplewhosejobsareatriskbecauseofthepiracy-peoplelikethecarpentersandpainterswhoworkonfilmsets.
Atthesametime,Hollywoodistryingtokeepcopiesofmoviesfromleakinginthefirstplace.
?
Youwillveryseldomgotoanearlyscreeningofamovierightnowwheresomeone'snotinthefrontofthatauditoriumwithinfraredbinocularslookingforsomebodywithacamcorder,?
saysChernin.
Andonceamovie'sreleased,orifcopiesbegintoleak,thestudioshirepeoplelikeRandySaaftohackthehackers.
?
Whatwe'rejusttryingtodoismaketheactualpiratedcontentdifficulttofind.Andthewaywedothatisby,youknow,servingupfakefiles,?
saysSaaf.
It'scalled"spoofing,"andSaafandhisemployeesspendtheirdaysonKazaaandGrokster,offeringupthousandsoffilesthatlooklikecopiesofnewmovies,butaren't.
?
Itmightjustbeablankscreenorsomething,?
saysSaaf.?
Typicallyspeaking,whatwepushoutisjustnottherealcontent.?
ButRossosaysitwon?
twork:
?
Itdoesn'tworkbecausewhathappensisthatthecommunitycleansesitselfofthespoofs.?
Whathemeansisthatdownloaderswillquicklyspreadthewordonlineabouthowtotellthefakemoviefilesfromtherealthing.
?
It'slikeanarmsrace,?
saysChernin.?
Therewillbe,youknow,they'regonnagetastepahead.We'regonnatryandgetthatstepback.?
?
ButI'lltellyouonething:
I'llbetonthehackers,?
saysRosso,whobelievesthehackerswillbreakwhateverblockthestudioscomeupwith.
HollywoodknowsthatdownloadingofftheInternetisthewaymillionsofconsumerswanttogettheirentertainment--andthatisn'tgoingaway.
?
Thegenerallyacceptedestimateisthatmorethan60millionAmericanshavedownloadedfile-sharingsoftwareontotheircomputers,?
saysChernin.?
That?
samainstreamproduct.That'snotabunchofcollegekidsor,youknow,abunchofcomputergeeks.That'sAmerica.?
So,insteadoftryingtostopitentirely,thestudiosarelookingforwaystoembraceit,butalsogetpaid.
Rossosaysthebestwayistonegotiatesomekindoflicensingdealwithhim.AndhesayshewouldsellGrokstertoamoviestudioinaheartbeat:
?
Ifthemovieindustryactsnowandstartsexploringalternativesandsolutionswithguyslikeme,hopefullytheywon'thaveaproblem.?
TheideaofmakingdealswithwhatChernincalls"abunchofcrooks"doesn'tappealtoHollywood.Instead,Foxandtheotherstudioshavejustlaunchedtheirownsite,Movielink,whereconsumerscandownloadafilmforamodestfee,betweenthreeandfivedollars.
?
Ithinkyouwouldlovetheideathatyoudon'thavetogotothevideostore.Youcandothis,?
saysChernin.?
Andthat'swhatwe'reworkingon.Butinorderforthattobeeffective,wehavetostoppiracy,becausethemosteffectivebusinessmodelintheworldcan'tcompetewithfree.?
Themoviestudiosmaybegintofiletheirlawsuitsagainstindividualdownloadersbeforetheendofthissummer.
DirectorM.NightShyamalan'snewfilm,"TheVillage,"premieredonJuly30.ThefirstbootlegcopyofthemovieappearedontheInternetthenextday.
Since60Minutesdidthisstory,RossoannouncedhewasleavingGrokstertotakeoveraspresidentofanotherbigfile-swappingsoftwarecompanybasedinSpain.Groksterwastocontinueundernewmanagement.
(CBS) It'snosecretthatonlinepiracyhasdecimatedthemusicindustry,asmillionsofpeoplehavestoppedbuyingCDsandstartedstealingtheirfavoritesongsbydownloadingthemfrom
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