How Do You Lose Money On Movies Not Even Released?
from the just-curiouse dept
The movie studios are excited about a court ruling in China, saying that Chinese portal Sohu.com needs to pay damages for downloading versions of American movies on their portal. It's yet another in the "significant blows" they like to talk about, even though none of them actually appear to be significant. In this case, Sohu apparently had a subscription download service that offered unauthorized copies of movies. That is, clearly, illegal. However, the movie industry's claims that this type of piracy in China cost them $244 million last year is tempered by the fact that later on in the article they admit that a large part of the reason so many American movies are pirated in China is that the Chinese government has regulations in place that limit the number of US films that can be shown in the country. They even admit that half of the movies Sohu was distributing weren't even available in Chinese theaters due to these restrictions. In other words, they didn't actually lose any money at all on those films. It could even help them to have these films distributed this way, since it increases the demand for US movies, and could put more pressure on the government to allow more movies to come into the country legitimately.