An Anti-Piracy Proposal

A new PSA to make movie pirates feel guilty has been released:

Clever how it plays on our natural sympathies towards boom operators, isn't it?

Problem is, the logic applies any time a movie is seen second-hand. Watch a DVD at a friend's house? So long, key grips! Friend loans you a movie? Goodbye, gaffers! Buy a used blu-ray? Y'all take care now, dialect coaches!

Imagine some rich guy has such a passion for movies that he regularly buys and broadcasts full-quality movies for free all across the world via multiple formats. Is he violating copyright law? Yes. Would this have longer-term consequences that were bad for the film industry (and possibly fans)? Yes. But is he acting immorally? Are the people who watch the movies engaging in theft?

And how about this doozy: if my willingness to pay for a given movie is $0.00, then I'm not putting anyone out of work by pirating because otherwise I'd just not see the movie. If that isn't a victimless crime, then anyone in the world who failed to see the movie is also complicit, which seems excessive.

Many people are not like me, however, and they'd be willing to pay $.50 or even $10 for a given ticket. But so long as that maximum willingness to pay is below the ticket price, they're not going to buy. The result for the studios is less revenue from unsold tickets, and less revenue from concessions for the theaters. This is a losing proposition for both the industry and for customers, but it's worse for the industry since some of those potential customers are going to see the movie anyway for free.

Movie theaters could respond by introducing demand pricing (and a quick google reveals I'm not the only one with this idea).  Instead of one price to rule them all, theaters could adjust prices to reflect people's willingness to pay, much as airlines and now even sports and music venues do*.  The average ticket price would happily decrease for movie-goers, and profits would happily increase for movie-makers. Further, since the marginal cost of a ticket is near zero,  theaters could actually give away unsold seats for free and still make some money on the popcorn**. How's that for an anti-piracy measure?

*After all, if you're going to copy stadium-style seating, it only makes sense to copy stadium-style pricing, right?

** Note: this would not work on me, for I am in my soul an economist.