The Social Consequences of Piracy: Employment
Despite the persistent efforts of rights holders and companies specialized in fighting it, digital piracy continues to spread. Everyone knows one of its main consequences: lost revenue for content creators. But beyond simple copyright infringement, digital piracy has much broader implications, and one of the most worrying is its link to unemployment in the creative and entertainment sectors. We will therefore try to explore some facets of this complex issue, highlighting the economic and social impacts of this practice on individuals and industries.
The economic impact on the entertainment industries: a few figures
More than half a million people lose their jobs every year on average because of online piracy. In the music sector alone, it is estimated that 71,000 jobs are lost each year to piracy. On average, it is accepted that about $12.5 billion in losses a year can be attributed to piracy, although, as with any illegal activity, exact figures are of course impossible to obtain. According to the Institute for Policy Innovation (IPI), between 230,000 and 560,000 jobs are lost in the United States every year for this reason. The problem does not seem to be easing in recent years, since the International Chamber of Commerce estimated the global amount of lost revenue at $991 billion for 2022.
The domino effect on jobs
The direct financial loss caused by digital piracy creates a domino effect: by depriving artists and entertainment companies of their revenue, it directly contributes to job cuts in creative sectors such as music, film, software and video games.
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The film and music industries are among those hardest hit by digital piracy. Works are distributed massively online without consent or payment, causing considerable financial losses for producers, studios and artists. This drop in revenue can lead to budget cuts, and therefore to many job cuts in fields ranging from creation to post-production.
Similarly, in the software sector, companies depend on licence sales. Counterfeit versions are very easy to find online, and they are also quite popular (notably because of the price of some software, one of the most pirated being Photoshop). Companies may be forced to cut staff, affecting jobs in fields as varied as development, maintenance and technical support.
Impact on small businesses and start-ups
Small businesses and start-ups, often more vulnerable to financial losses, can be particularly hard hit. Counterfeit products and unauthorized distribution of software can cause losses large enough to threaten the very viability of these companies. In smaller companies, not only are jobs affected, but some companies sell very few products, even just one. So if the product that brings in a large share of revenue is pirated, the entire company suffers the consequences, up to bankruptcy and therefore the end of the product. Pirated versions, meanwhile, will keep circulating, and may even be improved, with no consequences for the pirates.
New opportunities emerge
Paradoxically, digital piracy has also contributed to the rise of certain sectors, notably in cybersecurity. The growing need to protect data and systems against online attacks has created exponential demand for IT security experts, opening up new job prospects in a constantly evolving field. Indeed, skilled professionals in cybersecurity, copyright management and the development of digital protection strategies have become essential in helping companies withstand digital piracy.
Unemployment linked to digital piracy is therefore a multifaceted problem that calls for a holistic approach. Content creators, companies and governments must work closely together to develop effective strategies against piracy while stimulating job creation in emerging sectors. By balancing the protection of intellectual property rights with the promotion of innovation, society can hope to reduce the negative effects of piracy on employment and to build a more resilient economic and social future.
In our next article we will see that, beyond unemployment, creation, product quality and company reputation will also be affected by piracy; in the meantime, if you have a film, a series, software or an ebook to protect, don't hesitate to call on our services by contacting one of our account managers; PDN has been a pioneer in cybersecurity and anti-piracy for more than ten years, and we are bound to have a solution to help you. Happy reading, and see you soon!
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