Segmenting the Pirates
June 30, 2009 – 12:53 amIt is odd that the views on digital media piracy are so amazingly polarized: folks that pirate are either the scourge of the earth threatening to destroy creative media OR the liberators of information and entertainment from the clutches of their tightfisted masters.
As foolish as this is, so too are the measures that seek to combat piracy by treating everyone the same way.
The staggering $1.92M penalty for music piracy from the recent retrial of Jammie Thomas-Rasset is an example of this. So too the outcry on France’s decision to NOT hold ISPs accountable for their user’s piracy. Both events cement the view that legal frameworks are the primary measure being employed to combat piracy (while others surely exist!)
While the industry does on occasion seem to be more selective in applying a softly-softly v heavy-handed approach to piracy, it is worth looking as possible pirate segments and the measures that may be involved in switching them to contributive consumers actively promoting digital media within a sustainable business model.
Based on a primarily qualitative assessment, we have had a go at proposing five key segments:
- non-pirates (yes, they do exist)
- innocents
- pragmatists
- seekers
- blackbeards
Non-pirates
These are the consumers of media that pay retail for their goods – the more of these the better as far as most industry players are concerned.
They include those that:
- may not know that piracy is possible
- lack the technical knowledge or skills to access pirated media
- know how to access pirated media but refrain due to fear of legal reprisal
- know how to access pirated media but refrain for reasons based on principle
The first sub-segment is arguably a rapidly shrinking (if not already extinct) group. The second is in a similar state – piracy related technology is becoming easier to use and more accessible for more people. Any attempts to grow these sub-segments would be futile for obvious reasons.
No doubt the absurdly large figures being thrown about in the Thomas-Rasset case will be expected to do much for the third sub-segment as the fear of legal reprisal for piracy sets in. We anticipate that over time this will become more costly for the litigants to achieve on the required scale to effectively combat piracy. While ISPs may be seen to play a role, this is also now of questionable benefit as far as piracy is concerned.
The last of the non-pirates are those that avoid piracy for reasons based upon principle. We would suggest that any measure that grows this is effort worth undertaking. Reciprocally, don’t rely on their sense of principle to not invest in new media distribution platforms. Principles only hold to a limit.
Acknowledge them. Reward them. And they will surely grow.
Innocents
These are the media consumers who do not know that what they are doing is piracy. This too is an arguably shrinking segment as media producers increase their education programs. The opportunity here is to maximize the effectiveness of education through genuine dialogue. Furthermore, ensure legitimate avenues exist to access the same media with a superior user-experience.
The cynics among us may argue that this segment does not exist at all: everyone knows its piracy. The message remains the same, don’t give a reason for it to exist …
Pragmatists
These people know piracy exists. They know piracy is not legal. However, they operate on the fringes: the DRM on the CD they purchased means they cannot get it on their MP3 player … they bought the CD but it is now scratched … they rented the DVD but had to return it before getting a chance to watch it … they bought the software but have since lost the disc/key … they forgot to set the VCR for their favorite show …
We could go on but the crux remains the same whereby a user turns to piracy to address a shortfall in the existing technology and associated user terms and conditions. These shortfalls should not exist and any models that emerge to address or avoid them should be encouraged. Any progress in this area means that this segment is not drawn to piracy for less principled reasons and become part of the next group.
Seekers
This is undoubtedly the largest segment – your bread and butter piracy where users routinely download digital media to complement their purchased catalog. The trick here is to gauge the motive for the piracy: Is it to test/trial the content? Do they desire the content but not enough to warrant paying for it? Are there no sufficient access platforms for the same digital media? Is DRM too restrictive on legal channels? Are legal channels too expensive? Are Seekers just free-loaders?
Look at why piracy becomes an option for these folk and look at ways to compete. Be willing to innovate in ways that deliver a superior user experience even though it may threaten the traditional business model – otherwise others will do it for you. Read You can (and must) compete with free for more on this.
The approach here above all else is to avoid whipping out the stick and attacking this segment with the full brunt of piracy law. These people are the primary market and the most likely of all to be shifting their attention to more legitimate channels.
Blackbeards
The most hard-core of the pirates. They are looking to not only access pirated material but also distribute it. They include the DVD burning sweat-shop as well as the shyster smuggling the video camera into the movie preview session. They invest and take pride in their torrent “brand”. For them, piracy is a badge of honor. While possibly paying lip-service to the “evil media empire”, they are unlikely to settle for any business model that is not free.
A harsh assessment with a harsh solution – throw the book at them! They do not add anything to the digital media economy.
They will only be beaten by both increasing the barriers to piracy (eg camera spotting in theatres) as well as ramping up the legal pursuit. Note on the latter: the challenge is to make sure you are exclusively pursuing the hard-cores among the pirates as everyone else is your addressable market.
Think we are off the mark? Think we are missing segments? Let us know by posting your comment below.