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.1/74Unit1PiratesoftheInternetIt’snosecretthatonlinepiracyhasdecimatedthemusicindustryasmillionsofpeoplestoppedbuyingCDsandstartedstealingtheirfavoritesongsbydownloadingthemfromtheinternet.Nowthehign-techthievesarecomingafterHollywood.Illegaldownloadingoffull-lengthfeaturefilmsisarelativelynewphenomenon,butit’sbecomingeasierandeasiertodo.ThepeoplerunningAmerica’smoviestudiosknowthatiftheydon’tdosomething----andfast---theycouldbeinthesameboatastherecordcompanies.Correspodent:“What’sreallyatstakeforthemovieindustrywithallthisprivacy?”Chernin:“Well,Ithink,youknow,ultimately,ourabsolutefeatures.”PeterCherninruns20thCenturyFox,oneofthebiggeststudiosinHollywood.HeknowsthepiratesoftheInternetaregainingonhim.Correspont:“Doyouknowhowmanymoviesarebeingdownloadedtoday,inoneday,intheUnitedStates?”Chernin:“Ithinkit’sprobablyinthehundredsofthousands,ifnotmillions.”Correspondent:“Andit’sonlygoingtogrow.”Chernin:“It’sonlygoingtogrow.√Somebodycanputaperfectdigitalcopyupontheinternet.Aperfectdigitalcopy,allright.Andwiththeclickofmouse,sendoutamillioncopiesallovertheworld,inaninstant.”5Andit’sallfree.Ifthattakeshold,kissHollywoodgoodbye.Cherninrecentlyorganizeda“summit”betweenstudiomogulsandsomehigh.2/74schoolandcollegekids---thepeoplemostlikelytobedownloading.Chernin:“Andwesaid,‘Let’scomeupwithachallenge.Let’sgivethemfivemovies,andseeiftheycanfindthemonline.’Andweallsataroundandpickedfivemovies,fourofwhichhadn’tbeenreleasedyet.Andthenwecamebackhalfanhourlater.Theyhadfoundallfivemoviesthatwegavethem.”Correspondent:“Eventheonesthathadn’tevenbeenreleasedyet?”Chernin:“Eventheonesthathadn’tevenbeenreleasedyet.”Correspondent:“Didthesekidshaveanysensethattheywerestealing?”Chernin:“Youknowit’s…it’saweirddichotomy.Ithinktheyknowit’sstealing,andIdon’tthinktheythinkit’swrong.Ithinktheyhaveanattitudeof,‘It’shere.’”TheInternetcopyoflastyear’shitSigns,starringMelGibson,wasstolenevenbeforedirectorM.NightShyamalancouldorganizethepremiere.Correspondent:“Themoviewasabouttobereleased.Whendidthefirstbootlegcopyappear?”6Shyamalan:“Twoweeksbeforeitorthreeweeksbeforeit.BeforetheInternetage,whensomebodybootleggedamovie,theonlyoutlettheyhadwastoseeittothosevendorsonTimesSquare,wheretheyhadtheboxessetupoutsideandtheysay,‘Hey,wehaveSigns---it’snotevenoutyet.’Andyouwalkbyandyouknowit’sillegal.Butnow,becauseit’sthedigitalage,youcansee,like,acleancopy.It’snolongerthekindofthesleazyguyinTimesSquarewiththebox.It’sjust,oh,it’sonthis.3/74beautifulsite,andIhavetogo,‘Click.’”Correspondent:“HowdidthosemoviesgetontheInternet?Howdidthathappen?”Chernin:“Throughanabsoluteactoftheft.Someonestealsaprintfromtheeditor’sroom;someonestealsaprintfromtheperson;thecomposerwho’sdoingthemusic…absolutephysicaltheft,stealsaprint,makesadigitalcopy,anduploadsit.”Correspondent:“Andthereyougo.”DigitalcopieslikethisoneofTheMatrixReloadedhavealsobeenbootleggedfromDVDssenttoreviewersoradagencies,orcirculatedamongcompaniesthatdospecialeffects,orsubtitles.Chernin:“Theotherwaythatpre-releasedmoviesendup(stolen)isthatpeoplegoto…therearelotsofscreeningsthathappeninthisindustry…Peoplegotothosescreeningswithacamcorder,withadigitalcamcorder,sitintheback,turnthecamcorderon…”Correspondent:“Andrecordit.”Thisisoneofthoserecorded-off-the-screencopiesofDisney’sPiratesoftheCaribbean.Notgreatquality,butnotawfuleither.Andwhileitusedtotakeforevertodownloadamovie,anyonewithahigh-speedInternetconnectioncannowhaveafull-lengthfilminanhourortwo.Saaf:“Well,thisisjustoneofmanywebsiteswherebasicallypeople,hackersifyouwill,announcetheirpiracyreleases.”RandySaafrunsacompanycalledMediaDefenderthathelpsmoviestudioscombatonline.4/74piracy.Correspondent:“Lookatthis,allthesenewmoviesthatIhaven’tevenseenyet,allhere.”Saaf:“Yep.”Correspondent:“SecondhandLionsthatjustcameout.SometimesIfeellikeI’mtheonlypersoninthiscountrywhohasneverdownloadedanything.Butmaybethereisafewothersofusoutthere.SoI’mgoingtoaskyoutoshowusKazaa,that’sthebiggestdownloadingsite,right?”Saaf:“Right.ThisistheKazaamediadesktop.Kazaaisthelargestpeer-to-peernetwork.”It’scalledpeer-to-peerbecausecomputerusersaresharingfiles8witheachother,withnomiddleman.AllKazaadoesisprovidethesoftwaretomakethatsharingpossible.WhenwewentonlinewithRandySaaf,nearlyfourmillionotherKazaausersweretherewithus,sharingeverykindofdigitalfile.Saaf:“Audio,documents,images,software,andvideo.Ifyouwantedamovie,youwouldclickonthevideosection,andthenyouwouldtypeinasearchphrase.Andbasicallywhatthisisdoingnow,itisaskingthepeopleonthepeer-to-peernetwork,‘WhohasFindingMemo’?”Withinseconds,191computerssentananswer:“Wehaveit.”ThisisFindingMemo,crisppictureandsound,downloadedfreefromKazaaamonthbeforeitsreleaseforvideorentalorsale.Ifyoudon’twanttowatchitonalittlecomputerscreen,youdon’thaveto.Onthenewestcomputers,youcanjust“burn”itontoaDVDandwatchitonyourbig-screenTV.5.Andthat’sadaggerpointedrightattheheartof.5/74Hollywood.Chernin:“WheremoviesmakethebulkoftheirmoneyisonDVDandhomevideos.50percentoftherevenuesforanymoviecomeoutofhomevideo…”Correspondent:“15percent?”Chernin:“50percentsothatifpiracyo