To what extent does internet piracy pose a threat to the film industry?

Internet piracy is a threat to the film industry in the 21st century because even though audiences can watch free pirate films online and be inspired to make their own films to share on Youtube, this would lead to films mainly being watched at home, further leading to a decrease in cinema attendance. Therefore, the film industry will produce risk-free, 3D formulaic films. This means films will lack creativity and originality and would not inspire future audiences. Overall this would cause negative affects for all parts of the film industry.

With films being available to watch and download online illegally, more people are staying at home to watch these films because they are easily accessible and free. This causes a large decrease in cinema attendance which meant that the film industry would lose vast amounts of money due to audiences not paying for films. As a result of this, Hollywood film makers and directors started releasing films in 3D in an attempt to bring back audiences for a "new experience" even though it is a method of resurgence. This is useful for the film industry because 3D films cannot be pirated online which means audiences would have to attend cinema again in order to see new releases. In other responses to bring audiences back to the cinema, ticket prices have been raised as well as the 3D glasses to accompany the cinema experience. 

Although internet piracy causes a hole in the film economy and vast amounts of money are lost, not all film-makers are negatively affected by it. Independent and foreign films gain vain amounts of recognition; more audiences were being opened up to these different style of films because they were free and easily accessible. This was a cheaper and easier way for independent films to widen their audiences and audiences then realised that Hollywood Blockbusters were formulaic and started looking for more choice. Although 3D cinema created spectacle, independent and foreign films had a stronger narrative which further pushed audiences to watch films online instead of going out to the cinema. Another advantage of internet piracy is that people would be inspired to create swedes and eventually make their own films to distribute on websites such as Youtube for audiences to enjoy. Audiences become more cine-literate after the expose to independent and foreign films.

In terms of social context, it was seen as fashionable to stay at home and watch films online. The main website that helped contribute to online piracy was MegaUpload which was shut down by the FBI. This was done in order for the film industry to make a point that internet piracy is causing them to lose large amounts of money and forcing them to return to the cinemas. Cinemas brought back 3D cinema to give the audience a new experience, when in fact it was just resurgence and the illusion of a new experience. Film directors like Guilermo Del Toro are resistant to using 3D because it ruins the quality of both the film and the narrative. The 30% colour loss that accompanies 3D cinema is off-putting to some audiences which lead to further decrease in cinema attendance and people continued to watch non-3D films on their computers at home.

In conclusion, internet piracy is a large threat to the film industry because there is a large decrease in cinema attendance which leads to revenue loss. This means that films directors are afraid to take risks and would continue to make formulaic Hollywood Blockbusters that are released in 3D only to make a profit, not taking into consideration that the narrative is more important than the style of the film.