Forward! Pirates Know Best

By Rob Millis
Last week Kim Dotcom — the notorious king of piracy — unveiled Mega, his new, barely legal file sharing site that is sure to be a haven for illegal video sharing. Film distributors are up in arms and a renewed cry for harsher consequences has reached the ears of Congress.
Yet there is no legislation, lawsuit or technical restriction that can stop piracy. In an industry riddled with conflicts of interest, many leaders of media companies are reluctant to speak frankly, but every single one of them knows they cannot protect against piracy in any absolute way. We can put up roadblocks, we can scramble data, but there is always a way around digital security.
So how do we defend against piracy when there is no way to secure content?
Kim Dotcom himself provided the answer in this tweet a couple of weeks before launching Mega:
@KimDotcomHow to stop piracy: 1 Create great stuff 2 Make it easy to buy 3 Same day worldwide release 4 Fair price 5 Works on any device
This is the same core message that online media companies have been trying to get across to the film industry for several years. Anyone who has worked on digital distribution knows without a doubt that the root causes of piracy are actually on the supply side. Even media executives who won’t admit to it publicly know that the core problem behind piracy is the user experience of legal purchase and viewing.
Ironically, last week the MPAA — creators of the FBI warning on DVDs and champions of digital rights management systems that prevent purchases on one device from being played on another —accused Kim Dotcom of damaging the consumer experience. But citing consumer experience as an attack on piracy only points out how flawed and out of touch the MPAA approach is. Most pirated titles available in crisp HD of course (shaky 8mm footage captured in a theater is now a rarity) and the consumer experience is also about the entire process of finding a film, paying for it, and watching whenever you want. In that context the pirates are often providing a user experience that competes very well with most traditional options.
So deal with piracy head on, distributors, filmmakers and studios at every level need to stop complaining about the ethical and commercial problems of piracy and begin competing with it. Media executives have long argued that they “can’t compete with free” but the marketplace consistently disproves that notion, and the huge success of systems like iTunes utterly destroys it. iTunes, Netflix, Hulu and others have succeeded precisely because they compete directly with piracy by providing better accessibility, ease of use and instant gratification.
Viewers can now watch almost any widely released film, in HD, on any device, almost immediately. Whether they choose to pay for it or not is largely up to the distributor.
Rob Millis is the founder of Dynamo Media and one of the creators behind the Dynamo Player, the first online pay-per-view platform freely available to independent filmmakers. Rob was an early pioneer of online video production and distribution, and has been a founder, investor or advisor with several online media and industrial technology companies. You can find Rob on Twitter at @robmillis or learn more about Dynamo at