
Movie piracy costing cinemas big box office losses
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BY JULIEN NEAVES
editorial@jamaicaobserver.com Sunday, July 10, 2005
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FOR the past 20 weekends, Hollywood box office revenues have been in a steady decline. But the slump does not overly worry local cinema proprietors, who say the viewing tastes of the Jamaican public differ from Americans.
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| Melanie Graham, marketing manager for Palace Amusement Company |
But, the same cinema operators are concerned, increasingly so, about the proliferation of movie piracy and the 'plunder on profits' of legitimate theatres that results.
Melanie Graham, marketing manager for Palace Amusement Company, tells Sunday Finance that box office losses, as a result of the illegal trade, now amount to some 25 per cent of revenues.
Palace, the dominant and publicly listed cinema operation, operates Carib 5 in Crossroads, Palace Cineplex in Liguanea, Portmore Palace, Palace Multiplex in Montego Bay and Odeon Cineplex in Mandeville.
The company also distributes films to Island Cinema in New Kingston and the Cove Cinema in Ocho Rios, and has exclusive rights for film distribution to major companies and independent companies for Jamaica and the Cayman Islands.
Graham said though cinemas provide better viewing for films, with larger screens, clearer pictures and better audio than pirated material, the pirates still make large profits by underselling the product.
The illegal operators, she said, do not have overhead costs, employ very few people and, because they are stealing the copyright, can sell and rent much cheaper than legitimate movie providers.
"It is very difficult to compete (with pirates)," said Graham. The pirates source the material either by live taping in theatres or through the illegal copying, redistribution and sale of promotional copies. Some people avoid the middle man completely and illegally download movies from the Internet, free of cost.
American movie companies have launched advertising campaigns denouncing this practice, but because of the nature of the theft it is very difficult to control.
The cost of movie tickets at Palace Cineplex, for example, are $210 for children up to 11 years, and $410 for adults, defined as persons 12 and older.
Graham said that with the present state of the economy, and many Jamaicans often short of cash for spending on entertainment, the cheaper pirated movies do entice consumers.
But: "We can't keep going on like that," she said. The company has now joined the Jamaica Anti-Piracy Alliance, which includes groups such as Jampro, JamCopy, and other associations in music, literary art and dramatic arts.
Palace is also in discussions with national security minister Dr Peter Phillips on legislative action that can be taken to counter piracy.
There is currently a piracy case before the courts which the company hopes will set a precedent. The legal action has received the support of the Motion Picture Association of America (MPAA), which is sending a representative to watch the case, said Graham.
Graham noted that the United States happens to be the source of most of the pirated material, adding that the fight has to be concentrated in that country with all the lobbying power of the movie makers behind it.
"They have to start from home," she said.
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