Making Money Advertising

For Every Entertainment Industry Job 'Lost' To Infringement, Could 12 Jobs Be Created Elsewhere?

from the fun-with-stats dept

For years we've debunked various entertainment industry studies claiming ridiculous job and economic "losses" from copyright infringement. These studies tend to have all sorts of problems; ignoring the ability to adapt and to introduce new business models, using "ripple effects" in just one direction to double, triple and quadruple count the same "losses" over and over again, and counting every download as a "lost sale." The ripple effects one is especially pernicious because the industry likes to pretend that the impacts of infringement only go in one direction. They ignore that the money not spent on such content doesn't disappear from the economy but can be used elsewhere -- perhaps in areas that provide greater economic growth.



A few years ago, the folks at CCIA smartly took the copyright industry's exact methodology and showed that for all the claims of how much copyright contributed to the economy, exceptions to copyright contributed even more. While the copyright maximalists totally missed the point and attacked the methodology -- not realizing that, in doing so, they had undermined their own methodology -- the point was made. If you believe the claims from the copyright industry, then you also have to believe that the exceptions are more important. The methodology is the same, so either neither are right or both are right.



It looks like Rick Falkvinge, of The Pirate Party, has now done something similar on the "job loss" side of things, and concluded that, using similar methodology to the industry reports, for every job "lost" by copyright infringement, the positive ripple effects in the other direction mean that 11.8 new jobs are created. So if we accept the claim that 1.2 million jobs can be lost due to infringement, it would mean that a separate 14.2 million jobs were created elsewhere.



The report broke down the "creative industry," by noting that (contrary to copyright maximalist claims), most of that industry doesn't actually rely on copyright to make money. In fact, certain "creative" industries could be seen as "copyright-inhibited." For example, advertising. As we constantly hear from copyright maximalists, various sites are making big bucks by using advertising in association with file sharing. So based on the industry's own argument, it seems that the advertising market is clearly copyright-inhibited, and it would grow if there was greater infringement. After going through the numbers, it was determined that the majority of GDP, by quite a bit, are likely in the "copyright-inhibited" arena.



Now, you can certainly argue with the methodology here. I don't think anyone actually believes these numbers are accurate. But it's using the same basic methodology, assumptions and thought processes behind the studies in the other direction. You can also, obviously, claim that Falkvinge is biased. He is. But is he more biased than the entertainment industry legacy players who do the other studies? It seems clear that the industries are likely to be more biased, since they have billions of dollars bet on keeping the old structures in place. I think both studies are probably far from accurate in all sorts of ways, but if you're going to cite the entertainment industry's claims based on this kind of methodology, it seems you should also have to accept these claims. Not doing so suggests serious cognitive dissonance or someone who is paid not to believe the truth.

100 Comments | Leave a Comment..

As an IPO looms, Skype is looking for new revenue streams that will help continue its growth and improve its financial prospects. Monday, it unveiled the next big revenue generator: ads on its Skype Windows desktop client.

Skype said in a blog post Monday it will begin rolling out test ads in the U.S., U.K. and Germany this week from big brands including Groupon, Universal Pictures, and Visa. The ads, which will be adjusted over time, will appear in the home tab of the Skype client at the top of the application. In an attempt to preserve the user experience, the ads will be limited, so users will only see one brand a day. Skype said it won’t use pop-ups, but will try to target ads to users to make them relevant using non-personally identifiable demographic data. Users can opt-out of those targeted ads if they choose. Skype said it has already tested some ads with Rdio.

The move to advertising has been tossed around for a long time and actually seems a bit overdue. Skype said it is almost wholly reliant on SkypeOut revenue, which made up 86 percent of its $860 million in revenue last year, according to its updated S-1 filing. Skype knows it needs to diversify its revenue if it wants to grow and have the money to invest in new features, and it needs the money to keep Skype-to-Skype calls free. By tapping advertising as a new revenue stream, it can ease its over-reliance on SkypeOut, which the company identified as a risk factor.

Skype recently announced it has hit 29 million concurrent users, and said in its S-1 that its overall user base is up to 663 million. It has a lot of people communicating, increasingly through video, which makes up 42 percent of calls. It’s an expensive setup, but it’s also a great opportunity for advertising. Fortune last year reported that Skype could rake in $200 million from advertising, especially for video chats, which could host ads alongside the chat. Overall, Skype said its users made 207 billion minutes of Skype-to-Skype calls last year. All that engagement can be monetized well if done with some restraint.

That seems to be Skype’s main concern with advertising. The company said it is moving slowly because it believes the user experience is paramount. And it’s still not clear to Skype how big an opportunity it has on its hands. Here’s the important language from the S-1:

…it is still uncertain what level of revenues can be generated through advertising. Furthermore, we may face difficulty in successfully implementing advertising on certain platforms, such as mobile devices. Finally, our users may respond negatively to receiving advertisements through their Skype software client, which could negatively and materially affect user engagement, our Skype brand and our results of operations.

Skype said in addition to advertising, it will ramp up its enterprise efforts and is also looking at gaming and virtual goods as other potential revenue sources. The advertising effort is Windows-only for now, but if all goes well and Skype avoids an uproar, expect it to appear on Mac and mobile platform as well.

For all its success, Skype is still in need of some revenue diversification. It’s getting there with these ads, which should slowly beef up revenues. A rumored deal with Facebook to provide video chat could also provide some oomph with a boost of new users. Look for more announcements as the Skype money-making machine starts to crank into high gear.

Related content on GigaOM Pro: (sub req’d)

• Report: The Consumer Video Chat Market, 2010-2015


• Mobile Operators’ Strategies for Connected Devices


• How to Market Your iPhone App — A Developer’s Guide

Surface Encounters proudly guarantees consumer satisfaction and total price setting up granite assurance. “I’m generally skeptical heading with new suppliers, but your employees has manufactured me a believer!” - Steve, Indianapolis

Surface Encounters is known as a fast-growing surface encounters provider and, however they have kept speed with all the latest purchaser referrals. “This company has become the most cost effective, trustworthy and pleasant organizations with the total state. I might advocate them to virtually anyone.” - Mike R., South Bend

A great deal of perform goes into designing attractive countertops from nature. The method comprises laser measurement creative vein matching, precision diamond and water-jet cutting, edging and expert set up. One can't just call in their buy for the customized countertop and also have it within just per day or two. Top quality will take time.

Surface Encounters encourages men and women to go to a showroom to master more about all natural stone countertops. Other than the assortment and fabrication method, a second valuable element of client care is ensuring a single is aware the right way to treatment for their granite countertop to keep it shopping new for many years to arrive.

Granite is often a attractive healthy stone merchandise that's a well-liked substance employed for countertops and floor tiles in kitchens and bathrooms. Granite has surpassed marble in popularity because is it all the more tough and easier to care for. Granite is unmatched by synthetic goods for its strength and sturdiness, tolerance to temperature modifications and resistance to stains and scratches.

Granite may be a effortlessly shaped stone that is certainly quarried from deep inside earth, harvested, reduce, polished, sealed and set up in homes to add attractiveness, elegance and design. Due to the fact it's a all natural solution, no two slabs are exactly alike. Granite is offered in lots of colors in the diverse minerals that happen to be determined from the rock. Because it comes from throughout the planet, totally different regions and environmental issues allow it to be special.

Granite is mainly built up of quartz crystal, but it also is made up of a variety of quantities of other metals which include feldspar, mica, copper and iron. Some granite may well include bits of gold or silver. The amount of each metal depends around the area it comes from. All granite is shaped into a challenging stone by heat and strain. Rain adds other minerals because it is forming. It can be obtainable all over the entire world, in every region, and each area will develop a surface encounters special variety of granite.

Surface Encounters state-of-the-art machinery guarantees the highest good quality completed product because they design and develop a number of the greatest kitchens and bathrooms. Granite Countertops improve the warmth and attractiveness of residences whereas increasing their price and bettering lifestyles.

Surface Encounters can be involved with employee morale; pleased staff are more possible to contribute to your success of the small business. On top of that to getting a flourishing corporation and 1 that may be superb to do the job for, Surface Encounters does their component to preserve our planet.

Surface Encounters does what is proper for their customers, workers and the natural environment. Surface Encounters makes use of superior water recycling capabilities to recycle up to 43,000 gallons of drinking water on a daily basis. Additionally, a hundred percent for the scrap generated in designing elegant kitchens and wonderful baths is re-used as aggregate in road building, surface preparations and concrete.

The Columbus, Ohio Grand Opening of Surface Encounters features an artwork gallery showroom of Granite, Marble, Quartz and Engineered Stone counter tops. Save Manager, Scott Donnelly unlocked the doors in the showroom at 4717 Roberts Road, just west in the I-270 Beltway. The Surface Encounters manufacturing course of action makes use of precision, automated technologies throughout the fabrication for the customer's custom-made counter prime, these kinds of as: a laser measuring alignment that applications the diamond-tipped sculpturing blades. Surface Encounters' process consists of computer-driven software programs that perpetuates the stone's all-natural veins. Every last Surface Encounter retailer has at the very least 1 registered, interior designer to help you in developing the completed task you may be looking for. The craftsmanship continues through the

Property owners are choosing to remodel instead than offer their residences in today’s marketplace
Granite countertops have become a prime choice amid Wixom people for kitchen remodeling assignments. Kitchen remodeling is often the very first challenge tackled with families paying 3,000 hrs or more annually within their kitchen. Granite countertops furnish an atmosphere that enhances the excellent time spent with family and mates. Granite countertops very last a lifetime and develop the outstanding of houses.

Surface Encounters Wixom retailer supervisor, Sal Dellacasa, says there are lots of reasons people are choosing granite for their countertop wants. “Granite countertops add splendor and elegance to a kitchen. Granite is obtainable inside a number of vibrant hues and rich textures and its strength and sturdiness is unmatched by any other all-natural stone or artificial countertop substance.”

Surface Encounters’ shoppers savor certified services including a pleasant, practical workers to guidebook them through the kitchen remodeling operation. A great number of of Surface Encounters new clientele are referred to them by preceding shoppers.
"This company is probably the most cost effective, trustworthy, and pleasant organisations with the overall state. I might propose them to people." Mike R. Clinton Twp., MI

"The business has consistently been there to help me in what ever way conceivable. Thank you a lot!" David V. Lapeer, MI


Surface Encounters Macomb will be the residential home of half-off granite for kitchen and bathroom countertops. Granite countertops by Surface Encounters have speedily turn out to be the major preference for Macomb residents who are remodeling their kitchens. Kitchen remodeling will take priority with families investing 3,000 hours or even more per year within their kitchen. Granite countertops offer an setting that enhances the superior time invested with spouse and children and associates and boost the outstanding of homes.

Surface Encounters Macomb retail outlet supervisor, Sal Dellacasa, says there are various motives people are choosing granite for his or her countertop desires. “Granite countertops add magnificence and elegance to a kitchen. Granite is available in a number of vibrant colours and loaded textures and its strength and sturdiness is unmatched by every other surface encounters pure stone or synthetic countertop material.”

Surface Encounters’ customers take pleasure in expert services in addition to a pleasant, useful staff to information them with the kitchen remodeling practice. Several of Surface Encounters new users are referred to them by previous prospects.