Village Roadshow CEO’s Latest Piracy Letter To The Government Is A Bizarre Trainwreck And I Can’t Look Away

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Village Roadshow CEO’s Latest Piracy Letter To The Government Is A Bizarre Trainwreck And I Can’t Look Away

On March 15, Village Roadshow’s CEO, Graham Burke, penned a letter to the Department of Communications and the Arts, appealing for a review of the Copyright Online Infringement Amendment.

What that letter contains is an eye-opening range of claims – of Australia ending up “as bleak as a remote Bejing suburb”, linking piracy with “drug selling” and “luring kids” into “criminal neighbourhoods that proliferate with prostitution” and insisting “wondrous Australian films are often more important than people we meet in shaping our world”.

I couldn’t make this up if I tried.

Read it in its glorious entirety here.

In June 2015 the Australian Parliament legislated to allow pirate websites to be blocked in
Australia. This important law was passed with the bipartisan support of the Coalition and
the Labor Party. It was introduced into Parliament by Malcolm Turnbull and brought
Australian copyright protection law into line with many other countries. It has proved a
vital weapon in our fight against piracy.

Village Roadshow, as Australia’s most committed producer of feature films, has used the
new law multiple times – and will continue use site blocking as a key tool in its anti-piracy
measures. Site blocking is effective – recently released Australian research proves this.
Piracy year-on-year overall is down 25% and traffic to blocked pirate sites down 53%.
However, we have no doubt this can be down 50% and 90% respectively. Like any legal
action, it costs money, but its value far exceeds its cost.

Village Roadshow strongly supported the original site blocking legislation and now we
strongly support strengthening it.

With all major pirate sites blocked in Australia, the front door of the department store is
shut. However, pirates, facilitated by Google and other search engines, are circumventing
Australian Laws and Courts and opening a huge back door. By way of example, I attach
page shots of Google searches, in most cases coming up with pirate links before a user
even completes typing a search phrase.

Australia needs the power to require Google and other search engines to take reasonable
steps to stop facilitating searches which lead to pirate sites. Proof this can work can be
seen in Korea where the search engine equivalent of Google with a 70% market share on
their own volition demote pirates to page 4 – Siberia. Why? As Koreans they have the
interests of their own country at heart. Google’s tens of millions searching for stolen
goods are attracted to their advertising business model. No interest in Australian jobs,
culture or the economy.

Pirates are not charitable and are seriously bad people (suspected links to organised
crime).

They make their money on:

a) Commissions on scams. Stealing people’s credit card details – holding their
computers to ransom et cetera.

b) Rogue advertising including illegal gambling, drugs, sex aids and prostitution.

The analogy for Google is a Westfield Shopping Centre knowing they are getting big traffic
to the centre from a store that is using stolen goods to lure people and then robbing
them! Of course Frank Lowy would not wait for a court order and shut down real fast. As
the Koreans do and so should Google!

Australia can achieve real reform by two simple amendments to the legislation:

1. Change the word “Carriage” so the provision extends to all “intermediary” service
providers, to make it technologically neutral, covering search engines, social media
and other types of internet intermediaries. Apart from ISP’s, many intermediaries
are able to meaningfully impact traffic to infringing sites, and in fact, can and are
currently used by pirates to find new locations and proxies to circumvent the ISP
blocks. Importantly addresses auto complete as requires service provider to take
reasonable steps to disable access to online locations.

2. Omit requirement that the Online Locations are “Outside Australia” as it is just a
matter of “when” pirates open up and industry is faced with suing – three years –
Men of Straw.

Of course, as our submission to the original legislation in 2015 emphasised, dealing with
piracy cannot be just left to legislation.

Critical to the success of solving piracy is that legislation is accompanied by:

a) Legally available cheap product – Australian digital download is now as cheap as
anywhere in the world. Services like Netflix, Stan and others have opened and
subscription prices are not expensive. Village accepts and understands that people
want to get product at the same time as the rest of the world. Three years ago this
was not the case but today 99% of films are released simultaneous with either the
American or UK openings. The small exception is a film like LEGO where it is
released in holidays when audiences want to see it.

b) Hearts and minds – We must win over the hearts and minds. Our use of site
blocking has been accompanied by a series of TV, on-line, newspaper and cinema
ads reinforcing that piracy is theft and wrong. Just like people no longer smoke in
restaurants and we have “tidy towns”, there is no doubt we can win hearts and
minds.

i) The Bryan Brown commercial was to educate people to the real risks of
pirating. This was factual and powerful and in Bryan’s Aussie way
connected with audiences.

ii) Our new commercial appeals to the Aussie spirit of doing the right thing. It
captures the exuberance and positivity of making films that employ tradies,
musicians, writers and creative talent.

Both of these campaigns have been supported widely by Channels Nine, Seven,
Ten, Foxtel and every cinema screen in the country.

In two years the public perspective has changed and 74% support our position that piracy
is theft, and 52% agree more regulation is needed to prevent piracy and only 20%
disagree.

The Australian film industry is critical to what we are as Australians. My generation grew
up with GALLIPOLI, BREAKER MORANT, MURIEL’S WEDDING and the current crew with RED
DOG, HAPPY FEET, HEARTBREAK RIDGE and LION. Wondrous Australian films are often
more important than people we meet in shaping our world.

With a population of only 25 million if piracy is not more strongly addressed there will be
no Australian film industry with the loss of jobs, taxation and the very real and bleak
prospects of being a remote Los Angeles or Beijing suburb.

With the minor modification we recommend to the law, we can improve the effectiveness
of site blocking and continue to make progress on dealing with the scourge of piracy which
continues to threaten the livelihood of thousands of Australians engaged in creative
endeavours seeking to continue to tell great Australian stories through the medium of
film.

Finally, there is great urgency.

a) Already viability of local film production is in jeopardy as illustrated by the
beautiful Australian film LION that has been illegally downloaded 331,000 times and based
on research likely streamed 600,000 times. This represents a direct loss of revenue to the
production company and the tax office. This in turn projects to the financial community
that is making the raising of investment for film production more difficult.

b) Easy access facilitated by Google means kids are crossing to the dark side and
getting lured into bad habits and taken to criminal neighbourhoods that proliferate with
prostitution, pornography, drug selling and illegal gambling.

As Steve Jobs famously said:

“From the earliest days at Apple, I realised that we thrived when we created
intellectual property. If people copied or stole our software we’d be out of business. If
it weren’t protected there’d be no incentive for us to make new software or product
designs. If protection of intellectual property begins to dissipate creative companies
will disappear or never get started. But there’s a simpler reason. It’s wrong to steal.
It hurts other people. And it hurts your own character.”

Australia can win. The only losers are pirates and Google both of whom pay no tax yet
cause shocking damage to our jobs, economy and way of life.

Yours sincerely

Graham W Burke, AO

Co-Executive Chairman

Co-Chief Executive Officer

Comments

  • I have a funny feeling that Mr Burke would have banned VCRs and walkmans back-in-the-day if given the chance. I find it especially bemusing that his incoherent drivel concluded with that ‘wickedly appropriate’ quote from Steve Jobs, a man who literally stole thousands of dollars from Steve Wozniak while at Atari, an act that ironically (probably) led to Apple’s inception.

    Also, regarding Korea – is he talking north or south here?! Who can tell?

    My drunk uncle spins yarns that are more coherent – but no less alarming – at family BBQs.

  • Graham’s just trying to help out. I mean, who hasn’t gone to download a show that will never be broadcast in Australia, only to end up giving handjobs in a maccas carpark for some crack a week later?

  • He promotes “Legally available cheap product” as a viable alternative, which might be fine for accessing a back catalog on Netflix.
    But if people are downloading newly released movies – which as he points out are now usually “released simultaneous with either the American or UK openings” – it might be because Australians pay $20+ for a cinema ticket compared to an equivalent of $11.60 in the US.

    • I don’t know what it’s like where you live, but every one of my local cinemas offers $10 movie tickets with a $3 additional charge for the larger screens. The local hoyts has also recently installed recliner chairs in all of their cinemas alongside this price drop. I don’t go often, but when I do it is a real treat these days.

      • Reading cinema in Epping (Vic) has $10 tickets and $20 gold class. Brothers and sisters you feel like a sultan as the waiter bring you slider with chips and a lovely scotch to wash it all down.

        The trouble is most movies are either shit or a super hero movies. Just not worth leaving the house for regardless of the price. Lets face it the good content is in tv shows and they aren’t playing in the cinemas

  • What has been Village Roadshows investment into technology development to protect their business model?

    Technology has superseded the business model and its easier to get Brian Brown to make short ads and whinge to government than to invest in new business model and content delivery platform delivery.

    This is the business equivalent of not paying attention and throwing popcorn from the cheap seats

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