The Movie Industry Crisis: Focus on the Online Pirates Behavior

SALVETTI LUC 14/11/2009 Master of Science in Marketing Philippe Odoux

EDHEC Business School does not express approval or disapproval concerning the opinions given in this paper which are the sole responsibility of the author.
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Abstract

Movie Piracy is considered by Dan Glickman as the greatest threat to the economic basis of movie-making in its 110 year-history". If the Motion Pictures Association of Americas topper is so afraid by the phenomenon, it must be very important. It is very weird to find out that there are very few researches made about it. Some quantitative ones have been done to figure out the importance of this consumer misbehavior. It is also very surprising that even if deviant behavior has been studied for a long time by marketers, nobody has really focused on this particular deviant behavior. The purpose of this study is to explore the pirates mind, how and why they act. In order to do so, we will first review the already made researches about the phenomenon in a literature review. Then we will summarize the current knowledge about the movie industry and the deviant behavior. The second part will focus on the pirate and will try to draw a portrait of him in order to understand what drives his behavior and how to tackle effectively the issue of movie piracy.

Table of Contents

Abstract Plan Literature Review First Part: Overview of the current Knowledge
A/ The Movie Industry and the Threat of Piracy B/ Understanding and Theories concerning Deviant Behavior

Second Part: Consequences

The

Pirates

Behavior

and

its

A/ Presentation of the Questionnaires B/ Observations on Internet C/ Analysis

Limits and Conclusions of the Study References Annexes

1 Financing System Scheme 2 Distribution Channels 3 Broadcasting life of a movie 4 Graphs concerning Demand Consumption (1/2) 5 Graphs concerning Demand Consumption (2/2) 6 MPAA Report (1/2) 7 MPAA Report (2/2) 8 Deviant Behavior Grid Analysis 9 Allostreaming Traffic 10 Allostreaming Screenshot Capture 11 Torrent Software Screenshot Capture 12 IFPI website Screenshot Capture

LITERATURE REVIEW

The movie industry has to face crisis for more than 5 years now. When the DVD standard was adopted, the players of the industry had found a great tool to increase their profits. From the launching in Europe in 1998 to its adoption by the households, the first 5 years were a great time for the Studios. They enjoyed a 2 figures growth and the DVD sales used to stand for more than the half of their revenues. Hollywood was clearly financed by the profits generated by this part of the industry. But since 2005 the DVD sales growth rate has fallen beyond 5 % and experts are predicting negative growth for the next years. A lot of parameters can explain and are used to explain this DVD crisis. One of the first logical explanation is that DVD is not a new product anymore and that nearly all the households are equipped. The positive effect associated with any innovation is not available anymore. The ones who desired to create their own private DVD collection, and used to buy a lot of products to fill their collection have now what they want and their purchase rate has decreased. One other explanation is that the financial crisis we are facing is also responsible for the slowdown in the movie industry. Buyers are not willing to spend money in entertainment and prefer to focus on primary goods. But this hypothesis is not sufficient. First we have explained that the crisis is not a new phenomenon for the movie industry whereas the financial crisis has exploded only last year.

The most common explanation for the dvd industry slump is PIRACY. In fact, with the rising of the dvd standard, piracy has also grew up exponentially in the shadow of the legal sales. What used to be only the video games and software threat has become the first and biggest enemy of the Majors. Recent figures show that approximately 130,000 movies are downloaded each day through file-sharing networks in the United States alone (Motion Picture Association of America [MPAA] 2004). The counterfeit DVDs have usually a less good quality than the official ones. Generally they do not content any bonus features or any languages choice but they can be found for free on the net or bought in the street at uncompetitive prices in a lot of developing countries. What seems to be a threat only for the DVD industry is in fact a menace for the whole industry because the movies you can find are not only the ones in DVD but also the ones that have not yet been released in stores or even in theaters. It is not rare that a movie is available on internet before it is on screen. Dan Glickman the big boss of the Motion Picture Association of America (MPAA) has even declared that piracy was "the greatest threat to the economic basis of movie-making in its 110 year-history. This declaration highlights how much the problem is taken seriously among the industrys experts. The majors (Warner Bros., Fox, Universal) are trying to fight against piracy and laws are currently being voted to put a break on this phenomenon. Existing studies have already been made concerning the software and music piracy but only a few ones have focus on the movie piracy and the determinants of movie piracy. No study has explained the reasons that make someone uploading on internet or sharing on internet a copy of a movie. No
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study has intended to find what could possibly convince this individual not to use illegal download movies. Moreover these users are heavy consumers of movies and could possibly represent highly profitable customers for the industry if a way could be found to convert them to legal practices. On the other hand, a better understanding of their behavior and the reasons that drive such comportment could be a great tool to fight against piracy. In fact some campaigns have already been launched to educate customers about the dangers that piracy create for the movie industry. Reprehensive laws have also been voted. Our objective will be to define why an internet user can turn into a virtual pirate. If their behavior toward other products related to the movie industry has evolved since they have started downloading or buying counterfeited movies. Learning from their experience and behavior we will try to provide way to change their habits. The purpose of the study is to explore and analyze deeply and thoroughly a virtual pirate behavior.

The current knowledge about piracy is much more limited to the use of piracy in music or concerning software. The article written in 2004 by Joseph C. Nunes, Christopher K. Hsee, and Elke U. Weber and published in The Journal of Public Policy & Marketing help us to understand Why are people so Prone to steal software and underlines the weight of the product cost structure on the consumers decision to use pirated software. One of the conclusions of the study is that perceived cost structure is determining for users in their payment intentions. They feel less
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culprit if a product, here software, is compound of high Fixed Cost and little or nearly no Variable Costs. Eric Kin Wai Lau explains in his article An empirical study of software piracy published in 2003 in Business Ethics: A European Review, that social acceptance and pricing are the 2 majors components in the decision making of using pirated software. The limitation of these studies for our subject is that they do not focus on motion pictures piracy but on software piracy. Even if we can use their conclusions we cannot apply them directly to another industry which components, users behaviors and usage are far from the softwares ones. Chih-Chien Wang, Ph.D., from the National Taipei University in Taiwan has studied the factors that influence the piracy of DVD/VCD motion pictures. Its study published in The Journal of American Academy of Business, Cambridge in March 2005 helps us understanding the drivers of piracy in Taiwan where the counterfeit market is one of the most developed in the world. He underlines that the major reason to explain piracy in his country is the willing to save money for the users. Cost benefit is an important factor, but he also highlights that social acceptance toward motion pictures piracy is also responsible for the spreading of the usage of pirated products. This study is helpful to tackle the movie counterfeiting problem in Taiwan but it is really efficient only for the countries where movie piracy results mainly in illegal dvd sold in the street. On the other hand, developed countries are suffering another type of piracy: movie files sharing is the most spread illegal practice that threatens the movie industry in developed countries.

Thorsten Hennig-Thurau, Victor Henning, & Henrik Sattler have written an article on Consumer File Sharing of Motion Pictures which has been published in 2007 in The Journal of Marketing. They have used Rochelandet Le Guels utility Theory approach what has led to the first theory-based model of file sharing determinants in a motion pictures context. It helps us to identify 3 major reasons in movie: The collection utility of the copy (mainly the quality of the copy) The consumers file-sharing knowledge The transaction costs of the original. It also explains that legal costs and prosecutions are useless to fight against movie file sharing. In fact it appears that the users do not feel guilty enough and are not afraid because the usage is common and widely spread. This article is a huge steps toward the understanding of the virtual pirates behavior but the fact that the study is limited to the German market and concerns only a sample of 25 five movies can be seen as a limitation to its conclusions. Moreover the study does not test any solutions or ways to improve the current situation. In their article published in The Journal of Marketing in 2007, Thorsten Hennig-Thurau, Victor Henning, Henrik Sattler, Felix Eggers, & Mark B. Houston explore a particular manner to increase the movie industrys profits. The Last Picture Show? Timing and Order of Movie Distribution Channels relies on Yair Landaus quote. In 2005, the Vice Chairman of Sony Pictures has declared that Ten years from now, well release a film, and youll
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be able to consume it however you want. It results in a 1770 consumers survey which has lead to the conclusion that that the studios that produce motion pictures can increase their revenues by up to 16.2% through sequential distribution chain timing . We have to underline the fact that the sequential distribution chain timing is not the same in every country what makes the feasibility of the practice very difficult. In fact it will be very difficult to prevent piracy when we can sometimes currently find movies copies before their theater release, if dvds will be sold in some countries when in other the same movie will only be available in Theaters. Moreover another factor is an obstacle to the project: the sequential distribution chain timing signifies that you change the sacrosanct order in which a movie is available: 1/ Theatrical Release 2/ +3/4 months (6 for France) : retail market (DVD purchases and rentals) 3/ Display on Premium satellite or cable channel (12 months for France) 4/ Television (24 months in France) Changing this order can maximize the Studios profits but will undermine the Theaters Channels ones.

As already explained we will focus the study on the pirates behavior and feelings. We will try to understand how he reacts and what drive his actions. We propose to identify a sample of ten virtual pirates.

What we consider as a virtual pirate is someone who used movie files sharing system or watch movies in streaming on Internet without the legal rights to do so. We will intend to explore deeply the feelings and beliefs they have toward the industry. The study will try to develop new distribution channels and see how the users could welcome them. Some studies have already been done about the deviant behaviors, how to analyze them, and how they can influence marketing strategies. In their article called What is Consumer Misbehavior? and published in Advances in Consumer Research in 1997, Ronald A. Fullerton from the University of the South Pacific and Girish Putij from the University of Connecticut, shows that consumer misbehavior is a much more larger phenomenon that what we commonly assume. They explain that it has often been under reported and deny because it can unhinge the overall system by challenging the norms and conventions generally shared. The limit of the article concerning our issue is that it just underlines the problem and highlights it without focusing on the people who actually misbehave and the reasons that drive them. On his side, Holt explores deeply the act of consuming, how important and committing it is. In his article How Consumers Consume: A Typology of Consumption Practices, published in The JOURNAL OF CONSUMER RESEARCH in June 1995, Holt explains that 4 dimensions can be identified, the experience, the play, the integration and classification. Each one implies different links and different manners to communicate with other people. He also highlighted the fact that the act of consuming is a strong way to communicate. This study will help us to understand the meaning of misbehaviors toward the motion industry.
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Aubrey R. Fowler tries to analyze the consumer misbehaviors and to classify them in order to understand better the purpose of these actions. The article Hooligans Holiday: Rethinking Deviant Consumer Behavior and Marketing published in Advances in Consumer Research in 2007, visualize the misbehaviors as actions that are in conflict either with the cultural norms either with the institutional norms. Depending which one it violates, the misbehavior will not be felt the same way from the rest of the population. On a second level he notices that you can disagree with the commonly shared norms either by engaging your behavior either without engaging you behavior. His study allows us to analyze better the motives and the reasons that drive the consumer. We can easily apply this reading grid to the movie pirates.

In his article called The Field Behind the Screen: Using Netnography for Marketing Research in Online Communities published in February 2002 in the Journal of Marketing, Robert V. Kozinets describes how to observe and analyze the online communities that spread all over the web. The online forums, comments are even file sharing platform offer lots of information for marketers. We can analyze the meanings and beliefs of the consumers through their online behavior. This instrument is similar to an ethnographic study but cost a lot much better and is really easier to set up. Concerning the topic of movie piracy, it can be really useful and accurate because the web is the natural environment of these particular consumers. Another manner to tackle the problem is also to find other innovations that could attract consumers or retain the existing ones. New products are currently available such as Blu-ray DVD which extend High-definition to mass market
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and enable users to enjoy a perfect image and sound at home. If the illegal copies viewers are interested in that kind of products it could be a way to fight piracy through quality. In fact the level of quality of the files you can find online or download is often very poor and if it happens that one of the important drivers of the illegal viewers is quality, the movie industry would be able to use such a tool. In the same type of innovation we will dig the reasons that make an individual watch a movie in Theaters instead of downloading it on internet. By discovering what they are looking for it could help studio to develop movies and or theaters innovations to attract customers or getting back former users. In fact 3d is one of the new trend in high tech theater, thanks to numeric technology directors are able to create new kind of movies which use effectively the 3d possibilities. Performance capture, motion capture permit to create new kind of movies such as Beowulf released in 2007 by Warner Bros. Robert Zemeckis has made this movie using the performance capture which enables him to recreate the images he recorded. Actors were redrawn on computer and given the desired physical aspect. This technology also enabled equipped theater to broadcast it in 3d. That kind of new products can attract back illegal viewers that care for new experiences. The study will have to confirm that statement. Another new technology we will try to present to our sample is the Video On Demand or Legal Download. It consists in making movies available through internet, it could be a purchase you can have how long you want on your computer, or just a rental version you can watch only several times. Discovering how much a users will agree to pay for a digital copy or if they are
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ready to pay monthly for a numbers of movies is a great tools for industry players which could develop a whole new king of distribution. Warner Home Video has already launched its website for video on demand but the usage remains superficial and most customers continue to purchase their products in stores. We will intend to find if the illegal viewers which are not the customers that buy products in stores could change their habits and buy online.

REFERENCES
CNC Info n283 Bilan 2001 Vido et internet http://www.clubic.com/actualite-153672-cnc-gfk-ventes-dvd-baisse.html Le march du DVD en Allemagne et la place du film tat des lieux

trimestre 2005 Ambassade de France Bureau de laudiovisuel New York Time Le DVD se fatigue

http://technaute.cyberpresse.ca/nouvelles/200606/21/01-14601-le-dvd-sefatigue.php Variety Relic in pic pirates http://www.variety.com/article/VR1117913062.html?categoryid=1009&cs= 1 An empirical study of Software Piracy by Eric Kin Wai. Lau Business Ethic : A European Review - Factors that Influence the Piracy of DVD/VCD Motion Pictures Chih-Chien Wang, Ph.D., National Taipei University, Taiwan. The Journal of American Academy of Business, Cambridge March 2005
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Thorsten Hennig-Thurau, Victor Henning, & Henrik Sattler Consumer File Sharing of Motion Pictures. Journal of Marketing 2007 - Thorsten Hennig-Thurau, Victor Henning, Henrik Sattler, Felix Eggers, & Mark B. Houston The Last Picture Show? Timing and Order of Movie Distribution Channels. Journal of Marketing 2007 - Why Are People So Prone to Steal Software? The Effect of Cost Structure on Consumer Purchase and Payment Intentions. Joseph C. Nunes, Christopher K. Hsee, and Elke U. Weber. Journal of Public Policy & Marketing 2004 - Social construct and the propensity for software piracy C. A. DEPKEN* , I I and L. C. SIMMONSz. Applied Economics Letters 2004 - Entertainment Industry Market Statistics .MPAA 2007

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First Part: Overview of the current Knowledge

The movie industry can be divided in 3 parts: the production, the distribution and the running of theaters. These 3 aspects are badly affected by the spreading and development of a common misbehavior called piracy. In order to understand how important this danger for the whole industry is, we will summarize the situation in France. In a first time we will define and explained working of the system. Secondly the current knowledge about the pirates, their habits, motives and how they operate to find illegally free copies of movies or series on internet.

A/ The Movie Industry and the Threat of Piracy

PRESENTATION OF THE OVERALL SYSTEM The Production sector is at the roots of the industry. Its central mission and purpose is really to join all the actors who will build a movie or another work. The producers have to find or select potential projects. They also raise money to do the shooting. They hire the technical and artistic workers. Their revenues come from the rental contracts they have with the distributors. They can also use the old films they have already produced in other countries or distribution channels such as the video sales and the broadcasting for TV channels. In France, in 2006, the 2302 production companies turnover reached over 1690 millions of Euros (source INSEE/Xerfi).

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The distribution is responsible to make the products available for the public. They will choose in which theaters they will distribute the movies, they will set up the promotion and advertising and how to reach as many consumers as possible. Their revenues come from the tickets sales on which they own a percentage after an agreement with the producer from whom they have received the movie. Some distributors act either on the video market either on the theater market, some big companies do both. In France, in 2006, the 338 distribution companies turnover was over 1270 millions of Euros (source INSEE/Xerfi). Recently the distribution of movies has suffered a decline. The number of movies distributed in France in 2007 was 2.7% lower than it was in 2006. Similarly, the numbers of copies dropped of 2.5%. The only increasing revenues in the sector were the advertising ones with a 8.6% growth the same year (source Xerfi). The theaters owners make up the third part of the movie industry. They choose what movies they will broadcast, their revenues comes from the tickets they sell and some parallel sales such as advertisings before the movies, confectionery, beverages etc In France, in 2006, the 757 theaters owners have earned over 1202 millions of Euros (source INSEE/Xerfi). The trend in this sector is the concentration. The complexes are becoming more and more numerous. The average number of screen goes bigger and there are fewer and fewer independent owners with less than 5 screens. In 2007 the number of theaters increases only by 0.3% in front of a 4.8% growth for the multiplexes (source Xerfi).

All these companies working in either one the three movie industry sectors are dependent of the results of the other actors. In fact the raw materials of these businesses are the movies themselves. The average price of a movie in France was
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4.77

millions

of

Euros

in

1997

(source

http://cinemanageria.ifrance.com/cine_structures/cine_industrie.htm). Each one joins a lot of different investors. Each country has a particular way to promote his national movie industry, but in every country the financial plan of a project is made by numerous actors. Some so-called soft money which is given through institutions, another part of the money comes from the distributors who prepaid their right to distribute the movie in theaters and in video, lastly in some countries (including France), the television channels have to give an annual amount to the movie production through investment in projects. Below is a summary of the financial

cashflows involves in the movie production in France.

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1 The big number of actors implied in the financing of the sector highlights the fact that piracy is a threat upon all the actors we presented before. It justifies the words of the MPAA (Motion Picture Association of America) when he declared to Variety in November 2004, that piracy was "the greatest threat to the economic basis of movie18

making

in

its

110

year-history

(source

http://www.variety.com/article/VR1117913062.html?categoryid=1009&cs=1).

THE VIDEO INDUSTRY: THE MOVIE INDUSTRY CASH COW The revenues generated through the sales of video are one of the greatest sources of revenues for the production and distribution actors. In fact the life time of the product is much longer for a movie in video than it is on Theaters screen. Moreover, the price of DVD or even a tape, is more important than the amount earned on a Theaters tickets, on average, the distributor earns 10 on each video sold whereas on a 6 ticket he only keeps 2.42 (source http://www.rue89.com/en-pleineculture/2009/04/12/ou-va-le-prix-du-billet-dentree-au-cinema) . The distributors are the first and direct victim of the movie piracy because it decreases immediately their revenues. For the first time in four years, in 2007, the videos turnover dropped below the billion Euros (source Xerfi 2007). Like it is for the cinema industry, there are 3 parts for the video industry: the Production whose members are often the same as in the Cinema Industry, the Edition, and the Distribution. The video industry is much more concentrated than the cinema industry. The distributors are really fewer than they are in the cinema industry. Contrary to the film industry, the distribution is more common, the sales are not done in theaters but mainly in stores. The buyers have more bargaining power and the product is regarded as a normal one. The artistic dimension is not as important as it is in theaters. It becomes closer to a standard product, distributed via hypermarkets,

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specialized stores, wholesalers etc Below is an overview of the distribution circuits for video in France.

2 Another particularity of this product is that there is a particular chronology concerning the sales of video since the theater release date of a movie. This chronology can differ from one country to another.
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The diagram below summarizes the French media chronology in 2007.

3 The French regulation concerning the first video release date has been recently changed to 4 months after the theatrical release instead of the former 6 months window. Recently new products have appeared on the video markets. Firstly, in 2008, Warner Bros one of the biggest actor on the edition and distribution market, adopted the Bluray format ending the conflict between the HD DVD format and the Blu-ray one. This new generation of DVD offers a better quality and allows storing more data on a single disc. In the first three months after the death of the HD DVD format, the sales have increased by 351% (source http://www.presence-pc.com/actualite/blu-rayventes-28962/).

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Another form of video delivering has rise during the past years, the VOD (Video On Demand) permits to watch online or purchase an online version of a video.

THE THREAT OF THE MOVIE PIRACY AND ITS CONSEQUENCES ON THE MARKET Since the launch of video tapes in the eighties, piracy has become one of the concerns of the industrys actors. The spreading of the DVD format and personal DVD players in 1998 has been a great opportunity to increase the video revenues, particularly thanks to a better sound and image quality compared to the previous VHS format; but also because the lifetime of a DVD is much longer than a tape recorded ones. Nevertheless, this goldmine has also been the starting point of a never seen before wave of pirated products. In France after a tremendous growth during its first years and the rising of the households DVD equipment, the sales of DVD started to decrease in 2004 in values and in 2005 in volumes. In the same time, since 2000, the average DVD price has decreased. Below are diagrams representing the evolution of the demand in France and the evolution of the average DVD price in France from 2000 to 2007.

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5 These figures are a shining exemplar of how intensively the movie industry has suffered from the spreading of consumers misbehaviors toward cinematic products. Piracy has turned into a common attitude for consumers. The DVD format allows a new type of piracy. Piracy used to be composed only by bootlegging and illegal copying. It was only organized network or even organized crime that stole revenues
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to the industry. But the development of internet and such light formats as Divx or Mpg4 allowed the final customers to download and store on their own, pirated version of a movie or series. Moreover, organized piracy is now able to offer nearly the same products the legal supplier are. In 2004, the MPAA has ordered a study to get a better overall picture of the real damages caused by pirates on their industry. The results presented showed that the global loss for the MPAA members was above six billion dollars internationally, 2.3 billion directly from downloading (source Worldwide Study of Losses to the Film Industry & International Economies Due to Piracy; Pirate Profiles). These figures represent only the losses for the MPAA members, the chart below present both results for the members and the non-members.

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Source Worldwide Study of Losses to the Film Industry & International Economies Due to Piracy; Pirate Profiles. Moreover, the study highlighted the fact that piracy decreases not only the companies revenues but also the States one through tax losses. France is one of the biggest losers on that point. Below is a chart summarizing these figures.

7 (Source Worldwide Study of Losses to the Film Industry & International Economies Due to Piracy; Pirate Profiles.) Thanks to this study we can also describes the demographical profile of a pirate. It shows that mainly the pirates obtain their illegal copies thanks to the downloading or the file sharing. Bootlegging represents only 29% of the illegal products. They are mainly between 16 and 24 years old and male. Moreover they are educated and go to College. (Source Worldwide Study of Losses to the Film Industry & International Economies Due to Piracy; Pirate Profiles).

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B/ Understanding and Theories concerning Deviant Behavior

DEFINITION OF DEVIANT BEHAVIOR Deviant behavior is a complex notion hard to define. It is commonly accepted as the fact to not follow the cultural norms and rules dictated by institutions in a located area. Most of the deviant behaviors have consequences at the business level. Among the deviant behavior is the consumer misbehavior which can be defined as the fact for a consumer not to follow the rules and the cultural attitudes expected by other consumers and by the institutions. Lots of authors have tried to set up a clear definition on this phenomenon; the shared conception of deviant behavior is given by Aubrey R. Fowler in its article HOOLIGANS HOLIDAY: Rethinking Deviant Consumer Behavior and Marketing, published in Advance in Consumer Research in 2007 : deviant behavior is that which is considered to be different from normal behavior by the society at large. The legal businesses suffer from these misbehavior because it can lead to the destruction of property, the victimization of other consumers or marketers and even material loss (source Fullerton and Punj 1993). Thus, it can have a lot of different forms and sources. Moreover deviant behaviors can be apprehended differently because of the form they take, some ones can even be accepted by society. Thanks to the already mentioned article written by A.R. Fowler, we can create an analytic framework to understand more deeply the deviant behaviors. They can come either from an opposition toward the cultural norms either from an opposition toward

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the institutional norms, or even both. The fact that a behavior meets or violates one or another will influence the way the rest of the society will tolerate it.

8 (Source HOOLIGANS HOLIDAY: Rethinking Deviant Consumer Behavior and Marketing). An aberrant behavior can be the fact to hurt on purpose a consumer in order to steal his wallet. It goes beyond the commonly accepted cultural norms but it is also in opposition with the institutional rules that prevent the stealing. Aberrant behavior is mainly rejected by the consumers and is hardly tolerated. On the contrary, an abiding behavior meets both the cultural norms and the institutional ones. It is what marketers and consumers regard as a normal behavior. For example an adult who will withdraw money at the counter of a bank will have an abiding behavior. The Carnivalesque behavior is the one which does not violate the institutional norms but does not match with the common attitude consumers expects from another person. Such behaviors are not regarded as dangerous but can create conflicts among the consumers. An example of carnivalesque behavior could a drag queen gathering.
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This notion is complex because even though such attitudes are commonly rejected, sometimes people could appreciate it. It is not rare to see advertisings using carnivalesque behaviors to seduce consumers. Lastly, a behavior is qualified as an anomic behavior when it doesnt follow the institutional rules but is accepted by the cultural norms shared in a society. It is really difficult to fight against that type of behavior because consumers are mainly in favor or do not blame these one. A great example of anomic behavior is the fact to download a movie in order to make a gift. The law has been broken but the means used to acquire it is culturally accepted.

DEVIANT BEHAVIOR AND CULTURAL DIFFERENCES Misbehaviors are deeply linked to culture, they are defined by culture and culture can correct them. The fact that cultures change across countries should create some differences between countries concerning deviant behaviors. In their article Measuring Unethical Consumer Behavior Across Four Countries, published in the Journal of Business Ethics in 2009, Vince W. Mitchell, George Balabanis Bodo B. Schlegelmilch and T. Bettina Cornwell, analyze the concept of deviant behavior across several different countries. Moreover, to avoid the cultural gap, they have decided to focus their survey on the fact of engaging in misbehaviors and not on their opinion. They finally found that across the four different countries, we can identify comparisons between the deviant behaviors. Two major levels of deviant consumers can be defined in all the countries analyzed: one part qualified as light offenders and other one of heavy offenders. They also figured out that deviant behavior is omnipresent in every culture and explained that 75% of the consumers across the four different countries have committed at least once consumer misbehavior. Their
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study has also shown that deviant behaviors based upon an opposition with institutional norms or laws, are much more numerous than the one which violate cultural expectations. The different samples proves that there is a common demographical similarity across the different culture, boys are more inclined to misbehave that girls Thanks to this article we have understood that beside the cultural differences across the world, deviant behavior and particularly consumer misbehavior is spread similarly and on engages a high percentage of the population.

CONSUMER MISBEHAVIOR CAUSES In order to fight against this kind of practices, marketers have tried to define the motivations and causes that create deviant behaviors in consumer places. The article Consumer misbehavior: why people buy illicit goods, published in The Emerald Study in 1999 by Nancy D. Albers-Miller; analyze the drivers of such comportments and have isolated three different causes that can persuade a consumer to acquire an illicit product: the selling price the situation under which the purchase takes place the risk that is associated with the purchase. Different hypothesis have been validated concerning these three different notions H1: Willingness to buy is negatively associated with selling price. H1a: Price will provide a higher degree of influence in the decision to purchase counterfeit goods, compared to stolen goods. H2: A buyer is most willing to buy an illicit good when others present are buying illicit goods.

30

H2a: A buyer is less willing to buy an illicit good when they are alone, than when others are present and buying the illicit product. H2b: A buyer is least willing to buy an illicit good when others are present and not buying the illicit product. H3: Willingness to buy illicit goods is negatively associated with the level of perceived criminal risk. H3a: Perceived criminal risk will provide a higher degree of influence in the decision to purchase stolen goods, compared to counterfeit goods. (Source Consumer misbehavior: why people buy illicit goods) Consumers implied in misbehaviors will take into account the type of product they are purchasing and the criminal risk associated with it. The study has also shown that being alone or in a group influences the consumer behavior. Moreover the implication of other peers is decisive in the decision making of the deviant consumer. Plus, the article explains that stolen goods and counterfeited goods are not regarded the same way by the consumers. The price and the criminal risk are appreciated differently according to the nature of the product. The misbehavior can be also predicted or avoided by analyzing the beliefs and the ethics that consumers believe in. In Consumer ethics: an application and empirical testing of the Hunt-Vitell theory of ethics, the three authors Scott J. Vitell, Anusorn Singhapakdi, and James Thomas, explore how consumers make their decisions when they imply an ethical dimension. It appears that two important issues are taken into account, the ethical norms and also the perception of the consequences for themselves and for others. But the study highlights the fact that between the two dimensions that have been identified, consumers worry much more about the ethical
31

norms and the principles society relies on. It strengthens the theory that cultural environment is a key point in the understanding of deviant behavior and the decision of involving himself in misbehaviors. We can isolate three main causes that will influence consumers in their willingness to involve in a deviant behavior. Firstly, the cultural norms and how strong they are compared to the individual norms in a given society. (source Social construct and the propensity for software piracy). Secondly, the influence of the group is decisive, not the social pressure from the society but the direct implication of a group behavior in a particular situation. Close entourage influence is really important. Lastly the associated risk with the deviant behavior or the consumer misbehavior is also taken into account. It can be the criminal risk associated or the financial risk, if the product will be reliable or not, if the consumer can be caught or punished for what he committed.

THE IMPORTANCE OF POSSESSION IN IDENTITY DEFINITION AND ITS CONSEQUENCES ON DEVIANT BEHAVIORS In modern society consumption has turned into a highly symbolic act. Individuals are indentified in a lot of situation firstly as consumers, what they possess or purchase is a direct part of their identity. In his article Possession and the Extended Self, published in The Journal of Consumer Research, in 1988, Russell W. Belk explains how decisive it is to understand the meanings that consumers attach to possession. Because consumer behavior results directly from this relation between possession and identity, it is of great importance to define it. His study explains that individual express themselves in their purchases, what you owe tells what you are to other people. Possession is a way to express oneself, It seems an inescapable fact of
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modern life that we learn, define, and remind ourselves of who we are by our possessions. The authors also explains that what we owe engage ourselves but not only, it can define a whole family or group of individuals. Some items are much more important in identity building, the collections are more representative. People want to show that they possess such and such things. The key role of possession can lead to changes in the way people act. At one point the object can turns more important than what you have to do to own it. This prevalence of possession in the everyday life can explain some consumer misbehaviors. It can become acceptable to break the expected norms in a market place if it can help you to reach the social status you think the item will give to you. You step out of the norm in order to be in the norm. It can explain the rising and spreading of cross cultural misbehaviors all around the world.

SOCIOLOGY AND CONSUMER MISBEHAVIOR Deviant consumer behavior is commonly accepted has a lack of socialization. People act against the norms and rules because they reject the norms and rules that Society promotes. Thus, deviant behavior can be the direct consequence of a weak socialization. Such misbehaviors are linked to a misunderstanding or a bad

communication of norms, or the individuals emotional or rational rejection of norms (Clausen 1968). Robert K. Merton describes in Social Theory and Social Structure (Merton 1957) another way to explain the development of deviancy in social groups. Each culture dictates what is seen as legitimate goals and the legitimate means to reach these
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goals. When consumers desire illegitimate goals or use illegitimate means to obtain legitimate goals, deviant behaviors occur. The accepted ways to reach what society judges as legitimate goals are called Institutionalized means by Deutsch and Krauss. They also advance that when people cannot use these means, deviant behavior appears, it can be rebellion or innovation (Merton 1957). The level of norms rejection will drive the individual either on the innovation, if he rejects the institutional norms but accept the cultural ones, either on rebellion which consists of both a rejection of the culture's values and institutions and the substitution of a new set of values and institutions" (Deutsch and Krauss 1965, p. 201). Merton also explains that social structure parameters can be part of deviant behavior, in that matter, the belonging to one particular social class can influence misbehaviors. In fact the accepted institutionalized means can be much more difficult to use for some part of the population; thus they can reject the norms and chose a deviant behavior to reach their goals. In 1966 Brim focused his researches on means to correct the deviant behaviors. He followed Mertons opinion and thought that social parameters were the main reasons for misbehaviors. Here is an extract of his recommendations to reeducate deviant consumers or citizens. Where ignorance is the cause, education; where lack of ability is the difficulty, improved training; where motivation is the problem, a planned and deliberately executed program of manipulation of rewards and punishments to reorient the individual to appropriate goals and behavior (Brim 1966, p.43). In 1976, Kohlberg choose to study adolescence because it is supposed to be the age when individual learns how to react with other people and develop the ability to engage in moral reasoning. As a child he didnt interact with the rest of society, he
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used to be centered on himself. During his adolescence, he will be supposed to learn the rules and norms dictated by society. In 1987 Housson and Gassenheimer clarify what misbehavior signifies and more particularly the links with the notion of trust. The word trust is used in the sociological way: impersonal trust, it means what we are sure, people we do not even know, will do in a given situation. We can say that people have faith in the fact that other individuals will behave themselves. The article What is consumer misbehavior?, published in Advances in Consumer Research in 1997, and written by Ronald A. Fullerton and Girish Punj, defines the different expectations that consumers have when they enter an exchange place. Here are the three types of expectations that summarize all the comportments expected during exchanges: the expectations which the marketer has of consumer conduct, consumers expectations about other consumers conduct and the expectations which consumers have of marketer (and marketer employee) conduct. Misbehaviors challenge what was

called in 1976 by Steiner, Hadden, Herkomer a social contract between marketers and consumers and among consumers. Misbehavior happens when one of these contracts is broken. Labeling theory advances that people do not react to other people actions but interpret or define each others actions, instead of merely reacting to them. (source What is consumer misbehavior?). Another problem to define misbehavior is relativism. People can be more tolerant than other to some particular behaviors. Furthermore, sometimes what is considered as misbehavior for some consumers could appear as a normal behavior to other one that do not share the same culture.

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Second Part: The Pirates Behavior and its Consequences

Movie Piracy is definitively a deviant behavior, and more precisely consumer misbehavior. It goes beyond the rules that are set up by society and particularly what Institutions dictate. The first part of this study has displayed the importance of the phenomenon all around the world and the threat that it can be to the movie industry. We have also learned that despite the fact misbehavior are spread everywhere, cultural differences are to be taken into account if we want to understand the motivations and beliefs of the pirates.

A/ Presentation of the Questionnaires

In order to have a better understanding of these notions, questionnaires have been conducted with consumers who agree that they use piracy to watch illegally movies are TV programs. Quantitative research is the best way to discover the reasons that drive someones behavior. Thus, we have decided to make conversations much more than individual questionnaires, with the pirates that have accepted to share their experiences. The discussions were about an hour and tackled different subject, or areas concerning the movie piracy and the way these particular consumers feel about the movie industry, their role, their influence, and their potential negative effect on it. Given the fact that former quantitative researches have reached the conclusion that, misbehaviors are strongly linked to social habits and culture, the interviews focused
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on French pirates. Furthermore we have decided to choose deviant consumers between 15 and 30 because it has also been defined that the biggest part of these online pirates belongs to this group. The three main topics that have been tacked through this research are: NETWORK BEHAVIOR - METHODOLOGY How pirates act? Do they have special networks? Do they follow a particular and recurrent scheme? SELF PERCEPTION MORAL JUDGEMENT BELIEFS Do they feel guilty? Do they think that movie piracy is similar to any other theft? Do they think there is a moral part in the way they act? POSSIBLE SOLUTIONS What are their expectations for the next coming years? Do they believe in current solutions? Is repression something useful against piracy? You can see below the overall pattern of the interview. The questions were not always the same during the conversations because it was necessary to do it the most casually it was possible to do. Relax tone allows the answerer to feel comfortable and be as true as possible.

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GUIDE DENTRETIEN SEMI-DIRECTIF

RESEAU-COMPORTEMENT-METHODOLOGIE
Vous arrive-t-il souvent dutiliser des fichiers illgaux pour visionner des films ou des sries ? Quels moyens utilisez-vous pour cela ?avez-vous des sites particuliers, pourquoi ? Y-a-t-il des raisons ou motivations particulires qui vous motivent dans ces choix ? Quelle utilisation fates-vous de ces fichiers ?est-ce-que vous les conservez, les effacez une fois visionns ?les fates-vous partagez, tout le monde, vos proches, lesquels, pourquoi ? Est-ce-que vous ne fates que tlchargez ou uploadez-vous galement des fichiers, pourquoi ? Pouvez-vous donner une approximation de votre consommation lgale de produits cinmatographiques ? Est-que le fait dutiliser des fichiers illgaux diminuer votre consommation lgale de produits cinmatographiques ? PERCEPTION DE SOI JUGEMENTS MORAUX ET CROYANCES Avez-vous limpression dagir mal en utilisant ces fichiers illgaux, pourquoi ? Pensez-vous que les pirates mritent des sanctions ? Le tlchargement doit-il tre considr comme un vol ? Mrite-il quon le sanctionne, pourquoi ?
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Ressentez-vous un sentiment de fiert lorsque vous partagez des fichiers ? Quels sentiments le fait de trouver des films ou sries vous procure-t-il ? Y-a-t-il un genre de films particuliers que vous tlchargez, ou que vous ne tlchargez pas, pourquoi ? Pensez-vous que certains films mritent dtre tlchargs, pourquoi ? Visionner un fichier illgal peut-il remplacer le fait de le voir au cinma, pourquoi ? SOLUTIONS POSSIBLES La diffrence de qualit entre les fichiers trouvs sur internet et les copies lgales pourrait-elle vous convaincre dutiliser ces derniers ? La haute-dfinition pourrait-elle vous convaincre dutiliser des fichiers lgaux ? La 3d au cinma pourrait-elle vous convaincre de vous rendre plus souvent au cinma ? Connaissez vous le tlchargement de fichiers lgal, lavez-vous dj utilis, pourquoi ? Comment considrez-vous le tlchargement de fichier lgal, est-ce un sous-produit selon vous ? Seriez-vous prt payer un abonnement mensuel afin davoir accs au tlchargement lgale de fichiers, pourquoi ? Pouvez-vous donner une approximation du montant que vous seriez prt payer pour une telle offre ? Connaissez-vous le contenu de la loi Hadopi ?
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Pensez-vous que cette loi va tre efficace ? Etes-vous en faveur de cette loi, pourquoi ? La rpression peut-elle tre une solution pour lutter contre le piratage ? QUESTION PROJECTIVE Pouvez-vous comparer votre consommation de produits cinmatographiques au rgime dun animal ?

B/ Observations on Internet

Robert Kozinets has defined a new kind of tools to dig in consumer behaviors. As explained in his article, The Field Behind the Screen: Using Netnography for Marketing Research in Online Communities, published in the Journal of Marketing Research in February 2002, inquiring online can reveal deeper insights concerning consumer behavior. Indeed, consumers, covered by anonymity on the web, say and act differently. Furthermore, concerning a particular topic such as downloading, it is really instructive to observe online activities on website that play role in enabling movie file sharing, downloading or streaming. Moreover, using online observation is a way to avoid reluctance from answerer concerning what is considered as an illegal act. OBSERVATIONS ON AN ONLINE STREAMING WEBSITE A first and easy observation is the fact that a Google research using the word streaming, will return 98,300,000 answers in 0.10 seconds, whereas the words tlchargement lgal turn only 1,360,000 answers in 0.38 seconds. It is a mere
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observation but is highlights perfectly the importance of each concept on online activities. Another interesting place to observe in order to learn more about online piracy is the sites where they take place. A particularly relevant web place is the platform called Allostreaming. This website is an online platform that host web links to online movies, documentaries or series. Since its creation in 2008, the websites has become one of the leaders on the French streaming market, you can watch over 5500 different movies on this website. Each day, over 550,000 visitors come on the websites in the first months of 2009 (source http://www.1001actus.com/allostreaming19111.html). The importance of the activity of the platform is so high that it has

exceeded the traffic of such sites as TF1.fr, M6.fr, and France2.fr. The charts below show the online traffic of this websites.

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9 (source http://www.leblogdevirginie.com/allostreamingcom-fait-plus-de-traffic-que-tf1frfrance2fr-m6fr/)

The website is hosted abroad. Consequently it is not subject to French law. The appearance of the website design is very simple and functional: black background with orange writings, the movies and series are ranged by types, or alphabetical order. Everything is done to facilitate the customer navigation, there is no place such as forum where people can chat or exchange their opinion, only links. There is

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nothing to create or encourage anything like a community or to create bonds between users. The purpose of the platform seems to be only usual. Here is a screen capture of the main page of the site, dedicated to movies.

10 Since its creation Allostreaming has extended its activity and is now the main page of a ten websites streaming platform. You can have access to every pages and links for free, the revenues of the platform comes from advertisings. Before you can reach any content you are subject to at least five advertisings or online banners. As said before, there is nothing such as an online community on Allostreaming, consumer are not able to communicate among themselves. Although you can register on the website, it is only to be able to upload links on the platform. The only community facilitator item is an online ranking of the members, considering the number of file they have uploaded. The fact that there is no possibility to communicate with members prevent us from knowing if there is any particular reason that make them uploading these files. A 2,300 members Facebook group called Allostreaming could sustain the idea that an online community exist between
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the users. On the other hand, if you have a look on the posted comments of the group, it looks much more like a recovery service webpage than to a forum. The online observation of the French biggest streaming website has reveal that it seems that there is no relevant proof that a streaming pirates online community exist. Nonetheless it is true that the same people comes often on the website, that there are also a limited number of uploaders who feed the platform with new links. DOWNLOADING PLATFORMS Another way to access to pirated content is the classic download website. There are a lot of different websites that provide downloadable movies. The main difference with streaming is that users need to download a particular program to start sharing files. Moreover the consumer will have the file on his computer. He will possess a copy of whatever he has downloaded and will be able to share it again after. Another big difference with streaming is that you need to wait for your files to be downloaded, what is particularly relevant concerning movies or series. In fact contrary to streaming, you cannot watch immediately what you want with that type of websites. Finally, you can find any type of file on downloading platform, from music and movies to books or program. Consequently, customers are different from streaming user. As it is on Allostreaming, there is no place such as forums, where people could chat, on downloading websites. The Pirate Bay, Bit Torrent, Kazaa the oldest file sharing system on internet, all of them show no direct interactions among the consumers of these websites. One system offers a forum, Azureus, a torrent provider program, has an online exchange

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system. Nevertheless, despite the so called Community Forum, the topics are always about online tips or FAQ. Below is a snapshot of the Forum.

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As it was said for the Allostreamings facebook group, the questions raised and other topics are closer to the ones sent to a recovery service center than on online cinema forums. The online observations seem to deny the existence of a pirates community are consciousness. Nevertheless the fact that in the middle of the trial against The Pirate Bay, the IFPI, (International Federation of Phonographic Industry) has been attacked by a pirate, would strengthen the theory that pirates share a common background.
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Below is a screen picture of the home page of the institutions website on the day of the pirates attack.

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C/ Analysis
The interview that has been presented previously helps us to understand better the pirates behavior. The different subparts of the discussion reveal diverse aspects of the pirates identity. That is the reason why the analysis tackles each different category separately.

NETWORK BEHAVIOR METHODOLOGY This first part shows us that pirates act and think differently considering the using they have of the file they are looking for. Lots of them prefer the streaming process because it is an easy way to find a particular product. One thing is obvious among the different interviews, pirates have very different habits and preferences. There is no prototype profile. Their consumption can go from three hours a week to ten or more

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for other answerer. Their preferences vary from streaming to downloading or both considering their needs. They explain that they are used to go each week on streaming website to watch their favorite series new episode, or they can also wander on streaming platform and choose a movie randomly. The consumption they have when they use streaming is mainly passive. They do not want something particular but watch what is available and take it, except for the series addict. This mode of consumption is similar to a customer who would go shopping in stores without any particular need. Once again it is different for the series watchers. The first reason given to select streaming before downloading is that the consumption is immediate. You do not have to wait for your file to arrive on your computer. These pirates use streaming the same way they would do in front of a TV set. It could be one of the things that decrease the feeling of breaking rules or laws: the file is available and free, they assimilate it to TV watching, which is free too. Some answerers also argue that streaming does not need any particular knowledge or program utilization. Among these pirates some ones do not have this knowledge or do not feel it is really useful for the consumption they have. It illustrates one particular aspect of the movie pirates: all are not computer experts or hackers, mainly are classical internet users with a limited technical knowledge. Lots of streaming users have named Allostreaming as one of their favorite websites, the first reason is because of the huge amount of files available either movies or series. Another point is that it was one of the most famous and they do not want to waste any time looking for a new one. This reason strengthens the theory that pirates are not necessarily high technology friends. Some others argue that they prefer foreign website; mainly English speaking ones, because they can find original
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versions and the first reason given it that the files are available a very long time before on these websites. This search for original versions and ultra recent files shows that pirates are mainly movie lovers or even experts. On the other hand, the ones who used downloading explain that this tool is useful when they are looking for something particular, or when they want to keep a copy of the file. The copy can be shared but not automatically. When they chose downloading, consumption is more proactive, they know what they want and even look for special version. It seems that those who use this way to find file are really movie lovers. They look for old movies they cannot find in stores or are hard to. The fact that they need to use a specific program to obtain the file they want illustrates a bigger technical knowledge. It is not rare that they also download subtitles and play the files with them, what necessitates many more computer skills. Moreover, answerers who declare that they download files also often confess that they use streaming too. It shows that it exist a kind of hierarchy among pirates. Between heavy ones that have high tech knowledge and a big consumption, and with light pirates who mainly use streaming without any particular computer skills and spend less time online. All the answerers have declared that they had never uploaded an illegal file on internet. On the other hand, lots of them confess they stay connected as seed once they have downloaded a file. They explain that is seems normal for them to help other people download faster the file they have just obtained. It highlights the existence of the slight feeling of a community membership for pirates. They never stay a long time as seed but at least one or two hours. All the files are not conserved after the watching. Heavy pirates explain that they keep on their computer, or even acquire a storage hard drive, only few movies. Very few ones declare that they share
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the file they have acquired illegally with their entourage. But some ones agree that it happens rarely that they download a special file on another persons request. It shows that the pirate consumption is mainly an individualistic one. The community dimension is very limited. Concerning the legal consumption they have, pirates are once again very different. The monthly expenses vary from seven Euros (the average price of a theater ticket) to sixty Euros. There is a similarity among the heavy pirates. They are the ones who spend more money in their legal consumption. There is no particular model for light consumers. Similarly, the heavy pirates declare that they legal consumption has not decreased since they use downloading or streaming. Some ones even say that actually it has increased. On the other hand, the light pirates confess that maybe they have replaced their legal consumption by illegal one. They continue to go to the Theaters or buy DVD but perhaps less than before they knew how to find free available files.

SELF PERCEPTION MORAL JUDGEMENT BELIEFS This part of the interview deals with the deep feelings pirates have. We try to figure out what are the norms that replace the cultural ones, if they exist, and why institutional rules are neglected. The results of the interview have shown this the particular deviant behavior is mainly accepted. Moreover it doesnt really goes beyond the cultural values. If we used the conceptual framework given by Aubrey R. Fowler in HOOLIGANS HOLIDAY: Rethinking Deviant Consumer Behavior and Marketing movie piracy can be identified as an anomic behavior. It breaks the

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institutional norms but does not violate the cultural ones. It is one of the reasons why fighting movie piracy is very difficult. Nearly all the answered declared that they do not really feel guilty when they use these illegal files. The heavy pirates explain that their legal consumption counterbalances the fact they also use movie piracy. They argue that they would not pay money for the files they use illegally. They do not feel guilty because it seems for them that they do not really steal anything given the fact that they would not buy it anyway. On the other hand, light offenders raise different ideas: that the companies they retain revenues from, are huge ones with very important assets. They think that it will not be a big loss for these companies. They also declare that movie piracy clearly cannibalizes their legal consumption and it happens that they replace one by the other. Furthermore, some explains that they even have negative feelings about these companies and can actually enjoy not paying them. Here is another difference among pirates, they do not have the same feeling about the movie industry. All the pirates agreed that movie piracy is a theft. But they also insist on the fact that it is different from other kind of stealing and they do not consider themselves as criminal. They underline that the availability of the illegal product and the tacit agreement of other consumers put it on a different level from common burglary. The interviews also show that their legal technological environment permits to acquire and watch these files. They feel it is hypocritical to blame what they do, providing they can have legally the technical supply they need to do so. Moreover the huge number of pirates legitimates for them their behavior. They do not feel it is a deviant one if the biggest part of the population does it. All the answerers confess that they care about the artists that suffer from movie piracy. They are much more concerned by the people behind the products. They try
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not to download art house works. Here again the heavy pirates are more inclined to this feeling, they explain they try as far as possible to watch these movies in theaters, or even buy the DVD when released. The light offenders are mainly not big fans of art house movies, they prefer bigger productions and when they go to the theater they watch the same kind of movies. One of the commonly shared feelings among pirates is that the expensive and rising price of theater tickets justifies movie piracy. They argue they would not be able to pay for all the products they watch and would go more often in legal distribution channels if it was cheaper. One thing particular to series piracy is that pirates consider that they TV revenues are the same if they use movie piracy or not. They all agree on the fact that laws must evolve and change to adapt to the new technical environment. They explain that internet provides good opportunity for these big companies. They have earned money and continue to thanks to internet. On the other hand it is counterbalanced by the spreading of movie piracy but it would be unfair to punish it. Pirates explain that they do not feel particularly proud when they obtain a specific file. They are just happy to enjoy it but self esteem is not part of their behavior. On the other hand even if it does not happen a lot that they share their files, they feel nice when they do. But they also underline that this feeling does not come from the nature of the product and feel the same way when they share a legal copy. All the answers agreed that watching an illegal copy is very different from watching it in theater. Going to theater is what they called a complete experience, they do not just watch the movie, they are in a special mood. The place plays also a big part in the pleasure they have, the atmosphere is not the same when they watch it on their computer. Going to the movies is a social event. It is rare that they do it alone
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whereas they can easily watch pirated copy on their own. All the answerers are students and all of them declare that they will spend more money in movie industry and perhaps even stop piracy when they will have more money. It could signify that movie piracy is a temporary problem in the life time of a consumer. This fact, combined with the idea that some of them actually spend more money since they use piracy, raises the idea of a positive consequence of this misbehavior. Consumer learn to like movies through piracy, it creates a bigger demand. Future researches should focus on this in order to determine if these pirates really spend more money on long term in legal distribution channels. This second part of the interview has shown that once again, we cannot draw a common profile of all the pirates. Even if there are similarities in their beliefs and moral values, here again we can divide pirates between heavy ones and light ones. Their beliefs, the feeling of guiltiness and the way they perceive themselves change considering what pirates they are. There is an ambiguity in the way between the fact that they are conscious of the immorality of piracy but in the same time they do it. Last but not least, they all raise the necessity for institutional norms to evolve in order to match with the new technical environment internet provides.

POSSIBLE SOLUTIONS In this third part of the interview we try to find out what solutions can be developed to tackle the piracy issue. We want to know from the pirates side, what legal way to

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solve the problem seems appropriate. If they would agree to pay for particular products, if repression can be useful or even accepted. Mainly all the answerers explain that the quality of the files they find on internet is an issue for them. It is one of the reasons that can convince them to buy a DVD or to go in theaters. It is a common feeling for both heavy and light offenders. Decreasing the quality of the pirated version is nearly impossible to do. On the other hand considering that the price level is an important matter for pirates, making available cheaper good quality products could increase significantly legal sales. Furthermore the importance of the image and sound quality opens new markets for companies: Blu-ray DVD, high definition hardware etc Moreover the heavy pirates, who are the biggest consumers among these consumers, declare that they like to find enhance contents and beautiful packages. The use of 3D effects in theatrical releases does not seem to very convincing for pirates. The limited number of equipped movie theater, the gadget dimension, decreases the attraction effect of this innovation. Moreover they also highlight that there is no great 3D movie yet consequently they are not convinced by it. They also confess that they do not have enough information about it and do not really know how it works, if they have to wear special glasses or not. Lastly the more expensive price of the 3D tickets is a big obstacle for pirates. Increasing the numbers of seats and providing a greater number of 3D movies seem financially dangerous for companies. Improving 3D technology communication and increasing customer knowledge is a very important issue for marketers. Another innovation in the movie industry is the legal downloading and legal streaming. Few websites offer the opportunity of watching or downloading legal copies of movies or series. Even if they vaguely know the existence of such products,
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very few answerers have already tried it. Moreover all the pirates that have experienced it have been disappointed. Either because they never succeeded to acquire the file either because the process was very long and complicated. There is no significant difference toward legal downloading between heavy and light pirates. It seems commonly agreed by all the pirates that such products are not equivalent to DVD. Consequently they do not want to pay the same price for them. On the other hand, they all agree that they would be interested in a formula which would offer a big amount of online legal movies for a monthly payment. Once again the price of this offer would be decisive in their choice. The ideal price fluctuates from twenty Euros to thirty Euros considering the answerer. Here is another possible solution marketers should explore in order to convert pirates to legal behavior. All the pirates knew at least the main points of the Hadopi law. It shows that they are aware of the legal environment surrounding their practices. But in the same time no one knows exactly what it is and how it would work in real life. The feelings are largely negative toward this law. Once again they argue that the law is hypocritical, it punishes just the final consumer without doing nothing against the companies that provide the technical supply. They declare that the Internet Access Suppliers are the first responsibles and winners of movie piracy. Furthermore even if they would be afraid to know that friends of them have received big fees because of their misbehavior, they are not persuaded that the law will be useful. They are sure that it will be impossible to apply such law because pirates are too numerous and they will always find new ways to escape from punishments. Repression is a very complicated concept for pirates. Mainly they understand that what they do has negative effects. They think that if it would be real and strong, it would be effective. But on the other hand, they are against the principle of
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repression. It would seem immoral for them to be punished because of what they do. They do not feel anymore that they have a deviant behavior. They are convinced that institutional norms should be influenced and changed by cultural ones. When asked, it appears that they are persuaded that the cultural norm is piracy. Not using piracy seems a deviant behavior for them considering the cultural norms. It is obvious that a lot of options are available for marketers in order to fight against movie piracy. Another important lesson learn in this part of the interview is that there is a lack of information concerning new products or distribution channels. Education is fundamental to tackle the movie piracy issue.

PROJECTIVE QUESTION This part permits to explore deeply how the pirate thinks and the way he perceives himself and his consumption. The question asked was to compare their movie consumption to an animal and its eating habits. The answers are very interesting because they reveal a lot about the answerer hidden feelings. One of the first given answer is a sparrow. The consumption is not big, it is punctual and the most important thing, the life time is reduced. The pirate who gave this example explained that he was sure he will soon change his consumption habits, once he will have a job and more money to dedicate to these expenses. The image of a sparrow, a very innocent and harmless animal, shows that pirate do not feel they are threatening the movie industry. Another interesting example is the one of the marmot. Once again, it is not a wild or dangerous animal. It is even a nice one that people like. The example has been chosen because when they hibernate, marmots take a big amount of foods in one
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time, and eat it alone on a long period. It is relevant to notice that other answerers have chosen a similar example of hibernation but with another animal, a wilder and bigger one: the bear. The principle was the same but on a different level. He also takes a given amount of files in one time but it is much more important. Moreover the bear is a stronger and more terrifying animal. The one who choose this animal was aware of his power and influence on the movie business. A bear can be very aggressive and cost a lot to society. Another animal chosen was the raccoon, a tiny and inoffensive little animal that is crazy about very rare food, sweets. He does not eat a lot but the quality is a very important matter. Contrary to the previous example, the animal is a very inoffensive one who is not dangerous for anybody and does not cause important damages to anybody. Similarly the hedgehog has been quoted by answerers for the same reasons, a little amount of food but very nutritive. Quality is the first component in their decision making. This animal is interesting because whereas it is quite innocent and vulnerable, it can sting with its spades. The example of a chicken has also been given. The pirate explained that he use to peck, there is no particular logical reason in the way he selects what he will consume. Hazard is a huge components in his choices, he watch what is available. The interesting thing with this animal is that it is very easily intimidated. You can change its habits with fear. The pirate who chose this animal answered positively to repression as an effective tool to fight against piracy. The gorilla has been selected to illustrate the habits of a heavy offender. He said that he takes a big amount of the best bananas and eat it with voracity. The gorilla is very strong and even if it has a good reputation, it could be very dangerous for men. Last but not least, the example of pork has been given. It eats in huge quantity and
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everything. It does not care about the quality, the quantity is more important. It can ingurgitate very tasty thing and awful one. It is relevant to notice that differently from the gorilla, the pork is not a wild animal. It lives only in the middle of human beings, he needs them to be fed.

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LIMITS AND CONCLUSIONS OF THE STUDY

This research has allowed us to have a wider understanding of the pirates behavior. We have seen that there are a lot of differences among them. We cannot draw a perfect profile of the movie pirate. There are numerous different forms of pirate; but it is obvious that there is a line which divides them into two categories. The Heavy pirates, the ones Vince W. Mitchell, George Balabanis Bodo B. Schlegelmilch and T. Bettina Cornwell called the heavy offenders, and the light ones. Their consumptions habits are different, even in the legal environment, their beliefs and feelings concerning the movie industry are not the same, and they do not agree on what could be the possible solution to fight against movie piracy. Identifying this duality among the pirates is very important in order to tackle the issue. Knowing them is the best way to find how to offer new consumption models and how to prevent the use of movie piracy. One the first thing learned through the research is that movie pirates are very particular and cannot be compared to other online pirates. Their number is greater and they do not have same beliefs and behaviors. Even if some individuals are part of both groups we cannot restrain movie pirates to the classical online hackers profile. Another important point raised by the study is that a movie piracy is very particular consumer misbehavior. The biggest reason is the huge number of offenders. Can we consider it as a deviant behavior when it concerns the biggest part of a population?

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Here is a possible topic for future researches, defining clearly the number of pirate and how they are accepted by the other consumers. A very sensitive idea found in the study and mainly through the interviews, is that maybe there is no real loss for the movie industry. Should we consider that all the illegally watched files represent losses of revenues for the movie industry? Indeed it seems that mainly, the pirates would not consume the file they use illegally if they had to pay for it. Moreover the heavy pirates, the ones who cost the most to the industry considering their illegal consumption, explain that actually their expenses concerning movies have increased since they use piracy. The hypothesis raised here is that in fact piracy could have a positive effect for the industry or at least that is effect is not so negative. These answerers agreed on the idea that in fine piracy has created a kind of addiction toward movie products. An interesting research could be to define clearly the change in their legal consumption thanks to their illegal one. One last interesting points provided by the study is the theory that piracy is just a phase in the consumer lifetime. All the interviewed pirates were below 30 and declared that they will decrease their illegal consumption when they have a job. It fits with the quantitative research results ordered by the MPAA and quoted in the first part of the study. Pirates are mainly between 16 and 24. It would be very relevant and useful to determine clearly the consumption life cycle of a pirate. Finally, the study shows a real lack of communication concerning piracy but essentially about the new products available such as legal downloading, even 3d movies, etc

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REFERENCES
- CNC Info n283 Bilan 2001 Vido et internet http://www.clubic.com/actualite-153672-cnc-gfk-ventes-dvd-baisse.html - Le march du DVD en Allemagne et la place du film tat des lieux

trimestre 2005 Ambassade de France Bureau de laudiovisuel - New York Time Le DVD se fatigue

http://technaute.cyberpresse.ca/nouvelles/200606/21/01-14601-le-dvd-sefatigue.php - Variety Relic in pic pirates http://www.variety.com/article/VR1117913062.html?categoryid=1009&cs= 1 - An empirical study of Software Piracy by Eric Kin Wai. Lau Business Ethic : A European Review - Factors that Influence the Piracy of DVD/VCD Motion Pictures Chih-Chien Wang, Ph.D., National Taipei University, Taiwan. The Journal of American Academy of Business, Cambridge March 2005 - Thorsten Hennig-Thurau, Victor Henning, & Henrik Sattler Consumer File Sharing of Motion Pictures. Journal of Marketing 2007 - Thorsten Hennig-Thurau, Victor Henning, Henrik Sattler, Felix Eggers, & Mark B. Houston The Last Picture Show? Timing and Order of Movie Distribution Channels. Journal of Marketing 2007

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- Why Are People So Prone to Steal Software? The Effect of Cost Structure on Consumer Purchase and Payment Intentions. Joseph C. Nunes, Christopher K. Hsee, and Elke U. Weber. Journal of Public Policy & Marketing 2004 - Social construct and the propensity for software piracy C. A. DEPKEN* , I I and L. C. SIMMONSz. Applied Economics Letters 2004 - Entertainment Industry Market Statistics .MPAA 2007 - What is consumer behavior Ronald A. Fullerton, Girish Punj, Advances in Consumer Research Volume 24, 1997 - Deviant Consumer Behavior, George P. Moschis, Dena Cox, Advances in Consumer Research, 1989 - Consumer ethics: an application and empirical testing of the Hunt-Vitell theory of ethics, Scott J. Vitell, Anusorn Singhapakdi, James Thomas, Consumer behaviour; Ethics; Decision making; Consumer marketing, 2001 - Measuring Unethical Consumer Behavior Across Four Countries, Vince W. Mitchell George Balabanis Bodo B. Schlegelmilch T. Bettina Cornwell, Journal of Business Ethics, 2008 - Consumer misbehavior: why people buy illicit goods, Nancy D. Albers-Miller, Journal of Consumer Marketing, 1999 - The Field Behind the Screen: Using Netnography for Marketing Research in Online Communities, Robert V. Kozinets, Journal of Marketing, 2002
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- How Consumers Consume: A Typology of Consumption Practices, Douglas B. Holt, Journal of Consumer Research, 1995

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