Doing Nothing

By Jimmy Hoesan

Do nothing is also one alternative that government and artists should consider. Online piracy has caused decrease in music sales by an average of 7% per year (Sinha & Mandel, 2008). This is happened to well-known artists. On the other hand, online piracy could have a strong network effects which benefits new-come artists. Some customers who pirate would have bought the music album. The result of this network effects can significantly increase the market size, therefore the customers who download music for free can benefit the artists by increasing the size of potential market (Jain, 2008). Artists could easily get famous because online piracy. Even though later on the artists’ music royalty would be decreased, online piracy was helping them to be well-known in the music industry. By doing nothing, both sides benefit each other.

IFPI said that fighting piracy should be a government job and might be very costly. According to one study, fighting piracy infringers may cost as much as £365 million (approximately US$ 596 million) per year and it will be a top problem (Anderson, 2009).

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