We all know that piracy has a negative effect on numerous businesses in the market, especially in the music and cinema business. With the increase in the number of pirated CDs, DVDs and movies, a lot of people are resorting to these products since they are readily available at an affordable price unlike purchasing the original products that are quite expensive. Aside from that, with the convenience offered by the Internet, people can easily download the latest music tracks and movies right in their computer for free and without any charge. With this kind of convenience and absolutely free from any charge, who would not want to avail of this privilege?

Piracy is already banned in almost all countries worldwide. Unfortunately, with the passing of laws on piracy, it still continues to thrive in underground markets where all of people are still purchasing them. As a result, the demand for pirated goods is still on the rise and cannot be easily tracked down by the government.

With free access to the latest movies and music tracks, piracy has a profound effect on the music and cinema business. Despite the claim of the music and cinema business on the negative effect of piracy, it was proven in several studies that the piracy of the latest movies through Internet sources does not affect the box office returns or serves as a threat to the cinema business. As part of the studies, it was proven that there is a link between illegal movies downloads and the movie revenue in the international cinema business, which was due to the long release time of these movies. It was even hypothesized in one study that the international cinema losses due to piracy was interconnected to the long delay of the movie premieres. It simply means that there is a big impact on the international cinema business once the release of the movies are delayed in that given cinema business.

As a result, once the release of the movies is delayed, it results to low box office returns since people resorted to the pirated versions of the movies that were delayed. We all know that people are excited at the prospect of an upcoming film and could no longer wait, thus they opt to watch them by downloading free versions or purchasing pirated CDs or DVDs.

To sum it all up, piracy of the latest movies does not directly affect the box office returns as well as leaving a huge dent on the cinema business.