Threatening file-sharers with high fines or even prison sentences is not the best way to stop piracy. New research published by UK researchers shows that perceived risk has no effect on people’s file-sharing habits. Instead, the entertainment industries should focus on improving the legal options, so these can compete with file-sharing.
The movie industry understood this better than the music industry. The music industry decided to try to sue everyone on the planet (including, funnily enough, themselves). The movie industry solution involved releasing movies on the same day globally, going to DVD faster after movies were out of the cinema and decreasing the price of DVDs (with them going on sale fairly quickly after). Netflix etc are also part of this flexible policy.