millennials and piracy€¦ · millennials and piracy.behaviour trends and future planning. page. 4...

E-BOOK

Millennials and Piracy Behaviour, trends and future planning

protect your digital assets

Millennials and Piracy. Behaviour, trends and future Planning.

Millennials and Piracy. Behaviour, trends and future Planning.Page. 3

Index

— intro .........................................................................................................................................................— application............................................................................................................................................— part one: Who are Millennials? ................................................................................................... — Why Millennials are so important .................................................................................... — how are Millennials different? ......................................................................................... — some quick stats ................................................................................................................... — digital Behaviour ..................................................................................................................... — social Media............................................................................................................................. — Millennials and on-demand .............................................................................................. — sharing info online.................................................................................................................— part two: Millennials and piracy..................................................................................................... — piracy streaming trend.......................................................................................................... — Why pirate films?..................................................................................................................... — attitudes towards piracy ......................................................................................................— part three: generation free........................................................................................................... — the future beyond Millennials ............................................................................................ — implications and discussions ............................................................................................ — recommendations.................................................................................................................

4568910111212131416171819202122



Intro

this ebook aims to explore Millennials and their relationship with piracy. it aims to provide evidence that Millennials' attitude to piracy and digital behaviour is different to previous generations. this compilation of studies will demonstrate the trends and changing relationship of Millennials and media consumption.



Application

Millennials will be the next decision making generation and a change of tactics will be required to combat piracy effectively. this information will allow media industry professionals to recognise what changes in attitudes are taking place and why that is. Compiling the behavioural and trend based studies will allow companies to future plan their anti piracy campaigns and tactics. it will become clear that some strategies will be much more effective than others when it comes to preventing Millennials pirating media.

PART ONE:Who are Millennials?



Who are Millennials? A generation of growing influence

While there is some difference of opinion, Millennials are generally regarded as people born between the mid 1980’s and the late 1990’s. people of this age range will be in their early 20’s to early 30’s currently (1) Millennials are characterised by a few distinct factors that differentiate them from previous generations. Millennials are changing the digital landscape and culture-technology relationship.

they are the first generation to have grown up emerged in technology and are sometimes referred to as the ipod generation, as a result Millennials are by far the most comfortable and tech savvy generation to reach adulthood (2). this doesn’t imply that they are more intelligent but simply they are quicker to use, master and seek solutions in technology. this has caused some experts to call this generation “digital natives”(3).



Why Millennials are so important?Different behaviours and attitudes

Millennials are currently the u.s’s largest generation and are now more than just the youth population.

the oldest Millennials are 35 and will soon be making high level decisions and could make some dramatic changes in ways of thinking, working and purchasing (4). Within the next 5–10 years they will be exerting their influence on younger generations, Millennials social norms will become the new standard by which society is measured. this is significant for business as they will soon direct corporate decisions, make law and increase in spending power (5). in regards to piracy it’s important that media producers and copyright owners recognise the values and attitudes of Millennials towards piracy and adapt their strategy accordingly, something we will discuss in further detail after examining the research on the cohort.

Millennials are between20-35 years old



How are Millennials different?Collaboration, trust and knowledge

several studies have found that Millennials’ online behaviour is fundamentally different from older internet users. the university of California revealed what they call the “Millennial rift”, which shows the distinct difference in online behaviour and core values between Millennials and groups who are a few years older (6). in general Millennials are more willing to allow access to their personal information and are more prone to share and collaborate with other users and business in return for tangible benefits, this may be important for future anti-piracy schemes.

other studies have found Millennials are more tech savvy and tech trusting, meaning keeping pirate sources off the first google page is no longer enough. they have different regards for rules and laws than previous generation especially in relation to sharing of information and online activity (7). a combination of these differences in core values and digital behavioural habits make Millennials more open to and competent at pirating content.

The Millennial Rift



Some quick stats

average number of people regularly contacted via social media

Millennials 18 35+ 5

Willing to trade personal information in exchange for relevant ads

Millennials 25% 35+ 19%

visit social networks several times a day


Willing to share location with companies to receive nearby offers and deals


stats from: usC annenberge Center for digital future 2015 (4)



Digital behaviourPositive about tech, unsure about the law

as mentioned Millennials’ online behaviour is fundamentally different from the previous generations' and it is also changing. it’s important to recognize the differences within the Millennials group. the generation is now reaching adulthood and spans ages from 20-35, within this we have young families, graduates, people in full time education and people living with their parents. this influences media consumption; for example Millennials who are starting a family use on-demand tv services much less that those who are living alone, however still more than those in previous generations. although behaviour may vary among the age segments there remains a clear digital divide between Millennials and the rest of adult society.

Millennials use more tech and are more positive about its impact and possibilities (8) figure 1 & 2 below highlight these differences. their digital behaviours can be summarised in three key areas, social media, information sharing and on-demand/streaming media and all have a significant impact on piracy.

figure 1

new technology makes life more complicated new technology makes life easier

figure 2

Millennials outpace older americans in technology use

INTERNET bEHAvIOuRS

CREATED SOCIAl NETWORkINg PROfIlE

WIRElESS INTERNET AWAy fROM HOME

POSTED vIDEO Of THEMSElvES ONlINE

uSE TWITTER

Millennial(18-29)

%

75

62

20

14

gen X(30-45)

%

50

48

6

10

boomer(46-64)

%

30

35

2

6

Silent(65+)

%

6

11

1

1

all Millennial

gen X

Boomer

silent

26 64

18 74

30 60

21 69

36 50

(Source: PewCentre Reseach, 2010)

Millennials look to tech and the internet to solve problems and satisfy wants; from movies to relationships.



Social Media

Millennials spend more time on social media than older generations, share more information on it and use it as a source of information. it’s well documented that Millennials are avid users of social media (9), however social media is changing for Millennials as it’s now a means of consuming content. some studies suggest as much as 88% of Millennials will use facebook as a source of news at some point (10). this trend continues for other forms of media, it has been reported that people are now streaming movies and tv shows directly to facebook and although the site is cracking down on this, it may become a significant future problem (11).

Millennials and On-Demand

Millennials vary from older generations in their media consumption habits, over 73% use a laptop or PC to watch media (TV or Film) (12), this number drops dramatically in the 35 - 45 age range.

the vast majority of Millennials' media consumption time is spent using streaming services, only 25% of their media consumption time is used on linear media like tv. Streaming has risen by 15% in the past 4 years across all demographics, however there is a clear divide with early adopters tending to be under 34. for Millennials, 36% state that netflix is now their first choice for media consumption (13). this trend has been reinforced by a number of studies examining the media consumption habits of Millennials (14) (15). legitimate streaming sites such as hulu, netflix and amazon are already starting to overtake traditional payment tv services (16). in the u.s. more than 71% of young adults use or have used a streaming service (17). streaming is now the new norm and Millennials are accustomed to having movies and tv shows available when they want. this trend has had a significant impact on piracy, as on one hand, netflix and other streaming services would appear to be legitimising the “on-demand” needs that Millennials have, on the other, one could argue that it is making the process of searching for and streaming movies normalised. While in the past searching for and watching movies and tv shows online was a purely illegal activity, for Millennials these lines are now blurred. in fact, netflix themselves stated the relationship between piracy and legal online streaming is symbiotic, in that populations accustomed to watching content online are more likely to pay for a legal service, but also more likely to pirate films if they are not available legitimately (18).

Use a laptop or PC to watch media (TV or Film)

state that Netflix is now their first choice for media

consumption

of young adults use or have used a streaming

service

73%

36%

71%



Sharing info online

some have called the Millennials the sharing generation, due to their comfort with social media and their willingness to share information. this pro-sharing mentality has had serious implications for media networks, as people use peer to peer torrent sites to share pirated content. Combine this with knowledge sharing, in the form of videos or blogs on how to side step piracy blocks and avoid the piracy pitfalls, has led to the current piracy savvy generation (19).

streaming legally has been the major leap forward for media consumption in recent years, however even within this, Millennials blur the lines between what is legal consumption and what is piracy. for those Millennials who use a streaming service, ¾ are using a shared password among friends or family (20).

although, 42% who do share their password only do so with their immediate family. While some streaming services allow for multiple users on one account, none permit sharing your password with unauthorised or unregistered members (21). While this form of piracy is a not as big a threat as there is at least one subscription holder, it further serves as an example of Millennials disregarding the rules and viewing the digital world differently.

are using a shared password among friends

or family (20).

PART TWO:Millennials and piracy



Millennials and piracy Normalization and without consequence

Millennials are the generation that are pushing the development of and normalizing piracy. it’s clear from the above research that there are a number of factors that influence this: their pro-sharing attitude, their need for on-demand services and simply their immersion in technology. since the advent of napster in the 1990’s (the first music file sharing website) this generation has grown up with file sharing and as piracy being something you can do from your home without impeachment.

Millennials are the generation that are pushing the development of and normalizing piracy.



Piracy streaming trend

steaming is now the main form of consuming media for Millennials, both legal and illegal. torrents were the previous form of pirating films but now streaming is by far the most popular. there are an estimated 78.49 billion visits to film and tv piracy sites every year. of this number approximately 57.84 billion are visits to streaming sites. While torrents are still significant they are only the second most popular form of piracy and are in decline; they have seen an 18% drop in use in the past year (22). Apps such as Popcorn Time or Showbox have copied the Netflix/Hulu on-demand layout and stream to high-quality pirated copies of movies, this fits exactly with Millennials on-demand needs in a familiar platform (23).

piracy dramatically varies across the world, however europe is the continent with the highest piracy levels as a proportion of population with internet access (11). from these nations a reported 69% of young Millennials have used a form of video piracy at some point (17).

from that 69% here is how they consume the pirated content:

as figure 3. shows, desktop steaming is only just in the lead, the future of illegal streaming is in mobile apps and high quality piracy, which is much more difficult to defend against.

(Source: Anatomy Media 2016)

figure 3

Check all of the ways you watch content without paying for it.

desktop streaming

Mobile apps

torrenting

42%

41%

17%

78.49 billion visits to film and tv piracy sites every year

Apps such as Popcorn Time or Showbox have copied the Netflix/Hulu on-demand layout and stream to high-quality pirated copies of movies.



Why pirate films?

the question must be asked, if Millennials have legal streaming services available, why use illegal options? Convenience and accessibility are the main drivers that influence how Millennials watch media (figure 4.). however, not all new films are accessible through legitimate sites, due to country specific availability or simply it’s a show/movie produced by a competing on-demand service. small scale studies that have found that a combination of availability of new movies via pirate sites and how accessible they are leads Millennials to illegal streaming options (24). this suggests that it’s probable that Millennials use a combination of both legal and illegal streaming apps, to satisfy their on-demand needs. An individual who has Netflix/Hulu or Amazon is likely to have an illegal streaming app as well. it could simply be a matter of removing the convenience element of pirate films that would prevent Millennials using them.

(Source: Anatomy Media 2016)

Figure 4

Factors that influence how young millennials watch TV or movies.

Content accessibility

Buffering

the number of ads i have to watch

device access

if it's easy to binge

none of the above

31%

24%

30%

24%

28%

14%

Convenience and accessibility are the main drivers that influence how Millennials watch media.



Attitudes towards Piracy

Most young people do not believe that movie piracy is a punishable activity. this is due to a host of factors, including the aforementioned familiarity with streaming videos, the fact they are so accustomed to having films on demand and given that piracy has been present for their entire lives (25). this attitude is maintained by the fact that there is very little social risk in downloading a film opposed to other crimes. Millennials are the most likely group to pirate a film and it doesn’t clash with their social norms (26).

the above studies show how the move to streaming adds to the complexity and duplicity of Millennials view on piracy. figure 5. reinforces this point; only 18% of Millennials in this study felt that streaming without paying was wrong (it’s important to note that wrong is a different concept from illegal). figure 6. frames the question in terms of legality and it's clear that many Millennials will accept that piracy is technically illegal. other studies also suggest that Millennials reject the notion that piracy is a punishable crime or is morally wrong (27).

these opinions are formed due to the normalization of piracy, familiarity of streaming and its ephemeral state, in that they do not own the movie. There is a clear divide in the mind of Millennials between morality and legality, what they consider illegal doesn’t always affect what they believe is socially wrong to do. this highlights an interesting area of discussion in the perceived impact of pirating amongst Millennials.

figure 5Young's Millennials' attitudes

Believe it is wrong to download content without paying

Believe it is wrong tostream content without paying

37% 18%

figure 6percentage of Young Millennials Who Believe piracy is legal

Believe downloading & streaming piracy are legal

Believe downloading piracy is illegal, but streaming piracy is rot.

Believe downloading & streaming piracy are illegal.

24% 43% 33%

PART THREE:generation free



The future beyond Millennials Piracy could worsen

the future of piracy will be played out on streaming platforms and through smartphones. apps and high quality piracy will drive the habit further into Millennials and the next generation (generation Z). We have already seen the number of smartphone and app uses of illegal streaming increase by 8% alone in 2016 and generation Z appear to favour apps for tablets/smartphones over websites and laptops (28).

Mobile apps are clearly the future, the industry has surpassed desktops for media consumption in recent years and continues to grow. this will only begin to snowball as generation Z exert more of their influence on the market (29).

generation Z seems to be taking the lessons learned from Millennials and continuing their work. studies have found that they are learning from the behaviour of Millennials and expanding on them (30). a recent study found that piracy among 12 - 17 years olds in australia has almost doubled in the past year, an estimated 31% of young australians are using pirate apps or websites (31). this has caused the australian industry some alarm.

“If we cannot solve the piracy problem there will be no Australian films — zero,” (Graham Burke, Village Roadshow executive, 2016)

We know that generation Z are even more likely to seek tech solutions than Millennials and it’s fair to assume that there will be no cultural change in attitudes towards piracy. in fact, researchers suggest that while Millennials have had to navigate the changing modes of piracy, generation Z (those aged 5-19 at the moment) have simply grown up with the format ready to use. some researchers have forewarned media industries that the next 5 years will see the advent of “Generation Free”, an entire generation not accustomed to paying for music, movies or tv (32).

young Australians are using pirate apps or

websites

31%

Piracy among 12 — 17 years olds in Australia has almost doubled in the past year.

The future of piracy will be played out on streaming platforms and through smartphones.



Implications and discussion A change of tactics is required

the implications for businesses are significant. What is clear is that while there is some ambiguity over the legality of streaming for Millennials, it doesn’t seem to matter - just because it is illegal they do not regard it as wrong. Millennials have different values than previous generations, so this implies that pushing governments for stronger legislation against those who watch pirated material may not be a rewarding tactic.

in addition, punishing individuals is costly and not very effective. the music industry learned this and in fact, it could reflect badly on the company that does so, given the sheer spread and normalization of piracy (33). last year hBo sent warning letters to individuals who pirated episodes of their series and while this has had a small impact, this requires network cooperation and is cost heavy in both time and money, while results remain unclear (34).

educating Millennials about piracy as an “illegal activity” is unlikely to be effective as a future campaign or strategy, as Millennials are clearly aware, in some capacity, that they are breaking the law however feel there is no moral obligation to stop.

netflix, amazon and hulu will not fix this problem by themselves. these sites are helping Millennials make the correct choice however, with a generation now accustomed to steaming and with the improvements in piracy sites and apps, it’s clear that the lines between legal and illegal streaming are being blurred in the minds of Millennials.

the evidence suggest that it likely people do both and it is convenience and movie availability that makes them switch (arguably continuously) from one to another. it’s a generational problem and a cultural norm.

We cannot divide people into those who watch pirate films and those who pay for streaming services.

Netflix, Amazon and Hulu will not fix this problem by themselves.



Recommendations Impatience could be Millennials' weak point

one option that has had a degree of success, is when organisations aggressively attack the platforms that allow steaming and not the individual users. this is costly and requires international cooperation between law enforcement, and legal experts. however this stops piracy at its source and sends a clear signal. although, mirror sites are quick to emerge and others imitating the format, such as in the KAT or Pirate Bay cases (35).

While education about the illegality of piracy is unlikely to work, education about the impact on artist, small movies and independent films could prove more effective.

given that people do both legal and illegal streaming, the quickest and most fruitful option will be to remove the convenience element of illegal streaming. More tech based solutions and closer media industry relationships with google are ways to produce this.

for smaller distribution companies tech based solutions that make links to valid streams hard to find will be an effective solution. these solutions are probably the most cost effective way to prevent piracy in the next 5 years. rather than based on finding and punishing users or pursuing the source automated solutions remove the medium of connection between them both. By eliminating the links to the video, it keeps the source and user apart. While this is unlikely to prevent piracy 100% we know that it will make it difficult for people to find videos online and as stated above, convenience is one of the key drivers for Millennials when selecting a media outlet (legal or not). Millennials are much more likely to switch to a convenient and legal alternative if it is time costly to find a working link to pirated content. Millennials on-demand attitudes have driven piracy but with the right solution and legal alternatives in place, this impatience could also be the downfall of piracy.

Millennials' impatience could be piracy's downfall.



1. [Millennials pluralists] [internet]. [cited 2016 nov 10]. available from: http://magid.com/sites/default/files/pdf/MagidpluralistgenerationWhitepaper.pdf

2. Mikoski gs. the new digital shoreline: how Web 2.0 and Millennials are revolutionizing higher education. By roger Mchaney. sterling, va.: stylus publishing, 2011. xix 248 pages. isBn 978-1-57922-460-8. $29.95. teaching theology & religion. 2013;16:e24–5.

3. thomas M. deconstructing digital natives: Young people, technology, and the new literacies. taylor & francis; 2011. 232 p.

4. rainer ts, rainer JW. the Millennials: Connecting to america’s largest generation. B&h publishing group; 2011. 288 p.

5. novak a. Media, Millennials, and politics: the Coming of age of the next political generation. lexington Books; 2016. 216 p.

6. is online privacy over? findings from the usC annenberg Center for the digital future show Millennials embrace a new online reality [internet]. [cited 2016 nov 17]. available from: http://annenberg.usc.edu/news/around-usc-annenberg/online-privacy-over-findings-usc-annenberg-center-digital-future-show

7. palfrey Jg, gasser u. Born digital: understanding the first generation of digital natives. Basic Books; 2013. 400 p.

8.[no title] [internet]. [cited 2016 nov 25]. available from: http://assets.pewresearch.org/wp-content/uploads/sites/3/2010/10/millennials-confident-connected-open-to-change.pdf

9.[social media and app use in young adults] [internet]. [cited 2016 nov 24]. available from: http://files.eric.ed.gov/fulltext/ed525056.pdf

10. how Millennials use and control social media [internet]. american press institute. 2015 [cited 2016 nov 17]. available from: https://www.americanpressinstitute.org/publications/reports/survey-research/millennials-social-media/

11. What happened when a college student streamed a new film via facebook live [internet]. fusion. [cited 2016 nov 24]. available from: http://fusion.net/story/311021/facebook-live-movie-piracy/

12. how Millennials Consume tv depends on Which stage of life they’re in [internet]. adWeek. 2016 [cited 2016 nov 17]. available from: http://www.adweek.com/news/television/how-millennials-consume-tv-depends-which-stage-life-theyre-170393

13. horowitz. Millennials stream More than half of their tv; More likely to turn to netflix for tv than live, says horowitz - horowitz research [internet]. horowitz research. 2016 [cited 2016 nov 22]. available from: http://www.horowitzresearch.com/press/millennials-stream-more-than-half-of-their-tv-more-likely-to-turn-to-netflix-for-tv-than-live-says-horowitz/

14. reid h. hulu delivers Millennials – hulu advertising [internet]. [cited 2016 nov 30]. available from: http://www.hulu.com/advertising/hulu-delivers-millennials/

15. comscore: 81% of Millennials subscribe to paid digital video service [internet]. ooyala. 2014 [cited 2016 nov 30]. available from: http://www.ooyala.com/videomind/blog/comscore-81-millennials-subscribe-paid-digital-video-service

16. spangler t. streaming overtakes live tv among Consumer viewing preferences: study [internet]. variety. 2015 [cited 2016 nov 22]. available from: http://variety.com/2015/digital/news/streaming-overtakes-live-tv-among-consumer-viewing-preferences-study-1201477318/

17. snider M. Cutting the Cord: More Millennials have streaming service than pay-tv [internet]. usa todaY. 2015 [cited 2016 nov 22]. available from: http://www.usatoday.com/story/tech/2015/12/16/cutting-cord-more-millennials-have-streaming-service-than-pay-tv/76914922/

18. Ballard B. how piracy is helping netflix succeed [internet]. it pro portal. [cited 2016 nov 30]. available from: http://www.itproportal.com/2015/06/09/how-piracy-is-helping-netflix-succeed/

19. stein le. Millenial fandom: television audiences in the transmedia age. university of iowa press; 2015. 228 p.

20. [no title] [internet]. [cited 2016 nov 22]. available from: http://anatomymedia.com/wp-content/uploads/2016/09/anatoMY_Millennials_at_the_gate_fall2016.pdf

21. tuttle B. the real rules for sharing passwords at hBo now, netflix, amazon prime, and hulu [internet]. MoneY.com. [cited 2016 nov 22]. available from: http://time.com/money/4043147/hbo-netflix-amazon-prime-share-account-password/

22. Muso. Muso’s piracy 2016 film & tv report reveals Massive 57bn streaming piracy visits - united states no. 1 for piracy [internet]. pr newswire; [cited 2016 nov 22]. available from: http://www.prnewswire.com/news-releases/musos-piracy-2016-film--tv-report-reveals-massive-57bn-streaming-piracy-visits--united-states-no-1-for-piracy-300308275.html

23. Manager C. ¿Qué son los millennial o millennials? por genetsis solutions [internet]. genetsis solutions. 2016 [cited 2016 nov 22]. available from: https://www.genetsissolutions.com/es/millennial/

24. lee BtB. Many of the most-pirated movies aren’t available for legitimate online purchase [internet]. Washington post. [cited 2016 nov 24]. available from: https://www.washingtonpost.com/news/the-switch/wp/2013/10/15/people-pirate-movies-because-they-cant-get-legitimate-copies/

25. al-rafee s, Cronan tp. digital piracy: factors that influence attitude toward Behavior. J Bus ethics. 2006;63(3):237–59.

26. Xiao Wang, Wang X, McClung sr. toward a detailed understanding of illegal digital downloading intentions: an extended theory of planned behavior approach. new Media & society. 2011;13(4):663–77.

27. Balestrino a. it is a theft but not a crime. eur J polit econ. 2008;24(2):455–69.

28. [no title] [internet]. [cited 2016 nov 24]. available from: http://trifectaresearch.com/wp-content/uploads/2015/09/generation-Z-sample-trifecta-research-deliverable.pdf

29. lipsman a. the u.s. Mobile app report [internet]. comscore, inc. [cited 2016 nov 30]. available from: http://www.comscore.com/insights/presentations-and-Whitepapers/2014/the-us-Mobile-app-report

30. schlossberg M. teen generation Z is being called “millennials on steroids,” and that could be terrifying for retailers [internet]. Business insider. 2016 [cited 2016 nov 25]. available from: http://www.businessinsider.com/millennials-vs-gen-z-2016-2

31. Corporation aB. teens illegally downloading films almost doubles in australia. 2016 oct 10 [cited 2016 nov 24]; available from: http://www.abc.net.au/news/2016-10-10/movie-piracy-12-17yos-illegally-download-films-doubles-australia/7918808

32. demasi l. “generation free”: how teens have no concept of paying for content online [internet]. the sydney Morning herald. 2015 [cited 2016 nov 24]. available from: http://www.smh.com.au/digital-life/social-radar/generation-free-how-teens-have-no-concept-of-paying-for-content-online-20150629-gi0eqr.html

33. Could you be fined for illegally streaming movies or tv shows? [internet]. the telegraph. 2015 [cited 2016 nov 23]. available from: http://www.telegraph.co.uk/bills-and-utilities/tv/could-you-be-fined-for-illegally-streaming-movies-or-tv-shows/

34. francis h. game of thrones pirates get warning letters from hBo [internet]. the sydney Morning herald. 2016 [cited 2016 nov 30]. available from: http://www.smh.com.au/technology/technology-news/game-of-thrones-pirates-get-warning-letters-from-hbo-20160509-goqeu2.html

35. times t. Kickass torrents Back online: alternative Clones and Mirrors emerge, But are they safe? [internet]. tech times. 2016 [cited 2016 nov 30]. available from: http://www.techtimes.com/articles/171380/20160726/kickass-torrents-back-online-alternative-clones-and-mirrors-emerge-but-are-they-safe.htm



Thanks for reading!

find out more about piracy and how to protect your content atwww.redpoints.com

millennials and piracy€¦ · millennials and piracy.behaviour trends and future planning. page. 4...

Documents