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Speaking Truth to Pirates

Sharing Something Online Doesn’t Mean I Would Pay For It

Two weeks ago the world got to read a European Union report on online piracy and copyright material from 2015. The report was 304 pages long and cost about USD$428,000. Its authors likely thought it would never see the light of day. Except, Julia Reda, a member of the European Parliament from the German Pirate Party, got her hands on a copy and shared its contents on social media. The report’s bombshell conclusion? “In general, the results do not show robust statistical evidence of displacement of sales by online copyright infringements”.

The report does qualify this statement, however, by saying it “does not necessarily mean that piracy has no effect [on sales] but only that the statistical analysis does not prove with sufficient reliability that there is an effect.” Specifically, the study found some limited effects on sales numbers for “blockbuster films.” 

Intuitively, online piracy — the act of taking something without paying for it — means less money for whoever is selling that which is pirated. However, this is not the only lens through which to look at this issue. 

There are two notable aspects of the report:

  1. Why the study could not quantify online piracy’s effect on artists’ bank accounts
  2. The importance its findings hold for content producers.

First the data.

It is impossible to compare the world before and after illegal downloading. The popularization of online piracy is a watershed, fundamentally changing the relationship between patrons buying art and artists creating it.

We cannot compare a purchase made in a world where piracy exists with the same purchase in a world before mainstream piracy.  There is no way to use totals from one era to extrapolate behavior in another. The numbers cannot prove with sufficient reliability the impact piracy has on sales. Which explains why the study was inconclusive.  

The study looks at the entirety of art being consumed and assumes everybody downloading content illegally would have paid for that material if not for online piracy. Colloquially, when we speak about shows that are not worth watching, we say they are “not worth the download.” It’s an expression that illustrates how my generation’s cultural industries have been shaped by piracy. Piracy breaks the connection between paying for art and experiencing it. This is acute in the age of social media, when fandom is celebrated like never before and when we can measure how many people are talking about a particular piece of art. But today, an artist who creates trending content is not necessarily compensated for making it to the charts. 

Art is an experience. The act of sharing that experience provides a way to measure its value. You pay for access. It is impossible to separate how people pay for art with how they talk about it, which means it’s impossible to look at online piracy without considering social media. Illegal downloading makes it possible to share the experience or talk about it without paying for access, while the explosion of social media conversations reveal the extent to which a piece of art captures attention. It is perfectly reasonable for artists and publishers to see significant engagement with their content on social media and wonder if those people ever paid to experience their art.  The answer is, almost certainly, no.

Illegal downloading lets people who would not otherwise pay for art still experience it. The study confirmed that this group of people represents an entirely separate audience from those that pay the full price for the same piece of art. In fact, there are cases where online piracy actually raises overall revenue by exposing more people to content and creating merchandising or licensing opportunities that would not have been available without free access to that original content.  

This is not to suggest that the combined rise of illegal downloading and social media did not fundamentally change how people buy and sell content. Though it makes intuitive sense to blame declines in publishers’ and creators’ revenues on online piracy, this study—while flawed—suggests that there are other factors. An obvious one is competition. File-sharing technology removes barriers to publishing and lets more artists reach more people than ever before. Consumers have more choice, so it stands to reason that established players would see some losses in a more crowded market.

So what are creators to do? How can they succeed in a world where some pay for content and others don’t? Maybe it doesn’t matter. The payers and non-payers collectively contribute to the online discussion, helping others discover the creative work.

Of course, it is natural for creators to consider the increased number of people accessing their work when taking into account lost revenue. The study suggests that these people are really a bonus audience, existing in addition to the core fans who will consistently pay for content. This turns online piracy into an opportunity for content producers. Rather than stealing customers, online pirates remove barriers to access. The net outcome is a larger pool of people familiar with the work, which means a larger pool of people who are potentially interested in tie-in products. It also means a larger pool of people generating more exposure through the simple act of talking about it online and offline. This is most obvious in situations where individuals who have downloaded an album pay to see the performer live in concert. 

More people engaging with your work is always a positive. Illegal downloading is not going away. While it may be hard to accept, “free” movies, music, and books should be looked at as loss-leaders instead of the core product. With online piracy removing the connection between accessing and discussing art, the burden is on publishers to distinguish between core fans who pay for art and those who download it illegally. Publishers need to convert pirates into payers through merchandise, licensing, and other revenue streams. 

This is not to say that piracy is right. But, we live in a world where online piracy is the reality, and we need to deal with that world as it exists. Campaigning against piracy risks alienating an entire generation and will likely shrink secondary audiences rather than turning them into additional revenue streams.

As fans, it is important to support our favourite creators by paying for work we enjoy. It is equally important for creators to recognize that—more and more—being a fan of someone’s work does not always mean being a paying customer.    

Far Too Soon To Waste Time Predicting The Next PM

Horse race journalism is once again the order of the day, even though the horse race is meaningless this far out from an election.

There are still two years to go until the next federal election, but last week media outlets and polling firms began releasing polls and prognosticating about who the next prime minister of Canada will be.

Horse race journalism is once again the order of the day, even though the horse race is meaningless this far out from an election.

Needless to say, a lot can and will change in two years — especially in politics. “Political pundit” might as well be a euphemism for fortune teller.

That said, it seems that while horse race journalism may sell, it also may play a negative role in our politics for a number of reasons.

First, coverage that focuses on polls and the race among party leaders starves voters of the coverage and information they need to reach independent opinions about both policies and candidates.

Second, the horse race lens portrays candidates as self-interested who focus only on winning and losing and not on what actually matters, something that has the effect of encouraging cynicism among voters.

And finally, as argued by Northeastern University Professor Matthew Nisbet, horse race journalism leads to coverage that seems to present a false equivalency in the treatment of meaningful issues and allows more readily for the emergence of so-called “fake news.”

This kind of journalism is often terribly uninformed and frequently misses the mark.

While developments over the past few months have been important, there is still a lot we don’t know, making predictions all but impossible.

For example, we do now know who will be leading the major federal parties against Justin Trudeau. We have seen a generational shift in our political leaders, and this will undoubtedly change the tenor and tone of election 2019. As well, for the first time in Canadian history, a major federal party will be led by a visible minority.

However, among the unknowns are what risks are ahead for those in politics. They face many — some they can control and some that they can’t.

Politicians can plan and predict how policy debates will roll out, they can strategize on how to best implement economic and environmental policy. But what they can’t isolate are international flare-ups, natural disasters and unforeseen domestic crises. Voters are often swayed by how politicians react to unanticipated and often game-changing events, not by the mundane and predictable policy debates.

Politicians all face a fundamental problem — how to govern and plan for the next election, but retain the flexibility to react to an unforeseen event.

Prime Minister Trudeau and his Liberal team are well aware of what is needed in the lead-up to the 2019 election. They know that the prime minister is well-liked by a solid percentage of Canadians. They are also acutely aware that about 30 per cent of Canadians — the Conservative base — would never in a million years consider voting for him.

They know that the prime minister now faces a young, hip, new progressive on the left — NDP Leader Jagmeet Singh. As a result, Trudeau will need to fight to retain a percentage of traditional NDP voters who sealed the deal on his majority mandate in 2015. To do this, Trudeau needs to pursue a firmly progressive agenda and make things right on Indigenous reconciliation and the environment. Easier said than done.

Many commentators have outlined this very game plan for the Liberals, especially since Singh and his Conservative counterpart Andrew Scheer’s secured their positions at the helm of their parties.

But it is naïve to believe that this is how 2019 will actually shake out.

Many things can and some will happen between now and then. The wild cards include:

  • A volatile U.S. president who could, without notice, fundamentally alter Canada’s economic future, trading environment, military requirements, immigration policies and international standing.
  • A North Korea, also with a volatile leader, that supposedly has the capability to strike Canada’s west coast.
  • The potential threat of the kind of domestic terrorism that has affected the domestic politics of other countries.
  • A complete collapse of the residential housing market.

And then there are the potential threats that are not even on the radar. All of this uncertainty makes trying to predict an election still two years away impossible.

So, next time you read a report or watch a panel speculating on who will win the 2019, consider the validity of what is presented and the possible negative impact such speculation may have on our politics.

And if you don’t agree, just ask Secretary Clinton.

Jaime Watt is the executive chairman of Navigator Ltd. and a Conservative strategist.

The Changing Faces Of Canadian Politics

Canada has the youngest leaders of its major federal political parties in its history and a single mother as its Governor General. The premier of Ontario is a lesbian and the premier of Prince Edward Island is a gay man.

As the seasons have changed, so too has the Canadian political landscape.

The October 2015 election of a Liberal government led by Justin Trudeau began a major shift from dominance by Baby Boomers to a younger generation. Voters chose Trudeau’s youth and optimism over the experience of the other party leaders.

Just two years later, Trudeau is now the oldest of the three main federal party leaders. Conservative Leader Andrew Scheer and newly crowned NDP Leader Jagmeet Singh are both 38, Trudeau is 45.

Scheer and Singh were chosen by their parties, at least in part, as a response to the youthfulness Trudeau brings to his leadership. The three are the youngest group of federal leaders in Canadian history.

It’s a remarkable shift, especially when contrasted with many Western democracies, whose increasingly older populations embrace greyer, more experienced leaders. (France, of course, is a notable exception.)

In the United Kingdom, Prime Minister Theresa May, 61, faces off in Parliament against Labour Party leader Jeremy Corbyn, 68.

In the United States, President Donald Trump, 71, still rails on about 69-year-old Hillary Clinton. Among Trump’s potential rivals in the next U.S. presidential election are California Governor Jerry Brown, 79, Senator Elizabeth Warren, 68, and Senator Bernie Sanders, 76.

But in Canada we are witnessing more than just a generational change.

Singh’s decisive victory last weekend raised the curtain on a new Canadian political pageant — one that is beginning to more accurately reflect the growing diversity of this country.

Growing up in Windsor in the 1980s, Singh saw a Canadian political establishment that consisted largely of white, older, straight men. It was an establishment that did not reflect him, his family or his friends.

In fact, throughout his leadership campaign, pundits and other commentators spoke or wrote in code about whether Singh’s Sikh identity could prove a challenge in a general election.

Just as Barack Obama’s victory was eight years ago, Singh’s convincing win was, at least in part, a rebuke of those whispers — whispers that likely will mean nothing to most Canadians when they cast their ballots in 2019.

Another shift came the day after Singh’s win when Julie Payette, 53, was sworn in as Governor General.

She, too, represents generational change, but she also represents more.

The institution of the vice-regal office is, of course, traditional by its very nature, and despite the dedicated efforts of predecessor David Johnston and his wife Sharon to humanize the post, and their success at genuinely connecting with Canadians all over the country, many see Rideau Hall as far removed from everyday life.

But Payette’s warm and enthusiastic demeanour is as inspiring as it is engaging. Her down-to-earth approach allows her to come across as accessible and approachable. Her ability to speak passionately and eloquently for nearly 20 minutes about our country and its future, without notes, makes her not only genuine and authentic but allows her to connect with her fellow citizens.

A former astronaut who has twice been to space and who speaks six languages, our new Governor General is an impressive person, with a long record of accomplishments. She has long been a role model.

And on Monday, in one poignant moment, Payette blazed a new trail, while at the same time reflecting the current reality of many Canadian families: she arrived at her installation ceremony as a single woman with her 14-year-old son by her side.

According to Statistics Canada, about 20 per cent of families in Canada are headed by a single parent. But until now, a single parent had never served as Governor General.

Payette also chose to affirm her loyalty, rather than swear an oath on the Bible. As religion’s role in the lives of Canadians is changing, here was another example that Canada’s leadership is more closely resembling the population.

There are other important role models whose lives and experiences mirror those of other Canadians. The premier of Ontario is a lesbian and the premier of Prince Edward Island is a gay man.

Canada is a diverse, inclusive and welcoming place. How lucky we are, and how lucky are our children, that our political leaders are beginning to look more like all of us.

Jaime Watt is the executive chairman of Navigator Ltd. and a Conservative strategist.