However, despite the common perception that
copyright-related industries are penalized by the Internet, over the past ten
years, they have shown good results in terms of performance. This trend of
general non-negative performance of copyright-intensive industries suggests
that this sector has adapted well with the continuous technological change. In
fact, as the technological progress becomes more prominent, an increasing
number of services within the copyright sector have moved on to new and
innovative business models.
Most of these business models use the
Internet as a new and efficient way for content delivery. Among all, the most
popular example is iTunes, Apple’s global digital media store that fully relies
on the Internet to deliver content. Many more businesses worldwide are based on
the same principle, including Quickflix in Australia – streaming company
offering a range of movies over multiple devices, Stingray Digital Group in
Canada – media and entertainment company, Italian Chili-TV – website for
streaming and downloads, NCSOFT Corporation in Korea – video game developer,
and Muzo.pl in Poland – online music retailer.
In addition, they take advantage of the
improved portability of content due to the widespread use of mobile devices
such as smartphones, tablets and laptops. This includes well-known services
such as Kobo – e-book readers production company from Canada, and Namco Bandai
Games – video game developer for mobile phones from Japan. For these new and
innovative business models, ad-based models and subscription-based models are
new ways to successfully generate profit, as shown by the multibillion dollar
subscription-based service Netflix.
With the advent of the Internet, the rules
for copyright have significantly changed and copyright-intensive industries
have managed to adapt quickly and successfully to the new trends. The
challenges faced were turned into new opportunities to generate revenue through
the Internet. However, the overall good performance of copyright-intensive
industries doesn’t mean that all individual sectors have yet fully adjusted. In
fact, piracy is still a significant problem.
Around the world, each economy policy makers
identifies the importance of copyright-related legislation as a tool to
maximise innovation and creativity. These legal copyright frameworks were
established prior the advent of the Internet and are now being discussed,
modified or amended in order to make them up-to-date with the current needs.
The Digital Millennium Copyright Act (DMCA) in the United States was one of the
first to be amended in 1998, followed by so-called Copyright Directive151 which
was adopted by the European Union in 2001. More than a decade later, in 2012,
the Copyright Modernization Act was passed in Canada. Currently, multiple
countries are conducting debates on that topic.