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India’s internet growth gives Hollywood honchos the jitters

Broadband subscriber numbers in India are being closely watched in the US.

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Broadband subscriber numbers in India are being closely watched in the US. While the Indian government has set lofty targets for broadband user base in the country, the Motion Picture Association of America (MPAA) fears big-time revenue losses from internet piracy of Hollywood films once the broadband numbers multiply in India.

Internet piracy refers to free downloading of films on the Net, and a good broadband connection is seen as an enabler for that.    

Greg Frazier, executive vice president and chief policy officer at MPAA, is in India to meet with top government representatives from across ministries to ensure that steps are taken to prevent internet piracy much before the broadband subscriber base grows exponentially in the country.

Next week, MPAA officials would discuss issues to thwart internet piracy with the Chinese government authorities.                 

Speaking to DNA here on Monday, Frazier said, “We are meeting government officials in India with the message that piracy is not a Hollywood or an American problem. And that it’s a serious problem with global consequences.” He said that “the second message is about the emerging broadband penetration in India and its consequences.” According to him, unless steps are taken now, internet piracy would get out of hand.  As of March 31, 2009, there were 6.22 million broadband subscribers in India, a number much lower than most other parts of the world. The Indian government has set a target of 20 million broadband subscribers in the year 2010.     

Countries including France, UK, New Zealand, Taiwan, Korea and Hong Kong are taking initiatives to check internet piracy. “There are ways to monitor and track internet piracy. Local governments and cooperation from ISPs can help deal with the situation,” according to Frazier. “It’s happening all over the world, and increasingly in Asia. It doesn’t have to be a government mandate, it can bring two parties together for talks.”

When asked whether the ongoing dispute between multiplex owners and film producers was good news for Hollywood as Bollywood movies are not being released for the past few weeks, Frazier said, “I don’t think so.” He argued that audiences should go to the theatres, whether it is Bollywood or American movies. “Anything that stops moviegoers from going to theatres cannot be good for us,” according to Frazier. Hollywood films have only a 5% to 10% share in the Indian market.
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