And they wonder why Aussies “illegally” download

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By Leith van Onselen

The Australian has published new research from Choice claiming that Australians are being charged significantly more than overseas consumers to download movies, games and television series:

Australians are paying 39 per cent more than people in the US to download the top 10 movies in Apple’s iTunes store and 33 per cent more for PlayStation 4 video games.

While Game of Thrones fans pay $50 a month for a subscription on Foxtel’s internet-based service, Now TV in Britain has a monthly subscription cost of £4.99 ($8.95).

The group did the analysis as part of a submission to the ­Coalition’s competition policy review, where it urges the removal of barriers that restrict consumers access­ing “competitively priced” overseas goods…

Choice also wants the scrapping of all restrictions on parallel imports (identical overseas products) in copyright law.

And they wonder piracy is so rife in Australia. Not only do we get fleeced when content is made available, but Australian consumers are often subject to extreme geo-blocking of digital content, which denies them access to content that is readily available internationally, or applies a specially marked-up price.

Unfortunately, Choice’s calls to free up the market for digital content is likely to fall on deaf ears within the Government. If anything, restrictions could be enhanced if the Trans-Pacific Partnership (TPP) trade deal goes ahead.

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As revealed by WikiLeaks last year, the US is seeking to enhance its geo-blocking capabilities under the TPP, and is opposing the parallel importation of goods made under authorisation in other countries, which acts to maintain higher prices. They are also seeking to place more restrictions on internet users by forcing ISPs to cooperate with copyright holders and terminating the accounts of repeat infringers.

All of which is likely to further entrench unauthorised downloading in Australia – a point argued by comedian Louis CK in the video above.

Ultimately, the key to reducing piracy is to free-up the market for content, so that purchasing it legally is as convenient as illegally downloading from the internet. This requires an end to exclusive deals and the ability to purchase content in a variety of formats from a variety of locations, as well as making it legal to convert files as one sees fit for private use.

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Both media companies and the Australian Government would do well to heed Louis CK’s advice.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.