I’m going to talk about the importance of authenticity in communications. But on the way to that point, I have to touch on movie piracy, economics and lobbying — come along for the ride!
The folks over at NBC Universal, like so much of Hollywood, have a piracy problem. (There’s a conflated problem in that much of their product is crap, but that’s a different discussion.)
So what does a big business do when it has a problem? If it’s smart, it lobbies. As Jonathan Rauch (one of my favorite policy journalists) pointed out more than 10 years ago in Reason, lobbying pays huge returns.:
In a developed economy, a marginal dollar invested in a new die-cutter or inventory-control system might produce a return of, say, 10 percent a year. Compare that with a shrewd investment in lobbying. In 1992, The New York Times reported that a handful of sugar refiners donated $8,500 to Sen. Alfonse D’Amato (R- N.Y.) and received his successful support for a tariff rebate worth $365 million–a return of about 4 million percent. Only a fool would pass up such an investment, or even the occasional shot at one. “If I throw in a million here or a million there, I might get a hundred million back,” a Washington lobbyist once told me. “And there are probably enough cases like that so they keep throwing money in.”
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