...can save themselves from financial ruin.

Given the recent events regarding SOPA, PIPA, and of course ACTA, which were strongly pushed by the MPAA (Motion Picture Association of America) and RIAA (Recording Industry Association of America), many of us are wondering what will become of the entertainment industry. The main reason why the MPAA and RIAA lobbied so hard for this destructive legislation is because they claim internet piracy is cutting into their profit. I'm not a business expert, but in my opinion, the list of action they would have to take to salvage their business is pretty short. Here it is:

1. Apologize and mean it. This is the most important step. Many consumers are refusing to buy movies/music because of the MPAA and RIAA's corrupt business practices, or are at very least drastically reducing their consumption. Many consumers view them as greedy bullies. This needs to change. A business' greatest ally should always be it's customers, and it all comes down to respect. If you respect them, they will respect you. They are who supply all the money, they need to feel good about what they're buying, and who they're buying it from. If a company doesn't respect it's customers, it becomes the abusive partner in a dysfunctional marriage, and this needs to be remedied before any other steps are taken. I'm not talking about making some half-assed commercial about how things are getting better, people can see right through that. I'm talking about a genuine, serious apology to the consumers the MPAA/RIAA depend on, with a true sense of regret and intent to change. Then, and only then, will people start listening. Otherwise they won't pay attention to any of the following steps.

2. Change ethics practices. No more lobbying for legislation. Changing your political climate to fit your floundering business practices is not only evil, it's also wasteful and stupid. According to Politico.com, the entertainment industry has spent $91 million for legislation changes last year alone, based on data from the Center for Responsive Politics. Not only that, but MPAA CEO Chris Dodd threatened to stop giving money to politicians who oppose Hollywood driven legislation. Apart from the clear bribery/blackmail implications, that likely means that even more money is being spent under the table. This is anything but smart business practice. Millions and millions of dollars thrown away because consumers don't want the service the entertainment industry is selling. Not only are they losing money because of piracy, their response is to dump millions of dollars into purchasing legislation that will doubtfully pass. This is like the unemployed, abusive partner in the dysfunctional marriage neglecting the other and going gambling—with millions of dollars. This step is about stopping all that. This is really a continuation of the first step. Apologies mean absolutely nothing without action. That action needs to be taken in the form of clear, no-jargon ethics declarations that both the MPAA and RIAA respectively follow as a whole. No shady business, stop bribing politicians, stop lobbying to change laws to fit your business model. The ethics statement needs to be written with the customer in mind, and truly back up the apology in step one with solid action. Again, the organizations as a whole need to follow this, no exceptions. Corporate/consumer relationships are all about respect, and ethics statements don't mean anything without it.

3. Change business practices. This is a big one, and could encompass any number of things. I mentioned in the last step that consumers don't want the service the entertainment industry is selling. By that I meant the service, not the product. Most people love movies and music, and wouldn't want to live without them. It's the service that people are ceasing to buy. Gabe Newell, co-founder and managing-director of Valve software put it best: "The easiest way to stop piracy is not by putting anti-piracy technology to work. It's by giving those people a service that's better than what they're receiving from the pirates. If a pirate offers a product anywhere in the world, 24x7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the US release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable." This couldn't be more true. The fundamental concept of business is this: If there's a need, fill it, and get paid. The modern market requires businesses to be flexible. The entertainment industry doesn't understand how the market is changing, and they won't bend to fit what their customers want. Then they lose money and get upset when their customers go elsewhere to get it, namely pirates. This is like the unemployed, gambling, neglectful, abusive partner in the dysfunctional marriage getting upset when the other divorces him/her. The solution is to change. Some people like having hard copies of their media. That still makes sense, and it gives many other businesses cashflow. But it's not what the pirates want. One of the reasons people pirate is for convenience. That's one of the reason Matt Stone and Trey Parker put up all the South Park episodes online for free, is because they were tired of having to pirate their own show. Another solution to online piracy is to give pirates not only the convenience they ask for, but also services the pirates can't give them. Pirates are competition for business, so compete by evolving. High definition and lossless quality is definitely a start, but not enough. Most modern Blu-ray players are online, give consumers a capable and easy way to stream movies straight to their TVs, like Netflix does. That's still pirate-able, but WAY more convenient. Next, something that can't be pirate-able. Think about it, what do people like? They like to be fans of popular things, and they like identifying themselves as fans. That means merchandise. Something that's not only a very profitable industry, but can't be pirated. Try including an online store that customers can only access through the Blu-ray disc/download, and offer exclusive merchandise that's only accessible through the movie itself. That idea is incredibly expandable. Also, people love to be involved with their favorite franchises. Forums and many internet sites like Tumblr or DeviantArt thrive on this. Pottermore, for example, is doing exactly that. So let people submit ideas or designs for products they'd like to see in the store. Hold contests. Update with new products constantly. Make it fun and exciting for people. Don't fight innovation, be innovative! Those ideas are just off the top of my head. The entertainment industry has entire teams of people dedicated to thinking about this stuff. They can afford to be far more innovative.

Also worth noting is that many pirates download movies and music to give them a test drive. Most people would never buy a movie or album without knowing that they'll really like what they're spending their hard-earned money on. In this case, if someone pirates a movie or an album and doesn't like it enough to purchase it, the creator of that product isn't actually losing any money, because the consumer would never have bought it anyway. The solution to this is of course to create innovative, quality products that people are willing to buy. To not rely on the recycled stale plotlines or bedazzling CG to reel in an audience, or over-produced soulless music, but rather to create real art. That's what the entertainment industry was originally all about: art. So be artists!