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Days before it was supposed to hit the theatres and take the country by storm, as one can expect from a movie that stars superstar <keyword id="14509" type="PERSON" weightage="100" keywordseo="Rajinikanth">Rajinikanth</keyword>, the upcoming movie <a href="http://www.businessinsider.in/This-is-how-people-reacted-to-superstar-Rajinikanths-Kabali-teaser/articleshow/52094618.cms">Kabali </a>has reportedly been leaked online. 
 
The leaked movie is available on the internet in parts, says a report by <a href="http://www.dnaindia.com/entertainment/report-kabali-leaked-online-2235804">DNA</a>. 
 
With this leak, the movie follows a list of other Indian movies that have suffered the piracy issue in the recent past, ranging from Shahid Kapoor starrer Udta Punjab, Salman Khan’s Sultan to last week’s release Great Grand Masti, starring Viveik Oberoi, Riteish Deshmukh and Aftab Shivdasani. 
 
It was on July 15 that the Madras High Court has banned 169 service providers from leaking the film on the internet. Moreover, a <keyword id="283584" type="PERSON" weightage="100" keywordseo="Kabali">Kabali</keyword>-themed flash mob also recently performed in a Chennai mall, with several anti-piracy messages. 
 The film has been directed by Pa Ranjith, and stars Winston Chao and <keyword id="133292" type="PERSON" weightage="100" keywordseo="Radhika-Apte">Radhika Apte</keyword> alongside <keyword id="1527407" type="ENTERTAINMENT" weightage="100" keywordseo="thalaiva">Thalaiva</keyword> Rajinikanth. 
 
<a href="http://quintype-01.imgix.net/thequint/2016-01/ddd2f219-8a04-4c4a-bf9b-729d185ae4cc/Kabali1.jpg">Image source</a>

KABALI LEAKED ONLINE

Fans of Indian superstar <a href="http://www.businessinsider.in/Heres-why-Rajinikanth-is-The-Rajinikanth/articleshow/53321524.cms">Rajinikanth</a> lined up to watch his latest release <keyword id="283584" type="PERSON" weightage="100" keywordseo="Kabali">Kabali</keyword> for shows as early as 5 am in Chennai. Even though this isn’t usual for a movie to hold its first show this early in the day, but when it comes to <keyword id="14509" type="PERSON" weightage="100" keywordseo="Rajinikanth">Rajinikanth</keyword>, who has almost achieved a godly status in the country especially in the southern parts, one can expect things to be unusual. 
 
Also read: <a href="http://www.businessinsider.in/Believe-it-or-not-Rajinikanths-Kabali-has-already-earned-Rs-200-crores-even-before-its-release/articleshow/53321571.cms">Believe it or not, Rajinikanth’s Kabali has already earned Rs 200 crores even before its release</a> 
 
The 65-year-old plays a <a href="http://www.businessinsider.in/WATCH-The-making-of-Kabali-shows-how-Rajinikanth-transforms-into-the-Don-like-a-boss/articleshow/53318907.cms">Malaysia-based don</a> in his latest release, which has its tickets sold out a week in advance. In Chennai, even when the movie show was supposed to be started at 5 AM, fans reached the theatres at 4 in the morning, to cheer and celebrate the release. There were fireworks and live music outside the theatres, with the star’s life-size cut-outs adorning the walls of the cinemas. 
 
Also read: <a href="http://www.businessinsider.in/KABALI-LEAKED-ONLINE/articleshow/53280873.cms">KABALI LEAKED ONLINE</a> 
 
Talking of the reactions, one can only expect the movie to be a super hit, given the huge popularity that the star enjoys. The response to the movie included fans wishing for a sequel, yes, on the very first day of its release. 
 
Also read: <a href="http://www.businessinsider.in/Four-offers-that-prove-that-Rajnikanths-Kabali-fever-has-spread-all-over-India/articleshow/53304213.cms">Four offers that prove that Rajnikanth’s Kabali fever has spread all over India</a> 
 
The roads are stranded in Chennai and Bengaluru, with people taking the <a href="http://www.businessinsider.in/Kabali-fever-These-companies-just-gave-their-employees-a-day-off-to-watch-Rajnikanths-new-movie/articleshow/53300870.cms">day off </a>to watch the movie, or just celebrate the release in their own manner, like festivals. 
 
After all, Rajini sir's movie release is nothing less than a festival for his devotees (read fans).

Kabali at 5am, house full in Chennai theatre

The media has been buzzing with news of leaked copies of '<a href="http://www.businessinsider.in/searchresult.cms?query=Udta+Punjab&amp;sortorder=effectivedate">Udta Punjab</a>' and 'Great Grand Masti'. Both FCAT copies, <a href="http://www.businessinsider.in/searchresult.cms?query=Rajinikanth&amp;sortorder=effectivedate">Rajinikanth</a>'s blockbuster <a href="http://www.businessinsider.in/searchresult.cms?query=Kabali&amp;sortorder=effectivedate">Kabali</a> met the same fate. Several websites had full links that could be used to view and download a pirate’s copy. India’s <a href="http://www.businessinsider.in/searchresult.cms?query=Bollywood&amp;sortorder=effectivedate">Bollywood</a> film industry, the largest producer of films, is severely threatened by physical and <keyword id="577158" type="UNKNOWN" weightage="80" keywordseo="online-piracy">online piracy</keyword>. 
 
Believe it or not, 2015’s big release <a href="http://www.businessinsider.in/searchresult.cms?query=Baahubali&amp;sortorder=effectivedate">Baahubali</a> took the maximum hit. With 1,485 active piracy links of the SS Rajamouli film available, the film has been downloaded illegally 24.76 lakh times. The total revenue loss in these 17 months to the Telugu film industry stands at a whopping Rs. 1,064 Crores. To expect these guys to face such losses and still tell us why Katappa killed <a href="http://www.businessinsider.in/searchresult.cms?query=Baahubali&amp;sortorder=effectivedate">Baahubali</a> is crazy. 
 
The numbers are mind-boggling to say the least. "Some unofficial estimates show that the overall revenue loss to the Indian Media and Entertainment industry is close to $ 2.5 billion”, Rajkmar Akela, Chairman, Anti Video Piracy Cell, Telugu Film Chamber of Commerce said. 
 
In 2014, India was listed in the International Piracy Watch List by the US. This is a list of four countries where piracy is rampant. However, few seem to care. The number of piracy cases registered in India reduced by just 10% this year as compared to 16% in the Asia-Pacific region. 
 "India's film industry - the economic contribution of the creative economy and creative sectors in India is limited. Issues like copyright infringement, <keyword id="54502" type="UNKNOWN" weightage="40" keywordseo="Film-piracy">film piracy</keyword>, cam cording and content leakage weaken the industry by hampering the deserved revenue production. Economies with supportive copyright protection are at least 30% more likely to have larger and more dynamic content and media sectors than are countries with less favorable IP regime", Mr. Patrick Kilbride, Executive Director, International IP, Global Intellectual Property Center, U S Chamber of Commerce said. 
 With increased penetration of technology and internet in India, piracy through online distribution is expected to continue to be a major source of revenue leakage if immediate steps are not taken to stem this flow of cash. Part of the issue is that legitimate means of digital viewing are still emerging in India. <keyword id="128682" type="COMPANY" weightage="80" keywordseo="Netflix">Netflix</keyword> came in late, and with not many Tier II and Tier III enjoying quality 4G coverage, downloading it using torrents or buying from a local DVD seller just seems easier. 
 “How to grow movie-goer base in the face of growing satellite penetration and piracy remains the bigger and more fundamental challenge”, Ajit Andhare, COO, <keyword id="1194637" type="COMPANY" weightage="60" keywordseo="Viacom18-Motion-Pictures">Viacom18 Motion Pictures</keyword> observes. 
 
This parallel black economy is also hampering innovation. Flipkart’s online music store, Flyte had to shut down a little more than a year of its launch due to music piracy. Another website Dhingana had to shut down after a long struggle. Music Store, a chain of over 100 stores in India was also shut this year due to the effects of piracy. 
 
Truth is, even with the improvements in technology, not many business models and payment mechanisms have evolved to compete effectively with the ‘free’ illegal option. The Indian film industry is waking up to the prospect of optimizing the release window only now, and making it available across platforms. Not to mention the laggard implementation of existing anti-piracy rules. 
 
“We acknowledge the National IPR Policy as a step in the right direction to protect copyright as it envisages a creative and innovative India. However, thousands of rogue websites threaten the lifeline of a film, as soon as it is released in theatres. <a href="http://www.businessinsider.in/searchresult.cms?query=Film+piracy&amp;sortorder=effectivedate">Film piracy</a> creates financial loss to our business and to the exchequer”, Mr. Uday Singh, Managing Director at Motion Picture Association said. 
 
While the economic impacts of piracy are difficult to quantify, a recent market study by FICCI looked at seven industry sectors most impacted by counterfeiting, piracy and smuggling, and found almost Rs. 73,000 Crores in lost sales in 2012 across just these seven sectors. 
 
As a saving grace, select Premium HD Channels are offering TV content to the Indian audience 24 hours of its US telecast, but are getting few takers. Hungama offers Indian film content to 47 countries through partnerships with other companies. Free online music streaming sites like Gaana and Saavn are trying their best with branding exercises. 
 
However, till expediting blocking rogue sites, tracing locations, owners, release groups involved in copyright theft and cracking down on criminal syndicates involving notorious camcorders are not considered ‘first-aid’ to any case of copyright violation, it’s difficult. 
Till then, it’s plain madness out there. 
 
<a href="http://www.digitaltrends.com/wp-content/uploads/2012/02/all-the-piracy1.jpg">Image Source</a>

India loses $2.5 Bn to Online Movie Piracy every year

That even the biggest names in the industry can’t escape piracy was proved again, some weeks ago, when the big budget Rajinikanth starrer Kabali saw its hero’s opening scene leak into the online world a couple of days before its release. The fact that this and other spoilers, including a partial copy which had been filmed by a mobile phone, did not stop the film from having a box office collection Rs 350 crores in the first two weeks, was in part thanks to fact that 15,000 <keyword id="3704432" type="UNKNOWN" weightage="100" keywordseo="Pirated-links">pirated links</keyword> were brought down within a period of one week. 
 In the case of Kabali and many other films, these <keyword id="3039670" type="UNKNOWN" weightage="100" keywordseo="pirated-copies">pirated copies</keyword> on the internet, stem usually from fans who want to put up a link for the heck of it rather than with any monetizing intent. Yet the other part of the equation also holds true as well and it brings to surface the real problem of <keyword id="577158" type="UNKNOWN" weightage="100" keywordseo="online-piracy">online piracy</keyword> that production houses face, which is believed to be causing a loss of Rs 18,000 crore to the Indian film industry and around Rs 1000 crore to the Tamil Nadu film industry. 
 Piracy has been an issue since the time of double tape decks but its infiltration and its ability to cause stress to production houses has grown exponentially in the digital age. Before <keyword id="124571" type="ORGANIZATION" weightage="100" keywordseo="digital-media">digital media</keyword>, majority of people did not have access to pirated goods and pirated products were generally of an inferior quality. Piracy online began with Napster, which was the pioneer in peer-to-peer file sharing. While Napster finally did shut down, file-sharing technologies such as Torrent continue to prevail in the digital world and make it possible and practically unstoppable for people to distribute and view pirated files online. The technology acts as a throughput, making it hard to catch people engaging in piracy, until of course the pirated file is put on a public website. 
 
In our experience we have found two main kinds of entities who upload pirated files online. First and the simpler to catch and deal with of the two, are the ones who out of sheer bravado or wanting to prove their fanatical enthusiasm about their idol, post a pirated clip or song from the movie, to showoff if they have gotten to see a Benefit Show or a Premiere or first show, as the case may be. This could also be an inside job done by someone from the production unit. They usually do not have a mercantile interest unlike the second category. This category wants to monetize the pirated copy on video-sharing websites such as YouTube or Dailymotion and is more problematic because while a claimed link can be shut down in a matter of minutes on a platform such as YouTube; Dailymotion and other websites can take hours to take down a link, making it impossible for an urgent treatment of piracy the situation which is required. 
 
Nipping piracy in the bud 
 
Whatever might be the intent, at the end of the day, leakages affect the bottom line of the investment fraternity, which has put in the money into the creative process. Our tips therefore to companies affected by piracy would be: 
 
Shut them down or partner: The vast majority of pirated links are put up by individuals or casual set-ups and a defensive strategy involves bringing them down either through algorithms or by physically scouring the web. This is exactly what we did for the producers of Kabali where in addition to amplifying and promoting the film in the digital world, our claims team took on the task of bringing down pirated links. Separately and in other cases, our team has also recommended partnering, if it is evident that the source is a recognized company and is generating a large number of views and revenue. 
 
Communicate with audiences: Having had experience of about two decades in dealing with piracy, I reiterate our advice to production houses, that piracy almost certainly is not preventable and at best can be controlled with a strong communication and execution strategy. This is a more proactive approach and involves understanding the psyche of people, existing piracy patterns, and preempting the challenges. Inform audiences of the distribution plans of the film, which will discourage them from watching pirated content. This means planning for the film to be made available online, on subscription-fee platforms such as Mango Mobile TV, which offer audiences the convenience of watching films anywhere on any device within weeks of its release. Usually films are released on platforms such as Mango Mobile TV and many more platforms to join this monetizing model, within weeks of releasing in theatres and are available for viewership at a fraction of the cost. This feeds into the need of most audiences who are price and time sensitive. The next level of dissemination is making the film available on Direct-to-Home service providers and digital cable TV providers, and again informing audiences of the same. 
 There is a never-ending charade of <keyword id="736868" type="UNKNOWN" weightage="100" keywordseo="digital-piracy">digital piracy</keyword> cases. The faster companies recognize this, the more they can do to be on top of it. 
 
(Image Source: Thinkstock) 
 
(About the Author: This article has been contributed by Rama Krishna Veerapaneni. He is the Managing Director of Whacked Out Media.)

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