from Amazon
Wednesday, September 02, 2009
Loss from piracy
Here’s one who gets it:
The team used the game and surrounding publicity to help educate people on the SARS virus. While the team cited nearly half a million dollar loss (from the potential revenue lost from selling $1 tickets), the $48,000 gate was really only about $160,000 less than the revenue for an average game.
This is why I don’t listen to the “opportunity cost” of piracy and other thefts. As this author correctly pointed out, the Jays were averaging $200K in revenue on tickets. Therefore, they can’t then say that they lost $10 per ticket times 48,000 fans in this promotion! Indeed, if they somehow managed to attract even MORE fans (say 200,000 total if they could fit them), and taking in $200K in tickets, the Jays would have instead said they lost 2 million dollars!
You get the same kind of “losses” being reported for online piracies. Not every download was an otherwise sale. Perhaps 1% or 10% of those illegally downloading things would have bought the item anyway. For the other 90% or 99%, they would not have bought the item anyway. That is not a “loss” to the company.
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