Premise 1: Movie pirating, a major concern to film studios.
Premise 2: When pirating sales high, huge loss of revenue to studios from full pay viewers.Conclusion:
A low level of pirating sales during a specific period, a fairly reliable indicator of an economic downturn in the movie industry as a whole during that period.
As per the first two premises if the pirating sales are low then there should be more revenue for the studio while the conclusion is just opposite of the two premises and says the low pirating sales indicate economic downturn in the movie industry. Now, we are asked to resolve discrepency in the argument.
Choice B is only option. If pirates target only the blockbusters then there is loss but if they dont target the non-blockbusters then their sales would be less. So, loss to studios will not be because of pirates rather than from less blockbusters.
Movie pirating, the illegal videotaping of a new theater release and subsequent selling of the tape on the black market, is a major concern to the film studios that produce today's mainstream movies. When pirating sales are high, individual studios whose movies are being taped and sold illegally lose a large amount of revenue from black-market viewers who would otherwise pay the full theater price. A low level of pirating sales during a specific period, however, is a fairly reliable indicator of an economic downturn in the movie industry as a whole during that period.
Which of the following, if true, most helps to reconcile the discrepancy noted above?
(A) The film studios that produce today's mainstream movies occasionally serve as distribution outlets for smaller budget independent films that are also susceptible to pirating. [New info is added but it doesnt hit the bottomline to connect the loss and econ downturn. Incorrect]
(B) Movie piraters exclusively target blockbuster hits, the existence of which is inextricably tied to the financial success of the movie industry during any given period. [Correct]
(C) Most movie piraters use small, handheld video cameras that are specially designed to record images in the darkened environment of a movie theater. [Irrelevant. Incorrect]
(D) The five largest film studios take in a disproportionate amount of movie revenue compared to hundreds of smaller and independent film studios, regardless of whether pirating activity during a specific period is high or low. [So, what? Even when there was high pirating sales still these studios derive large share. Their revenue is because of the movie they produce and not other movies by small studios. Irrelevent info. Incorrect]
(E) A movie pirater who is highly active in selling movies on the black market can sometimes make a full living doing so, while a less active pirater will usually have to supplement the income generated from pirated movies. [Irrelevant. Incorrect]
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