Movie pirating, the illegal videotaping of a new theater release and

Question

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.

(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.

(C) Most movie piraters use small, handheld video cameras that are specially designed to record images in the darkened environment of a movie theater.

(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.

(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.

This is a  CR Butler Question

Check the links to other Butler Projects:
 
  Data Sufficiency Butler  
  Problem Solving Butler  
  Reading Comprehension Butler

kb26 · Answer

The argument is when there is high piracy then there is huge revenue loss to the movie industry. And, when there is low piracy then author says there is actually economic downturn in the movie industry. So, the option need to explain why is economic downturn of movie industry related to piracy level. And, option B explain that piraters target blockbuster hits which determine the success of movie industry as a whole.

A. Argument is not about small or large films piracy. so rejected.
C. Argument is not about the camera used for piracy.
D. Argument is also not about which studio makes more money.
E. Argument is also not about the status of livelihood of a pirater.

So, all these 4 can be safely rejected. Ans. is option B.

vasu1104 · Answer

movie pirating is major concern to the film studios.
when pirating sales are high, movie studios lose a large amount of revenue from such pirating because people otherwise would have come to watch movie to theatre had piracy not happened.
when pirating sales are low, the movie industry is in economic downturn as whole.

A this tell that big studios occasionally play role of distributor for small independent film. but thats the one of activity of studios that we are not concerned about it. out.
B this easily explain the paradox. piraters typically targets big hits on which whole industry is dependent on. so now when they do piracy of some other movies, it means industry is in downturn. this clearly helps. keep
C we dont care how piraters are recording movie in theatre. out.
D this is comparing revenue share between few big studios and large small studios. but no mention of why piraters activity affect the financial health of industry. out.
E not concerned with living capabilities of some piraters. out.

choice B

dhart · Answer

The pirates tape blockbusters are they have hight sales reconciles the discrepancy that pirates film movies and cut the revenues of theatres and not during downturn as there is low demand

Vivek1707 · Answer

The apparent contradiction is: high piracy hurts individual studios, yet low piracy signals an industry-wide downturn.
A. Incorrect — Independent films being pirated doesn't explain why low piracy indicates a downturn.
B. Correct — Piraters target blockbusters, and blockbusters are closely tied to the overall industry's financial health. So when the industry is doing poorly, there are fewer successful blockbusters to pirate → low piracy can signal an industry downturn.
C. Incorrect — This only describes the equipment piraters use.
D. Incorrect — Revenue concentration among large studios doesn't explain the relationship between piracy and industry-wide downturns.
E. Incorrect — This describes how much piraters earn, not why piracy levels indicate the health of the movie industry.

counterclash1 · Answer

Correct Answer: (B)
 
Paradox Breakdown:
- Fact 1: Piracy steals theater revenue from individual studios (Piracy = Bad for studios).
- Fact 2: Low piracy corresponds to an economic downturn for the entire industry (Low piracy = Bad for the industry).

Why would low piracy accompany bad times for legitimate studios?

Option (B) provides the missing link:
Piraters only bother to pirate big blockbuster hits, and the health of the entire movie industry relies on these same blockbusters. 
- When there are great blockbusters: Industry thrives, and piracy is high.
- When there are no blockbusters: Piracy drops to near zero, and the movie industry experiences a downturn.

Hence, low piracy is simply a symptom of a drought in blockbuster hits.

Bunuel · Answer

KAPLAN OFFICIAL EXPLANATION:

Here's a difficult paradox to resolve. Our first task is to understand the discrepancy. The author tells us that a high volume of pirating sales causes studios to lose a great deal of money. However (a "contrast" Keyword which signals the discrepancy in the stimulus), a low volume of pirating sales generally indicates a period of economic weakness in the movie industry.

An 800 test taker keys in on structural signals that illuminate the author's purpose. Words such as but and however signify contrast and are especially important because they tell us that a twist is upcoming.

Why does a low level of pirating sales, which would seem to benefit the industry, actually signal a period of economic weakness in the industry? This is the question that we need to answer, so let's proceed to the answer choices.

(A) doesn't address the issues involved in the discrepancy, focusing as it does on whether these studios distribute smaller films.

(B) is correct because it creates a direct connection between pirating and the financial success of the entire industry. If pirating is related exclusively to big hits, then a low level of pirating signals a lack of blockbuster hits, in which case it's more understandable how a low level of pirating would correspond to periods of economic downturns in the industry.

(C) is off base, focusing as it does on the methods of pirated tape production and not on the connection between pirating and the economic health of the movie industry.

(D) is similarly off base, since it offers a comparative analysis between the largest and not so large studios, which isn't a comparison relevant to the original discrepancy.

(E) gives us information about the profitability of selling pirated movies, which may be interesting but doesn't explain why low pirating sales would signal an economic low point in the entire movie industry.

An 800 test taker identifies the primary issues involved in complex discrepancy questions, and then searches for a choice that addresses those issues while eliminating choices that violate that scope.

Movie pirating, the illegal videotaping of a new theater release and

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

­Movie pirating, the illegal videotaping of a new theater release and

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

Movie pirating, the illegal videotaping of a new theater release and