As rich as it might seem for a studio amassing millions of downloads a month to dictate to the rest of the industry where it should stand on piracy, there's no doubt the success of Angry Birds has made Rovio a prime target.

Indeed, comments made by chief executive Mikael Hed reveal not only are the studio's apps being pirated, but also its merchandise - an area the studio is increasingly looking to make a large share of its revenue from.

Learning lessons

As tempting as it might be to protect all areas of its business, however, Hed told the audience at the music-oriented Midem conference in Cannes that studios must not follow the music industry's initial example.

"We could learn a lot from the music industry, and the rather terrible ways the music industry has tried to combat piracy," said Hed.

"We took something from the music industry, which was to stop treating the customers as users, and start treating them as fans. We do that today: we talk about how many fans we have.

"If we lose that fanbase, our business is done, but if we can grow that fanbase, our business will grow."

Channelling the money

Hed believes unless the product in question actively damages the brand, there's little point in challenging its existence. Indeed, in the most, it's likely to expand the game's reach.

"Piracy may not be a bad thing: it can get us more business at the end of the day," added Hed.

The trick, said Hed, is to think of games as a channel to more money, rather than the be all and end all.

"Already our apps are becoming channels, and we can use that channel to cross-promote – to sell further content," he concluded.

"The content itself has transformed into the channel, and the traditional distribution channels are no longer the kingmakers."

[source: The Guardian]