ABSTRACT ALEXANDRA CORVINO: The Threat of Piracy to the Film Industry and How to Combat Movie Theft Film piracy is defined as: Obtaining movies by either purchasing or acquiring an illegally produced VHS/DVD/VCD through a commercial source, making illegal copies for oneself, receiving from a personal source an illegal copy of a legitimate VHS/DVD/VCD, downloading them from the Internet without paying, or acquiring hard copies of illegally downloaded movies. This work focuses on the effects of piracy on the film industry and methods to combat movie theft. Film piracy affects numerous facets of the entertainment industry, as well as numerous seemingly unrelated industries. Pirates can be anyone and everyone, as increasing technology makes it easier than ever to illegally obtain a copy of a film. Movie theft constitutes an immense threat to the financial structure of studios, the domestic and international economy, and the film industry in its entirety, including the careers of everyone involved. In addition, movie distributors are forced to change their strategies by utilizing the Internet, advanced technology, and the larger global economy, in order to make a profit. Finally, in order to ensure a film's worldwide success, Hollywood studios have to change their marketing techniques by participating in digital promotion and by catering to the international market. This work discusses a variety of methods that studios have implemented as an attempt to combat piracy, such as reducing the price of movies, educating consumers on the ethical dilemma, enforcing copyright laws, and utilizing advanced technology. However, none of their efforts have proved successful. In order to combat piracy once and for all, studios must restructure their business models entirely.