Can i see meredith, please . Shes decisive, impatient, and theres a look that says, im the boss, and youre boring. [ticking] decades after their demise, some departed stars draw more income than they ever made while they were drawing breath, and there is a growing legion of agents and managers willing to represent them. Were a business agent for about 250 entertainment, sports, music, and historical clients, but most of those are deceased. Dead. Dead. Theyre working stiffs. I guess you could say that. Welcome to 60 minutes on cnbc. Im steve kroft. For many people, hollywood, high fashion, and paparazzidraped celebrities are the epitome of modernday glamour. This Edition Features a trio of stories that examine some of the things that go on behind the scenes in those glamorous worlds. We begin with hollywood, whose studios over the years have produced lots of movies about pirates and mobsters. Today reallife pirates, some of whom are reallife mobsters, are bleeding the movie industry out of billions of dollars a year by hijacking its product and stealing its profits. With the internet and dvds, the movie piracy business has exploded, and as leslie stahl reported in november of 2009, Law Enforcement is struggling to keep up. [clanking] Los Angeles Police department. We got a search warrant. Open up the door. Every month, a special unit of the Los Angeles Police department mounts two or three raids looking for pirates. [men speaking spanish] at a raid on this warehouse in downtown los angeles, they arrested two men who they say have been filling orders for counterfeit dvds for years. Thats a pretty significant amount there. Detective Rick Ishitani found one of their order books. These are all movie titles that recently came out. Angels demons, they ordered 100 movies. We got terminator. Police say the suspects were wholesalers who acted like mobsters. They would pick up customers in this van and drive them around blindfolded before bringing them here to fill their large orders. The dvds are made by pirates who often sit in the back row of theaters and record movies with tiny cameras. Illinois police say this man, gerardo arellano, did just that. He was arrested at a multiplex outside chicago and showed up at court with his family. They were also with him when he was recording in the theater, according to investigator gary kissinger. He was actually observed with the camera setting on his right leg, along with his wife and small child. He brought a child with him to do this . Yes. Were finding that to be more commonplace becausenot only their child but other family members or friends because they act as lookouts, and also theyre less conspicuous. They blend in with the rest of the audience. Kissinger works for the mpaa, the Motion Picture association of america. I interviewed him and his boss, mike robinson, at the amc multiplex where arellano was arrested. I actually heard once that someone of these people brought a camera in in a baby carriage. Sometimes even in the diaper bag. Ah, in the diaper bag. Yes, actually, weve seen it where they cut out the cup holder, and theyll set thecut out the bottom of the cup holder and actually set the camera in here, and then they control the camera with a Remote Control device and monitor it. Police say arellano worked out of his home, where they found more than 13,000 dvds he had made from his recordings, along with the computers he used to upload the movies onto the internet. Rarely do you see an individual thats involved in all three major components of the piracy activities, in other words, camcording, internet piracy activities, and also selling the movies on the street as well. John malcolm, a former Justice Department official specializing in intellectual property, says pirates like arellano are linked to organized crime rings that are making a barrel of money selling dvds. In mexico, the drug cartels are brazenly stamping their dvds with their logos. Here, for instance, are pirated dvds by the zetas. Where is their logo . Right there. Heres a Leonardo Dicaprio film with the drug cartel, and theyre advertising. Its just breathtaking. Yes. Are they getting out of drugs and into movies . No, they want to diversify. They might be doing gambling on monday, Human Trafficking on tuesday, child prostitution on wednesday, drug dealing on thursday, and counterfeiting on friday. But even more than organized crime, its the internet that has hollywoods hair on fire. John malcolm says pirated movies are being uploaded onto the internet in a matter of hours and then downloaded very quickly using some geewhiz Computer Technology called bit torrent. Bit torrent. And what it does is, it takes a movie file, which is a very large file, and it breaks it up into very small pieces so that it is easier to trade back and forth via a swarm. Malcolm showed us what a bit torrent Program Looks Like on his computer. The programs are perfectly legal, but every day, were told, up to 50 Million People around the world are using programs like this to illegally download pirated movies. And youre downloading the movie right now . Thats right. So those little dots going back and forth are the little pieces of the movie. Thats right. The tiny bits moving toward the blue column in the middle of the screen are pieces of the movie were getting from people all around the world. The bits moving away from the column are pieces we have and are sharing with someone else. And when we get that complete movie, the technology will rearrange all of those little pieces into one complete film that is watchable. Theres a technology that automatically puts it in the right order . Sure does. [ticking] coming up how to catch a pirate. Investigators searching for movie pirates also use a secret method they dont like to talk about. Every print of every movie is encoded with a watermark. You can see one stamped into the top of a single frame of this movie. So if you run a movie here, theres a specific watermark just for this theater . Thats correct. Thats next, when 60 minutes on cnbc returns. Stick with innovation. Stick with power. Stick with technology. Get the new flexcare platinum from Philips Sonicare and save now. Philips sonicare. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. Steven soderbergh, one of hollywoods alisters, is the director of traffic, oceans eleven, and erin brockovich. He says piracy is costing hollywood 6 billion a year at the box office. As the margins of profit shrink, fewer projects get made, which means fewer people go to work. There is a feeling out there that, boy, i got this, and im not hurting anybody but some fancy, overpaid movie star who can well afford it. Well, in fact, you know, the wealthy movie star isnt hurt by it. Its just everyone else. Most of the people in this industry are not the alist talent that you see in a magazine or interviewed on 60 minutes. Youre talking about all the people behind the camera. Supporting cast and all the crew. To a perfectionist like soderbergh, its shocking that what is causing all the havoc is often a product of inferior quality, where the camcorded recordings are shaky, crooked, and can include seats in the movie theater. Ive seen some of these pirated movies, and you can hear the guy snoring in the movie theater. I wonder why people even want to watch these things. Its clearly a situation where the people that are buying these are not that qualityconscious. Thats not the experience theyre looking for. They just want to be the first one to see it. They want to be first, and they want to pay less or close to nothing. In france, the Parliament Just passed a tough antipiracy law. If you download pirated movies frequently, you not only lose internet service. You could be sent to prison or fined nearly 1 2 million. But in the United States, theres been resistance to punish the downloaders. Im hearing from the industry that theres this great reluctance to really clamp down in a way that brings people into court or prosecutes people. On the internet, youre talking about millions and millions of people who are, for all intents and purposes, invisible to us, trading, you know, copyrighted material. Thatsyou know, thats just an avalanche. Like, you cant you cant drag those people into court. Thats why hollywood and Law Enforcement have concentrated on the pirates. Before some movie previews, like this one in california. Turn around, please. Audience members have to pass through airportlike security. Their bags are searched for cameras, and they have to check their cell phones. A Security Officer inside the theater used nightvision goggles, looking for pirates. In the search for counterfeit movies, dogs have been trained to sniff for dvds. They helped police in the philippines and malaysia confiscate nearly 2 million dvds. Investigators searching for movie pirates also use a secret method they dont like to talk about. Every print of every movie is encoded with a watermark. You can see one stamped into the top of a single frame of this movie. So if you run a movie here, theres a specific watermark just for this theater . Thats correct. And it says, basically, it ran here . Thats correct. Oh, like a fingerprint or something. Exactly. From watermarks, investigators knew movies were being pirated at this amc multiplex, so projectionists and other employees here began looking for pirates, and that led to the arrest of gerardo arrelano. Amc employees have helped police make more than 55 arrests, including some pirates with international connections. But movie piracy is such big business now that frequent raids and arrests have barely made a dent. Richard cotton, an executive Vice President at nbc universal, says the numbers just keep growing. How many movies are released every year, say, in the United States . Ballpark, 400 to 500 movies are released in the United States. And how many of those would you say are pirated . Virtually every movie thats released winds up pirated on the internet. Every movie . Virtually every one. When the dark knight came out in 2008, it was pirated but not until after it had been seen in theaters for a day and a half. Hard to believe, but that was seen as a major victory. Hugh jackmancome on, wolverine, wolverine, wolverine. And then theres wolverine. When it premiered at a party in arizona in 2009. [crowd cheering] it had already premiered a full month earlier to millions on the internet. In this case, a copy of the film was stolen while it was being edited, but wolverine still made a ton of money 160 Million Worldwide the weekend it was released. This is part of the problem with discussing the issue and talking about hollywood, because it feels like a lot of people who are making enough money complaining that they arent making more money. Yeah. Nobodys crying for us. And yet the movie business is suffering, director soderbergh says, and the studios are less likely to take risks. The chances of a movie, for instance, like the matrix being made shrinks. Heres a movietwo guys, theyve made a small independent film. Warner brothers gives them 75 million to make this script that nobody can understand, right . Right. Wouldnt happen today. And things could get even worse unless something is done in cyberspace to stop people from downloading. What we have done for 15 years is not to put any speed bumps, any technological blocks in the way of individuals so that the conclusion that the Younger Generation in particular draws is, if its so easy, it cant be wrong, and thats really what we have to bring to an end. Can you do anything . I think the best you can do is slow them down a little bit. Part of the pro look, if we could freeze is that the best you can do . I think so. Its a game. Sure. Its like sport. It is a sport, and there are people that are very, very good at it. Movie piracy is still a huge business. At the end of 2010, the Los Angeles Police departments antipiracy task force reported that since 2004, it had seized more than 90 million worth of illegal goods and made nearly 500 arrests. As for gerardo arellano, the man Illinois Police say is a movie pirate, local authorities decline to prosecute, though he remains the subject of an ongoing federal investigation. [ticking] coming up the most powerful woman in fashion. I like people who represent the best of what they do, and if that turns you into a perfectionist, then maybe i am. Anna wintour, the editor of vogue, when 60 minutes on cnbc returns. If hey breathings hard. Me, know the feeling . Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. Spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Every day were working to and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. [ticking] shes said to be the most powerful woman in fashion, and she does nothing to dispel that belief. Her name is anna wintour, a name that strikes terror in some, loathing in others, and transforms still others into obsequious toadies. She was the inspiration for the novel and the movie the devil wears prada, and since 1988, she has been the editor of vogue, the last word in sophisticated fashion and fantasy. When morley safer sat down with her in may of 2009, the recession had already begun, and anna wintour was responding with a call for austerity. Shes been portrayed as darth vader in a frock or less harshly as nuclear wintour. Or is she really just peaches and cream with a touch of arsenic . The blurb on your unauthorized biography reads, shes ambitious, driven, needy, a perfectionist an inside look at the competitive, bitcheatbitch world of fashion. An accurate. Well, im very driven by what i do. I am certainly very competitive. What else am i, needy . Im probably very needy, yes. A bitch . A perfectionist . Perfectionist. Lets try bitch first. Um, well, i hope im not. I try not to be, but i like people who represent the best of what they do, and if that turns you into a perfectionist, then maybe i am. High above times square, anna wintour oversees a small army of girls, coiffed, skinny, beautiful, and running scared, the worker bees whose job it is to inspire women to dream. The pages of vogue conjure up a nevernever land of beauty, of the sweet life. Fantasy after fantasy comes to life on page after glossy page. Under Anna Wintours direction, vogue has been hugely successful. Vogue is the best of everything that fashion can offer, and i think were the leader in the field. We point the way. We are, you know, a glamorous girlfriend. But the glamorous girlfriend, like vogue readers, is facing leaner times. I do want to make the point that september really has to be about value, but we dont want to give up completely the dream and the fantasy. But i also feel like we need to have a sense of being more grounded. Wintour is involved in every detail of the magazine the clothes. I like the stripe. Editing the pictures and articles. Can i see meredith, please . Shes decisive, impatient, and theres a look that says, im the boss, and youre boring. I just thought that was a bit banal. Should i do the faces of the moment because thats what we have on the cover or just still keep thinking . Keep thinking. An editor is, in the final analysis, a kind of dictator. A magazine is not a democracy. Its a group of people coming together and presenting ideas from which i pick what i think is the best mix for each particular issue. But in the end, the final decision has to be mine. Meet miranda priestly