Movie Industry, Doing it Right

Japher · October 6, 2003, 15:21

Quote:

Hollywood's war on piracy
By Mike Langberg
Mercury News

Hollywood gets it.

The big movie studios are moving aggressively to stop online piracy of feature films, while simultaneously looking at ways to tap the Internet for legitimate distribution.

Last week, the studios took a symbolically crucial step: They collectively agreed to stop sending out ``screener'' discs and tapes to judges for the Academy Awards and other Hollywood beauty contests.

Screeners, on DVD or VHS videotape, often go out as soon as a movie premieres in theaters -- months before being commercially released to the home and rental markets. Certain parts of the world, such as China, are now awash in pirated movies that occasionally display notices on the screen meant for judges, such as ``For Your Consideration.''

The powerful Motion Picture Association of America, or MPAA, made a very smart move in organizing the screener ban. Hollywood insiders are screaming foul -- they'll need to leave the house now to visit movie theaters or private screening rooms if they want to vote on the Oscars -- but the MPAA recognized the industry can't ask others to crack down if it won't clean its own house first.

``We know these screeners are a small part of piracy, but I aim to close every kind of hole in the dike I can find,'' said MPAA President Jack Valenti, one of the best-connected and most veteran lobbyists in Washington, D.C., in an interview with the Associated Press.

Hollywood has good reason to be afraid, thanks to a long-running preview of coming attractions provided by the music industry and its trade group, the Recording Industry Association of America, or RIAA.

The big record labels did just about everything wrong in responding to online piracy of music: They waited too long to take legal action, didn't make a persuasive case to the public that piracy is wrong, and dragged their feet in offering consumers legitimate alternatives for buying music online.

Sales of music on compact discs are now plummeting, as millions of Americans regularly use online swapping services such as Kazaa and Grokster to download and share music for which they don't pay a dime. As a result, the RIAA on Sept. 8 had to take the unappetizing step of suing 261 people around the United States -- arguably an effective tool in spreading the message that online piracy is wrong and can have negative consequences, but not a good way to retain the love and admiration of customers.

Hollywood has the huge advantage of following about five years behind the music industry, with online piracy of movies about where music piracy was before the arrival of the now-defunct Napster turned the occasional activity of renegade college students into a national pastime.

The biggest limitation for now is technical. Pirated movies are such big files that you need a high-speed Internet connection to get them, and 80 percent of U.S. households still don't have cable modem or DSL service. Nor is there yet a single swapping site that's widely recognized as the place to get free movies, although pirated titles aren't hard to find today through Kazaa or a rival service called EDonkey.

In testimony Tuesday before Congress, the MPAA's Valenti said, ``An outside research group has estimated that 400,000 to 600,000 films are being illegally abducted every day. We know this will increase exponentially in the future.''

Lessons have clearly been learned, as Valenti declared: ``I am determined to join with my (Hollywood) colleagues in making it plain that we will not allow the movie industry to suffer the pillaging that has been inflicted on the music industry. . . . We must counter these attacks NOW with all the resolve and imagination we can summon. To remain mute, inert, to casually attend the theft of our movies would be a blunder too dumb to comprehend.''

While the ban on screeners made headlines within the entertainment world, Hollywood has taken bigger steps in recent weeks. Among them:

• Launched a public education campaign complete with Web site (www.respectcopyrights.org), TV commercials and lesson plans for middle-school students -- in cooperation with Junior Achievement -- called ``Digital Citizenship.''

• Supported, or at least not opposed, online rental of DVDs and sale of downloadable movies through sites such as Netflix, CinemaNow and Movielink. Last week, Walt Disney began an innovative service called Moviebeam that uses TV broadcasts to send pay-per-view movies to a hard disk in a box on top of subscribers' television sets.

• Organized through the MPAA to start what Valenti calls ``technology research.'' In other words, he explained, ``We aim to enlist the finest brains of the best in the high technology field to develop technological measures and means to baffle piracy.''

It's too soon to say whether online movie piracy will ever become as big as music swapping. For one thing, movies have always been available at low cost -- video rentals are typically under $5 -- while the music industry clung for much too long to offering only CDs at $18. For another, more consumers will perhaps recognize that downloading a movie for free is wrong than would reject the notion of ``sampling'' pirated music.

It's not too soon, however, to say that I've got a personal stake in this struggle. I want to keep watching big-budget Hollywood movies, and I'm worried they'll stop coming if enough people cheat the system.

Link

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I like this, they are trying to work with the system instead of fighting it or being worked buy it. Good job.

Ming · October 6, 2003, 15:27

The best way to cut back on people stealing movies is to provide them in an easy way... good copies... and for a reasonable rate... most people are honest and would welcome such a system

Japher · October 6, 2003, 15:28

Yup, and helps not to sue 9 year olds.

Ming · October 6, 2003, 15:36

Yeah... suing kids isn't what I would call a good PR effort

GhengisFarb™ · October 6, 2003, 15:36

What gets me is the cost of making a movie versus a song.

Movies are expensive to make yet are cheaper to buy that a music CD. I'm not saying pirating is right, but the Music Industry raped the consumers for years and then consumers felt no sympathy for them.

St Leo · October 6, 2003, 19:22

The Music Industry also raped artists for years. It still does.

Skanky Burns · October 6, 2003, 19:53

I currently own around 3 movie dvds. Being a uni student means I don't have much disposable income.
Regardless though, 33% of all my dvd purchases have been a direct result of watching the entire movie for free first.

Nubclear · October 6, 2003, 19:58

I might buy a few more DVDs...Personally, I think $20-40 is a bit much for just one movie.

chequita guevara · October 6, 2003, 20:13

I limit myself to one dvd a month. I check out quite a few through the library, however.

monkspider · October 6, 2003, 21:01

I purchase 3-5 movies a month typically, the last non-classical RIAA product I purchased was Weezer's Green Album and I plan for it to be the last.

Dr Strangelove · October 6, 2003, 22:24

I can see your point about the price of music cds being higher than movie dvds. What portion of those who participate in cd piracy would give that as a reason?

Ted Striker · October 7, 2003, 01:18

No doubt, the movie industry learned from the whole VCR thing, once they stopped fighting it, their profits tripled

The RIAA on the other hand is missing the boat

TCO · October 7, 2003, 01:56

I thought I would find a girlie pic when I went to look for your post, Derek.

Ted Striker · October 7, 2003, 02:11

word

Ted Striker · October 7, 2003, 02:11

http://www.santabanta.com/wallpapers...p?catid=606158

FrustratedPoet · October 7, 2003, 05:48

Quote:

Originally posted by Skanky Burns
I currently own around 3 movie dvds ...*snip*... 33% of all my dvd purchases have been a direct result of watching the entire movie for free first.

lol

:-D

GhengisFarb™ · October 7, 2003, 08:41

Quote:

Originally posted by Dr Strangelove
I can see your point about the price of music cds being higher than movie dvds. What portion of those who participate in cd piracy would give that as a reason?

I'm not saying their justified. But Anger is a powerful motivator.

Consumers pissed over high prices of music cds are more motivated to go out and write share programs to "get even" with the recording industry. If its only $10 to go buy a movies, they'll be less motivated to sit down and design a program, they would just as soon go buy the cheap movie.

And yes, the recording industry screws the artists as well. Makes you wonder how long they'll keep control of everything. You'd think the Artists and Consumers would get together and make and internet program where the Consumers buy the music directly from the Artists and completely cut the recording industry out of the loop.............

DaShi · October 7, 2003, 09:02

What is it with the movie industry and dykes?

monolith94 · October 7, 2003, 09:16

Refusing to send out screeners is terrible news. Expect to see the oscars dominated by more mainstream schlock than ever before.

Drake Tungsten · October 7, 2003, 09:18

Who cares about the Oscars, besides dykes?

chequita guevara · October 7, 2003, 09:27

Quote:

Originally posted by monolith94
Refusing to send out screeners is terrible news. Expect to see the oscars dominated by more mainstream schlock than ever before.

Actually, expect the reverse. Independents aren't covered by this decision.

korn469 · October 7, 2003, 09:33

On sunday I paid 80 dollars to go see Kill Hannah, Socialburn, Eve 6, Sevendust, Trapt, and Staind...it was expensive but I had no problem with that, but they were selling their cd's for 15 bucks a pop there, and that just seemed unjustified

the last time i bought a cd was last december at a trust company concert where i got it for 10 bucks and didn't have to pay sales tax, I know I personally would buy more cd's if the price was lower. Even 9.99 seems a little high to me, because I mean serious at walmart they have they 5.88 dvd rack (granted it is mostly crap but i did find the jack bull in it which is a wonderful movie) but albums cost less to make compared to a movie, and cd's should cost less to produce than DVD's. I don't see where the high prices are coming from except for the big five distributors monopoly on album sales.

However, I'm not going to pay 99 cents a song to download it. AFAIK the sound quality is worse, you don't get any art work/packaging extras, and their distrubution costs are lower and even less justified. Tell the RIAA to wake me when they are charging between 25-49 cents for a high quality download.

Q Classic · October 7, 2003, 12:08

when dvds with the movie and the soundtrack included (like Chicago) is only three dollars more than the soundtrack itself with no extras, something's wrong.

DanS · October 7, 2003, 13:19

The price of a DVD shouldn't be compared to the price of a CD. There are many fewer movies produced than albums and I would hazard a guess that overall movie sales are much higher than album sales.

Q Classic · October 7, 2003, 13:25

true for most cases, dans.

but for a movie soundtrack compared to a movie dvd...? the prices being so close?

optimus2861 · October 7, 2003, 14:27

One thing to consider is that movies can make a big chunk of their production cost, and even profit, back during their theatrical run. There's no equivalent for music CDs in the recording industry; concerts primarily benefit the artist and not the studio IIRC.

axi · October 7, 2003, 19:00

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400,000 to 600,000 films are being illegally abducted every day

What, really? They are being gagged and shoved in the back seat of a car?

We should consider the difference in the medium. A movie is something one usually watches once and, if it's really THAT good, one may watch it a couple of times again. A CD is something that one might want to listen to hundrends of times in his lifetime. That's why there is a movie rental industry and not a CD rental one. That means that since the average spectator will only want to see the film once, he will gladly pay 7 Euro to a cinema or 1,5 Euro to a DVD/VHS rental rather than pirate it (asuming that pirating will cost him less money than that, which isn't the case yet) just because he won't need to keep a copy of the film afterwards.

St Leo · October 7, 2003, 22:20

Quote:

Originally posted by Skanky Burns
I currently own around 3 movie dvds. Being a uni student means I don't have much disposable income.
Regardless though, 33% of all my dvd purchases have been a direct result of watching the entire movie for free first.

I currently own 4 movie DVDs. 50% of all my DVD purchases have been a direct result of watching the entire movie for free first.

monolith94 · October 7, 2003, 22:52

100% of my dvd purchases have been a direct result of my complete, utter lack of sanity and a budget.

Q Classic · October 8, 2003, 08:01

most of my dvds (~75%) have been imported, and thus are outside the jurisdiction of the MPAA.