Friday, January 18, 2008



BITS from NYTimes is facing the issue of copyright and filtering in a week long debate. The two debaters are Tim Wu, of Columbia Law School and Rick Cotton, general counsel of NBC Universal.

My comments:

  • Investing money on producing creative material is a tough task today
  • Entertainment corporations structured themselves on a single business model behind the shield of the copyright
  • This business model is gone because copyright in no longer a shield
  • Corporations seem keen to defend themselves and their status quo more than the artists they represent
  • And artists are looking for new business model and for new commercial partners (e.g.: Madonna defected from Warner and signed with Live Nation, a concert promoter)
  • The model of making live exhibition to support cd sales is gone: you give away digital music to sell tickets for the exhibition, merchandising, etc.
  • This is true for the music market, what about the movie market? Apparently box office is stable in the last three years and this should mean that p2p is not such an issue

  • DVD market is the one suffering because the platform itself is agonizing: the launch of new movie rental service may prove to be lethal for the platform, as DVD was for VHS and VHS was for I do not remember what.

The real issue in the story to me is that Entertainment Corporations are unable to define a worth business model to exploit the opportunities coming from the Web 2.0 and the future.

In the Middle Age, there were massive castles ready to resist to siege for months, at least until they had food and water: it was just a matter of time....


Mario Vellandi said...

DVDs are still going to be around for a while, for sale and rental (store, online, and machine). The purchase of a widescreen TV (becoming ever more affordable) will make the experience more enjoyable. Most people will be happy with their standard resolution because it's good enough.

Blu-Ray will slowly emerge as the players become more affordable and noticeable, more titles are available, and early adopters have friends over at their house to see the difference in picture quality.

Movie downloads will remain a small business until better soft/hardware is available to connect computers to TVs without technical knowledge. At that point A LOT more money can be made from DVD and lesser-quality media (700mb minimum). The HD quality will be difficult unless effective streaming and bandwidth issues are resolved.

Gavin Heaton said...

Gia ... I love the connection with castles! It seems this is exactly what is going on -- especially here in Australia.

The challenge for movie makers is that their distribution channel (ie cinemas) have yet to propose a viable experiential alternative to the dying form that exists universally. If they could do that, then they may have at least some chance to stem their declining revenues.

gianandrea said...

Hi, Mario. I'm afraid that the timing could be tigher than this. And are you confident that Ble-Ray will be able to emerge or is it going to be killed by the online rental? If "MovieTunes" (just to name one) will be successfull as it was Itunes thia may prove to be a killer app.
Gavin, ciao. I do not have an answer on how the Movie business could make money in this new world, while I had rather clear mind for the music world and I see that my point was correct. I'm truying to figure out something, but got nowhere.