TALKBACK

Warner delivers two types of digital copies

By Susanne Ault -- Video Business,11/30/2007

NOV. 30 | Warner Home Video’s release next week of Harry Potter and the Order of the Phoenix launches the second branch of the studio’s two-pronged strategy to fuel adoption of digital movies by delivering them with physical copies of the studio’s major titles.

The studio has been quietly testing two types of digital copy delivery, dubbed by the studio E-Copy and Digital Copy.

E-Copy, used for Warner titles including Superman Returns, Blood Diamond, 300 and Ocean’s Thirteen, allows buyers to download a digital copy of the film from the Internet with purchase of the DVD at a participating retailer.

With Digital Copy, such as Order of the Phoenix, the file is stored on the physical disc and can be retrieved in minutes, representing a fraction of the hour or so required to access the typical Web movie download.

“Obviously, physical home video is what drives the business,” said Jim Wuthrich, Warner’s senior VP of digital distribution. “Digital is still nascent, and there is a long way to go. But with [Digital Copy and E-Copy], we are exposing more people to the idea of digital files, so in the future, they might consider downloading content. When you talk to consumers, they do want more flexibility in how they experience movies.”

Warner believes providing easy ways for consumers to get digital copies legally will cut down on piracy, helping both the studio and DVD retailers.

“We talked to people in a survey of about 3,000 DVD purchasers, and 50% said they would like to be able to get a digital copy,” said Wuthrich. “It ultimately comes down to the fact that if the consumer is interested, we will come up with a legitimate option.”

One advantage of E-Copy is that not much extra disc space is needed to provide the download, which is generally served from a retailer-branded Web site. As a result, E-Copy can be used for either single- or double-disc titles. In contrast, Digital Copy can primarily be offered only with Warner’s two-disc SKUs, because it eats up capacity on the disc.

Superman Returns marked Warner’s first E-Copy rollout offer, and people accessed the copy download at Wal-Mart’s Web site upon exclusive purchase of the DVD at the chain, whether in-store or online. Similarly, 300 buyers could access an E-Copy following DVD purchases at Target and Wal-Mart. In the case of Ocean’s Thirteen, those who bought the film at Target could download a copy of the film from Movielink.

Wuthrich declined to identify specific future Warner releases that will carry either E-Copy or Digital Copy. But the studio is so far encouraged by consumer reception.

“I can say that it has been positive enough, where we see [the accessing of copies] growing on each title that we’ve offered the feature on,” he said.

Warner is able to study what portion of DVD buyers wind up snagging a Digital Copy or E-Copy through the required Web registration consumers must complete prior to accessing the files.

The studio is especially interested in assessing how people react to its first Digital Copy rollout with Order of the Phoenix. In this fashion, many more people can conceivably access the copy feature, since DVD purchases are not limited to certain retailers. The Digital Copy will be included on all two-disc special editions of the title.

“The primary thing is that the consumer can add value to the DVD, which helps us then support the [retail] channel,” said Wuthrich. “And it’s also a way for the traditional retailer to offer a digital option for consumers.”

Going forward, Warner is hoping to similarly offer copies of its high-definition releases, but it is waiting until the install base of computers capable of high-def playback grows.

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