ESCA: Packaged media superior to electronic
By Susanne Ault -- Video Business,06/23/2009
JUNE 23 | PHYSICAL: LOS ANGELES—There's still life left in packaged media, largely because it provides a superior experience to programs delivered electronically, according to studio technology chiefs at Tuesday's Entertainment Supply Chain Academy conference here.
Studios can still make money on DVD/Blu-ray Disc, despite the fact that users can get much electronic content for free, the execs said. Currently, downloads and streams generally lack the universal compatibility with various hardware devices that DVD/Blu-ray enjoys. Downloads also are at a disadvantage to physical because it is too easy for hardware devices to fail and destroy stored digital material.
"When we put out downloads, it was like the equivalent of VHS," Art Hair, chief technology officer at Walt Disney Studios, said during the ESCA session moderated by Variety's David Cohen. "And we improved its portability and permanence when we went to DVD. We went backwards; we went to electronic sell-through."
Because of today's difficulties in accessing digital content on all platforms, studios should think about making new revenue off of improving downloads' usability.
"We want to create an environment that can play on any player in any environment," said Chris Cookson, president of Sony Pictures Technologies. "If you go to a different bank ATM than your own, people charge you to get your own money. But there is convenience in that. If you make content readily available for people, they will think it's easier [to access] than figuring out how to steal it."
Ideally, studios will invent products that blend the benefits of physical and digital into one product. This also will help avoid a format war in which the two sides end up cannibalizing the other's sales.
"Imagine a uniquely serialized Blu-ray Disc, where you put it in a player, and it registers into a digital rights cloud (or download storage locker), and then your iPhone rings: 'You've got movie!' If integrated properly, customers doesn't have to make a conscious choice between one or the other," Cookson said.
Studios also doubted that user-generated content will overtake the worth of professional film products.
"YouTube loses $500 million for Google," said Andy Setos, president of engineering at the Fox Group. "It's fun, but there is a distinction between self-expression and business."
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| Submitted by: | jimmy hoffa (Jimmy@boilinginhell.com) 6/24/2009 1:37:06 PM PT |
| Location: | south of your feet |
| Occupation: | gangster |
BTW the cassette tape is superior to the IPOD and CD..... It doesn't
scratch, artists get paid, and it sounds better than CD. Maybe trying to
chase the next trend is not in the studios best interests.... they should
focus on content and Keeping it Simple.... Imagine if the Tape deck was
still in use, how much money the music studios would be printing!
| Submitted by: | n. l. (nslcapital@gmail.com) 6/24/2009 1:27:44 PM PT |
| Location: | nm |
| Occupation: | hunter |
its funny that so much money gets lost trying to circumvent DVD. Its a
good technology, its cheap, it works in 90% of homes, and it is the
future. I find it funny that the death of the DVD is already being hailed,
when only 60% of homes in the US have High Speed Internet!!!!!!!
Unfortunately, movies cannot be downloaded by 3 year old kids.... they
like DVD's, and so do the elderly. Netflix is cool, but its not going to
destroy B&M. Anyways, its always funny to see how many millions
(billions) are raised for the new new thing, and what the hit rate is as
for every Google there are about 8,000 pets.com. BILLIONS spent, zero
ROI......... digital delivery, bwahhahahaha
Seems to me VC's should keep it simple, eom..... the days of taking
public businesses with no sales earnings and cash flows are probably
over soon. All the best
| Submitted by: | FridayBob 6/24/2009 10:27:19 AM PT |
| Location: | Cleveland |
| Occupation: | CEO |
The arguments posted here for physical media over downloads are all time-sensitive. There will come a time when extremely high speed connections will be ubiquitous, and the business model for delivering electrons rather than molecules to the buyers will make sense. We don't yet have what we need for downloads to perform better than physical media.
And you will see the existing interest groups do everything they can to push back the tide. That is their job and their responsibility.
RAGE AGAINST THE MACHINE! That is our job and responsibility.
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