Recently there’s been a slew of articles outlining the future of VOD and the doom it spells for the Hollywood studios and the cable companies alike. The first article is an interesting one pertaining to some anti-piracy reforms currently going on in the MPAA camp and some of the major Hollywood studios’ slow reaction time to the rapidly changing VOD market. Here’s a snip:
But if you’re really inclined to wag a finger, there is nothing disrupting your business more than the Internet. The MPAA has worked hard to force file-sharing sites out of business or push them to the Web’s fringes. At first, the studios tried to kill file sharing with lawsuits. Then they hired security firms, such as MediaDefender and MediaSentry, which promised to discourage file sharers by blocking or slowing the sharing process. None of that worked.
Maybe that’s one reason the MPAA overhauled its “antipiracy” operations three weeks ago. CNET reported on Friday that the studios’ trade group decided to change the name of the “antipiracy” unit to “content protection” and fired three leaders, including the MPAA’s general counsel.
Read the full article over at Cnet – End of the world as Hollywood knows it.
The second article pertains to TV specifically, attacking the outdated distribution and revenue model for the shows. The main point that the author is making, albeit indirectly, is that viewers value two things above all else: quality and convenience. Quality is two-fold: that’s to say the artistic quality of the show (why you like it) and the visual quality of the content (HD). Convenience is a no-brainer. It is far easier for people to pirate a show and watch it at their convenience without interruptions (commercials) than it is to catch it on the tube or deal with using a Tivo. Here’s a snip from that article:
What I’m doing is downloading TV shows and sending them to a media player near my TV. I’m doing this because there exist two separate infrastructures that interface imperceptibly at one key point – the official cable and online distribution networks and the shady underworld of pirate distributors. Right now that interface is a trickle, but it will soon be, pardon the pun, a torrent.
The first infrastructure is the studio system. While I’m talking specifically about TV here, we can also extrapolate to talk about movies and music. This infrastructure is based on the advertising or distribution model in that they make all their money placing advertisements around their content or by placing their content onto physical media. But what is important to note is that the TV industry is in a completely different business from the music and movie industry. They’re not “selling” a product. They’re selling the space around a product. They they commission artists to make that product better in hopes of raising the price of the space around that product. They sell DVDs, sure, but that’s a sideline.
I think the true testament to all of this is the fact that it is no longer (or maybe never was) a faux paux to admit you’re pirating TV shows and films because “everybody else is already doing it”. Indeed. Read the full article at CrunchGear – What “on-demand” media really means and why your cable company should be scared
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