Self-destructing movies

[tOM Trottier]

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Date sent:      	Thu, 05 Dec 2002 19:10:00 -0600
Subject:        	Pigs fly, movies on the Internet
From:           	NW on Peer-to-Peer <Peer-to-Peer at bdcimail.com>
Send reply to:  	Peer-to-Peer Help <NWReplies at bellevue.com>

NETWORK WORLD NEWSLETTER: ANN HARRISON on 
PEER-TO-PEER 
12/05/02
Today's focus: Pigs fly, movies on the Internet

Dear Tom trottier,

In this issue:

* Hollywood studios pilot movie downloads
* Links related to Peer-to-Peer
* Featured reader resource

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Today's focus: Pigs fly, movies on the Internet

By Ann Harrison 

Nov. 11 was a big day in Los Angeles as five major Hollywood 
studios finally joined the online community and offered their 
first run films for rent on their new Movielink Web site.

Movielink, which lets users download films over high-speed 
connections, is owned by Sony Pictures Entertainment, Universal 
Studios, Paramount Pictures, Metro-Goldwyn-Mayer and Warner 
Bros.

The studios are hoping that Movielink will offer film fans an 
attractive alternative to downloading movies over P2P networks 
and will compete strongly with rivals such as CinemaNow, which 
offers a smaller selection.

This is really the first serious test of the theory that 
viewers are willing to download rented movies from the 
Internet. Of course movies that people now download off P2P 
networks can be viewed at any time as can films that are taped 
off television.

But the movies offered on Movielink can only be watched with 
media players from RealNetworks and Microsoft which wrap them 
in their own copy protection and compression system. The movies 
are encrypted and will not play on another machine. Quality 
approaches that of a VHS tape, but the movies can only be 
viewed for a 24-hour period after which they delete themselves.

For this, movie fans pay $1.99 to $4.99 for each title.  Those 
with high-speed DSL or cable modem connection can download the 
500M byte compressed files in about an hour.

Movielink executives have been quoted as saying that they 
believe there is a pent up demand among broadband users for 
reliable movie downloads that offer better quality than 
unauthorized versions offered on P2P networks. They say that 
one quarter to one third of all broadband users are interested 
in renting this material.

The studios will find out soon enough, but their late arrival 
into this market is still a cautious one. The service will be 
tested for 90 days to find out if consumers want films in 
letterbox or full screen format. Only 170 titles are currently 
being offered. And then there is the delay factor. Films will 
not be released to Movielink until six weeks after they come 
out on DVD or home video.

The Department of Justice is still looking into whether 
Movielink is violating antitrust laws. As a result, the studios 
have been forced to also license their top films to CinemaNow 
and the InDemand cable service. It will be interesting to see 
if these licensees begin clamoring for less restrictive viewing 
terms, and whether there really is a pent up Internet demand 
for films that you can also find at your local video rental 
store.

______________________________________________________________
To contact Ann Harrison:

Ann Harrison is a technology reporter in San Francisco. She can 
be reached at mailto:ah at well.com.
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