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Technologies that Change Entertainment Business Models DMCA I want to go to the DMCA What you’re looking for: Transitional technology – Changes the way entertainment is delivered or consumed, with industry’s support Examples: CDs, HDTV

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what you re looking for
What you’re looking for:
  • Transitional technology – Changes the way entertainment is delivered or consumed, with industry’s support
  • Examples: CDs, HDTV
  • Transformative technology – Changes the entertainment as well as the way it is delivered and/or consumed
  • Examples: Game consoles, broadband, VCRs
  • Disruptive technology – Changes the basic business model with or without the industry’s support
  • Examples: TiVo, MP3, Napster
twin paths
Licensed

No legal battles

Symbiotic relationship with content industry

Full support of advertisers, device makers

Technology often hamstrung

Industry defines usage rules, imposes anti-piracy requirements

Unlicensed

Likely to draw lawsuits if market responds

Dependent on word-of-mouth and underground marketing

No restraints on technology; adapts quickly

Usage rules are consumer-friendly

Twin Paths
research starting points
Licensed

New media VPs at the labels, studios

Tech market analysts

VCs

Incumbent tech service providers

MPAA, RIAA

Unlicensed

Bloggers, advocacy Web sites, forums

slyck.com

zeropaid.com

afterdawn.com

Release sites

vcdquality.com

isohunt.com

IRC channels

ircspy.com

BitTorrent.com

Newsgroups

newzbin.com

Good newsgroup tutorial: www.slyck.com/ng.php

Research Starting Points
the music business
The Music Business
  • 1983: CD players arrive in U.S. w/o encryption
  • 1991: CD recorders introduced
  • 1993: MP3 standard published
  • 1998: Madison Project and SDMI launch
  • 1999: Napster debuts and, within months, is sued
the digital music business
The Digital Music Business
  • Late 2001: First online music services authorized by all five major labels launch
  • April 2003: Apple unveils iTunes Music Store
  • May 2005: Yahoo gets in the game with deeply discounted offer; other Net behemoths expected to follow
you ll see this again
You’ll See This Again
  • Industry fails to protect content effectively at the source
  • Transformative technology arrives, industry is bewildered
  • Disruptive technology met first with lawsuits, then with defensive technology, then with attempts to co-opt
  • Technology advances relentlessly, pirates adapt swiftly
slide8
Mashboxx – “filtered” access to the major p2p networks
  • Selling songs via p2p – comparing apples to Apple’s
  • Grouper – Just how many people can you share with?
the movie and tv business
The Movie and TV Business
  • Business model based on multiple bites at the apple --windows, syndication
  • New technologies are shoehorned into that framework
  • The piracy window – no competition from legitimate sources because none are available
slide11
Episode II – Attack of the Cloners
  • Movielink – How fear of piracy cripples an attempt to compete with piracy
  • Kaleidescape – The home server of the future, the lawsuit of today
  • Broadcast flag – More of a hindrance to mainstream home networks than to piracy?