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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 • 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
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
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 • 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 • 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 • 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
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 • 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
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?