HHP comments 3 September 2009

This is good.

The only omission that occurs to be is a discussion of storage capacity on consumer computers and consumer download bandwidth; video requires a lot more than audio; what it your projection on the rate these technologies will improve?]

Outline - Will video entertainment (movies) follow in the footsteps of recorded music?

        I.            Introduction

a.       Quick recap of what the music industry has gone through the past 10 years [in terms of piracy only, or more broadly in terms of shift to digital files?]

b.      Forms of movie piracy [will you accept MPAA’s assertions as true?]

b.c. Movie industry involvement/awareness of piracy

1.      Loss of profits associated with Wolverine movie being leaked over the Internet

1.2.                        Pirate Bay litigation involving online piracy

1.3.                        Other examples and predictions of loss of profits

d.      Article will compare the two industries to show that piracy will become as big a problem for the movie industry and discuss attempted solutions and other possible solutions

     II.            The Impact of Digital Technology on the Entertainment Industry

a.       Movie Industry

                                                               i.      Need for copyright protection

1.      Review economic justification for copyright in terms of potential for free riding

2.      Review basic copyright laws and protections

2.3.                        Increased need because of larger capital investment involved with movies

                                                             ii.      Compare technology used  in distribution of movies and  music and how obtained by public [compare with what? Or do you mean compare the different technologies for distributing video?]

1.      Similarities

a.       Progress of technology

                                                                                                                                       i.      Radio and Theaters, Cassettes and VHSs, CDs and DVDs, MP3s and AVIs (computer files)

b.      Leads to similar consumer behavior; piracy

2.      Differences

a.       Quality

                                                                                                                                       i.      DVDs are encrypted; harder to copy

i.                                                                                                                                  ii.      Many movies online are bootleg versions

i.                                                                                                                                iii.      Lower quality results in less demand for pirated movies

i.                                                                                                                                iv.      Will quality progress?

b.      Movie piracy does not replace “movie theater” experience [but it replaces the legit DVD experience, if the quality is good]

   III.            Response to the Digital Threat

a.       Significant drop predicted in movie industry sales results in necessary/immediate action [might not the drop in sales be caused by other things, e.g. more competition for leisure time?]

b.      Protection before DVD release

                                                               i.      Movie Industry has gone after bootleggers

1.      $500 to any employee who catches someone in theaters recording a movie

1.2.                        Overall effect?

                                                             ii.      The supply of pirated films, [the comma is crucial; putting it here says that pirated films come primarily from indisders]coming primarily from industry insiders, can be severely limited through improved theater security, strengthened employee training and supervision, greater reward incentives against camming, and serious civil sanctions and workplace consequences for offending insiders

c.       Protection after DVD release

                                                               i.      DVD Encryption

1.      Programs to circumvent encryption, but not as easily as burning a music CD [what is not as easy? Burning a DVD?]

d.      Enforcement of copyrights

                                                               i.      RealDVD litigation

1.      Prevent illegal copying of DVDs

                                                             ii.      Pirate Bay litigation

1.      Prevent online piracy

  IV.            Additional Strategies Entertainment Industry Should Pursue

a.       Not better law, but better rhetoric of copyrights

                                                               i.      Public must be convinced that copyright law should be obeyed

i.                                                          ii.      Legislators must be viewed as acting in the public interest; not just to make the rich richer 

b.      If you can’t beat em, join em - Embrace/satisfy the online user/world [I would put this at the top of the desirable strategy list, but it’s your paper, so what matters is your view]

                                                               i.      Place content online, for free or low cost, on a high quality video/audio platform

i.                                                          ii.      Make money using ads

i.                                                        iii.      Hulu.com example