Technologies that Change Entertainment Business Models

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Technologies that Change Entertainment Business
Models

• DMCA
• I want to go to the
• DMCA

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What youre looking for

• Transitional technology Changes the way
  entertainment is delivered or consumed, with
  industrys 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 industrys
  support
• Examples TiVo, MP3, Napster

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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

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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

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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

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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

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Youll 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

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• Mashboxx filtered access to the major p2p
  networks
• Selling songs via p2p comparing apples to
  Apples
• Grouper Just how many people can you share with?

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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

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• 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?