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Monday, August 17, 2009

The Movie Studios Have A Great Idea To Ramp Up Piracy

Hi everyone,

We've come across this article recently that describes how the major studios are readjusting their revenue streams:


"The studios are starting to rally around a horrible new idea: Keeping new releases out of Redbox and more importantly, Netflix for 30 days. Let me repeat that: They think Netflix shouldn’t be able to ship many new movies to you until 30 days after they’re released on DVD.

Now, this doesn’t appear to be set in stone yet for Netflix, as the studios are said to be currently negotiating this with the company, but it is what the studios want. And the strategy is going forward with Redbox, which recently filed a lawsuit against 20th Century Fox over the same issue. And now, with Universal and Warner Brothers getting on board, another lawsuit seems likely.

If the studios are allowing some places like Blockbuster stores to rent movies on day one, but limit Netflix from doing the same, how many of the millions of Netflix users are going to drive to a Blockbuster store to get that movie? Some certainly will, but a lot will also turn to the web and simply download the movie. And some who have never done that before will learn how to get around such a ridiculous restriction."

At Hyper MP, we can clearly see more changes are being introduced by the studios to help capitalise on older business models, with the hope of retaining profits levels at a maximum. Unfortunately, with video piracy increasing everyday, ultimately we can see their bottom line being effected in ways they cannot see. We certainly do welcome the engamement with the studio's on how they can easily monetize this phenonemal human behaviour and appetite for online video access.

The Hyper MP Development Team.