Werewolf TV Show Blocked From DVD Release Due To Music Licensing

from the promoting-the-progress dept

We were just talking about how DVDs of various TV shows, like The State and WKRP in Cincinnati were being crippled by music licensing rights that forced them to remove the original, classic music, and replace it with bland copies. However, in some cases, it's much, much worse. Michael Scott lets us know that some TV shows are being totally prevented from coming to DVD. The latest is the TV show Werewolf, which was apparently working on a DVD release, but the project has now been shut down, due to music licensing problems:

The Shout Factory had to cancel the release because of two artists (which will remain unnamed) that would not play ball. Sony does not have the individual audio tracks, so they were unable to replace the songs, as the audio was mixed together. The two songs were featured over dialogue scenes that could not be cut. The Shout Factory's only option, even after spending a lot of time and money on it, was to cancel it and give the title back to Sony. If Sony had the audio tracks, it would have been easy to replace the two songs.

It's still difficult to see how this makes any sense at all. It shouldn't require relicensing, and even if it does, it's plainly ridiculous for the musicians to refuse. It's difficult to see how this benefits them in any way.

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Why Does Lego Get To Stop Spinal Tap From Using Lego Video?

from the answer:-no-good-reason dept

We recently wrote about the ridiculous job for lawyers making sure no unauthorized brands appear in a movie -- which doesn't have much of a legal basis. But, for some reason, companies back down on that sort of stuff all the time. The latest example involves the classic mockumentary band Spinal Tap, who is putting out a new DVD, where they thought (correctly) that it would be cool to include a fan-made video of one of their "hits," "Tonight I'm Gonna Rock You Tonight." The video was made by a then 14-year-old and was a stop-action video involving a lego version of the band and its fans:

Now, from Spinal Tap's point of view, this is a very cool way of connecting with fans: making use of a cool video in their DVD. In fact, they even played it up, and during a live performance where the video was shown, got real-life fans to mimic the lego fans, by holding their hands in the infamous "C" position of the plastic lego figures. But, of course, the lawyers got in the way. Lego objected to some of the words in the song and denied the use of the video on the DVD (oddly, the DVD still shows the fans with their hands, though it no longer makes any sense). But the real question is why Lego was even consulted. As Kimberley Isbell notes, Lego doesn't seem to have a legal leg to stand on here:

Lego justified its stance by citing the "commercial" nature of the Spinal Tap video.  But can Lego really prohibit the use of their products in commercial videos?  If you ask the federal courts, the answer is likely "no." It's a lesson that Mattel has repeatedly had to learn the hard way.

But that hasn't stopped trademark and copyright owners from trying. The court summarily rejected Wham-O's claims against Paramount Pictures for the unflattering use of its Slip 'N Slide toy in the movie "Dickie Roberts: Former Child Star." Caterpillar likewise had its claims against Walt Disney (relating to the portrayal of the brand in the oh-so-popular movie "George of the Jungle 2") shot down. Similar claims by Emerson Electric Co. (makers of the In-Sink-Erator garbage disposal) and the Canadian folk band the Wyrd Sisters also failed to go anywhere.

But, unfortunately, the people putting together the Spinal Tap DVD did, in fact, cave in, and the video has not been included.

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Hollywood Kills More Innovation; Judge Overturns DVD Jukebox Ruling

from the *sigh* dept

Well, there goes that one. Just a few hours ago, we were writing about how Judge Patel's district court ruling barring Real Networks RealDVD system seemed to conflict with a California state court ruling for Kaleidescape. It's true that there were some differences in the details behind the ruling, but it might not matter either way, as a state appeals court has reversed the lower court ruling and has basically said that Kaleidescape's DVD backup system likely violates the DRM found on DVDs.

Once again, we're seeing a fearful Hollywood, unwilling to innovate itself, using the courts and the law to stomp out anyone who innovates. The Kaleidescape product is clearly not for "piracy" purposes. It's a server that costs around $10,000, and is designed for high-end movie fans, who want to store all of their legally purchased movies on a server so they can watch it. It didn't serve any sort of "piracy" purpose whatsoever. But, thanks to Hollywood freaking out over the fact that anyone might make a copy of a movie, even for perfectly legal backup purposes, that device may now be dead.

Time and time again, we hear folks in the entertainment industry insist that they want to support technological innovation, but their actions show otherwise. They tried (and failed) to outlaw the VCR. They tried (and failed) to outlaw the MP3 player. But lately they've been succeeding in outlawing products just because they don't like them. Doesn't that seem like a massive problem?

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Selling A Different Kind Of Plastic Disc Will Save The Video Industry?

from the missing-the-point dept

An industry analyst says that Blu-ray disc sales could help save the home-video business, which is hurting as sales of traditional DVDs drop off. This seems to be at odds with earlier stories, which said that Blu-ray sales were particularly bleak, and weren't prompting consumers to upgrade their libraries of standard DVDs. Blu-ray continually gets portrayed as some sort of quantum leap in DVD technology, but in reality, it doesn't look like it offers enough advantages over standard DVDs to tempt large numbers of consumers to buy in at its higher price. Innovative online services -- if the movie studios will allow them to emerge -- would seem to offer the industry a better chance at salvation, rather than yet another form of locked-down plastic disc at a higher price.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Today's Ridiculous Lawsuit: Wal-Mart, Netflix Sued Over Conspiracy To Create A Monopoly

from the ugh dept

Way back in 2002, Wal-Mart decided to enter the online DVD rental business, launching an almost exact replica of Netflix. Of course, Wal-Mart quickly discovered what almost every other player in that marker discovered: just offering a competing service to Netflix isn't enough to get anyone to use it. Wal-Mart had a lot of difficulty signing up customers (and keeping them once they signed up). The whole project was going nowhere fast, and eventually, Wal-Mart decided that it was a waste of time to throw more money into a project that was pretty far removed from its main business, and decided to simply let Netflix take over its online DVD rental service. This was a reasonable business move.

However, nearly four years later, a lawsuit has been filed claiming that Netflix and Wal-Mart "conspired to create a monopoly" in the online video rental market, and as a result of that monopoly, Blockbuster raised its prices. Read that sentence again. Netflix and Wal-Mart are being accused of creating a monopoly -- and because of that monopoly another major player in the space raised its prices.

If there's another major player in the space, there is no monopoly.

Besides, the folks bringing the lawsuit are going to have to convince a judge that the relevant market is online DVD subscription services, rather than any kind of home movie viewing service (which includes store rentals, purchases, internet downloads, subscription services and more). This seems like a random bogus lawsuit targeted at a company with deep, deep pockets (Wal-Mart), rather than anything serious.

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Dr. Horrible Gives People A Reason To Buy The DVD

from the such-a-concept dept

One of the issues we regularly discuss around here when it comes to business models is the fact that anyone producing content needs to give consumers a real reason to actually buy something scarce. If it's just the same thing they can get elsewhere for free, there's not much incentive. It looks like Joss Whedon has taken at least some of that to heart. Earlier this year, Whedon got a lot of attention for the release of Dr. Horrible's Sing-Along Blog, an online three-part video musical. While it seemed like some of the attention paid to it was overblown (oh my! TV people can make videos on the internet just like regular people!), that shouldn't take away from the fact that the video, itself was really, really good.

From the beginning, the plan was always to then sell a DVD of the video, but some questioned if that would make sense, since the video was available for free online. Originally, the announced plan had been to only show the video online for free for a few short weeks, and then make people pay to see it -- but it looks like Whedon changed his mind on that one, as the video has stayed available. However, as Tom writes in to point out, it looks like Whedon and the others involved in the production have realized how to give people a reason to buy the DVD: by providing a ton of useful extras that even those who watched the original obsessively will find worthwhile to pay for. It includes behind the scenes stuff, and apparently a commentary track that is as amusing as the original video itself (and, apparently, includes new musical numbers). It's good to see folks realizing that to get people to buy stuff it helps to add value, not try to diminish it.

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Universal's War On Redbox Continues

from the innovation?-attack! dept

You'd think that movie companies would like it when people want to rent and watch their movies -- but surprise, surprise, only if it's on their terms. Universal has been fighting, for some time, with Redbox, the company whose kiosks rent DVDs for $1 per night, trying to get the company to sign a contract that would hamper its business model, while working on rental kiosks of its own. The WSJ is reporting that Universal asked a court to toss out Redbox's lawsuit over the contract last week, and that Redbox had to resort to "new acquisition strategies" in order to get a hold of the recent Universal release Wanted. Redbox wouldn't elaborate on those strategies, but it sounds as if Universal and its distributors cut the company off, as the studio had threatened. So once again, we're left with a company that's innovated in the movie space and delivered a product to consumers in a way they like, at a price they love. But since it didn't come from a movie studio, Universal wants to cut the company off. Once again, it's puzzling exactly how Universal can think that keeping people from seeing its movies can be good for its business.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Why Does The MPAA Get To Approve DVD Players?

from the that-doesn't-seem-right dept

In discussing a recent ruling against a Chinese manufacturer of DVD players who wasn't implementing approved DVD DRM technologies, News.com notes in passing that the ruling allows the MPAA to review and test any new or re-engineered products that use CSS technology before going to market. It's difficult to see what sort of rationale there is for this. Once again, we see a situation where the MPAA seems to think that it gets to decide what innovations are allowed, and which are not. And, unfortunately, we have a court which has agreed, basically giving the MPAA full control over what kinds of DVD players can be sold in the US.

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Why Universal Wants To Kill Redbox: It's Launching Its Own DVD Kiosks

from the competition-through-lawsuit dept

It did seem a little odd that Universal Studios was trying to bully Redbox into an agreement that would kill off the DVD vending machine company. After all, having Redbox out there renting some movies (which it paid for) certainly seems better than it not even being an option. Initially, we just chalked it up to Universal trying to make sure it had more control over the rental market -- but a bunch of readers this morning are pointing out that there may be a much more direct reason. It turns out that Universal Studios is launching its own DVD kiosk system. Initially, it's in the UK, but it's likely there are plans to offer them in the US as well. So now the ridiculous "take it or leave it" bullying threat from Universal Studios to Redbox makes a lot more sense: it was designed to force a competitor out of business so Universal could have the market to itself.

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DRM Company Releases One-Sided Study On DVD Copying

from the let's-pick-this-apart dept

The MPAA has probably been the worst of the various Big Copyright industries in terms of the level to which their studies exaggerate the negative impact of unauthorized copying, while totally ignoring any positive impact. For example, it likes to widely cite a study (which it paid for) that triple- and quadruple-counts "losses" by noting the ripple effects. At the same time, it totally ignores the same positive ripple effects (the ones that cancel out the negative ones, and may even outweigh them). Of course, a big part of this is the claim that an unauthorized copy is a "lost sale."

Now it appears that Macrovision, the big DRM company that supplies DRM to movie studios has cooked up its own study trying to support the MPAA in this argument, claiming that lots of people are copying DVDs and that most of them would buy the DVDs they copy otherwise. However, the LA Times' Jon Healey does an excellent job pointing out the many significant weaknesses in the study, starting, of course, with the fact that it was paid for by Macrovision, with a clear intent in the results. And while Macrovision hypes of the fact that many people in the survey said they would have bought the DVDs they copied, it ignores the fact that the majority of folks they spoke to said the DVDs they made copies of were ones they already legitimately owned.

Even then, the results really aren't as significant as Macrovision would like you (or, rather, Hollywood) to believe. As Healey notes, the study completely ignores the positive impacts of being able to make a copy of a DVD. In fact, the most common reason for making a copy was for perfectly legal time-shifting or back-up purposes from DVDs they legitimately own. In other words, being able able to make those copies is a valuable part of the DVD. Take that away and people will buy fewer DVDs because you've made them less valuable. But, of course, that doesn't show up anywhere in the results, because that's the last thing Macrovision wants people thinking about.

While the study also hypes up the fact that more TV shows are being copied via DVD, it ignores the fact that this is probably quite beneficial. Since TV shows are ongoing experiences, you want more viewers -- and if a copy of a DVD gets someone new hooked on the show, they're more likely to start watching it on TV or to buy a future DVD. But, again, that's not mentioned at all. Either way, props to Healey and the LA Times for digging into the numbers a bit and not just parroting the press release findings, like many other news sources.

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Yet Another HD DVD Format Steps Into The Ring?

from the this-will-end-quickly-on-a-knockout dept

Thought the format war over high definition DVD technologies was over and Blu-ray had won? Perhaps you should think again. The NY Times has a story about yet another attempt at a high definition DVD technology, this time called HD VMD. It's not hard to predict where this one is going: it's dead on arrival. While the company behind it insists it's not trying to start a standards battle, it's difficult to see how you can judge it any other way. After all, why would any studio want to go through the same mess from the past five years in arguing over which standard to release their movies on? The folks behind HD VMD seem to be banking their entire efforts on two very weak pegs: first, their system is cheaper than Blu-ray and second, their Chairman is a big shot Hollywood distributor. If that's the case, he hasn't been particularly effective as there are only 17 movies available in the format -- and you probably wouldn't recognize any of them. As for the cost issue, that's dead on arrival as well. HD DVD was cheaper than Blu-ray and that didn't help it survive. Besides, anyone who understands technology advancement curves knows that Blu-ray is going to start getting cheaper and cheaper pretty fast. The cost advantage will disappear before long. But, the single biggest factor is just that the studios know they've lost three or four good years of selling high def DVDs and don't want to bother with yet another format war.

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Blu-Ray Will Likely Catch On Despite Flaws

from the patience dept

I've had my own share of criticisms of the Blu-Ray format in the past, but even I think the thesis that Blu-ray is doomed is over the top. Don Reisinger claims that having won the battle with HD-DVD, Sony's Blu-Ray format is still going to lose the war of consumer indifference. I think there's clearly something to this. Clearly, lots of people are still buying DVDs, and the reasons Reisinger identifies -- inflexible DRM, high prices, many consumers' inability to tell the difference between HD and regular definition content -- are certainly reasons to expect uptake of the Blu-Ray format to be relatively slow. But I think it's important to keep the longer-term perspective in mind. People were saying many of the same things about the DVD format a decade ago: complaining about the price and wondering if consumers would care about the quality difference. But the DVD format is indisputably successful. Prices came down. Consumers got used to the higher quality of DVD. It didn't happen in a year, but it took less than a decade.

The same thing will happen with Blu-Ray. Blu-Ray players today are no more expensive than DVDs were a decade ago, and the PS3 doubles as a video game console. As people upgrade their TVs, more and more of them will get used to high-def picture quality. We've pointed out before that faster bandwidth will ultimately render physical formats obsolete. But fortunately for Sony, as bad as Blu-Ray's DRM is, the download services' DRM is even worse. You can at least be reasonably sure you'll be able to play your Blu-Ray disc on most TVs, something that's often not true of video download services. So in the short run, Blu-Ray probably has time to reach critical mass among consumers before Hollywood figures out how to design a movie download service consumers will actually be interested in. Blu-Ray would catch on faster if it weren't for the issues Reisinger identifies, but I don't think there's much doubt Sony and its partners will sell tens of millions of the things.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

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Die Hard Packages Digital Copy With Its DVD

from the yippee-kay-yay-kay-yo dept

In a special edition of its upcoming release of the latest Die Hard DVD, 20th Century Fox has announced that it will include a DRM-free digital version of the movie on the DVD. In order to copy the WMV file to a local computer, movie watchers will need to input a 16 digit code that is found on the DVD box. It seems ironic to require people to enter some code to get at the supposedly DRM-free file. This is a step in the right direction, but it still seems like they're making people jump through unnecessary hoops. Still, this feature will finally allow consumers to legally watch the movie on their computer and portable devices without having to pay again for that right... or having to use a third party ripping tool. Perhaps this move is more evidence that the studios find the DMCA unreasonable. As we've seen before, by embracing these formats, consumers will begin to find more value from the media, and, as a result, their consumption should increase, which is ultimately good for the entire movie industry.

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NetFlix Hopes Good Customer Service Will Keep Mail Boxes Stuffed With Red Envelopes

from the nice-talking-with-you dept

Although Blockbuster sat on its heels for a long time while NetFlix gobbled up market share, the company has aggressively fought back this year, prompting a lot of pain at NetFlix. NetFlix stock has been pummeled lately as its been drawn into a price war in order to stem customer churn. The problem is that its business model is easily replicated, which partly explains the company's attempt to assert a patent on it. However, the company does appear willing to actually compete, which is refreshing. The New York Times reports on the company's unorthodox decision to offer customer support services from friendly sounding Oregonions (as the company puts it), rather than rely on offshoring or email support. Although this is an expensive move, the company feels it will prove to be a key differentiator as it battles back Blockbuster. Obviously, good customer support means happier customers, while bad customer support can turn customers away. But the lesson isn't that companies should immediately stop all offshoring of these services. Rather, it's important for companies to think of customer support strategically and weigh the various costs and benefits, rather than just going on the lowest-price option.

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Who Cares How Many Discs Counterfeit Operation Could Have Made?

from the why-focus-on-that? dept

Information Week is reporting on two men who were sentenced to jail for what is being called the "largest CD and DVD pirating scheme to be prosecuted in the United States." From the evidence, it certainly sounds like these guys were counterfeiting all sorts of music, movies and software, so there's nothing wrong with them being caught, found guilty and punished. What I do find interesting, however, is how the various industry associations have been spinning this story (and how the press is accepting it without question). Since these guys were arrested, the story has been how they had equipment that could have made 300 million pirated CDs and DVDs. Note the "could have" part. Because, in reality, authorities only seized a bit less than half a million. It's still significant, but it's less than 0.2% (not 2%, but 0.2%) of what's going in the headlines. In theory, any DVD/CD burner could produce millions of counterfeit discs -- but that's not news. Why is it news in this case?

Of course, this is par for the course for the industry. Remember when the RIAA wanted to count high speed CD burners as multiple burners in trying to boost the size of a bust it made? Or when the MPAA claimed they seized $30 million worth of DVDs when in turned out to only be about $10,000? It seems they like to blow these things out of proportion with big, totally unsubstantiated numbers. Of course, that lets them make the laughable claim that each of these busts is "a significant blow" against piracy when nothing can be further from the truth. In fact, as we've seen, all these CD/DVD counterfeiting shops are facing a much more "significant blow" from the competition from free downloads. Yet, of course, the Information Week piece carries a quote saying that "It cannot be understated how significant it has been." Actually, I'd say it's been significantly overstated.

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74 Percent Of Nothing Is Still Nothing

from the hot-air dept

The group behind the HD DVD format in Europe claims that it has 74 percent market share of the next-gen DVD market in a handful of western European countries. Of course, they're not including Sony PS3s, which have a Blu-ray drive, in their count, but the bigger point is that they're claiming 74 percent of a miniscule market. This contrived stat, like Toshiba's claim of 60 percent share of the US market, glosses over the problems that are holding it back: DRM that breaks legitimate customers' players, low perceived benefits and high prices. Apparently, though, the HD DVD folks would rather claim to have a big share of a tiny market than to have any share in a market that's actually meaningful. Update: Just in case anybody cares, the Blu-ray people say they're actually the market leaders.

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Duh: Report Says DVD Ripping Is A Lesser 'Threat' Than File-Sharing

from the snoooore dept

A research firm has released a new report saying that people are much more likely to get pirated movies from file-sharing networks than ripping DVDs from rental services or friends. While an article about the report says this is "contrary to popular belief", it hardly seems surprising. While the number of tools to simplify and automate the task of ripping a DVD and turning it into a manageable file have proliferated over the last few years, they still pale in ease of use to the relative point-and-click simplicity of file-sharing networks, particularly for novice users. This is fairly obvious, but it's an important point, because it underlines the fact that it's really impracticality, not copy protection that stops people from ripping DVDs in the same way they do CDs. Despite the contention of the reports' authors, copy protection and DRM really don't stop anybody from ripping a DVD -- they just frustrate legitimate customers.

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AACS Is Like Every Other DRM: All It Does Is Annoy Customers

from the they'll-never-learn dept

The cornerstone of the AACS copy-protection technology used on next-generation DVDs is the ability to revoke keys on playback devices. This means that when AACS keys get cracked (as happened months ago), DVD makers start pressing discs with a new key -- and discs with that key not only won't work in playback devices until they're updated to recognize it, it renders those device unable to play back any Blu-ray or HD DVD discs at all. Sure, the system "works", but at the expense of potentially pissing off customers who have legitimately bought their DVDs. For the movie industry, though, that's a price they've long been willing to pay; the AACS scheme just further illustrates that DRM doesn't stop piracy, all it does is frustrate users.

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