Why the movie studios are screwed
It’s not just going after a few select people in Sweden, the Slate has the best succinct article, that I’ve read, about why Netflix and iTunes fit in the current “byzantine” (their word not mine) motion picture distribution system.
We all understand the first couple of steps in this life cycle—first a movie hits theaters and then, a few months later, it comes out on DVD. Around the same time, it also comes out on pay-per-view, available on demand on cable systems, hotel rooms, airplanes, and other devices. Apple’s rental store operates under these pay-per-view rules, most of which put a 24-hour limit on movies.
It’s a short read and well worth it to understand the current monetization issues the MPAA faces. It doesn’t make me any more sympathetic tho. Note to MPAA: Please see RIAA and print newspapers as examples of what happens when you hold on to your existing business model too long.
