Redherring.com - Shop Talk: Wake up, entertainment = industry- June 20, 2000

From: Subject: Redherring.com - Shop Talk: Wake up, entertainment industry- June 20, 2000 Date: Fri, 14 Jul 2000 13:40:40 -0700 MIME-Version: 1.0 Content-Type: multipart/related; boundary="----=_NextPart_000_003C_01BFED99.19754C00"; type="text/html" X-MimeOLE: Produced By Microsoft MimeOLE V5.00.2919.6700 This is a multi-part message in MIME format. ------=_NextPart_000_003C_01BFED99.19754C00 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.redherring.com/industries/2000/0620/ind-shoptalk062000.html Redherring.com - Shop Talk: Wake up, entertainment = industry- June 20, 2000

=20

Shop Talk: = Wake up, entertainment=20 industry
By=20 Ken = Yamada
Redherring.com, June 20,=20 2000

Step aside, music companies, it's = time=20 for Hollywood studios to break out the lawsuits. Technology for = turning=20 average Joes into digital pirates is coming to television and = movies.=20

A dozen major studios, including Disney=20 (NYSE: DIS<= /A>),=20 Time=20 Warner (NYSE: TWX<= /A>),=20 MGM=20 Studios (NYSE: MGM<= /A>),=20 Columbia Pictures, Paramount=20 Pictures, and 20th=20 Century Fox, fired off an early salvo last week, accusing tiny = RecordTV.com of illegally broadcasting copyrighted shows over the = Net.=20 That suit follows a similar action against iCraveTV.com,=20 which shut down its Web broadcast service in April.

Like their music breathen, big studios have begun scrambling = like=20 Keystone cops to fend off free-wheeling innovation on the Web. = Innovation=20 that threatens to eviscerate their stranglehold on entertainment. =

Meanwhile, Napster,=20 with its wildly popular music sharing program developed by a = 19-year-old=20 college student, continues to fight in courts for life, while = hoping to=20 somehow forge an agreement with its legal opponents -- the big = music=20 companies.

At least some encouragement came from MP3.com=20 (Nasdaq: MPP= P),=20 who reached a settlement last week with Warner=20 Music Group, a unit of Time Warner, and BMG Entertainment, a = unit of=20 Bertelsmann.=20 The Web music distributor reportedly will pay the music companies = $20=20 million each for using their songs. MP3.com listeners may access = those=20 songs on the Web, after proving they own a copy by inserting the=20 appropriate CD into their computers.

Now Hollywood studio executives and the Motion=20 Picture Association of America are worried about a guy with = eight=20 computers, working from his home in Agoura Hills, California. = Without=20 outside funding, 40-year-old David Simon started a site offering = to record=20 TV shows like a VCR for playback on the Web. The three-month-old = company=20 now boasts 100,000 registered users.

Whatever happens to Mr. Simon and RecordTV.com is just the = opening=20 scene of a new millennium soap opera about big money, power, and = control=20 over tomorrow's entertainment.

Already in cyberspace, for example, a new technology is = catching fire.=20 Called DivX, it's a free = program=20 allowing people to download, swap, and play DVD movies on the Web. = Granted, DivX is crude, requiring 4 hours on a high-speed line to = download=20 a two-hour movie. But hey, it's free, and I'll bet there's an army = of=20 hackers improving it right now.

So get ready Hollywood -- take out your wallets, call the = lawyers, and=20 warm up your publicity machines. The little guys are conspiring to = take=20 over the world.

Discuss today's column in the Shop = Talk=20 column discussion, or visit the forums home=20 page.

=20 = =20

Related=20 Stories

Shop=20 Talk: Wake up, music industry.

Shop=20 Talk: Hollywood and the Valley attempt to mate.

Company=20 Profiles

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