Valenti's "Boston Strangler" Testimony

Seth Schoen writes "'I say to you that the VCR is to the American film producer and the American public as the Boston strangler is to the woman home alone.' Jack Valenti said this in 1982 in testimony to the House of Representatives on why the VCR should be illegal. He also called the VCR an "avalanche" and a "tidal wave", and said it would make the film industry "bleed and bleed and hemorrhage". This speech is an important part of history, yet until today it had never been published on-line in its entirety. Valenti's testimony was published today by Cryptome. It's essential background reading if you want to see just how little the MPAA's arguments have changed in two decades." Compare to the Analog Hole document and they're virtually identical (except Valenti was playing on anti-Japanese sentiment then, and today it's anti-pirate sentiment). Of course, the MPAA was unsuccessful in plugging the "VCR Hole" - insufficient lobbying and clueful judges stopped them. The MPAA successfully adapted to the changing times and today sells about 70 million cassettes for rentals and 600 million cassettes for home viewing every year (both numbers are on the decline due to the rise of DVD).

Comments

the biggest difference between VHS and DVD is

[davmct]

the relative ease to which you can now transfer content between people. Sure, you could make VHS copies of movies in your basement, but you were still limited to physical distribution. Now that distribution is effectively uncapped, the MPAA and RIAA realize their nest eggs are being poached.
The biggest problem with all of this is the lack of concern of the RIAA/MPAA towards their customers. Sure, you will always have a few people hacking and stealing content, but if the movie/music industry realized that the standard of economy is based on the supply/demand chain, they would realize a better way to combat this 'theft'.

I, myself, am an avid DVD-collector, and have quite a repository built. I have no qualms with paying good money to buy a good movie. But what I do expect is for the MPAA to be competitive. Since there are no other options THAN the MPAA, we are all held up to paying 20-35$ for a DVD, which in all reality may only be worth 15-20$. What the MPAA must realize is that their competition is now the free route, and the only way to combat this is to
a) lower prices
b) provide extras to create a competitive advantage

I'd surely shell out 14 bucks to watch AoTC on a big screen over having to watch a pirated version that shakes like a hyperactive child sucking on a lollipop. Sure, there will be the cheapskates that will watch it for free, but those were never really customers of the MPAA anyway.
The MPAA needs to get back to the business of making movies, and distributing the "extras" that make it worthwhile buying.

Re:the biggest difference between VHS and DVD is

[gblues]

the relative ease to which you can now transfer content between people. Sure, you could make VHS copies of movies in your basement, but you were still limited to physical distribution. Now that distribution is effectively uncapped, the MPAA and RIAA realize their nest eggs are being poached.

Bullshit.

The "unlimited distribution" myth has been repeated by everyone from New Economists to Technologists to lawmakers. But, no amount of repetition makes it any more true.

Distribution on the Internet is not an economy of scale. In fact, it is exactly the opposite! With economies of scale, the cost of production approach zero with an increase of output--e.g. it costs less to produce 10,000 than it does 100.

The Internet does not work this way. As your production levels increase, production costs go up--often logarithmically. In other words, it costs many times more to distribute 100GB per month than it does to distribute 10GB per month.

What about peer-to-peer, you ask? Peer-to-peer networks rely on the uneconomical nature of high-speed Internet. This market is beginning to correct itself as the ISPs cap the bandwith of bandwidth hogs. Eventually, the peer-to-peer networks will be the proverbial victims of their own success. People will stop using them when the ISP bill runs into the triple digits.

Therefore, even if DVD were completely unencrypted, it would be more expensive to download the 13+GB DVD than it would to simply travel to your local video store and purchase a legal copy.

In fact, if you factor in the time it takes to download the rips/theater screeners, it is already more expensive. However, expect the implicit cost to transform into explicit costs (in terms of higher ISP bills) in the near future.

Nathan

Stagnent Media Industry

[jamieo]

The media industry (music and film) are so stangnent it's unbelievable.

MP3 and digital music was (actually still is) a chance for them to make lots of money in new ways.

The same goes for digital TV/films, yet they can't see it. I actually worked in Digital TV a while and I don't have any faith in these companies being able to pull off anything worthwhile for the public due to the anal retentives in the media industry.

PVRs are great - the public love them. However, they're by no means the statan to media companies. PVRs will change, allowing targeted programming, targetted adverts, pay per view, etc. Nerds will hate it (I do), but it will happen.

But that's only the start. PVRs are not long for this world, as a set top box anyway. The future will be PVRs in the network - no set top box, no limited 40Gb storage - it will all work in the back end for you. Not only will this offer PVR like functionality but it will bring the reality of video on demand and targeted programming to the masses.

When this happens, the big media companies will be able to make more money from it than they can from their current distribution systems.

If they kill this, their only hope is DVD and then they're opening themselves up to far more piracy.

Personally, I hope all such companies burn in hell, but realistically they'll survive and continue to screw me over with content I don't want. Hopefully the digital revolution will give me a *bit* more choice.

Re:Looks like he was wrong...

[K8Fan]

Didn't the record companies say the same thing about audio tape?

Audio tape? Hell, they said the same thing about radio, and sued to stop radio broadcasters.

The said the same thing about imported LPs, DAT, used CDs, anything they could find to lay blame on to explain a temporary downturn in revenue. Increases in revenue are, of course, entirely due to their own brilliance.

This is about what it always about - the lobbyist's desire to get the government to give their industry a handout. They used the introduction of DAT to get a tax passed on the units and blank tapes. As musicians and Deadheads are virtually the only people who buy DATs (other than data DATS for backup), they have been paying a tax that it delivered directly to the members of the RIAA.

Forget welfare to the poor. It is dwarfed by Corporate Welfare.

Wolf!

[cybermage]

Looks like the MPAA has turned into the boy who cried wolf. With any luck, a pattern of resisting technological innovation will ultimately serve to discredit them in the eyes of law makers.

Both the MPAA and RIAA have resisted new technologies, like analog tape. In the past they were ultimately told to shut up and deal with it. Once they embraced the new technology, they found new markets.

Now the battleground is digital movies. I'm confident that the industry will eventually be put in their place, and then we'll see what innovations follow. Maybe in a decade, movies will be released straight to home theatre. Perhaps we'll see an immersion style of theatre where you can watch the movie from within it, or even participate.

I wish the industry would learn from their past and maybe try to be the ones innovating instead of the ones whining. They'd make more money dragging us into the future than the other way around.

Except they inserted copyright protection...

[sudog]

...technology into each and every consumer-grade VCR out there. It's called Macrovision people. When was the last time you tried to record a video cassette (that you bloody well BOUGHT, no less) onto a temporary copy so you could better preserve the original in an archive?

Uh huh. Thought so.

They just want to do the same thing to digital devices. It's just proving a lot harder to do. But for all your belly-aching and all your complaining about how information wants to be free, digital devices are too uncontrollable, too hackable, to maintain the threshold of expertise required to bypass them. (Witness DeCSS and descendants!)

Not everyone can double-click and magically cause a de-macrovision device to pop up so they can record from one VCR to another. They have to either fork out $$ to buy a device, or be advanced enough with analog devices and time-signals to build one themselves. Macrovision turned out to be an extremely effective form of copy protection. Unfortunately broadcast signals are so full of ads and trimmed to fit the schedules of the networks that there's not much point in using them as an alternative. Broadcast is not on-demand programming.

Now, anyone can rip and re-encode a DVD. Just go to http://www.doom9.net, it's all right there.

You're insane if you expect to come out of this with devices that are clean from the touch of the MPAA. But the fact that you're fighting for that means that the MPAA won't get away with true murder--just a relatively minor assault. The more outfield you go, the further towards your position the compromise will be.