DVD Region Encoding on Verge of Collapse?

Spudley writes "It seems like the infamous Region Encoding system used by DVD manufacturers to prevent us buying disks from overseas is about to collapse - due to widespread flaunting of the system. This article on the BBC doesn't go into much technical detail, but does include an interview with a company that manufactures DVD players ("You can find codes for more or less all brands of DVD player including ours") and some speculation on the future." It always seemed like an idea destined to fail.

Comments

Re:why?

[Caballero]

Strictly economics. The studio wants to control the spread of the movie to maximize profit.

Movies often open in the US 6-9 months before they show in Europe. In many cases, the US DVD is out before the move has opened in Europe. With region codes they make it hard for Europeans to buy the DVD instead of going out to the theater.

Not just release scheduling

[crow]

If it were just a matter of scheduling releases (which is the most often cited reason for the coding), then they wouldn't include region coding except on recent movies. But look at DVDs of classic movies; they're all region coded.

Why?

They want to maximize profit by charging different prices in different markets. They know that if they set the price 50% or 100% higher in some region, then people will import from the cheaper region. Region coding is supposed to stop that. In practice, this is the main reason that people want to bypass region coding--cheaper discs from other regions.

Re:why?

[tftp]

The business justification is simple. Advertisement of a movie in one country costs N million dollars; if you do it in M countries you must have N*M million dollars. But this is expensive, and where the money would come from? Especially right after the movie is done and all the investment/loan money already spent?

The easy way out is to start in few countries, collect money, recoup your advertising expenses, and reinvest into advertising in another country or group of countries. This way you only need N million dollars regardless of how many countries you sell the movie to. This, of course, takes time, and that's where the delay comes from.

Good article

[Featureless]

This covers the subject pretty well, discussing the economics, sizes of markets, theoretical justification for region subdivisions, etc.

DVD Region Coding

Region coding is a perfect example of how the content production trusts abuse their special status. You see, our government, in its infinite corruptibility, has granted legal sanctity to the IP producer's content control systems. But the MPAA isn't just trying to use this new favor to prevent theft. They really see themselves as the natural owners of the whole transport layer and presentation medium, and they exploit it in any way possible - including with region coding, which (I suspect) allows them to sidestep the perils of free trade to further control prices.

What gets me is that I don't even see region codes as a big loss for the MPAA; I'm curious about the substance of the price differences across region boundaries that this allows them to create. I understand that the movie industry is in the habit of doing theatrical releases months apart on different continents, and that this allows them to make sure that the American DVD does reach Australia before the movie hits theaters, but really, how often is that in danger of happening? I suppose there are cases where they decide some time after a release in one country to go for a release in another (probably based on sales figures)... But how much hardship are we really talking about, I wonder?