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The End of Physical Media

L-s-L69 writes "The register is reporting that Forrester is predicting that a third of all music sales will be made by downloads in the next five years. They also predict that almost 15 per cent of films will be viewed by "on-demand" services such as rather than by DVD or video by 2005. "

18 of 331 comments (clear)

  1. Really? by mgcsinc · · Score: 5, Insightful

    So here's the question: what effect do these predictions have on the ways in which companies in control of these industries approach their market? Do companies move to prevent the predicted move to electronic means or do they embrace it because of it's new seeming inevitability? Or has Forrester taken the very effects of its own findings release into account? And if so, might companies recognize this and try to undermine the research adjustment by acting differently than it otherwise would. Don't you just love how these silly little viscous cycles can come out of attempts at predicting trends in a market so easily controlled?

    1. Re:Really? by QuackQuack · · Score: 5, Insightful

      Pretty much.

      Who keeps track of what Forrester and Gartner predicted in the past? It would be pretty funny to see what they predicted the world would be like now five years ago. IIRC, Gartner said that we'd all be using NT now, and Linux would be nowhere.

      I think the real value in these analysts are for companies who these trends favor. For example, a company who owns a piece of digital music sales can say "Forrester says 1/3 of all music sales will be digital." This helps attract customers and investors.

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    2. Re:Really? by Jonny+Royale · · Score: 4, Insightful

      I don't think they're waiting until "all hope is lost". I do think, however, that they're going to continue with the lawsuits & status quo until they find a way to make a closed distribution system that they can control.

    3. Re:Really? by jayackroyd · · Score: 4, Insightful

      Yeah. That "next five years" thing is a good trick. They've got, what, two or three year's of useful data? And from that they make five year projections. Reminds me of the first round of pen-based computing. In 1989/90, we're five years away from the death of the keyboard.

    4. Re:Really? by anon*127.0.0.1 · · Score: 3, Insightful

      Physical media will always have a market, but will they always be available? I can easily foresee a future where ppv and on-demand have achieved such market penetration that content providers no longer find it necessary to release products for sale at the consumer level. They'll try to keep you hooked on paying rent for the same virtual product over and over and over...

      --
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      I am a free number!
    5. Re:Really? by tambo · · Score: 3, Insightful

      Ah, but you misjudge the *AA mindset.

      DVD is great for consumers - for a (quite reasonable) one-time fee, we get permanent ownership of media. We get to watch it infinitely; we get to show it to others; we get to sell the DVD if we don't want it.

      That's great for us, but the MPAA hates that part. They're all about limiting our uses of their media for their advantage. Even DVD has media controls - they can explain away Macrovision as preventing VHS copying, but what about region coding? They really wanted DIVX to succeed, but consumers balked and the technology wasn't there. They would have loved a DRM-based mechanism, where the DVD only plays in one player.

      Why is the MPAA so crazy about controlling its media? Easy - profit maximization. C'mon, they're the kings of repeatedly profiting from the same medium! How many versions of Star Wars were released? Like, 20? We even had three separate VHS releases. DVD is even worse: first the DVD, then the SE/LE/Superbit/Director's Cut, then the Limited Edition with the funky packaging...

      Take this to its next logical step. In the broadband/Palladium era, instead of selling you the DVD for $15, the MPAA will have the option of charging you:
      (a) a $20 annual subscription fee;
      (b) a $20 fee for an ad-free media player on your computer, or a $100 fee for a set-top (pirate-proof) device for your TV; and
      (c) a $5 fee for each viewing of the movie, plus
      (d) a $2 fee for accessing the special features for a 24-hour period.

      Meanwhile, you can't publicly criticize the films or take screen captures without jeopardizing your subscription license ("The MPAA hereby exercises its option under the contract, part XXIV(c)(iii)(a)(2), to withdraw your license to its copyrighted material...")

      End result: The movie industry doesn't sell you content and move on. They nickel and dime you for the privilege of viewing their entire library at rental fees. Even Gigli breaks even. They'd be suckers not to do it.

      Why hasn't this happened so far, you ask? The MPAA hasn't had the technology available to offer such an option.

      Why would we accept this option, you ask? Same reason you rolled over and accepted a $4 charge for Caller ID. They'll raise the prices on DVDs to something absurd, or they'll stop selling them altogether. So, you can take the option they give you, or you can choose never to see a movie at home again.

      - David Stein

      --
      Computer over. Virus = very yes.
  2. Still need physical media by Anonymous Coward · · Score: 3, Insightful

    After you download the movie/music, you still need physical media to store it. It may be your hard-drive or your CD-ROM. The title sounds almost like you store the files in thin air.

  3. Obsolete or just used differently? by immel · · Score: 5, Insightful

    The article says that CDs and DVDs will become obsolete. I think this is wrong. There will always have to be at least one hard copy that can't easily be deleted. Moreover, it says that people have already started to shun buying CDs. People haven't stopped buying CDs, they are just buying more blank ones. For those who see no need to spend several hundred dollars for an MP3 player in their home stereo or car, and then spending all the time and frustration installing it and syncing it with their PC, burning downloaded music onto CDs is a very viable alternative.

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  4. Re:Video On Demand by Shenkerian · · Score: 4, Insightful
    On-demand viewing is going after the rental market, not the DVD collector market.

    I share your beefs with the user experience, but those can and probably will be resolved as the technology is refined. Cable box DVR's, e.g., could allow local caching for smoother rewind and fast forward.

    --
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  5. physical media == more bandwidth by tuffy · · Score: 4, Insightful
    A dual layered DVD holds ~8 GB(?) of data. Assuming it takes half an hour to drive to the store, buy one, and return, that's ~4.5MB/second. If I buy more than one DVD, the rate is even better. Cable TV delivers more varied content, but little of it is on-demand and the quality doesn't approach DVD. Pay-per-view content hasn't taken off in the 10 years I've had it available, and doesn't look like it's going to anytime soon.

    My guess is that broadcasted (cable/airwave) media and physical media will always coexist to fit different niches in the marketplace to fulfill different needs.

    --

    Ita erat quando hic adveni.

  6. Future Predictions by GearheadX · · Score: 4, Insightful

    Are highly doubtful in general, much of the time. I'd really hate to say it, but a lot of it is corporate-funded pandering and dreaming out to try and force the market in a certain direction.

    I think most people lost their faith in the powers of technological prediction when whole the flying cars by 1990 fell through.

  7. People are packrats. by Picass0 · · Score: 3, Insightful

    People like to own things. It's the hunter-gatherer in us. The author does not understand consumers if he thinks that on-demand services is going to satify collectors. People want to own tangible things - whether it's a table or a DVD. Often times renting something is not enough. They are not as fond of paying for something they get to enjoy once.

  8. Re:The End of Physical Media? by kfg · · Score: 4, Insightful

    Well yes, that's their hope. If you can't store it on anything than you have keep paying for your connection and pay again every time you watch something.

    The media kills your wallet with a financial death by 1000 cuts.

    What's more is the fact that "on demand" viewing is a push model disguised as a pull model. They who control the pipe get to control that which is available to you for your "demand." Think Clear Channel and the pop music machine become endemic to all media.

    Of course this will only work if your media is taken from you or rendered usless by force, because, of course, what you want downloadable media for in the first place is to record it to permenant media for viewing, well, on demand. Like maybe on your boat 10 miles out of sight of land or your mountain getaway cabin or wherever.

    Sure people want the convienience of on demand media from home, so they can record the shit on cheap, free and open storage media.

    Never underestimate the bandwidth of a cupboard full of tapes, CDs and DVDs. Not to mention the fact that such are true on demand media.

    KFG

  9. Re:Video On Demand by BrokenHalo · · Score: 3, Insightful
    As I understand it, the original post was referring to music sales.

    If "they" seriously want to push this angle, they will be disappointed with the result. People want media they can take anywhere. I, for one, absolutely insist on being able to listen to Bach's 2nd Partita for unaccompanied violin while sitting in a rowing boat in the middle of the Pacific Ocean.

    Never mind how I'm supposed to get there :-)

    Most people do not have the resources to lug their broadband connections around on their backs. Most people, in fact, don't have broadband connections at all.

  10. Re:Video On Demand by BrokenHalo · · Score: 3, Insightful
    Would you actually trust the cable company to "remember" you have lifetime viewing rights anyway?

    That's assuming the company continues to trade throughout your lifetime. Also assuming they don't decide to change the rules and hit you in the pocket anyway as a matter of policy.

  11. Re:Profit shifts by Shalda · · Score: 3, Insightful

    Bah. Production and distribution in both new and traditional media are marginal costs. The money is in controling the distribution chanels and the marketing. Any band could get a half million CDs made. The trick is getting radio stations to play your song and Best Buy to stock the disc (in a prominent location). The bandwidth providers are a commodity. The money will still flow to who has the power to decide what gets heard.

  12. Interesting, but not right? by blinder · · Score: 3, Insightful

    Okay, I thought this was interesting. I got to thinking though, if by 2005 physical media will be well on its way out, that would mean that the vast majority of consumers of DVD (and whatever) would have to have broadband service (with the exception of on-demand via digital cable or satelite, but again, this infers broadband).

    So, I went and googled and found this study that basically says that by 2005 only 40% (or so) of US house holds will have broadband service. This too, is a forecast. So, it just seems to me that this projected date of 2005 is a bit, well, optimistic?

  13. Re:Video On Demand by cens0r · · Score: 3, Insightful
    I do have a problem with in-demand. Maybe I'm not the average user but I much prefer the video store. My problems are as followed:
    • The selection sucks. If it wasn't a recent blockbuster I'm not going to get to see it on PPV. Some days I might want to see the matrix. But other days I'd like to see something like spellbound.
    • The quality sucks. They compress the shit out of all my channels on comcast. It's only gotten worse since they added more HD content. The DVD simply looks better.
    • Only a few of the movies are actually in OAR. I will not watch any movie that has had it's aspect ratio changed. It makes me sick to do so. Usually only those movies that are in widescreen are broadcast in DD5.1. So, a small list gets even smaller
    --
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