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Macrovision Releases DVD Copy Protection

msblack writes "The Los Angeles Times is reporting that the good folks at Macrovision have unveiled a new system that will thwart 97% of existing DVD copying software while maintaining compatibility with existing DVD players. Macrovision claims that DVD copying results in $1 billion loss for studios out of $27.5 billion in sales. With piracy resulting in only 4% loss, why are the studios making such a big deal? The article also reports (mistakenly) that the market is pressing 100s of billions of DVD annually. Who's buying all those DVDs?" I'm skeptical of their claims, since historically Macrovision's anti-copying measures have been little more than easily circumvented snake oil, but maybe this time they've got their plan down.

25 of 686 comments (clear)

  1. Lies, Damn Lies and Macrovision by ackthpt · · Score: 5, Insightful
    The Los Angeles Times is reporting that the good folks at Macrovision have unveiled a new system that will thwart 97% of existing DVD copying software while maintaining compatibility with existing DVD players.

    Suuurrre.. Then come the artifacts, the quirky behavior, then you have to shell for a new DVD player to get it all sorted out, suddenly your old DVDs are now flaky so you have to keep 2 DVD players... Sigh. If only there were a way to copy them all to one format so you wouldn't have these problems...

    Macrovision claims that DVD copying results in $1 billion loss for studios out of $27.5 billion in sales. With piracy resulting in only 4% loss, why are the studios making such a big deal?

    Obviously not posted by a business owner of any sort. 4% loss may sound paltry, but if you choose to look at that 4% as being taken out of your net profit it'll look considerable larger, i.e. 4% out of $27B - expenses, assume a profit margin of 50%, and it's 8% Would you be happy buying a 12-pack at the corner store, but having to sacrifice one can/bottle to some guy at the exit door for no apparent reason?

    The article also reports (mistakenly) that the market is pressing 100s of billions of DVD annually. Who's buying all those DVDs?"

    Maybe they accidently included the AOL CDs.

    I'm skeptical of their claims, since historically Macrovision's anti-copying measures have been little more than easily circumvented snake oil, but maybe this time they've got their plan down.

    Hey, it's a consumer driven economy, gotta come up with some new angle that everyone's going to give you 4% of for no apparent reason...

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Lies, Damn Lies and Macrovision by crayz · · Score: 4, Insightful

      Obviously not posted by a business owner of any sort. 4% loss may sound paltry, but if you choose to look at that 4% as being taken out of your net profit it'll look considerable larger, i.e. 4% out of $27B

      Right. Because when someone buys a DVD, it's 100% profit for industry. There's absolutely no production or shipping costs on the part of the producer, because DVDs and their packages grow on magic trees in candyland, and are delivered to Best Buy by the volunteer video fairy

    2. Re:Lies, Damn Lies and Macrovision by Rei · · Score: 4, Insightful

      ... and I'm sure that the 4% number is reliable. I mean, it's not like a company that makes a Leak-Patching-Putty has any incentive to overinflate the horrible dangers incurred by leaks. :)

      Seriously, though, the concept that if 4% of all movies are being copied across the internet that this is replacing an equivalent amount of DVD sales is ridiculous. They try to make these sort of claims with music. The reality is that the majority (not all, but most) of people pirating movies and music are penniless high school/college students and the like, who - if they couldn't download that latest Eminem album or copy of The Lord of the Rings from the net - wouldn't be headed out to the store to buy it any time soon.

      --
      "Well, then fire it up and show me what this..." (sigh) ... "coccoon can do."
    3. Re:Lies, Damn Lies and Macrovision by Oliver+Wendell+Jones · · Score: 5, Insightful

      100s of billions of DVDs annually
      $27.5 billion in sales annually

      If we assume that 100s only means 100, then that means that each DVD sold in America sells for an average price of $0.28. Now, I've personally never seen a new DVD sell for anything less than $10 on sale, so this must mean that there are billions and billions of DVDs being sold for $0.01 or LESS in order to bring down the average cost.

      Or else the people at Macrovision are idiots (DING, DING, DING! We have a winner!) and can't perform simple arithmetic.

      --
      A computer once beat me at chess, but it was no match for me at kick boxing -- Emo Phillips
    4. Re:Lies, Damn Lies and Macrovision by jrumney · · Score: 4, Insightful
      Sigh. If only there were a way to copy them all to one format so you wouldn't have these problems...

      Don't worry, there will be by next week.

    5. Re:Lies, Damn Lies and Macrovision by InvalidError · · Score: 3, Insightful

      The CDs/DVDs themselves might cost next to nothing to make and ship... but the ~$100M budget movies that go on DVDs do not make themselves up overnight.

      Blockbuster movies do easily recoup this initial investment. Although we often hear about movies raking in milions over the first week, marginally profitable or even loss-making productions also exist. For these, DVD/CD sales help fund future projects or limit losses.

    6. Re:Lies, Damn Lies and Macrovision by badmammajamma · · Score: 4, Insightful

      Actually the new copy protection will likely cost more than the 4% they lose from piracy. However, they are paranoid about anything that reduces their control over distribution. The 4% is a write-off. Distribution control is everything.

      Look at that russian mp3 website (can't remember the name) where you pay about 5 cents per song. They could start doing that with DVDs. That's what they are affraid of.

      --
      Any man who afflicts the human race with ideas must be prepared to see them misunderstood. -- H. L. Mencken
    7. Re:Lies, Damn Lies and Macrovision by NormalVisual · · Score: 4, Insightful

      And most of the mass piracy operations are well-funded enough such that the new Macrovision protection isn't going to make a bit of difference. Like so many other DRM schemes, this will prevent the average Joe from making a backup or sharing with one or two friends, and do absolutely nothing about the large-scale operations that are really costing them money.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    8. Re:Lies, Damn Lies and Macrovision by Em+Adespoton · · Score: 4, Insightful
      The CDs/DVDs themselves might cost next to nothing to make and ship... but the ~$100M budget movies that go on DVDs do not make themselves up overnight.

      I haven't checked how these things work these days, but back in the time of Videocassettes, studios did all their financial balancing based on cinema sales alone.

      This means that they would project their releases and productions in a way that would guarantee a decent aggregate profit for any given year, without considering tape sales. Tape sales were looked on as an annual loss (people won't go back to the theatre to watch it if they own it), so most shows only went to tape after the projections had been met.

      So effectively, the only costs for the cassettes were in the cassette mastering, duplication, and distribution, and any profit above break even was an added bonus.

      The incentive to release movies in this way was mostly branding; if you saw that MGM produced these good movies, and certain celebrities generally gave a good performance, you'd be more likely to go see the next MGM film in the theatre that starred those actors.

  2. It's like the theory of evolution... by tekiegreg · · Score: 5, Insightful

    will thwart 97% of existing DVD copying software

    So the 3% that survive will propogate the rest of the Internet. Or more likely the 3% that survive will propogate it's technology to the 97% of those that didn't. It's like antibiotics and resistant bacteria, the game continues. Until you find something that's 100% bulletbroof (MUHAHAHAHAHAHA!!!!) it's hopeless Motion Picture industry....

    --
    ...in bed
    1. Re:It's like the theory of evolution... by stupidfoo · · Score: 3, Insightful

      That's what I was thinking to. The 97% number is interesting and is the type of number that would only impress those who are impressed by meaningless statistics. There are so many bugfilled and worthless DVD copying packages out there, killing 97% of them menas nothing. The 3% is most likely the few that are actually worth using.

    2. Re:It's like the theory of evolution... by Grym · · Score: 4, Insightful

      Which brings us back to the real question:

      How much has (will?) this "copy-protection" mechanism cost to design and implement?

      If they're so strapped for cash, why even bother if it only works for 97%? As the OP stated, that 3% will just become the preferred method. This all just seems like a bunch of sound, fury, and wasted money, signifying nothing.

      -Grym

  3. Only 4%? by jayhawk88 · · Score: 4, Insightful

    With piracy resulting in only 4% loss, why are the studios making such a big deal?

    Lol, go ask any retailer why they should care if their shrink is only 4%. They'll punch you in the mouth.

  4. I have some ideas... by NivenHuH · · Score: 5, Insightful

    We can encrypt the content on the DVD! (oh.. that didn't work)
    We can automatically install a driver on Windows machines to make the disc un-rippable (oh.. that didn't work either!)
    We can add a special time-code that prevents ripping... (Defeated by a marker!)

    Seriously.. when will these guys give up? Go after the people selling the shit on the streets and leave the consumers alone..

    --
    Just when you make it idiotproof, some idiot builds a better idiot.
  5. Most people are honest. by 91degrees · · Score: 5, Insightful

    Most people I know and know of tend to have 100% original DVDs. One person I know was tempted by the availability of heaps of cheap discs in China, but generally people are honest.

    Even people who don't have moral qualms about this tend not to run off copies for their friends for many reasons, because it's a hassle. It takes a long time when its easier to just lend a friend a disc.

    The people who actually cause most harm to the industry are the ones who sell the pirated discs. This sort of technology isn't going to deter them. If it can be circumvented, they'll find out how. The costs are insignificant against profits.

  6. Way to use a horrible analogy. by schon · · Score: 3, Insightful

    Lol, go ask any retailer why they should care if their shrink is only 4%. They'll punch you in the mouth

    The thing is that this *isn't* shrink.

    If you asked them why they should care that 4% of people won't buy something from them, what will they say?

  7. Analog Hole by MaxQuordlepleen · · Score: 5, Insightful

    This is they key quote from the article, in my opinion:

    "We're always interested in another tool," said one executive who asked not to be named. "But until they fix the analog hole ... it doesn't solve the problem."

    For those of you who don't remember the '80s, the "Analog Hole" was all we had back then, we used audio and video cassette for backup and sharing purposes.

    This battle was fought two decades ago when fair use was upheld and we all got to keep our VCRs and double-cassette decks. I contend that the concern of the *AA is not only to protect themselves from the new threat to their business model that digital media represents, but to regain ground they lost twenty years ago.

  8. Re:Before you say you have a right to a backup... by BarryJacobsen · · Score: 5, Insightful

    It'd be nice if they'd put in a low-cost replacement program for damaged DVDs, though.

    Umm, no that should be the MINIMUM they should do if we are just licensing the pleasure of watching the movie from them. Then the media it is on is inconsequential. Otherwise if we're paying for the disc, then we get to do whatever we want with it. They need to choose which method they want to offer, not just take the best of both worlds.

  9. DVD-R/DL by po8 · · Score: 4, Insightful

    With piracy resulting in only 4% loss, why are the studios making such a big deal?

    Because double-layer DVD-Rs are just now hitting the market seriously. DL DVD-Rs have the same storage capacity as commercial DVDs, allowing them to be ripped directly rather than transcoded. DL media is currently $5-$10 per, which makes ripping not competitive with renting. In a few months we can expect to start seeing $1 media for the now-$100 DL burners: this is the MPAA's nightmare.

    In the longer term, home network bandwidth costs are still plummeting. I'm up to 1.5Mbps/1Mbps on my cheap home link. When bandwidths like these and larger become widespread, the other shoe drops. Then MPAA finds itself in a position that in many ways is worse than the current RIAA position. It is much harder for MPAA to cut the cost of content production to establish a competitive position. Also, paid movie performances (movie theatres) are struggling in a way that paid music performances (concerts) are not.

    I'd be grasping at straws like Macrovision too.../p

  10. Re:Keep your hands off my purchased media! by garcia · · Score: 4, Insightful

    Actually, I see a LOT of piracy amongst the casual DVD crowd. A girl here at work passed me a list the other day.. $5 each for all the "latest" DVD releases, plus a bunch of stuff I recognized as poor-rips (telesyncs?) from the theaters (and music CD's, too.. She said he'd borrow from the library and rip those).

    At a laundromat I went to regularly, the attendent had a laptop setup with a firewire DVD-R and would burn movies for his "customers" while they did laundry for $5 each. And so on and so on.


    The people that you listed are not "casual". They are blatant theives. They are not only ripping and burning DVDs they are distributing and selling them. Just because they aren't what YOU consider to be "geeks" that were at the heart of the DVD ripping scene in years passed doesn't mean that they are "casual users".

    Please don't confuse these people with Joe Blow with the family or me and my personal DVD collection at home.

  11. 25 cent DVDs? by RandoX · · Score: 3, Insightful

    If 100s of billions of DVDs are made, and the annual sales were 27.5 billion, doesn't that mean that the DVDs sold for less than a quarter on average? Make that happen and I'm pretty sure that would stop a lot of people from ripping and sharing...

  12. Like I'm really worried... by gillbates · · Score: 5, Insightful

    Um, how exactly is this going to affect those who already don't pay for movies?

    So Macrovision puts more copy protection on a DVD:

    • Consumers who bought legitimate copies can no longer make backups of their DVDs.
    • Downloaders don't care - they didn't pay for their movies before, and they're not going to pay now.
    • Pirates don't care - they're using bulk DVD copiers which do a bitwise copy, including the Macrovision protection. I'm sure both the studios and pirates are glad that pirated DVDs won't be copyable either.

    So basically, when it comes down to it, Macrovision affects only those who get their movies through legitimate means. It won't have any effect on those already breaking the law, and it will only further reduce any incentive of using the DVD format.

    Why do I watch downloaded movies? Why don't I buy many DVD's? Because DVD copy prevention sucks. It's that simple - I don't feel like buying something from an organization that regards me as somehow criminal because I have an interest in their product.

    --
    The society for a thought-free internet welcomes you.
  13. How RipGuard probably works... by yeremein · · Score: 5, Insightful

    Macrovision is not the first company to come up with additional copy protection (read: corruption) of DVDs. Some other companies have done so, and it typically involves putting unreadable sectors on the disk. Really, really unreadable areas, that make DVD-ROM drives churn for awhile before failing to read. The menu VM code skips over the unreadable sections, so the disc can be watched just fine in a DVD player or software player. But ripping software, which attempts to copy the entire disc, runs into the unreadable spots and grinds to a halt.

    Ripping programs such as AnyDVD and DVD Decrypter are already starting to work around this type of protection. It probably won't be long before they'll analyze the menu VM code and only copy sections of the disc that a set-top player could read, rendering this protection effectively useless. Or, looking from Macrovision's perspective, ripening the market for RipLock 2.0.

    After all, Macrovision is not in the business of preventing copying. They're in the business of selling copy-restriction technology to **AA fatheads who think they will improve their sales by crippling their products.

  14. Re:More returns/refunds? by Maestro4k · · Score: 3, Insightful
    Wal-mart can refuse. Its the biggest company in the world, and it has more wealth than Mansa Musa ever did. I don't see why it lets this mch smaller industry push them around....unless the situation is better for them this way. Now they don't have to bother to keep track of and return such items to the producer. Sounds like Wal-mart has some fault on this one.
    • Wal-mart has some sway yes, more so in the CD market than DVD/VHS, but they also aren't going to stop selling DVDs/VHS/CDs and the companies know it, which greatly lessens what sway they do have. The reason they won't is because retail makes little to no money on electronics hardware (TVs, VCRs, DVD Players, Stereos, Etc.), they make it all on the media (both blank and prerecorded) and accessories.
    • This particularly move though was done unilaterally to all retailers at once. It was done under the banner of stopping theft and piracy (those nasty crooks are stealing movies and bringing them back for refunds and/or they're taking them home, copying them and bringing them back). Even Wal-mart would have trouble fighting that, as then they could be made out as supportive of crooks.

      You have one other element too, customer abuse, that did not help. Many people have been treating Wal-mart and other stores as free rental shops. They would buy a movie (on DVD or VHS) the day of release, take it home, watch it, come back the next day and claim it didn't work and get a refund. I'm quite sure other retailers experienced this as well. In fact this may have been an element as to why the studios started refusing to credit returns unless they were exchanged.

      Your last argument shows a very vast lack of understanding on how retail handles returns though. Even through this new policy there still are legitimate returns where they swap because of a defective disc/tape. Wal-mart stores all have to handle tons of returns even under the current policy, the others wouldn't have added much overheard to costs since the whole processing procedure hasn't changed, there's just fewer to handle. They also still process hundreds of movies a week in each store that they find stolen with the cases left behind. They have more of those in a week than they ever did returns, overall this hasn't impacted their returns processing much at all. Certainly the impact's not been enough to make it worth the customer ire it's caused.

      I'm not one to defend Wal-mart, they have more wrong with them than right (especially when it comes to how they treat their employees), but in this case the movie studios are the real culprits, and the blame needs to go to where it belongs.

  15. Re:Keep your hands off my purchased media! by Loconut1389 · · Score: 3, Insightful

    The way I read the article, it sounds like theyre essentially going to fragment the disc so it takes a long time to seek around the disk.. If this assumption is correct, it sounds like this will wear out drives faster, fuck up fast forwarding, and probably bork out some old players that give up when they have to work too hard. Also, if this is the case, no patch will fix it. Youll have to read the disc slow, and reburn it unfragmented.

    The hong kong market will do this once, press a bagillion of the things at $.02 a piece and some schmuck on ebay will buy them for $5, and then sell them for $45 and tell you that theyre not bootlegged and just have chinese writing on the covers, and the mispellings on the case art/credits are just your eyes betraying you.

    Basically the guy who just wants a copy to watch and wouldnt have bought it anyway because he's broke will just have to wait a little longer, the people that mass produce the copies will have to wait longer but then have a straightened out version than can pump out at the same speed they always did.. and meanwhile the people getting punished are the ones with older dvd player whose motors just burnt out and the people who like fast forwarding.

    I don't see this changing anything, sure itll take you two hours to rip a movie, and a little time to clean it up maybe, but in the end, its no real problem to anyone who wants to make a copy.