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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.

24 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 arkanes · · Score: 5, Interesting
      Here's an intersting question. So piracy costs a bit less than 4% of annual income each year. What kind of royalties do you have to pay for a CSS license? And how much will Macrovision charge for licensing? Is the total more than 4% of sales (and thats assuming that the 1 billion in lost sales is legit, which is questionable).

      An amusing aside is the Google ads at the bottom of that article.

    2. Re:Lies, Damn Lies and Macrovision by Lanoitarus · · Score: 5, Funny

      Maybe they accidently included the AOL CDs. Huge business opportunity for macrovision there.... the AOL cd copying business is probably singlehandedly responsible for AOL's continuing downfall.

    3. Re:Lies, Damn Lies and Macrovision by Maestro4k · · Score: 5, Interesting
      bviously 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?
      • While I agree from a business owner's standpoint, going with a solution like Macrovision is an absurd way to "fix" the problem. The pirates who are reallly costing the studios money will find a way around this in no time flat and continue to produce and sell illegal copies. In the meantime, the studios will be paying Macrovision a fee to use their new copy protection stuff on every disk.
      • Basically you'll now leave the corner store with one bottle missing from your 12 pack and 10% of the beer gone from the other 11 to cover the costs of the Macrovision stuff.

    4. 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
    5. Re:Lies, Damn Lies and Macrovision by Anonymous Coward · · Score: 5, Funny

      You'd make your mom give it up?

  2. Keep your hands off my purchased media! by garcia · · Score: 5, Interesting

    It would be a lot more humorous if they put "Nothing for you to see here, please move along" when you tried to rip it...

    On to the serious stuff:

    "If it takes a long time and the frustration level gets too high, you're not going to prevent 100% of it, but you can stop the casual user," Kaye said. "Why not try?"

    The "casual user" doesn't give a shit. They rent their mainstream crap movies on DVDs at the local monopolistic rental store and they bring it back three days late. They aren't ripping movies to share, save, etc.

    The technique confounds ripping programs without damaging computers, preventing the discs from playing or reducing picture quality, he said.

    Would it damage the drive if a computer DVD player tried to play the disc and was constantly hitting the false errors it was creating? If it isn't going to disable the players how will it stop the rippers? So what, it takes real-time to rip the DVD? Oh no!

    Consumer advocates said Hollywood had the right to put out unrippable discs. But such a move would ignore public demand for the ability to back up DVDs and take their movie collections on the road.

    Public demand? Public RIGHTS. We have the right to make backups of our owned discs and put them into a format that is portable. The media continues to fall for the tricks being implemented by the MPAA's PR machine. I suggest that they refrain from spreading the misinformation created by the corporations PR machine as it does nothing but continue to erode the freedoms we are entitled to.

    If they decide that we should not be able to make a backup of our media that is an identical copy then I should be reimbursed when the disc is no longer usable. Even if that means 25+ years from now. Don't like that and don't think it's realistic? Tough, it is realistic because I can ensure that right now by making backups.

    Discs that do not allow me to fast forward through FBI warnings, commercials, etc, get ripped and burned in a format that is immediately watchable from the time I stick it in the player. I don't care about animated menus, extras, features, commentary, bonus scenes. I want the movie to play w/o interruption the second I close that tray. If I paid for something I don't see what I shouldn't be able to do with it as I wish as long as it stays in my possession.

    If Macrovision and the MPAA want to end piracy they best do it in a way that doesn't affect my personal freedoms when I purchase a piece of media.

    1. Re:Keep your hands off my purchased media! by ChibiOne · · Score: 5, Informative
      The "casual user" doesn't give a shit. They rent their mainstream crap movies on DVDs at the local monopolistic rental store and they bring it back three days late. They aren't ripping movies to share, save, etc.

      That may be in the US, Canada, Europe, Japan and Korea.
      But you have no idea what the piracy problem is like in, for example, Latin America or Southeast Asia. An original DVD will cost you about 15 USD. Why pay that, whan you can rent it for 3 USD, you ask? Well, why pay 3 USD for a rent, when you can own a not-so-shabby quality copy of it for the same price? Consider that average minimum wage in, say, Mexico, is about 5 USD PER DAY.
      Consider, now, that for a hit title, like Spider-Man 2, we are talking about thousands of [3-dollar] illegal copies sold, instead of thousands of [15-dollar] legitimate ones.

      Not that I favor Macrovision, tho...

    2. Re:Keep your hands off my purchased media! by Anonymous Coward · · Score: 5, Funny

      Ignorance of the law is no excuse. In fact, with the Patriot Act, its a requirement.

    3. Re:Keep your hands off my purchased media! by Just+Some+Guy · · Score: 5, Funny
      What I find funny is that whenever I've tried to pause to read the FBI warning, the DVD wouldn't let me.

      So download a ripped copy off Kazaa and hit pause in MPlayer. That way you can have all the time you need to ensure you're complying with the law.

      --
      Dewey, what part of this looks like authorities should be involved?
  3. 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 networkBoy · · Score: 5, Funny

      "killing 97% of them menas nothing. The 3% is most likely the few that are actually worth using."

      Actually it means quite a bit. The buggy stuff will go away and we'll be left with good functional software. They just made the QA process better :-)
      -nB

      --
      whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
  4. More returns/refunds? by yetdog · · Score: 5, Interesting

    With each more-complex layer of anti-copy protection, doesn't that make the discs less forgiving of scratches and smudges, given that the player has to use all this overhead to compensate for the enhanced security?

  5. In other news... by Torgo's+Pizza · · Score: 5, Funny

    In a just released survey, 97% percent of people who use DVD copying software have switched to software that can copy the newest Macromedia protected DVDs.

  6. 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.
  7. 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.

  8. 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.

  9. 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.

  10. Rentals are money, too by jfengel · · Score: 5, Interesting

    In order to rent you a DVD, the video store had to buy it. They're sharing it out among a few dozen people, but the disc is still sold and the movie company gets its inch of green (or in this case, millimeter of green, but millimeters add up.)

    So while it's clearly faulty to assert that every downloaded movie is a lost sale, it's just as faulty to say that nobody who downloaded a movie would have bought it or rented it. The correct answer is somewhere in between.

    I don't know whether the 4% figure means that for every 24 sales there is one illegal download, or if it's some accountant's estimation of the actual number of sales they would have had if the downloads weren't available. It could well be the latter; it doesn't sound completely unreasonable to me.

    But we'd be having the same argument if it were 2% or 1%. I strongly doubt that it's 0%. As the grandparent post points out, shrinkage comes out of your profit margin and can mean the difference between profit and loss.

    1. Re:Rentals are money, too by GuyZero · · Score: 5, Interesting

      In order to rent you a DVD, the video store had to buy it. They're sharing it out among a few dozen people, but the disc is still sold and the movie company gets its inch of green (or in this case, millimeter of green, but millimeters add up.)

      You should read Blockbuster's annual report or NetFlix's. They have revenue sharing agreements with many (if not all for BB) major studios. They essentially get the DVDs for free but split the profit between themselves and the studio. How else could Blockbuster put (literally) hundreds of copies of new DVDs in each of its thousands of stores without tying up a huge amount of capital? Answer: they don't. The studios pony up the capital cost of the DVDs, BB throws in their distribution chain and presto, win-win.

      I see stuff like this as a PR effort primarily aimed at the less technically-savvy. As long as the bulk of the market thinks piracy is impossible (or at least hard) then the studios have what they want. Mass defection, like what happened with MP3s, is what the studios want to avoid. Or at least delay.

  11. What about a case like Disney... by punxking · · Score: 5, Interesting

    Since I have several small children I have ended up purchasing a number of Disney DVDs, all of which I've ripped back up copies to use. Why? Because Disney likes to limit their release schedules and take movies out of print so they can aritificially drive up the collector market. It only took one time of an unhappy four year old who couldn't watch a DVD that had gotten scratched, that couldn't be replaced and I started backing up all the Disney DVDs. Let's face it, 4 year old whining is almost as grating as MPAA whining.

    --
    You can have my cynical agnosticism when you pry it from my cold, dead logic.
  12. Re:If I can play it, I can copy it by fuzzybunny · · Score: 5, Interesting

    If I start getting dvds I can't play, then I guess I won't be such a good customer (I legitimately own 500+ dvds)

    THANK YOU. I had exactly this attitude with a German EMI CD my girlfriend brought home from a concert. While ripping our collected piles of CDs so she could take them to work on her laptop and I could put them on my mp3 player, I noticed that these guys had some third-rate safedisc "protection" on it.

    Alcohol 120% made pretty short shrift of it, but I wrote a (fairly civil) nastygram to the head of their copy protection program to the extent that I will (a) never buy another disc from them again, and (b) tell all my friends to do the same, especially the non-technical ones, because EMI Germany produces broken CDs which you may not be able to play on your new iPod.

    There's an axiom out there to the extent that every pissed off customer means, through his/her network, between 7 and 14 additional lost customers. I received a very politely worded letter back, trying to explain and justify why they're doing this, the tone of which I appreciated, but the contents of which didn't change my mind.

    I wrote my original mail because of a suggestion to do so which I found on a blog when searching for solutions to my problem, and have been offering the same suggestion to other people when I hear of a legitimate owner of some form of media being inconvenienced by copy protection. I have washed my hands of the affair, I have loads of good albums, and I don't really need anything from that particular vendor.

    The outcome of this will be either that nothing changes, in which case neither I nor the vendor care, or that I've done my little bit to contribute to EMI Germany losing enough business to think again about treating potential customers like potential criminals. In this scenario, I have also not been inconvenienced, but have maybe helped others have an easier time of backing up their discs.

    Your attitude is superb--I encourage anyone who objects to the idea of purchasing something and then being told what they can or cannot do with it , to just vote with your wallet--it's the most effective vote you have.

    --
    Cole's Law: Thinly sliced cabbage
  13. 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.
  14. 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.