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Warner Bros. to Try File Sharing in Germany

Carl Bialik writes "The Wall Street Journal reports that Warner Bros. plans to sell TV shows and movies online in Germany via P2P. In2Movies, to launch in March, 'will feature movies dubbed into German, including "Batman Begins" and "Harry Potter and the Goblet of Fire," for a fee that Warner says will be similar to the cost of a DVD. It will also offer television shows like "The O.C." and locally made programs and movies. Users, who will have to register for the service, will be able to keep the movie indefinitely. But instead of getting a movie from a central server, pieces of it could come from other people on the network who also bought that movie.' The president of Warner Bros. Home Entertainment Group says, 'Studios can't just turn their backs and hope "P2P" is going to go away tomorrow.'"

31 of 209 comments (clear)

  1. Incentive for the user? by Fusen · · Score: 5, Insightful

    So why would someone use this service against say The Google Video Store, or iTunes. TFA doesn't mention if the files would be cheaper, but they will still be DRM'ed so by using this service you get the movie like you normally would be you also have to sacrifice your upload.
    I don't understand why anyone would want to sue this over the services that are already out.

    1. Re:Incentive for the user? by ehrichweiss · · Score: 3, Interesting

      That was the question I asked myself actually. Why would I want to help WB in the distribution if I'm PAYING them for the movie too? Now if they gave me a free gigabyte of download for every 2 I upload, then I'd consider their service. I guess they think that we like the P2P idea enough that we'll pay regular prices just to use it!?!? Their reasoning here is beyond me.

      --
      0x09F911029D74E35BD84156C5635688C0
    2. Re:Incentive for the user? by AKAImBatman · · Score: 4, Insightful

      Why would I want to help WB in the distribution if I'm PAYING them for the movie too?

      Presumably for lower prices. Bandwidth is cheaper than ever, but is still expensive. Especially when you figure in the number of machines necessary to power a large multimedia network. By marginalizing the cost of the download across many machines, WB is (theoretically) obtaining savings that they can pass on to you, the consumer.

      Whether consumers see it that way (or WB passes on the savings!) remains to be seen.

    3. Re:Incentive for the user? by ehrichweiss · · Score: 5, Insightful
      From TFA: "for a fee that Warner says will be similar to the cost of a DVD"

      It doesn't look like they're planning on passing any of the savings on to the real distributors/consumers, that was my point. And as has been stated repeatedly, if the prices are not going to be reduced I'd rather just buy the DVD and save my bandwidth(upload and download) for things that profit me as an individual. They need to pass on some form of secondary gain here and SIGNIFICANLTY cheaper pricing or free movies in exchange for sharing your bandwidth are the first two that come to mind.

      --
      0x09F911029D74E35BD84156C5635688C0
    4. Re:Incentive for the user? by Marxist+Hacker+42 · · Score: 3, Interesting

      Speed of download. Especially if they had a few distributed servers in the mix run by WB, your download would be significantly faster than say, buying Quicktime copies of BattleStar Galactica through iTunes.

      --
      SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
    5. Re:Incentive for the user? by neoform · · Score: 4, Insightful

      And what makes them think this will even work?
      If I was to pay for a download, I'd cap my upload at 1k/sec (on my router even, if i had to) and I'd also kill the sharing as soon as it's done downloading.. why waste my upload speeds if it's going to be costing me something?

      The only reason Torrents work right now is because people upload as much as they download, if everyone were to do like me in this case (which i think they would), this wont work at all.

      --
      MABASPLOOM!
    6. Re:Incentive for the user? by Lumpy · · Score: 5, Insightful

      did you even read the summary? they will be charging "similar to DVD prices" for something that is of lower quality, lacking the DVD extras and you pay for the bandwidth.

      Yeah, people will jump all over that.

      it simply reinforces the fact that the movie industry is ran by a large number of retarted people that have zero clue about business let alone how to sell a product.

      --
      Do not look at laser with remaining good eye.
    7. Re:Incentive for the user? by mordors9 · · Score: 3, Funny

      and yet since the grandparent of this post gets a 5 for insightful for obviously not reading the summary and you are still at a 1, it appears the lesson is to just say something and pretend to know what you are talking about.

    8. Re:Incentive for the user? by tambo · · Score: 3, Insightful
      t doesn't look like they're planning on passing any of the savings on to the real distributors/consumers, that was my point.

      Exactly.

      I presume that Warner believes they've conditioned consumers into believing that $15-$20 is a fair price for a movie; that would be a good reason to charge the same for an electronic version. However, they're dead wrong in this presumption. Rather, they have conditioned consumers into paying that price for a DVD that contains the movie.

      The physicality of the DVD is important to the consumer: the disc has nice silkscreen imaging; the packaging looks good and protects the disc; it looks great on a shelf; etc. There are practical implications, too: except for a few specific illegalities (bootleg copying, exctracting the content without the copy protection, etc.), the consumer can do what he wants with the disc - view it at a friend's house, sell it, etc.

      In other words, the physicality is a very serious "value-add" for the DVD consumer. Warner can't strip all of that away, sell just the contents of the disc, and expect the same profit. A file on a hard drive is not as appealing as a DVD slipcover in a media stack. And consumers are savvy enough to fear the restrictions that will inevitably accompany this file: it will be locked to a specific computer, no resale value, etc.

      In short: Warner is crazy if it believes that consumers equate a DVD with the bare file contained on the DVD. It's fundamentally mistaking the elements of a DVD that represent worth to the consumer.

      - David Stein

      --
      Computer over. Virus = very yes.
    9. Re:Incentive for the user? by syousef · · Score: 4, Insightful

      You're completely missing the point entirely.

      The movie industry doesn't want this sort of venture to succeed. They're not all stupid and retarded as one poster said. They want this to fail so that they can point and say "see there's no legitimate use for P2P. When we offered a legitimate P2P service people didn't use it. So your honour we should just shut down all the P2P since it's only used by theives!". Of course they won't mention the fact that they'd kept prices high, while forcing the customer to pay twice (once for the movie, once for the bandwidth).

      I mean for pity sake if they wanted to distribute the content to the users in a better way, they could just drop the price on the DVDs and make it possible to back them up instead of wasting money on this little venture. Success is not their goal here!

      --
      These posts express my own personal views, not those of my employer
  2. They're still not quite getting it by Anonymous Coward · · Score: 5, Insightful

    So, for about the same price as a DVD, you get a DRM locked copy of the file and you get to pay a good chunk of their distribution costs. What a great deal!

    1. Re:They're still not quite getting it by a_karbon_devel_005 · · Score: 4, Insightful

      Correct.

      The execs think "peer to peer" is a buzzword they need on their products but people, NORMAL people, aren't interested in the "peer to peer" part of P2P they're interested in the "free stuff I don't have to pay for" part of P2P.

      I applaud efforts to make media online easily for all who want it, that's how people want to get content. But P2P in this case isn't doing anything but showing up in headlines and making executives think they're creating "hip" products.

  3. Sounds like a good idea by TheRappingShoe · · Score: 5, Insightful

    It will be interesting to see what kind of formats will be used, exactly how much they charge, and how much DRM they cram into the thing. If they do charge the same cost for downloading a film as the DVD version then where is the incentive to download? Surely the price should be lower to reflect the savings in materials and distribution costs.

  4. More DRM... great by chris098 · · Score: 5, Interesting

    Although it's good that the movie industry isn't completely blind, I think they're going about this the wrong way. It's definitely a good thing that customers will be able to keep their purchases forever (instead of some 'limited time' offer), but I still have trouble seeing the value for customers in a P2P environment where they have to pay the same price as a DVD.

    The article mentions the videos will have security features added to them so they can't be copied. Without more details, it's impossible to say how much of a hassle this will be. What if I have two computers and want to watch the video on the other one? The article is a bit weak on the details...

  5. Wow, same price as a DVD? by GrumblyStuff · · Score: 5, Insightful

    ...but you get nothing? If there's any sort of limit on how many copies you can make, you'd best hope your computer never dies.

    So let's see.... None of the usual DVD extras? One language? No hard copy? SAME PRICE?

    Wow that's a bunch of ass.

  6. What?! by lbmouse · · Score: 5, Funny

    No Bay Watch or Hasselhoff music videos??

  7. Country dependent by Tethys_was_taken · · Score: 3, Informative

    This may work in EU countries where most broadband users have uncapped links, but in countries like Australia (or India, but there are bigger problems in that case), where most connections have usage caps, this is not going to work. People are going to refuse to pay for the content and then pay for the data transfer.

    That said, it's a nice change to see some positive developments as far as the ??AA and the internet go, and a very welcome change from banning all innovation, as they tried recently...

  8. This makes no sense by Saint37 · · Score: 4, Insightful

    If you're going to charge me the same price for a download as you are for a DVD and you're gonna strap DRM on it to boot, I might as well buy the DVD and rip it. I now have a hard and DRM freee soft copy all for the same price.

    http://www.commodore69.com/

  9. Flashback by SetupWeasel · · Score: 4, Funny

    This reminds me of grade school, where an adult against tooth decay or something would try to "speak our language."

    Flossing is stupid ill! 23 Skidoo!

  10. Pay as much as a DVD! ugh? no thanks. by xirtam_work · · Score: 5, Insightful

    Are these companies stupid? Do they think we're stupid? Why ask us to pay the same price, or similar to a store purchased DVD when there's no manufacturing, packaging or physical distribution to pay for? If anything an electronic copy of a movie or song should cost less to the consumer - much less.

    I can understand people paying a similar amount for a 'premium item' like a just aired TV show or something that is similar to pay-per-view like a sports game. But, expecting people to pay full price for something that comes without the same quality of packaging as a movie that can be bought in a store is rediculous.

    And to top it off they're using a Bittorrent style system where their customers are the ones paying for the bandwidth! If I upload your show to another customer for you it comes out of my quota of data from my ISP for the month and costs you nothing! What's in it for me huh?

    These outfits really need to figure out that an electronic product should be *LESS* not that same price or more!

    Don't forget these movies are likely to be compressed to a lower quality than a regular DVD as well.

  11. Good idea by Tim+C · · Score: 4, Insightful

    Shame about the price?

    For the cost of a DVD, I'm going to want a DVD. For a file that I could lose in a hard drive crash or through an accidental erasure etc, and that's potentially going to take me a couple of days to download (even if it maxes out my 2Mbps connection) and tie up my connection (if it maxes it out), I'm going to want to spend quite a bit less. That's ignoring the fact that my house can (currently) comfortably store many more DVDs than my hard drive, and somehow I don't see it being quite as simple as just burning it to disc.

    Still, that said, this is definitely a step in the right direction.

  12. Maybe common sense... by TCQuad · · Score: 3, Insightful

    Finally, some sense in the P2P/RIAA/MPAA wars!

    They get your money to buy the content and then they don't have to pay for the bandwidth to get it to you? How could they not try it?

  13. Learning from the RIAA's mistakes... by PFI_Optix · · Score: 3, Interesting
    It seems the television networks and movie studios are learning from the record labels what not to do. A lot of networks are jumping on board with Google and iTunes, and now Warner is looking at embracing digital distribution before movie sharing becomes as commonplace as music sharing has been for the past seven years.

    What I'm most excited about is Firefly Season 2. From the buzz I've been hearing, they intend on doing something really revolutionary with it: it's going to be a subscription-based show not available on any networks. If the Browncoats can fully support a show the caliber of FireFly, that's going to force the network execs to sit up and take notice.

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  14. The more you give the same you get by spyrochaete · · Score: 4, Funny

    This sucks. I read about something like this on /. previously. People fork over their bandwidth, yet they pay fall fare for content. A movie costs the same for a guy with OC12 as it does for a guy on a 9600 baud courier modem. A pricing scheme that rewards fast uploads would be a fantastic way to improve the strength of the internet - everyone would pay more for fast uprate to save money!

    Malicious note - here's a chance for movie pirates to use the same guerilla tactics as the industry - poisoning commercial P2P seeds! Inject that 1 frame of shlong and make Tyler Durden proud!

  15. what if... by MooseTick · · Score: 5, Interesting

    Everyone is complaining about the fact that it will be "similar to the cost of a DVD." What if it will be 1/2 the cost of a DVD. Would you want to use it then. Would that make it worth the hassle of downloaded, potentially using up dl quotas, DRM, etc?

    When you can illegally download nearly anything for free or goto Blockbusters and rent whatever for $5, what would you pay to be able to legally download content using P2P that will be DRMed?

  16. They still don't get it, do they? by Spy+der+Mann · · Score: 4, Insightful

    The reason people prefer P2P than buying DVD's (or CD's for music) is the friggin' overinflated prices imposed on them!

    The **AA isn't willing to let go of their precious dollars. And so, they pretend to modernize themselves by offering downloads, but they don't modernize what REALLY keeps them in the jurassic age. The prices.

  17. Re:Especially considering the slow uploads... by Marxist+Hacker+42 · · Score: 3, Informative

    Any reasonable P2P protocol splits the file up into packets and sends out requests for packet numbers- you aren't going to be pulling from just one source, so upload bandwidth really doesn't matter as much.

    --
    SJW: a person who perceives an injustice, and while correcting it, commits a greater injustice.
  18. So can I burn it? by Kjella · · Score: 3, Insightful

    ...like you can burn CDs with iTMS.

    Pros:
    Available online, no need to get to a store. But if getting to a store is that hard, do they have proper broadband out there in the wilds?
    Possibility for instant start (downloading as you go). Much more difficult with torrent-like systems because you need them in order. Can they provide that kind of sustained speeds to most consumers anyway?

    Cons:
    For a DVD, you can often get it as quickly by retail stores, online sites if you don't have good broadband
    You know where you can get it cheaper...
    You don't get any of the packaging. Do we even get the DVD extras?
    Can you take a back-up?
    Can you play it on a regular DVD player?
    Can you move it to other machines like you can with a DVD disc?
    They want to use your upload bandwidth

    Basicly, no burning is a total and complete dealbreaker for me. And I know we can't burn CSS DVDs (consumer burners can't), and we won't be allowed to burn non-CSS DVDs. And if your HDD dies? Either you must a) download countless gigabytes AGAIN, or you must burn back-ups (maybe with some activation scheme). But then there's really no advantage over regular DVDs anyway, except now you need to make your own hardcopy. There's a big difference between having a HTPC and being forced to absolutely, for all future have to use one. Bought a DVD player to have in your cabin/car (great way to make kids STFU)/son's/daughter's room? Sorry.

    --
    Live today, because you never know what tomorrow brings
  19. Re:Trial balloon? by CastrTroy · · Score: 4, Interesting

    The problem is, is that they are very afraid to undercut their own retailers. If they significantly undercut the DVDs, and people actually start buying a significant amount of stuff online, many retailers won't see it as worth their time to continue to even stock the DVDs. They have to keep the retailers happy. If you don't then they will revolt. It's the same reason why buying a computer direct from HP costs the same amount as buying it from the retailer, even though there should be no distribution markup.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  20. On Pricing by ratboy666 · · Score: 4, Interesting

    I am a Rogers Broadband customer. Rogers has, in the last year, set a data cap for my digital data service. Specifically, Rogers gives me 60GB per month, upload and download combined. I pay $40CDN per month for the service.

    Now I finally have a way to compute the value of such things as this Warner P2P offering.

    We need a little bit more data, though. Specifically, how big is a DVD quality movie? Between 600MB and 1.4GB for an MPEG encoded video of sufficient quality to (subjectively) look good on my big TV. 600MB for an animation, 1.4GB for a feature movie. Lets "split the difference" and call it 1GB.

    Which means I can download 60 movies per month for $40. Each movie will cost me 67 cents to download.

    But the P2P (Peer to Peer) model only works if I upload the material as well. To one (or more) clients. Note that my cap applies to uploads as well. I am going to assume a 1:1 ratio for down to uploads - which means my data pipe price is doubled. Specifically, to $1.33 per movie.

    There is also a cost associated with having material on the hard disk for servicing uploads. I know the cost of on-line storage. My average price is now $2 per gigabyte (for my drives in service), and I replace drives every 2 years. Which means $1 per movie per year. If I assume data retension for a year (got to fill this in with something. and there has to be client retension to make P2P work!), this adds a buck, bringing my cost to $2.33.

    Would I spend $2.33 to download a movie? Rental at BlockBuster average $3.50 (ish) per movie. One buck more. Which is then what the content is worth to me. Without DRM, unlimited personal use: the price of the DVD minus the above costs, minus a factor related to the time it takes to actually download/upload (because my Internet connection is tied up... and its a nuisance). I figure a MINIMUM of 5 bucks.

    So, "Unencumbered DVD quality downloads using our P2P, at 30% under store DVD price" is the beginning of the play for me.

    Ratboy

    --
    Just another "Cubible(sic) Joe" 2 17 3061
  21. Re:At last by AeroIllini · · Score: 4, Interesting

    ...big corps start to realize that the old bussiness model is dead, and begin to use the new model at their advantage, instead of fighting the tide.

    Nope. They're not beginning to use a new model at all. At most, they are trying to apply their current (old) business model to a new medium. At the very least, they are going to try this "intarweb distribution" thingie and do it so poorly that they can then say, "but we TRIED selling this stuff online, and no one bought it! They're all filthy pirates!"

    The old business model is: "We create content. You pay for this content, but you only get to watch it when, where, and how we say so, because of our precious IP. Oh, and we're greedy bastards and have no concept of supply and demand, so our prices are unfairly high and we blame the internet on low sales, not taking the quality of our product into account."

    Their new model is: "We create content. You pay for this content online at the same inflated prices as physical media, except that we don't have to pay for printing any physical media, and this is a peer-to-peer system which means the customers are paying for bandwidth costs as well! We don't allow them to alter or burn this content in any way because of the restrictive DRM we place on it. Basically, you only get to watch it when, where, and how we say so, because of our precious IP. Oh, and we're greedy bastards and will blame the failure of this system on the filthy pirates and not on the inherent flaws."

    How is this new or innovative, again?

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