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Is Piracy In the Consumers' Best Interests?

moviemodel writes "Warner Home Video in China are beginning trials of 'simple pack' DVD releases at $1.50. They state they are doing this as a test to see if they can recover a market lost to pirate DVD's at 75c each. They also sell higher priced and more complete DVD sets as 'silver' and 'gold' packs. Maybe this marks the beginning of movie industry realism and long hoped for shift in business models, forced by piracy. Perhaps they can take it on as a better model for movie downloads worldwide, facing the same problem of competition from pirated movies. Is such a model viable in the long term?"

86 of 574 comments (clear)

  1. Less risk. by Threni · · Score: 5, Insightful

    They have less of my money at $1.50, which is good. When they get what they're currently charging there's a risk they'll make more crap films starring clueless overpaid actors, and that's not a risk I'm prepared to take. I only watch a film once, so why pay more for a DVD than it costs to watch in the theater?

    1. Re:Less risk. by Professor_UNIX · · Score: 2, Insightful
      I only watch a film once, so why pay more for a DVD than it costs to watch in the theater?

      Why would you even buy the movie in the first place then? Just go rent it for $3.50 (or whatever) at your video store. You're certainly not the market they're aiming for if you don't collect movies and watch them multiple times... or do you use that excuse to justify pirating them via BitTorrent or Usenet?

    2. Re:Less risk. by Ryz0r · · Score: 4, Insightful
      >>I only watch a film once, so why pay more for a DVD than it costs to watch in the theater?

      Because of the bonus features, of course!

      Who doesnt want to see mind numbingly repetitive out-takes and deleted scenes that no one wants to see? what about the countless hours of commentry by random nobodies.. "oh yeah this is the bit where i was in the back doing nothing important and i dropped my pen, so if you turn up the volume REALLY LOUD you can just about hear it hit the floor!"

      Hell, i'd pay twice what you pay in the theatre for that..!

      --
      Peace, Love, Unity, Respect
    3. Re:Less risk. by TheMotedOne · · Score: 2, Interesting

      Because of the bonus features, of course!

      "Who doesnt want to see mind numbingly repetitive out-takes and deleted scenes that no one wants to see? what about the countless hours of commentry by random nobodies.. "oh yeah this is the bit where i was in the back doing nothing important and i dropped my pen, so if you turn up the volume REALLY LOUD you can just about hear it hit the floor!"


      I tend to agree with you on this point. It would seem that Joe moviegoer doesn't care at all about out-takes, deleted scenes, or commentary.

      I certainly have no problem with them, as I learned more from DVD commentaries in a few months than I learned in my first year of film school.

    4. Re:Less risk. by Threni · · Score: 2, Insightful

      I just can't even be bothered to pirate them, frankly. "What's the point of robbery if nothing is worth stealing", as Mr Ant once sagely sang. They'll all be on TV eventually, and I'm in no rush.

    5. Re:Less risk. by shmlco · · Score: 2, Insightful

      Have to love the question though, "Is Piracy In the Consumers' Best Interests? Much like ID, even getting people to debate it is a win.

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
  2. Better than nothing by Metabolife · · Score: 4, Insightful

    At least they can make some money now selling cheap DVDs instead of nothing selling overpriced ones.

    1. Re:Better than nothing by kfg · · Score: 5, Insightful

      At least they can make some money now selling cheap DVDs

      Which just goes to show ya exactly how overpriced DVDs are. CDs as well.

      Think about stuff from the catalog too, say Chaplin's City Lights ($22) or Badfinger's No Dice ($17), whose costs were paid off decades ago and so aren't relevant in justifying the cost of the disk. In fact, under the copyright laws that were in effect the first time I ever saw/heard most of the stuff in the catalog they should be in the public domain already. As far as I'm concerned Congress has breached their contract with me when it comes to these.

      KFG

    2. Re:Better than nothing by ScrewMaster · · Score: 3, Insightful

      Congress has breached a lot of such contracts with the public in the past fifty years or so. But thats only because they've made some new ones. Thank Disney and that little bastardo Mickey for a good part what's been lost to the public domain. I have to ask: what would old Walt think now?

      On a similar note, a friend once mentioned that our local Wal-Mart has a $5 bin of DVDs. I don't shop Wal-Mart ordinarily (for oh, so many reasons) but this brought me in. Older stuff, but since I don't go to the theater very often (or watch much TV) they're all new to me. So for five bucks each I bought a few "new" movies. I know, it's still going to a bad cause (two bad causes in this case) but at least it wasn't $17 or $22.

      Probably took Wal-Mart's considerable clout to get the studios to release even their old stuff that cheap. Concerns of true piracy and illegal downloading aside, I think some market realities are catching up to the movie people. Besides, here in the U.S. with gas fast approaching four bucks a gallon (with five on the horizon), heating bills through the roof, and everything else getting more expensive by leaps and bounds I know that I, for one, have less disposable income to blow on $22 movies (over twice what our local iMax charges!)

      As another poster pointed out, how many movies are just so good that you'll watch them multiple times, justifying the expense of buying the disc? Not many. There are some, to be sure, but not many. The vast majority of new releases sold are crap. The studios know they're crap before the first scene is shot, which is why so many movies go direct to disc nowadays. They'd never make it in the theaters. Heck, if the gross rake-in figures you hear are anywhere near correct, I don't think a lot of theater releases are in the black either.

      But that's okay. At seventeen bucks a disc, they'll just make it up in the DVD market.

      --
      The higher the technology, the sharper that two-edged sword.
  3. If they're serious about it, then it is by Opportunist · · Score: 3, Insightful

    1.50? You don't even have to go that low. Make them 5 bucks and you already have a deal. 5 bucks, no DRM and, hell, why should anyone DL movies anymore? Wait for a day to DL stuff, only to find out that instead of Ice Age 2 you get a cheap copy of Sally does Houston. AND you find out when li'l Jimmy starts the film.

    Why is the IPod so popular? Affordable tracks and ... well, there is DRM, but so far nobody noticed it yet 'cause the IPods didn't break down yet.

    But for some reason I expect this to be some PR stunt, showing that in China you can't even get the market back when you go down to 1.50 bucks. One reason COULD be that the average Chinese doesn't have those 1.5 bucks to spend on DVDs. Why do you try it in China, why not in the US? Or Europe? Or some other country where people actually (still) have the money to actually buy content?

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    1. Re:If they're serious about it, then it is by deep44 · · Score: 3, Interesting

      Try reading the entire article summary next time. It mentions that they are trying to compete with $0.75 pirated copies.

    2. Re:If they're serious about it, then it is by gEvil+(beta) · · Score: 4, Insightful

      1.50? You don't even have to go that low. Make them 5 bucks and you already have a deal.

      Your plan would work in the US. Unfortunately, the article is talking about China. These are two very different markets. And as deep44 mentioned, when you're competing with 75 cent versions, 5 bucks is still too much. $1.50 seems like a very reasonable number for this trial run.

      --
      This guy's the limit!
    3. Re:If they're serious about it, then it is by carpe_noctem · · Score: 4, Funny

      Man, you slashdotters are all the same. First, it was all "read the article, read the article, blah blah blah, rtfm", and now it's "read the summary, rtfs". I bet next you'll be wanting people to read the entire headline before posting! Well, good sir, from now on, I fully intend on just glazing over the keywords of the summary, maybe one or two of the works in the links, and then posting the first thing that comes to my mind!

      --
      "Quoting famous computer scientists out of context is the root of all evil (or at least most of it) in programming." - K
    4. Re:If they're serious about it, then it is by AcidLacedPenguiN · · Score: 2, Insightful

      oh come on, that doesn't happen. Even if it did happen, you're a horrible parent if you download copys of children's movies on the interweb.

      also, there is an excessive market for $0.75 pirated DVDs in China. i.e. people buy lots of them.
      2 x .75 = ?

      thats right, for the cost of 2 questionably well done pirated copies you can have one authentic copy.

      It reminds me of a couple chinese pirated movies I got in China. . .
      The Tahor of Panama
      Goideneye 007
      Regally Blonde
      I kid you not, those were the names on the discs. . .

      The reason they aren't trying it anywhere else is because there is no market for bootlegged copies of movies.

      --
      disclaimer: I've been known to store numbers in my ass for which to dig out when quantities are required.
    5. Re:If they're serious about it, then it is by EZLeeAmused · · Score: 3, Funny

      You're absolutely right, but why stop there? Set up a bot that extracts the first noun from the tagline and posts "I, for one, welcome our new overlords" as soon as an article is released. And make the title of the post "Obligatory."

      --
      Some see the vessel as half full; others see it as half-empty; We pour it out on the floor and laugh
    6. Re:If they're serious about it, then it is by Scarblac · · Score: 2

      Isn't that why tags were introduced? So you can skip reading the entire headline?

      --
      I believe posters are recognized by their sig. So I made one.
    7. Re:If they're serious about it, then it is by mrogers · · Score: 4, Funny

      <html><head>...
      Oh great, another dupe...

  4. Killing copyrights is in their best interest by argoff · · Score: 2, Insightful
    1. Re:Killing copyrights is in their best interest by Opportunist · · Score: 4, Insightful

      Copyright has its right to exist. When someone creates something, he puts time and money behind it, develops it and he should have a chance to earn money that way. If you take this possibility away, the looser would be the artist who is already getting ripped by the studios. Studios wouldn't sign contracts with him anymore. They'd wait for him to perform, tape it and distribute the song that way, without giving him a cent. Or they wait for him to spend his own money to press a few CDs, rip those CDs, hype it, and sell it as their own.

      And we all know how much they know about marketing and hyping, and how little about art.

      In fact, killing copyrights would even put those artists out of business who still create art. They're few, they're well hidden on the 'net and you have to search them, the studios won't throw them at you.

      And as a bottom line, we, the ones who enjoy their art, would be the loosers on this one.

      Copyright isn't the problem. The problem is that the balance is off. Copyright came into existance to create a balance between those who produce, those who distribute and those who consume content. The balance is way off. But that doesn't mean we have to throw the right out, we just have to put it back into balance.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re:Killing copyrights is in their best interest by argoff · · Score: 3, Insightful

      Copyright has its right to exist. When someone creates something, he puts time and money behind it, develops it and he should have a chance to earn money that way.

      What? Copyrights don't have rights, individuals have rights. Anyhow, if someone wants to make money from a creation, try giving a concert - not monopolizing the distribution channel and microregulating how every individual on the planet copys information at their disposal. If you want balance, then let content flow freely and charge for content related services. Content doesn't have a natural limit in supply vs demand, content related services do.

    3. Re:Killing copyrights is in their best interest by Opportunist · · Score: 2, Insightful

      The problem is, as stated before, the balance. Please realize that removing the copyright altogether would hurt the artist by far more than the distributor.

      As you say, the amount of service you can provide behind some content is limited. You can only make so many appearances, you can only give so many concerts. What would keep a studio from ripping me off?

      Let's say I write THE song of the century and go on tour as "The Opportunist". Now, Phony Records puts up some studio gang and has them go on tour as "The REAL Opportunists", puts a load of hype behind it, slanders me and makes sure that everyone believes that I'm the imposter. The only thing I could do is write statements myself, trying to tell the truth (Prior art? Original artist? Doesn't matter without copyrights).

      Who's gonna win in that scenario? Me, the artist or Phony, the multinational record company? Who's gonna have a bigger audience in those concerts? Who's gonna make a killing from concert tickets and who's gonna kill himself trying to sell his?

      Next scenario: Software. Without copyrights, what would keep MS from taking Linux and running with it? Stuff their marketing and GUI guys behind it, create a flashy and squeaky colorful GUI for it, then "embrace and extend" until it's no longer compatible with ordinary Linux. Oh, it is, but it has "additional features" that people will enjoy and use, thus making sure that it's not really compatible with the old stuff anymore.

      Yes, people could "pirate" Windix without a problem. Legally, even. Only problem is that MS could, without a problem, create a "service" that you have to pay for, like, patches, codecs, content, update, etc. only for money, encrypted to match a paid key so it only works with this key, which in turn changes often enough to make it a PITA to keep up with your "copy" of it if you're not willing to pay.

      Face it, killing copyright would never hurt the fat cats. It hurts the free artist, the free author and thus, in turn, the customer.

      Copyrights are out of balance. Completely. The scale is tipped too far, the rightholder has too many rights on his hands, while the user is getting cornered more and more. That has to change. And copyright has to become the balancing tool between the creator and the consumer again.

      But it should definitly not be removed from existance.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    4. Re:Killing copyrights is in their best interest by kurzweilfreak · · Score: 2, Insightful

      If you build a house, you put a lot of time and money behind it. But I should still be able to come and live in your house, rent free. After all, I'm only one person, I'm not taking up all the space and preventing you from living in your house, so I'm not depriving you of anything of consequence.

      --

      kurzweil_freak

      5th Kyu Genbukan Ninpo/KJJR student

      Be the darkness that allows the light to shine.

    5. Re:Killing copyrights is in their best interest by ScrewMaster · · Score: 3, Insightful

      No, he's representing the "standard Slashdotter's" feeling of moral outrage at what has been done to the copyright and patent systems, both of which were designed to encourage creativity and the cross-fertilization of ideas between creators that fosters rapid innovation. Using the law to effectively blackbox anything "new" or that is merely claimed to be "new" is not only immoral but dangerous, and when that same law can be used to bitchslap anyone or anything perceived as a threat to your way of doing business ... well. As an engineer with a few patents behind me, I am outraged by the subversion of national interests to corporate interests. Because that is precisely what has happened.

      The big rightsholders (in the case of copyright) made two fundamental errors in their long-range planning. One, they failed to understand that advances in communications and processing technology would render their grip on their distribution channels useless. Utterly useless, and so far as music is concerned that cat will never get put back in the bag. Even if they could, by pressing some magic switch, turn off all peer-to-peer activity right now, there are a lot of people that have already downloaded so many tracks they'll never need to buy another CD. So, if the studios want any sales at all they'd best start learning to play nice. What, they're going to have to behave like any other manufacturer that wants to stay in business by treating its customers with respect because those customers can now go elsewhere? Oh my, the humanity, the humanity!

      Two, they are finally starting to realize that what they have to offer are luxuries not necessities, for people with disposable income. Since Americans have traditionally had plenty of disposable income they were able to ride pretty high on the hog. Well, that particularly gravy train is slowing down and will probably come to its last station soon. The media companies (the "big rightsholders") certainly didn't help matters by buying laws like the DMCA, which have had an additional detrimental effect upon the economy. They shot us all in the foot with a .44 Magnum, and are standing around watching us bleed. I will shed no tears for the likes of a Disney or a Sony ... they've earned whatever is happening to them.

      Better to have no copyright at all than the mess we have now. But the grandparent was right: there was a balance that was struck between the perceived needs of the creator of an original work, and everyone else. Given the pace of change in the modern world compared to when those laws were originally written, if anything the balance should have been tilted a little more towards the public domain. Instead, it has been dramatically shifted in favor of the major copyright holders.

      --
      The higher the technology, the sharper that two-edged sword.
  5. Why not here? by guruevi · · Score: 2, Interesting

    Apparently it IS possible to sell them for such a price. Why not here? This just proves that they CAN sell for less but do not WANT to.

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  6. Piracy is what made MS Windows by m2bord · · Score: 3, Insightful

    Geeks installing Windows 3.1 and 3.11 on their work computers on top of DOS, is the flagship operating system/GUI made its initial foothold. Wordperfect was originally the dominant tool for word processing and when people started pirating MS Word in the same offices, it gave MS an addition line into each office. Finally...look at the MP3 device industry. There wouldn't be a demand for Ipods and other MP3 players if it weren't for piracy. Piracy helps more than it hurts. But copyright holders issue these exaggerated claims about how much piracy hurts them and how much money it costs them. The truth is those claims are exaggerated because many of the installations of pirated software or music are things that most would never buy anyway. So piracy does have its plusses. It's just that intellectual property rights holders know that if they do not actively protect their intellectual assets, US law will not be on their side.

    --
    Is it 5:30 yet?
    1. Re:Piracy is what made MS Windows by gEvil+(beta) · · Score: 4, Insightful

      I think the important thing to note here is that piracy *can* be beneficial in some circumstances. It doesn't mean that it always is.

      --
      This guy's the limit!
    2. Re:Piracy is what made MS Windows by stunt_penguin · · Score: 2

      If you take the example of the creative software from Adobe & Adobe-formerly-macromedia. Both companies could have made it much harder to pirate their software a long time ago- the only thing you need to go from Demo to Product with Flash 8 and Dreamweaver 8 is a serial number (though things are now tougher with the CS2 suite- d'oh).

      This means that people who want to use Dreamweaver and Flash to learn whilst in univeristy or during their spare time can do so with the demo and a quick search on Usenet or Astalavista.com.

      I've recently begun to form the opinion that routine breach of licence here actually helps apps like Photoshop, Dreamweaver, Flash, Illustrator, Premier and so on gain marketshare as they're easily accessible to people who really want to learn them and go on to use them in a working environment, where most (or at least enough) of the time they'll be legally licenced copies. Bedroom piracy costs the major creative software industry practically nothing in terms of lost sales, but creates a large and eventually profitable user base who will want to use those very applications when they go to work.

      --
      When the posters fear their moderators, there is tyranny; when the moderators fears the posters, there is liberty.
  7. How about quality? by AusIV · · Score: 2, Interesting
    It's getting to the point where one advantage of pirating a movie instead of paying for it is that you can actually get a better quality product by pirating it. In an era when the high quality movie players downgrade the quality to older sources, and you can only play your DVD in certain parts of the world, a pirated DVD offers more flexibility.

    The same goes for music. If you're limited as to where you can play your music for buying at an online music store, it suddenly seems more advantageous to start pirating music, so you can play it on an uncertified MP3 player or an operating system that doesn't have DRM support.

    If the movie and music industries want to fight piracy, they're going to have to provide a product that is at least as good as what you can get by pirating.

    1. Re:How about quality? by Baron_Yam · · Score: 4, Interesting

      If I BUY a DVD, I get warnings, ads and stupid menus that I can't bypass on my standard DVD player.

      If I download a ripped movie, I get the movie I want without the crap. It starts the moment I put it in the player.

      Right now, I prefer downloaded movies over pressed copies because I'm actually getting a superior product.

    2. Re:How about quality? by torokun · · Score: 2, Interesting

      And I would prefer to have a house for free rather than pay for it, because I'd get a better deal! News flash: it's against the law. If you want to change the law, fine. If you fail to do so, have the decency to follow it.

      This is all ridiculous. Ever heard of supply and demand? OF COURSE piracy is beneficial to consumers. It vastly increases the supply and reduces the real demand, so that companies have to reduce their price to compete with free illegal copies.

      This is only half of the story though. We don't just care about what's beneficial to consumers, or we'd never have copyright in the first place. We care about producers too, because we know that the best way to get people to produce is to let them make money from their work.

      If you all want to live in a communist country, where people believe that everyone will altruistically work for the benefit of the great motherland, you had better start looking hard, because there are only a couple of places left. People produce in the aggregate because of the benefit they gain. This is capitalism, and most countries now believe in the principle.

      Once upon a time, people actually would NOT sneak in to see a movie if they didn't want to pay for it. They would have considered this dishonest. Even many of the poorest people during the depression would refuse to break a promise or act dishonestly. They had some INTEGRITY.

      Slashdotters -- where is your integrity? Where is your will to be honest, to follow through on what you agree to, to do without something that it would be dishonest or illegal to take without paying for?

      So the bargain is bad? The person with integrity simply says no.

    3. Re:How about quality? by Moridin42 · · Score: 2, Interesting

      Uh.. the United States of America is kind of founded on the principle that its okay to break the law when you don't like the deal that you've been forced to accept.

      I'm pretty sure that armed rebellion wasn't an acceptable practice under UK law. I'm certain that tax evasion wasn't.

      Yes that is kind of an extreme comparison, but it is actually valid. Since you're making the argument that the law is the law and violating it is not acceptable. (Incidentally, this seems like a bit of a silly argument, since people everywhere, of good standing, knowingly breaks laws. Its all a matter of which ones. There's just some weird societal formula for which laws are socially acceptable to break and which aren't.)

      As to the rest of what you've posted.. capitalism doesn't care about rewarding producers. Capitalism operates on the principle that all parties, consumers AND producers, are looking out solely for themselves. Efficient outcomes come to be in the face of prices. Capitalism, like pretty much all other economic schemes, is a method of distributing resources in an efficient fashion. Some systems are more efficient than others, certainly. However whether you get filthy rich or you're barely covering costs, capitalism doesn't care.

      Intellectual property law isn't capitalism. It is an intervention in the market, theoretically for the public good, to prevent capitalism from operating. I'd also like to point out that both socialist and communist systems provide incentives. They just do so in different fashion.

      So.. no. Consumers, none of them, need to think about 'rewarding producers.' Especially producers that have priced themselves out of the market. Not, you understand, that I'm saying media companies have priced themselves out of the market, since they obviously haven't. They're still around, and I'm pretty sure they're not losing money. They're just bemoaning their slower sales. Boo hoo, our execs can only afford 5 mansions instead of 6. Sorry, not particularly touching an emotional spot for me there.

      I'll finish up by saying that record companies and movie studios are providing consumers with exactly the wrong incentives. The prices are high, the hassles are really irritating, and consumers aren't as uninformed about the cost of production. Which basically means, we'll go with the option that doesn't require us to leave our house (hidden costs of fuel, wear and tear on the vehicles, time involved) and doesn't piss us off with adverts and unnecessary legal bluster. Both of which would serve to make P2P more attractive, even if you had to pay the same monetary costs. Which you don't. Its capitalism at work.

      --
      I don't expect morality, equality, consistency, or justice from the law. I expect only legality.
  8. DVD Rentals / Direct to DVD by slashbob22 · · Score: 2, Insightful

    There is NO way they will lower the prices in the rest of the world. If they did then all video rental stores would go out of business - or start moving a lot more merchandise. Likewise, direct-to-DVD releases cannot be priced very low; DVD sales are their only form of revenue.

    As much as I would like to see movies for $1.50. It will never happen.

    --
    Proof by very large bribes. QED.
  9. Of Course by RedHatLinux · · Score: 2, Funny

    Free stuff is always in the consumer interest.

    1. Re:Of course by Zordak · · Score: 5, Funny
      >> if you set your price point correctly; you make up in volume what you lack in single sales profit.

      Yes, it's almost as if you could draw two intersecting lines. One line would represent the number of units people would demand as the price increases. The other would represent the number that manufacturers would be willing to supply as the price decreases. I wonder what it would mean when those two lines intersected.

      --

      Today's Sesame Street was brought to you by the number e.
    2. Re:Of course by Anonymous Coward · · Score: 2, Insightful

      You make a joke at what I say, but you're quite wrong with what you're implying ...

      The graph you describe tells you the equalibrium point between a given supply and demand graph; thus giving you the price of the product. The graphy that you'd want to draw is {(Unit Price)-(Unit Cost)}X(quantity demanded) [knowing that quantity demanded is a function of unit price] if you assume that supply is flexable (which it mostly is with all electronic distribution) then you simply look for the maximum of the curve.

      The interesting thing is with a product like an MP3 the unit cost (to distribute) is minimal; thus the unit cost is the (total cost to develpo the product)/(quantity demanded) meaning the Unit Cost is {(small constant) + (Function of price) ).

      If I haven't written it down incorrectly, what you should find is that you maximize your profits in this type of envoronment when you minimize the price of your product.

  10. Of course by OpenSourced · · Score: 4, Interesting

    s such a model viable in the long term?
    Of course is viable. You just profit less. And even that perhaps is not true. I've been in China, where you can get absolutely anything in DVD for about 1 dollar each. In fact, it would be difficult for you to try and get a properly licensed film in China. I know I didn't found any. And there was another difference. I had friends there that had more that two thousand DVDs at home, many of which they hadn't had time to see. They simply bought on impulse, because spending 1 dollar is not something you think a lot about. Of course my friends had higher than average (for China) earnings, but in time more and more chinese families will approach that income level.

    My bet is that if you had DVDs priced at 1.5$, film copyright infringement would end as we know it, and the amount of dollars spent in DVDs by the average family would grow. I cannot guess if that increase would be enough to compensate for the much-reduced margin on each DVD, but I would bet it would be better bussiness in the long term.

    Add to that the release of DVDs on the same day of first screening (sell the things as people exits the cinema), and you have the film distribution model of the future. Big-screen film watching is a fundamentally different experience than DVD watching, and there is but little market cannibalising between the two of them. Film distributors should start to know that.

    --
    Rome taught me patience and assiduous application to detail. Virtues which temper the boldness of great, general views.
  11. But what does average Chinese person make? by justthinkit · · Score: 2, Insightful
    This may not be such a deal for the average Chinese person.

    This article http://www.business-in-asia.com/china_wages.html states: "To give an example of the spread in salaries in a foreign firm in China, a professional employee could earn an annual salary of approximately 100,000 RMB (approx. US$12,000) while a factory worker or an ordinary employee could expect about 36,000 RMB (approx US$4,340).

    So, one "cheap" DVD costs 12RMB, or 1/362nd of their yearly salary. In our terms, say with a salary of $30,000, that would be $82.95.

    --
    I come here for the love
    1. Re:But what does average Chinese person make? by balloonhead · · Score: 5, Informative

      12 of 36 000 is 1/3000 = so your math is out by a factor of around 10.

      $8 for a DVD isn't so bad (assuming the rest of your calcs are correct - I didn't check)

      --
      This idea was invented by Shampoo.
  12. Re:In a true open market by gEvil+(beta) · · Score: 2, Insightful

    Then everyone else in the world should be making $40,000 a year, too.

    --
    This guy's the limit!
  13. The key word is "contribution margin" by Opportunist · · Score: 2, Insightful

    Content is interesting, as a commodity. It has HUGE fixed costs and almost ZERO variable costs. I.e., studios have to pay a LOT to create some song, but the cost per CD to make is very close to zero.

    Now, to make a CD costs, say, 10 cents. That's the difference between pressing this single CD and not pressing it. Material cost, if you want. Because the artist played, whether the CD exists or not, the hype runs, the pressing machine is standing there with the master ready to press, the workers are there, all of that independent of whether or not this one CD is being pressed or not.

    Now, selling this CD at anything more than 10 cents is better than NOT selling it at all. And in China, the market is saturated with bootlegs. So you usually DON'T sell at all.

    Now, you can't sell all your CDs at 20 cents. Yes, sure, you'd cover the cost of the CD. But you would never be able to cover the fixed costs.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  14. No more customs anxiety by coffeechica · · Score: 2, Interesting

    Great, so the next time I travel to China I can stock up on DVDs cheaply and actually get a receipt for them so I won't have to worry about being searched at customs. A few dozens of DVDs are always a bit tricky to explain in those situations.

    Can't see how this will make a difference for the Chinese consumers, though, unless there is a massive anti-piracy campaign sometime in the near future.

  15. Re:Old argument by Frozen+Void · · Score: 2, Informative

    stealing isnt rigth term.They just copy the information.Nothing stolen.
    I wonder why people look at "piracy" so
    prejudiced, it isnt a very good thing helping more people to get their entertainment and information?
    At cheaper cost and even free with file sharing (BitTorrent,file hosts,etc).
    Piracy is "wrong" because it promoted as such by cartels that hold copyrights.
    Free world doesn't need such leeches.
    They will get rid of sooner or later.

  16. It depends on quality of disc by Vadim+Makarov · · Score: 4, Insightful
    Okay, I am not in China, but...

    If they sell discs where the main feature (i.e. the movie itself) is crippled, for example by lower bitrate than on premium edition, by having no English language track, or by having forced subtitles to go with, this won't beat pirates.

    If they sell discs with high-bitrate main feature (DVD-9 filled to the brink please), original-language soundtrack available and no UOP gimmicks, they win. Hell, if they do it consistently, they could sell such discs for a whopping $4.30 in Russia and I would gladly buy them over pirated ones. Besides I throw the box away, anyway, and pack the discs into a wallet to save space right away. Just give me the properly mastered stuff, no frills.

    To bad I suspect the cheap licensed edition would be crippled. Then pirates, who care about customers more, get my business.

    --
    17779 eligible voters in a district, 17779 'vote' as one. This is Russia.
    1. Re:It depends on quality of disc by Vadim+Makarov · · Score: 4, Interesting

      The point is, in my experience, pirates in Russia usually sell higher-quality mastered discs of the movies I want than licensed discs with the same movies. I don't know why it is so.

      --
      17779 eligible voters in a district, 17779 'vote' as one. This is Russia.
  17. Only if they realize what's *REALLY* going on... by MindPrison · · Score: 4, Interesting

    What's really going on is the effect of the public community.

    OpenSource, GPL, Musicians and Bands offering their music for free MP3 download, Linux - free OS, Blender, Gimp, OpenOffice...all free software that are comparable to commercial versions are a part of a HUGE new revolution that have literally SNEAKED upon the commercial industry, and because of their own onslaught on people...threatening legal users with DRM, SpyWare and restrictions....haunting people down for just being "people" - have brought fire to this revolution.

    Because of this revolution, more and more people will witch to free alternatives, and the "biggies" didnt even see it coming for all their own greed and hysteria.

    The way we exchange services - will change forever.

    --
    What this world is coming to - is for you and me to decide.
  18. monopoly vs piracy by pintomp3 · · Score: 4, Insightful

    when you abuse your monopoly position by price gauging, piracy becomes your competition.

    1. Re:monopoly vs piracy by Anonymous Coward · · Score: 2, Funny

      Too bad we can't pirate gasoline.

  19. Re:Piracy-The new business model. by brxndxn · · Score: 4, Insightful

    Shame humanity has to enact change through illegal acts. Next up we change the US government via sniper rifle.


    Aren't pretty much all changes enacted through 'illegal' acts? civil disobedience, revolutions, founding of the United States of America..

    Illegal /= Immoral.. Yet, if something is illegal long enough, people seem to think it is immoral.

    --
    --- We need more Ron Paul!
  20. Re:Old argument by kfg · · Score: 5, Insightful

    People who steal are very good at talking people into thinking that what they did is OK

    Ya mean like constantly expanding the range of copyright laws so that nothing ever actually goes into the the public domain, so the free money cow never dries up?

    KFG

  21. Piracy = price balancing. by arthurh3535 · · Score: 2, Insightful

    And face it, the software and entertainment industry have been gouging the public for so long, they think that the situation is normal.

    Does anyone else remember $85 movies on VHS? In 1985!

    All piracy is doing is forcing the software and entertainment industry to price their products into the affordable range.

    $200+ dollars for an operating system? Why? There is something seriously wrong when a peice of easily replicated digital information (ie. ludicrously cheap) costs as much or more than full system hardware.

    I've been seeing these $1 DVDs at 7-11 here in Utah. I've actually bought a couple (for my parents, as most of the stuff is old classics that they would probably like to see again.)

    Everything above $1 better have a very serious justification for why it is so expensive.

    Other than "to make the studios/developers really rich."
     

    --
    No! It's a *SIG*. Keep the Special Interest Groups away! (Con joke!)
  22. Lower prices and equal greater profits by thunderpaws · · Score: 2, Funny

    All they need to do now is package advertising for cheap drugs / medications, low interst mortgages, genitalia enhancement, etc. Good for the consumer, eh?

  23. it the economics by fermion · · Score: 4, Interesting
    It seems to me that the price of a DVD is not set by the intrinsic value of the product, but the economics of the markets. I mean it used to be a movie cost $50 or more retail. It was not that the movie was worth that much. After all, a movie is a stale product. My the time it is released to home video it has been in the theater, pay TV, free TV, and god knows where else. The vlaue to the consumer is merely wanting a good copy of it to watch when one wants.

    I think video rental changed that by showing that alot of people would buy a video if it were sold at a lower price, and the studios would reap the profit instead of the people who rented the video. In many ways the video rentals places were stealing money from the studios in the same want online piracy is, and video became priced to compete with that grey area of acquisition.

    Now, when we got DVDs the studios got greedy. They jacked the price, but that was somewhat defesible becuase of the added value. What they did do is put unskippable ads, warning, etc that made the DVD less valuable. In most cases, one cannot just put a DVD in and have it play. In addition, if one just wants a movie, it can't be had. The consumer is forced to pay for the extra content. And if the consumer wants to keep the original for backup and watch a compressed version in a more convinent format, for instant putting an entire series of one DVD, that cannot be easily done.

    So the economics is this. People who want the DVD product tend to pay for it. People who merely want to watch the film once tend to rent it. People who do not want the DVD product, but want the film, are just out of luck. There is simply no legal way to aquire the film without the baggage.

    And so we back to the dawn of video rental. There is no legal way to acquire the product, but there are many grey areas in which the product can be aquired. So the studios are either going to ignore this demand and perhpas not maximize profit, or find a way to tap at least some of the sales. There are limits. DVD DRM is not going away, so person who do not want to deal with 10 DVD for a season are still going to download, but a $1-5 basic edition goes a long way to satisifying the basic market.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  24. This is to cut their piracy losses by 91degrees · · Score: 5, Funny

    Every time you pirate a movie, the studios lose the cost of that movie. If the movie costs $20 then they lose $20, and if it costs $30, then they lose $30. They know they can't possibly compete with free, so they're doing the best they possibly can to reduce their losses. By only charging $1.50 for each copy, this will cut their piracy losses considerably even if they don't sell any.

  25. Stealing or not? by gameforge · · Score: 4, Insightful

    I've seen several people refer to pirating as "stealing". Keep in mind, it's only stealing when you would have gone out to purchase it in the first place! At least that's how most justify it.

    If I clone something (like a nice stereo, for instance - impossible, but for the sake of our conversation), it's not really stealing it. If I make it available to other people (i.e. like sharing my stuff on P2P), that's almost worse than stealing... but if I clone something that I wouldn't have purchased to begin with, that's incredibly easy to justify, because there's no money lost. Again, I wouldn't have gone out to purchase a $25 DVD, whether it could be had for free or not, just like I wouldn't have gone out and purchased a $1200 stereo when my $150 Aiwa that I already bought works great. There's no physical product missing somewhere... I cloned it. Now if I could only clone a Viper...

    The ultimate question in my mind is, what is the actual cost of manufacturing and distributing? It's like a $0.03 piece of plastic, the disc that is. Generic packaging like they talk of here can't cost very much. If it gets 15x the people to start buying movies again IN ADDITION to the people who currently pirate them, well... for $3 or $4 per release like some have suggested, I bet they stand to make their money back.

    Certainly the music industry won't be far behind in this little "experiment".

    1. Re:Stealing or not? by Tim+C · · Score: 3, Insightful

      Keep in mind, it's only stealing when you would have gone out to purchase it in the first place! At least that's how most justify it.

      That's certainly an argument that I've used myself; however, it's still illegal, and so if you do indulge in copyright infringement, you have to accept the risk of getting caught and being punished for it.

      Just becaues you personally disagree with a law doesn't mean it doesn't apply to you.

      The ultimate question in my mind is, what is the actual cost of manufacturing and distributing? It's like a $0.03 piece of plastic, the disc that is. Generic packaging like they talk of here can't cost very much.

      Cost of manufacture and distribution of the disc is peanuts. Don't forget, however, that the film on it wasn't free to make. For old films and those that have already recopued their costs the production cost is immaterial, but for newer ones that have yet to break even (they don't all manage to at the box office) it's definitely a factor.

  26. It worked in Poland by poszi · · Score: 4, Informative

    A few years ago Polish magazines started to include DVD movies. I'm not sure how the deal with the distributors worked but essentially you could buy a magazine without a movie for $1-$2 or with a movie for $3-$4. With some less popular movies you could even get 2 or 3 movies in one magazine so one movie could cost you $1 (I got 3 excellent Almodovar's movies this way). The magazines were doing it for the promotion and probably didn't earn anything extra (but got more circulation). The movies were indeed basic, in a paper envelope, without extras, without other language versions but they were just fine. The movies were not new but you could buy good movies that were a few years old or sometimes last year's movies. I don't know how the deal worked for the distributors but I bought several movies that I would never purchased for a full price so they got a profit from me. The only drawback was that the selection was limited (essentially with several magazines on sale at a time you could choose among several titles). But you also got the magazine (ussually a stupid one, though) free. The movies are still sold this way so it seems it is profitable.

    --

    Save the bandwidth. Don't use sigs!

  27. Re:Old argument by Saeul · · Score: 2, Interesting
    Ya mean like constantly expanding the range of copyright laws so that nothing ever actually goes into the the public domain, so the free money cow never dries up?

    That position is very short-sighted. It isn't "theft" to extend copyright laws. The rough analog to the copyrighted material devolving from private property to public property is Congress writing a law that causes your house to be turned over to the city after 100 years. While you almost certainly will be dead when it happens, what public good is enhanced by destroying private ownership?

    I can see it for shared works of commerce such as open source software where ALL participants agree to pool their interests for the public good. But I don't see it for art. While I'm sure the public good can be shown to be "served" by confiscating physical works of art, it still smells like theft to me. Is the case any less obvious with intellectual property that is essentially entertainment?

  28. Starting, in China? Try Poland for years... by Gadzinka · · Score: 2, Interesting

    That's funny... They claim, that they will start doing this in China, but in Poland, for years now, you can buy legal DVDs with papers and magazines for $2-$3, and normal commercial releases of not-so-fresh movies for $5-$6. When you factor in costs and risks associated, many people see no incentive in pirating dvds.

    Meanwhile CDs with latest crappy pop music start far beyond the $20 point and -- SURPRISE!!! -- no one is buying them ;)

    Robert

    --
    Bastard Operator From 193.219.28.162
  29. That sounds good BUT! by xiphoris · · Score: 2, Interesting

    My bet is that if you had DVDs priced at 1.5$, film copyright infringement would end as we know it, and the amount of dollars spent in DVDs by the average family would grow.

    That sounds good when you first hear it, until you realize that this is actually going to give the MPAA and their like even more power.

    The industry globally adopts such a model, there is even less chance of independent films making decent money. Everyone has to sign with the "big labels" and take a cut of the mass-produced cookie cutter movie model.

    Once you adopt the position that no one but large companies (selling hundreds of different movies for $1.50 each) can recover their costs, you destroy the independent market entirely.

  30. Fictitious losses by MarkByers · · Score: 3, Funny

    Every time you pirate a movie, the studios lose the cost of that movie.

    So if I make 100 billion pirated copies of a movie, does that mean they will go bankrupt?

    --
    I'll probably be modded down for this...
  31. Huge difference between real property and IP by Infonaut · · Score: 5, Informative

    That position is very short-sighted. It isn't "theft" to extend copyright laws. The rough analog to the copyrighted material devolving from private property to public property is Congress writing a law that causes your house to be turned over to the city after 100 years. While you almost certainly will be dead when it happens, what public good is enhanced by destroying private ownership?

    That's not even a roughly accurate analog. Real property is finite. There is only so much real estate on the planet. Ideas are not. Therefore, scarcity of real property exists without any outside involvement by the state or any other actor. Scarcity of intellectual property is a legal construct designed to provide people who create innovative ideas with the ability to profit from them for a short time, in order to spur the development of new ideas, which are beneficial to society as a whole.

    The impetus for creation of intellectual property right flowed from the goal to improve society by providing a carrot to innovators. It was government intervention in economics, not the development of a fundamental right akin to life, liberty, and the pursuit of happiness.

    While I'm sure the public good can be shown to be "served" by confiscating physical works of art, it still smells like theft to me. Is the case any less obvious with intellectual property that is essentially entertainment?

    The public good has not been shown to be served by confiscating physical works of art, which is why in the United States the government can't just come and snatch up that Picasso you have hanging in your den. Intellectual property that primarily serves entertainment purposes is not physical. It is constructed by the legal system, in the same way that any other IP right is constructed. Recorded art in particular is the beneficiary of government largesse.

    If there were no way for us to record musical works or create movies, artists would still be able to make money through live performances, because those performances would be naturally scarce, without any government intervention. This is in contrast to the situation we have today, where music and movies are anything but scarce. They are all around us, distributed in a wide variety of forms. Yet the movie and music industry would have the government continue to enforce an arbitrary scarcity that bears no relationship to economic reality. If we were talking about the distribution of physical products like silicon chips or automobiles, we'd call this protectionism - government intervention that serves no party but the big businesses being protected. Ultimately, it doesn't even serve them, given that it only shields them from economic forces that should be causing them to alter their business model.

    Copyright coverage for a short time does spur creation of new art, but copyright of any duration is always a tradeoff between the previously-existing natural rights of society at large and the artificially-created rights given to the copyright holder.

    "The primary objective of copyright is not to reward the labor of authors, but '[t]o promote the Progress of Science and useful Arts.'" - Justice Sandra Day O'Connor, writing for the majority in Feist v. Rural Telephone Service Company, Inc. (1991)

    --
    Read the EFF's Fair Use FAQ
    1. Re:Huge difference between real property and IP by the+eric+conspiracy · · Score: 2, Interesting

      If there were no way for us to record musical works or create movies, artists would still be able to make money through live performances, because those performances would be naturally scarce, without any government intervention. This is in contrast to the situation we have today, where music and movies are anything but scarce. They are all around us, distributed in a wide variety of forms. Yet the movie and music industry would have the government continue to enforce an arbitrary scarcity that bears no relationship to economic reality.

      Movies have no direct live performance equivalents, and with live musical performance the scarcity reduces people's ability to enjoy the performance. One may note that today we have a great abundance of these recorded forms of art, in pretty high quality too. The problem is the question of cause and effect - if we remove copyright much of the economic incentive to produce this abundance would disappear, and we would likely to be facing a great decline in both abundance and quality.

      One of the best examples of this is the decline of the Hong Kong film industry.

      http://www.thestandard.com.hk/stdn/std/Metro/GD28A k05.html

  32. Re:Just Think by robertjw · · Score: 2, Funny

    Now add price point of $0.99 with only 20 minutes or total of two episodes or better yet, single episode with multiple language versions. Parents now purchase 2 discs per week for total of 102 per year instead of 12-24 per year.

    Great. And since nobody has a place to store 102 DVDs we will start throwing them out to make room for new ones. Since there will be no secondary market they will just go in the trash and the landfill. Then the environmentalists will start bitching about it, the EPA will pass laws restricting the number of DVDs that can be manufactured and the prices will go back up. People will be digging through landfills for old Blues Clues DVDs. Anarchy will ensue and modern civilization will come to a halt.

    Nice plan for causing the end of the world.

  33. yeah friggin' right by binarybum · · Score: 2, Informative

    I wish I could agree with moviemodel's dreamy idealism, but I've seen enough of the ugliness of the MPAA to believe that it's completely unfounded. The situation in China is desperate, it's not only cheaper, it's often more convenient to purchase pirated movies there, and often you're getting some pretty decent fake packaging and decent quality rips too. The MPAA does not have the power to manipulate the Chinese government as they do in this country and they are finally realizing that they must compete at the basest level - competitive pricing, to survive there. Between lobbying and lawyers, the MPAA will continue their reign of terror in the US at least for years to come.

    --
    ôó
  34. If the price was the only issue, by iminplaya · · Score: 2, Insightful

    then probably yes. In reality, piracy is the cartels' best freind. It acquires and maintains mindshare of the product being pushed at the moment. And I do mean 'pushed'. Piracy is free advertisement. And also, the gov't gets to look like law enforcement heroes when they bust the pirates. So it's win-win-win for the gov't, the cartels, and the sheep.

    --
    What?
  35. Re:Old argument by kfg · · Score: 3, Interesting

    Please note that I used the word "theft" somewhat sardonically, because that was the word used in the post to which I responded; however:

    . . .what public good is enhanced by destroying private ownership?

    You do not understand the social contract of copyrights and patents. Like, at all.

    The are not private property. A temporary right of monopoly is granted insofar as that grant benefits the public good by insuring they reach the public domain; and in a timely manner.

    Free speach is the primal law which "Intellectual Property" laws are subserviant to (where such free speach laws exist, which they should in all jurisdictions that are signatory to the Berne Convention, since the assumption of free speach is part of the social contract of the Berne Convention).

    While I'm sure the public good can be shown to be "served" by confiscating physical works of art, it still smells like theft to me.

    Because that is theft. As is taking a DVD from the store without paying for it.

    Copying the work of art is not theft.

    Denying the right to copy the work of art is theft from the public domain. It denies the right to possess what is legitimately your property. Back in the day when the American copyright laws were being formulated the parties who were against it and the parties that were for it both understood this explicitly.

    Get the hence and read the correspondence between Jefferson and Monroe on the matter (Jefferson was Ambassador to France at the time the Constitution was drafted, which fact leaves us with a fortuitous public record of the their arguments).

    KFG

  36. Re:They already have a website for these. by EnderWigginsXenocide · · Score: 3, Funny

    Inside you'll learn...

            * The truth about finding cars (and yes, even your DRM crippled Holywood Movie) for under $500!

    OMFG! What a bargain!

            * How to instantly locate hundreds of DRM crippled Holywood Movies being sold right now in your area ...without having to talk to a dealer or a broker.

    Broker? Blockbuster?

            * How to track down DRM crippled Holywood Movies that have been repossessed or siezed by the government ...and snatch them up for pennies on the dollar!

    Seized from evil creatures with peg legs, steel hooks for hands, and eye patches?

            * How you can find your DRM crippled Holywood Movie on the Internet

    Hell, I do this already(netflix, not BT or USNET like you criminals thought!)

            * How you can make anyone selling DRM crippled Holywood Movies drop their price by thousands!

    At gunpoint?

            * And much, much more!

    Do tell!

    --
    Blessed are the pessimists, for they have made backups. -- 0 1 My two bits
  37. P.S. by kfg · · Score: 5, Informative

    Congress has breached a lot of such contracts with the public in the past fifty years or so.

    Perhaps the difference between me and most Slashdotters is that I have actually been alive through those 50 years.

    To me these breaches are not historical breaches of contract with the public, but actual breaches with me.

    I was made specific promises that specific works would enter the public domain at a specific time.

    They did not.

    This is the breach, not merely that copyright law was modified.

    KFG

  38. Is such a model viable in the long term? by Radical+Rad · · Score: 2, Interesting

    Yes, this model is viable in the long term. My reasoning isn't based on how much they can make on a movie today but on how little it will cost to make a movie tomorrow. Computer generated effects have already cut the cost of making movies by reducing the number of extras, allowing production in settings that would not otherwise be possible, allowing complete "green screen" movies, and allowing completely CG movies. I feel certain that within fifteen years movies will routinely be made without human actors and the cost of production will be quite low. This will bring an explosion of creativity as hordes of amateurs try their hand at movie production.

  39. the artist who is already getting ripped??? by fwr · · Score: 2, Interesting

    Like the artists who get paid several millions of dollars for a few months work on a film? Yea, right.

  40. 75 cents!?! by ihatewinXP · · Score: 4, Informative

    I think the contributor needs to check his sources....

    Walking into the supermarket tonight I bought "V for Vendetta" for five RMB, currently thats about 60 cents. He's obviously a tourist.

    It really is that bad here - but ive noticed that some studios are already doing this. Ive seen 60 RMB ($7) movie packs that are what we would see in the states - but who the hell would think of buying that when the best movies are not only cheaper but on every corner and more convenient. That said I have seen some maor releases (Harry Potter for one IIRC) that were on sale for only 20 kuai ($3) but still - when I can get it for 60 cents and its just around the corner.....

    Its funny, a few weeks ago there were (almost) no bootleg DVD's for sale in Beijing. Apparently the government randomly declares "No Illegal Wares" weeks like twice a year. Who knows. The more I stay here the more it makes sense - and that is the scary part ;)

    --
    ---- The real Slashdot is still here. You just have to browse at -1 to read the comments.
  41. Re:In a true open market by Kihaji · · Score: 2, Insightful

    With Digital Products it is very cheap to re-produce tons

    Fixed. There is a large distinction. The cost of a digital product is the initial costs, which could be quite large + the reproduction costs. While pressing a DVD may cost $0.50, the material you are pressing on that DVD might have cost $100+ million to produce. So, even if you do sell 100 million copies at $1, you still have yet to break even.

  42. Re:Old argument by bigpicture · · Score: 2, Interesting

    Before the last 5 years or so there was not any affordable effective way for the masses to digitally copy or transmit. So in that respect the Movie and recoding companies had the monopoly on the means to record. And that is all copyright is, it was a royal decree that only the favourite buddies had a right to have a printing press.

    In case you hadn't noticed those days are gone, adjustments are required. People have new unique ideas every day, other people copy them, that is how economic and social progress is made. Even when they study chimp communities, this also happens this way.

    This requires some revision of thinking, that the RIAA cannot seem to grasp. Their FUD is still theft. How if someone buys a blank CD and copies information onto it, does that information belong to a recording company? If none of that existed in the first place, and since the content cannot exist without the containing media, the theft definition is a long stretch. It is the concept that only a privileged few have the right to copy that needs to be revisited.

    Because much as I try to grasp this concept it eludes me. If the content cannot exist without the media that it resides in, and cannot be accessed without the playback technology, why do the inventors, creators and owners of this technology not have the same rights as the creators of the content. Because the content is nothing without this technology. And if this technology did not exist it would still all be pay for admission to stage theatre, and live bands. How come only the content creators get a special privilege, and not also the technology creators that makes it even possible?

    Do the recording companies license the recording equipment, and pay a license fee to the manufacturers for each copy that they make? Or do they buy this equipment and own it the same as Joe citizen?

  43. I applaud Warner Home Video... by tonymus · · Score: 2, Insightful
    I applaud Warner Home Video for trying this "experiment".

    DVDs are a discretionary purchase. Consumers in every country have an individual price point where they will buy a DVD because the price is reasonable for the limited entertainment value it provides. I believe, in the US, that the optimum price point is about $5. Look at how many DVDs Wal-Mart sells at that price point.

    The question, of course, is where is the optimum price point for DVDs to sell in China, given its consumers' standard of living. I believe WHV is on the right track here.

    A quick personal note: I bought 6 old John Wayne films earlier this week for $5 each. How many would I have purchased if they were $10 each? None...

  44. The black market is always a market force by theonetruekeebler · · Score: 3, Insightful
    The black market always influences the prices on the legitimate market. The question has always been about a price point that's high enough to attract risk-takers to the criminal markets.

    As an example, consider the cost of cigarettes in Canada in the late 1980s. Tax rates were so amazingly high that ordinary people were willing to buy cigarettes smuggled in from the U.S. -- exact duplicates of the "legal" product, sold at a fraction of the price. The black market became ubiquitous and socially accepted. It undercut the legitimate market so badly that the government had to lower taxes so there would be a legal product left to tax.

    Now consider a product like a movie, where the cost of reproduction is absurdly low -- zero, in fact, if you just download the movie from the Internet. DVDs in the U.S. are priced to compete with that, and I do in fact buy DVDs of films I could easily download. In China, movies are burned to DVD then sold for $0.5. Studios, trying to compete with that, hope that a price point of three times the black market rate will attract buyers to their legitimate product, thereby making the production of ripoffs unprofitable.

    --
    This is not my sandwich.
  45. The truth is by Julian+Morrison · · Score: 2, Insightful

    ...that every bit of packaging beyond a printed cardboard sleeve and a waterproof plastic wrapper exists solely to convince you on a subliminal level that you're buying something more substantial than data.

    Same goes double and triple for software. One DVD's worth of data, in a fat 6 by 4 by 2 inch box with a half-inch thick printed manual (how quaint!) and some packing peanuts. As unsubtle as a puffer-fish!

  46. Re:In a true open market by Kadin2048 · · Score: 2, Informative

    Thank god somebody understands. If everything was priced relative to earnings you might as well go and make everything free, because you've removed my incentive to work hard. If I could do nothing all day and still go out to the store (or down to the auto dealership) and take stuff home with me, you can damn well bet I wouldn't be busting my ass getting up at 6:30 Monday morning to go to work.

    Yeah, I've heard all these quasi-socialist arguments that "people aren't motivated by money and physical goods, they'd still work for the joy of working," and I think it's a load of crap. I'd probably do something with my time, but you can bet it wouldn't benefit anyone but me: I'd be sitting around building radio-controlled airplanes, probably, or maybe seeing how cool a home theater I can build in my basement. The world and the economy doesn't benefit from that, at least not in the way it benefits from the job I normally do (and wouldn't do, if it wasn't the ticket to a standard of living that I enjoy).

    Any system which gives a low-value worker access to the same things that are available to a highly trained worker just destroys the motivation for a person to work hard and produce more. People work because they want things: a bigger house, a nicer car, put their kids into better schools, whatever. If you go into work every day because you honestly love your job, and you'd do it regardless of whether or not you were being paid, congratulations on putting one over on your boss, because they're overpaying you! The great majority of people do what they do because they think it's worth doing in return for the compensation they get. Make it easier to get that level of compensation, and people will take the easier jobs.

    It should be obvious, but there are a whole lot of quasi-socialists who have their heads in the sand, and think that they can somehow create this wonderful world where rice farmers in Indochina and software engineers in Delaware can both drive the same car and have the same DVD player because they both work as hard. It doesn't work that way, and never will.

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  47. Spot on by Migraineman · · Score: 3, Interesting

    Man, you're making me feel old ... I've witnessed 40 of those 50 years. BTW, your description of the situaiton as Breach of Contract is very well worded.

    That said, I feel like I'm in the same exact situation. I've expressed my dissatisfaction with the Sonny Bono Indefinite Copyright Extension nastiness. The retro-active part makes me particularly furious ... that's the piece I consider to be the material breach. More specifically, the original copyright terms formed a valid contract - the three requisite parts were satisfied (offer, acceptance, and consideration.) The "consideration" in this case is an exchange of a short-term monopoly for public-domain status at the end of that term. Disregarding the offer and acceptance aspects of the retroactive extension, there's only benefit for the copyright holders and none for the public. The copyright extension act therefore fails the consideration test, and is not a valid contract. The public already had the "revert to public-domain" element in the original contract. The extension offers benefit to the copyright holder in exchange for ... what? (hint: nothing.)

    I've used the term "breach of contract" in many discussions. Is it possible to file a class-action lawsuit against Congress for Breach of Contract?

    I'm quite certain that the lawyers would have a field day with that. The original contract was negotiated by representatives of the people, and I'm also quite certain that they'd argue that the terms of said contract were re-negotiated by representatives of the people. The whole "representation" thing creates a nasty grey area - we citizens aren't allowed to opt-out of laws we don't like.

    In the words of Ed Howdershelt: "There are four boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order."

    Looks like we're exhausted the first two ... are we up to number three already?

  48. Small children by tepples · · Score: 2, Funny

    I find no need to own the DVD after I watched it already, unless it is a good movie or something and then I'd buy a copy.

    You more than likely do not have small children, who will happily watch the same G-rated animated movie week after week.

  49. you got that right! Being around to see things cha by zogger · · Score: 5, Insightful

    ...gives you a unique perspective and brings home reality over their BS they spew. I'm in a similar half a century + change personally screwed by those bozos. A couple of my pet peeves are them continuuing to muck about with gun rights after they promised the 68 act would be "it", no more after that, and later on with the huge illegals amnesty during the reagan years (I think, don't remember, 84??), then they said they would "crack down" and "enforce the laws on the books".

    Oh ya, my all time *favorite* "random courtesy roadblocks". WTF is up with that?? Remember back in school we were taught only supremely evil and totalitarian bad places like east germany and whatnot had those sorts of roadblocks (Your papers please!) and how wrong and illegal it would be here?

    Man, there's a bunch. You are right, people of a younger age don't have any frame of reference on some of these subjects outside of an academic one.

    Now here's one I keep trying to maintain a frame of reference on, the great depression. It's hard, but I try, I keep it in the back of my mind when I look at economic news andd geopolitical events. I wasn't around then, but my parents and aunts and uncles, etc, were, and I distinctly remember the stories they told me about it and how amazingly fast things can change and how utterly bogus the stock market/government currency manipulators are when it comes to hosing the population with their congames. Keep promising them just this huge something for nothing deal until they are all sucked in, then WHAMO, drop the hammer and walk off with all the REAL wealth leaving the peons holding the bag with worthless paper. Seems they pull this stunt on a big scale every other generation or something, because it takes that long for people to "forget" those "leaders" main skill set is *lying*. They are professional grifters.

  50. Re:Piracy in the Wake of Market Failure by cherokee158 · · Score: 2, Insightful

    I think there is a perfectly legal and legitimate marketplace that is thriving in the digital age: the second-hand market. Secondhand media prices tend to reflect the true market value of the product, rather than the over-optimistic price demanded by retailers.

    The problem is, this has morphed into a black market...not because laws have failed...but because the market has performed as predictably as ever. Thanks to the ease of replication of digital media, the supply of entertainment has been raised to nearly infinity, and so the laws of supply and demand have accordingly lowered the street value of entertainment to zero.

    Imagine what will happen when the majority of material goods achieve this same ease of distribution and duplication. Don't laugh...you can use a 3-D printer to manufacture real objects now. What happens when you can buy one of THOSE at Costco?

    DRM is the unwanted band aid of desperate fat cats stalling for time. Our culture is facing a much more far-reaching problem: the market economy just hit the ground harder than Humpty Dumpty.

  51. 75 cents by ShakaUVM · · Score: 2, Informative

    In China, the price of pirated DVDs in Shanghai (pirated DVD capitol of the world -- they have brick and mortar shops) is firmly set at 8 kaui by the pirated DVD mafia. Whereas you can haggle with Shanghai shops on nearly anything (I got a North Face jacket for 20$ when they wanted $150), I couldn't once budge even a street DVD hustler off the 8 kuai price point (they're people that walk up to you on the sidewalk and sell unsleeved DVDs). The street "Rolex" hustlers, by comparison, would usually haggle down to a 10-to-1 ratio off their starting price.

    8 kuai is right at $1 right now (buying at 7.99, selling at 8.02), not 75 cents. So they're coming in closer to the pirates price point than that. And Chinese people I talked to actually prefer real goods; it's just hard for them to justify when the pirated goods are so much cheaper... sounds like it should work.

  52. Price discrimination by Beryllium+Sphere(tm) · · Score: 3, Insightful

    The next refinement is to look at the area between those lines. It's lost revenue. If supply and demand converge at 50 quatloos for an isolinear chip, then all the people who would have been willing to pay 100 quatloos get a free ride.

    Look around and you'll see zillions of clever ways to charge both 50 quatloos and 100 quatloos for the same isolinear chip. One is the "early adopter tax", in which the 100-quatloo folks get the first samples of the chip. Another example is air fares, where expense-account people get on-demand anytime travel but 50-quatloo people have to stay over Saruday.

    Price discrimination feels unfair but economists say it's efficient and beneficial. More planes fly, more isolinear chips get built.

    Piracy happens when there's no price discrimination. There are people willing to pay $15 for a CD, or at least there used to be. If you insist on selling all your CDs for $15 you miss out on the $7.50 narket and on the people who'd be happy to pay $3 to avoid the hassles of P2P. If you're not blinded by greed and scrambled by drugs you segment the market and put products at all of those price points.

  53. This points to a tactic for developed worlds by Flyboy+Connor · · Score: 2, Insightful
    So, in China piracy is rampant, and Warner cannot sell any movie at its usual price. Thus, they decrease the price to a considerably more reasonable $1.50. Does that mean that in the US and in Europe, we have been paying too much for these DVDs all along? That we did not pirate enough? It seems consumers should start pirating much more, to get those reasonable prices over here too. Thanks, Warner, for showing us the light.

    Warner is rewarding a country for having a legion of pirates. As a consequence, Warner is punishing us for being legitimate buyers. That really annoys me.

  54. Re:Old argument by Jackie_Chan_Fan · · Score: 2, Interesting

    People who steal are very good at talking people into thinking that what they did is OK

    Thats no more true than "People make excuses for their choices in life" It has nothing to do with theft.

    What a theif can do is be honest and explain why the had to steal...

    Also there is a big problem in this country where most people think criminals are just murderers, drug dealers and online pirates.

    Most people fail to realize that the most severe forms of crime are at the corperate white collar level. Ask a Criminology professor.

  55. Re:Old counter-argument by FLEB · · Score: 2, Insightful

    Okay, all right, so "stealing" isn't the right term. Just because the common terminology doesn't accurately describe the practice, that does nothing to wash the practice clean of any wrongdoing. Similarily, just because (you may feel) infringement is often committed against "bad" people, this still does not say anything to the legitimacy or "correctness" of the actual act of infringment. You're arguing about peripheral subjects and haven't said a thing about the actual matter at hand.

    To those with the means and ability to create content, a right is granted: to control the distribution of that content by utilizing legal systems. It is an artificial right, but it is given to counteract the fact that it is unfairly easy, given the simple physical requirements of copying, for a copier to profit from someone else's much more laborous act of actually creating content. The creator, without copy control rights, would be a fool to create anything at all, as the inventive work would be worthless after the first knock-off artist came along and did the simple task of pumping out bootlegs.

    Do you have the means and motivation to create a couple hours of movie entertainment? If not, than pony up to the people who do, or go without. It's called "specialization" and "trade", and it's been a part of civilized society for quite a while.

    Considering that "content" is not a right or a basic sustainance need, and that publishing is not an esoteric or vastly expensive art only available to a select few, then it's a perfect playing field to "let the market decide". So Sony, EMI, BMG, Warner, etc. are all raging bastards? Don't buy... and don't give me lip service about "boycotting" and taking the high road if you'd just go and grab it bootleg. It's not a need, and there are alternatives out there, so a "boycott" without the rather mild sacrifice involved in not actually seeing or hearing the latest blockbuster hit is just hypocritical.

    I'd be right with anyone saying that the DMCA is a travesty and that things like legal enforcement for region-encoding and against modchipping is downright wrong, but to "fight" them with piracy has no real weight at all.

    --
    Information wants to be free.
    Entertainment wants to be paid.
    You just want to be cheap.