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Face it, movie fans: the DVD is destined to be
dead as a doornail.
Only a few Blockbuster stores are still open. Netflix's (one online website for movies) CEO says, "We expect DVD subscribers to decline steadily every quarter, forever."
There are still some downsides to streaming movies—you need a fast Internet connection, for example, and beware the limited-data plan—but overall, this should be a delightful development.
Hollywood movie studios should benefit, too. The easier it is to rent a movie, the more people will do it. And the more folks rent, the more money the studios make.
Well, apparently, none of that has occurred to the movie industry. It seems intent on leaving money on the table.
For all of the apparent convenience of renting a movie via the Web, there are a surprising number of drawbacks. For example, when you rent the digital version, you often have only 24 hours to finish watching it, which makes no sense. When you rent online, you don't get any of the DVD extras—-deleted scenes, alternative endings, subtitles—even though you're paying as much as you would have paid to rent a DVD. Yet perhaps most important, there's the availability problem. New movies aren't available online until months after they are finished in the theaters. Worse, some movies never become available. Star Wars, Raiders of the Lost Ark, Jurassic Park, A Beautiful Mind, Bridget Jones s Diary, and so on, are not available to rent from the major online distributors.
And if you don't make your product available legally, guess what? The people will get it illegally. Of the 10 most pirated movies of 2011, guess how many of them are available to rent online, as I write this in midsummer 2012? Zero. That's right; Hollywood is actually encouraging the very practice they claim to be fighting.
Yes, times are changing. Yes, uncertainty is scary. But Hollywood has case studies to learn from. The music industry and the television industry used to fight the Internet the same way—with brute force: copy protection, complexity, legal challenges.
Eventually all of them found roads to recoup some of their lost profit not by fighting the Internet but by working with it. The music industry dropped copy protection and made almost every song available for about $ 1 each. The TV industry made its shows available for free at sites such as Hulu, paid for by ads.