Comments on: Fordham International Intellectual Property Conference, Copyright Panel: Information Society Directive, DRM, Private Copying Levies, Secondary Liability, and Copyright Territoriality http://iplj.net/blog/archives/614 Fordham Intellectual Property, Media & Entertainment Law Journal Blog Fri, 03 Feb 2012 01:53:08 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Anonymous Commenter http://iplj.net/blog/archives/614/comment-page-1#comment-57516 Anonymous Commenter Thu, 16 Apr 2009 16:46:02 +0000 http://iplj.net/blog/?p=614#comment-57516 What if we thought of online movie/TV downloads as a form of time-shifting and, thus, something of a fair use? Wouldn't it be especially fair in the movie context when the downloader is also a cable TV subscriber (and even better if they subscribe to a premium or two)? The simple fact is that staggered releases are a way to inflate the market value of the product. A movie that costs a consumer $x to see in the theater, may cost $2x on DVD, and $.1x on HBO. But it's the idea that a consumer will lose out on the social benefits of having seen a movie during its theatrical run which allows the studio and theater to charge the prices they do. If I don't care about seeing a movie when it first comes out, but maybe I want to watch it in between the theatrical run and the first DVD/TV release, in many cases I am out of luck. Or perhaps the DVD has been printed and the movie is available on pay-per-view, but I don't feel it's worth enough to pay for the rental and would be willing to wait until it runs on HBO. I know that eventually the studio will get someone to pay to run it on television and I will record it on my DVR, but at present I have a choice: wait for another ~6 months or download it illegally. Either way, my royalty fees will be paid to the studio, I've just shifted the window in which I can watch the film. Now, I understand that there are additional complexities to the studios' business models which make this argument incomplete. Specifically the studios and TV networks will need to adjust their negotiated rates based on changes in expected viewership if downloads are considered fair use, but is this inherently a bad thing? As our society develops new ways to interact with media, old business models will need to adapt. The movie studios should learn from the RIAA's mistakes and adapt its business models before movie piracy gets out of hand instead of clinging to outmoded distribution channels which only serve to anger consumers. What if we thought of online movie/TV downloads as a form of time-shifting and, thus, something of a fair use? Wouldn’t it be especially fair in the movie context when the downloader is also a cable TV subscriber (and even better if they subscribe to a premium or two)? The simple fact is that staggered releases are a way to inflate the market value of the product. A movie that costs a consumer $x to see in the theater, may cost $2x on DVD, and $.1x on HBO. But it’s the idea that a consumer will lose out on the social benefits of having seen a movie during its theatrical run which allows the studio and theater to charge the prices they do. If I don’t care about seeing a movie when it first comes out, but maybe I want to watch it in between the theatrical run and the first DVD/TV release, in many cases I am out of luck. Or perhaps the DVD has been printed and the movie is available on pay-per-view, but I don’t feel it’s worth enough to pay for the rental and would be willing to wait until it runs on HBO. I know that eventually the studio will get someone to pay to run it on television and I will record it on my DVR, but at present I have a choice: wait for another ~6 months or download it illegally. Either way, my royalty fees will be paid to the studio, I’ve just shifted the window in which I can watch the film.

Now, I understand that there are additional complexities to the studios’ business models which make this argument incomplete. Specifically the studios and TV networks will need to adjust their negotiated rates based on changes in expected viewership if downloads are considered fair use, but is this inherently a bad thing? As our society develops new ways to interact with media, old business models will need to adapt. The movie studios should learn from the RIAA’s mistakes and adapt its business models before movie piracy gets out of hand instead of clinging to outmoded distribution channels which only serve to anger consumers.

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