Zoom TV, I've heard that this is what Disney is waiting for.
What was it, a month or two ago I asked about this?
Also mentioned: "Warner Home Video plans to incorporate Internet browsers on some titles"
He, he, he...
Zoom Tv is 'outmoded Business Model' -- Lieberfarb
infoseek.com
Video Week
Mon, Aug 18 1997
Stealth Zoom TV pay-per-use DVD venture is expected to shed its cloak when it holds L.A. news conference within 3 weeks to reveal possible studio partners and other issues, including possible new name. Zoom TV executives also will be called upon to respond to critics, most recently Warner Home Video Pres. Warren Lieberfarb, who told Kagan conference in N.Y. last week that Zoom is "antithetical" to DVD video business and represents "an outmoded business model." Other critics include PolyGram Video Pres. Bill Sondheim, who told VSDA conference in Myrtle Beach that while he finds some aspects of Zoom TV proposal "sexy," concept stands to be very "confusing" for average consumers to grasp. Lieberfarb responded to questioner when he said that under Zoom TV model, consumer would be able to go to store, buy DVD for "a price in excess of a VHS rental, but only be able to play it once. And if he wanted additional plays, he would have to pay additional fees." Concept's advantage is "that you don't have to return product to the store," he said. "It can be disposed of, or you could elect to pay Hollywood another $5 for another night's use" by transmitting order through built-in modem in specially configured DVD player. Zoom proposal is "extraordinarily threatening to the existing VHS rental dealer base," Lieberfarb said. System would "put pay-per-use discs in all of those retailers who currently do not want to be in the video rental business, because that involves a return transaction," he said. "This would have a very potentially injurious effect because it would vastly change the distribution pattern." He said he questions whether Zoom "margin structure," given replication and distribution costs, royalties to studios and profit for retailers, "is such that this one-day rental will be economically feasible versus a VHS rental." Proposal was fashioned by "copyright lawyers {who} love to get a per-use fee," Lieberfarb said. He said Circuit City is involved as Zoom TV "co-partner" because it "has long coveted having a piece of the video rental business and a piece of Blockbuster's margins." Although Circuit has sold "a lot of VCRs," it never has "enjoyed Wayne Huizenga's exit strategies. I think this is their backdoor way to think there's a video rental business." Sondheim said his company has asked him to formulate policy on Zoom. Emphasizing that he was speaking for himself and not PolyGram, he said: "I find certain aspects of Zoom very neat, sexy, technologically cool, but I happen to find Zoom TV very confusing. It asks the consumer to consume in a way that they don't normally consume." Moreover, he said he doesn't like concept of "giving up my right to large advances to let somebody else do the selling. The day that my reps cannot outsell someone else is the day they are not my reps anymore." Conventional DVD system "is confusing enough and simplicity is what the consumer wants," Sondheim said. Lieberfarb told Kagan conference he's "optimistic" at least 2 of 3 remaining uncommitted studios will introduce DVD titles by year-end. He emphasized that projection was from his own "crystal ball." Starting next year, he said, Warner Home Video plans to incorporate Internet browsers on some titles, giving users access to more ancillary data than are possible to put on individual discs. But he wouldn't be more specific. Sondheim also encouraged video retailers to stock other studios' titles in PolyGram's DVD rental kiosk. "We will not limit the retailer to only displaying PolyGram programs," he said. "We want you to go out and buy Warner's or Universal as well as other suppliers. We want you to promote the DVD experience." He said PolyGram kiosk is designed as low-risk way to help retailers make "transition" to DVD. "The video industry cannot abandon VHS but must start to embrace a transition strategy into the new technologies," he said. Sondheim gave 2-1/2 year time period in which he believes there will be "significant change in the marketplace," with laserdisc "nullified" and other studios getting into DVD business. "I'm making money on DVD this year," he said, and he doesn't think "Paramount and some of my other competitors can wait too long if they keep hearing that PolyGram is making money." Then, he said, "issue of availability of programming will go away and the consumer will get even more excited. The consumer is ready for DVD." * * * * * Discord on DVD-RAM captured headlines in major newspapers last week when Sony acknowledged Japanese wire service reports that it has developed maverick rewritable optical disc proposal with Hewlett-Packard and CD partner Philips. Companies have approached Geneva-based European Computer Manufacturers Assn. to seek worldwide standard as data storage system for PCs, reports said. As-yet-unnamed format proposal touts data capacity of 3 Gb on 5" disc, slightly more than DVD Forum's 2.6-Gb capacity DVD-RAM system with which new proposal is incompatible. System, in development since 1995, differs fundamentally from Sony-Philips DVD-RAM proposal pushed recently in DVD Forum before compromise proposal was announced in April. Sony sought to downplay rift with other DVD Forum companies, saying it has no plans to withdraw support from other DVD formats agreed to thus far and no plans at present to commercialize new system. However, it also doesn't plan to market products based on 2.6-Gb spec agreed upon by DVD Forum, said spokesman. Unanswered questions abounded from unusual turn of events, including motivation of Sony and others in developing maverick proposal. Officially, Sony said new proposal fosters better compatibility with DVD-ROM, as it uses same address and clock system. But more substantive details will await briefing promised by Philips within 3 weeks. All that Philips spokeswoman would say for record is that company never regarded standard proposed for DVD-RAM as being ideal insofar as limited capacity and compatibility issues were concerned. Newspapers' comparison with VHS-Beta standards battle is wrong because Philips sees DVD-RAM in present form as data storage tool, not consumer product, spokeswoman said. |
