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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: JayPC who wrote (8136)8/22/2000 4:38:56 PM
From: lml  Read Replies (1) of 12823
 
Jay:

I think when it comes to recordable video in digital format, its not gonna be so simple as recording such content off cable or off the dish & onto a recordable DVD disc. There are copyright issues that I presume the content providers, and the content delivers will together to protect as best they can.

I envision both providers offering VOD to the consumer, but only storable onto a medium whereby the content could not easily be transferrable to a removable, and thereby mobile, such as a DVD disc. If the most premium digital content a provider (studio) and distributor (MSO or DBS) has to offer is allowed to be downloaded onto a removable and mobile storage medium the risks of of abundant copying are extremely high with no tools for enforcement. Can you imagine what would happen to this content once it makes its way from a DVD disc onto the Internet & available for download at a Napster-like site? Uh, uh, I don't see recordable DVDs serving the same market as what the Replays and TiVos are likely to serve.

I view the MSO and DBS strategy be one where they work closely with the Replays and the TiVos to provide a secure and traceable medium onto which premium digital video content may be stored for limited but flexible viewing, and secure to prevent unauthorized usage of the downloaded content.

Remember the DVD v. Divx (a la Circuit City) debate of a couple of years back? Divx was an alternative format to the standard DVD format that enabled the consumer to keep the disc, but play it free as many times desired for first 48 hours, but afterwards required the payment via phone connection of an additional fee either to view the DVD again, or purchase the content outright. I envision a similar strategy through deployment of Replay & TiVo devices that are coupled with the MSO's STB or DBS provider's receiver. Such features will permit the consumer to realize VOD in his home, yet protect the IP stored on such medium from attempted infringement of the rights attached thereto.

What distinguishes this vision from the failed Divx format is that all the studios will work together with the MSOs and DBS providers to support such features w/o cannibalizing existing revenues enjoyed via the BlockBuster type outlets.

The bottom line here is that recordable DVDs and PVR's will not necessarily be competing for the same consumer dollar. JMO.
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