Techdirt. Stories filed under "soc"

Hollywood Got The FCC To Break Your TV Because It Thought You'd Pay $30 For A PPV Movie?

Mike Masnick — Fri, 1 Oct 2010 13:37:34 PDT

You may remember that earlier this year the FCC gave Hollywood the right to break your TV, by enabling "selectable output control" on your television, to keep you from actually recording certain movies or shows (um, unless, of course HDCP DRM is broken... oops). Months later, people realized that despite these urgent pleas from Hollywood, no studios had actually moved forward to offer such films in this "new window" closer to the theatrical release, but before the DVD was released.

Reader cc points out that some studios are finally interested in moving forward with such offerings, but they somehow think that people will pay $20 to $30 to view such movies. Yes, you read that right. I'm half wondering if this is really Hollywood's way of introducing this concept while trying not to piss off the theaters. They can basically say "hey, look, the only people willing to do this wouldn't pay cheaper prices to go to the flick in the theater, so they're not cannibalizing theater sales." Of course, you have to wonder if they're cannibalizing anything at such ridiculous prices.

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Remember How Hollywood Promised Lots Of New Content If It Could Break Your TV/DVR? Yeah, That's Not Happening...

Mike Masnick — Tue, 18 May 2010 09:04:57 PDT

With Hollywood getting the right to break your TV and DVR thanks to the FCC's granting of a waiver to let them use selectable output control to stop DVRs from recording certain movies, the MPAA insisted that this was a huge win for consumers. Why? Because it meant that the Hollywood studios would rush to put movies on TV earlier than ever before. Except... apparently, that's not actually the case. Despite the victory, no studios have stepped up to make use of the new ability to stop your DVR from recording, because they're scared about how the movie theaters will react to greater competition. Of course, the theaters are notoriously unwilling to allow any threat of actual competition from home viewership to encroach on their turf, even if it could actually help theaters.

But, uh, the whole argument that supposedly convinced the FCC to give the Hollywood studios this waiver was that they would make use of it to give consumers more access. Quoting from the FCC's decision:

This offering will allow the homebound, parents with young children, and others who simply want to stay in for the night to choose a new entertainment option that they may value highly....

[On] balance, grant of MPAA's waiver request will provide a benefit to those who have the appropriate equipment and would like to view movies in their homes in an early release window that outweighs the limited impact on consumers with legacy devices....

So, a large part of the basis of the FCC approval was that it would increase content availability to homes. But that's not happening. Does that mean the FCC will admit that the entire basis for the approval was wrong?

Oh, and my favorite part is how the MPAA is playing this. Acting MPAA boss Bob Pisano put out the following statement when the FCC's announcement was made on May 17th:

"This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes. And it is a major step forward in the development of new business models by the motion picture industry to respond to growing consumer demand..." (emphasis added)

So, gee, what does Pisano have to say, just a few days later when it turns out that none of that is true?

When asked about the studios' plans late last week, Bob Pisano, the president of the Motion Picture Association of America, said, "I can't tell you that, because I don't know." To comply with antitrust law, he added, "we stay out of business-model decisions."

Uh huh. So, let me get this straight. He argued -- successfully -- to the FCC, that granting this waiver to break people's TVs and DVRs would certainly create new business models and allow much more content to be available earlier. But, when it comes to actually supporting that, he claims that the MPAA "stays out" of business model decisions? So, how could he possibly have promised such "new business models" to the FCC in the first place?

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FCC Gives Hollywood The Right To Break Your TV/DVR... Just 'Cause

Mike Masnick — Fri, 7 May 2010 19:42:47 PDT

For a couple years now, the MPAA has been asking the FCC to break your TV/DVR, and let them effectively put a type of DRM (by enabling "Selectable Output Control" or SOC) on video content, such that you will not be able to access the content via third party devices, such as your DVR or your Slingbox. Effectively, they want to break the ability of your equipment to work. You wouldn't be able to legally record the movie that was playing on your TV. The MPAA's argument here makes absolutely no sense at all -- and when they're called on it, the doubletalk comes out.

The MPAA's argument is that if it could block people from recording movies, they could release the movies on things like PPV before they release them on DVD, adding yet another window to the long list of windows that Hollywood uses. It's still not clear how more windows helps anyone but Hollywood, but they keep claiming this is some sort of consumer benefit. The thing is, their argument makes absolutely no sense at all when you look at the details. First of all, there was nothing whatsoever stopping them from releasing movies on PPV prior to the DVD release. Nothing. You don't need DRM to do it. In fact, some major studios already do this without breaking your TV in the process.

Of course, the MPAA's response is that it would never release movies this way without SOC, because then people would copy them and... um... piracy... oh mygod... Hollywood is dying. Or something like that. But that makes no sense. First, as noted, some studios already release movies this way. They don't need SOC. Second, the whole claim that this will lead to more unauthorized file sharing is a total red herring -- because all of the movies they're talking about were already in theaters -- and once a movie is in the theaters, it's already available widely on file sharing networks. There is no increase possible, because the content would already be widely available. On top of that, of course, as the GAO just noted, the MPAA's ridiculous claims of losses from "piracy" are totally bogus.

Given all that, it seemed ridiculous to think that the FCC would give in... but late last year the reports were that the FCC had already decided to give in to Hollywood, and today the FCC made it official (pdf): The FCC's reasoning is bizarrely troubling and blatantly wrong. First, it claims that the studios "are unlikely to offer the service absent the ability to activate SOC." But... as noted, some studios already do offer such a service. On top of that, why is it the FCC's job to give the MPAA yet another window? Windows are anti-consumer, not pro-consumer. But, the FCC claims it's good for the consumers, and the MPAA's victory announcement makes the same ridiculous claim:

"This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes..."

That logic is backwards. Basically, Hollywood is saying that it held the public hostage until the FCC let it break your TVs, and because the FCC caved in and Hollywood will release the movies it easily could have released before, consumers win. When someone is taken hostage and the family pays up, that's not a "win" for the family. As Public Knowledge points out, this appears to be the FCC doing this just as a favor to Hollywood.

Of course, in typical Genachowski FCC fashion, this ruling tries to walk that line between each side, in that it didn't grant the MPAA's full waiver, but tries to limit it, by saying it can only be used on films before the DVDs are released or for 90 days on a particular film (whichever comes first). The FCC will also "revisit" the issue in two years -- even under threats from the MPAA that if the FCC could revisit this issue, that uncertainty would lead the studios to scamper away, run and hide and not offer this service out of fear that the FCC would take away their right to break your TV. The FCC thought that was silly. It's not clear why the FCC didn't believe the MPAA's threat not to invest if the ruling could be reviewed, but do believe the threat not to release movies on TV earlier without this ruling... but that's the way this particular FCC seems to function.

In the meantime, now that the FCC has opened this door, expect more efforts to expand it much wider. Already -- before it had even been approved -- there was talk among politicians that it should be expanded to cover sporting events as well -- because, you know, we can't have people DVR'ing a sporting event any more.

The really ridiculous thing about all of this is that it's taking away functionality from the vast majority of law-abiding TV viewers who bought their TVs and DVRs expecting -- reasonably and accurately -- that they'd be able to record whatever is on TV, because of an amorphous and unproven "threat" of "piracy" which is based on bogus numbers and totally irrelevant given that the movies in question will already be widely available on file sharing networks.

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Oh Look, People Are Already Looking At Expanding How Selectable Output Control Will Be Abused

Mike Masnick — Tue, 22 Dec 2009 01:32:21 PST

For quite some time we've been covering how the MPAA has been pushing to get the FCC to allow them to use "Selectable Output Control" (SOC) to stop you from being able to record certain movies. In theory, the Hollywood studios claim that this will let them put movies out on video-on-demand offerings earlier than they do now. In actuality, there's nothing stopping them from putting these VoD offerings out now (and some do already). The studios' claim that this is needed to stop "piracy" of these movies also makes little sense, since even the studios admit that all of their movies are quickly available through unauthorized means around the time they're released in the theaters (i.e., well before they would be available on TV).

The real issue, of course, is that Hollywood wants more control over your TV and what you can do with it. But when people suggest this, the MPAA and the studios scoff and say that's ridiculous. They just want this one tiny exemption and nothing else. Except, that's not true at all. Remember that recent Congressional hearing about live streaming and sporting events? Well, the folks at Public Knowledge noticed that one of the speakers there was already noting how the FCC exemption on SOC could be useful in stopping "piracy" of sports broadcasting -- which of course is totally outside the realm of what the MPAA is asking for. But, of course, once the FCC allows someone to break your DVR or other consumer electronics device, it's not hard to see everyone else asking for their own "exception" as well... How about rather than breaking the devices that everyone purchased for a reason, the content providers stop freaking out about technology, and start learning how to use it to their advantage?

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Cable Industry Joins MPAA In Asking FCC To Allow Them To Stop Your DVR From Recording Movies

Mike Masnick — Wed, 18 Nov 2009 09:55:00 PST

Ars Technica has allowed the cable industry lobbyists' top lawyer to explain why the cable industry supports breaking your DVR in a misguided effort to add more windows to movie releases. Not surprisingly, he simply repeats the MPAA's flat out lies and misrepresentations on this particular issue. For example, he claims that the movie studios need this or they won't get content out to the industry early enough. But that's wrong. There is nothing stopping the movie studios from releasing content whenever they would like. In fact, we've already seen that some of the major studios are releasing movies in exactly this manner (prior to DVD release), despite claiming that it's impossible to do so without enabling this form of DRM.

If the movie industry wants to add a new window where they release movies for pay-per-view offerings before they come out on DVD, there is nothing stopping them from doing so today. Nothing.

The claim that this is about preventing "piracy" is flat out bogus. Even the movie studios themselves claim that nearly every movie is already "pirated" by the time the movies hit the theaters. And these pay-per-view offerings (they like to call them video on demand, but it's really pay per view) are for a window later than the theater release. So the movies will already be available via unauthorized channels. That won't change at all.

So, what are we left with? The two main arguments simply don't make sense at all. There's nothing stopping the studios from adding this window now. And enabling selectable output control (SOC) to stop your DVR from recording these movies won't do a damn thing to reduce unauthorized file sharing of the same content. The only thing it will serve to do is make legitimate customers pissed off, because they'll be confused and annoyed when the DVR they purchased to record what comes out of their TV sets refuses to record this movie that they legally are accessing, but want to time shift (which, again, is perfectly legal).

Contrary to the MPAA and the NCTA's bogus claims, this has nothing to do with enabling some "awesome" new service. This has everything to do with trying to lock down your TV and DVR in an age when consumers are finally getting back some control. What's amusing, of course, is that this comes just as the TV industry is finally realizing that letting consumers do what they wanted with DVRs didn't harm the TV industry, but helped it. One of these days, maybe the MPAA and the NCTA will come to that realization as well. In the meantime, though, they want to get a foot in the door to let them stop your DVR from working as advertised, in the misguided belief that they need to push back on what legitimate consumers want to do with the content they watch.

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FCC Poised To Let Hollywood Break Your TV And DVR

Mike Masnick — Thu, 5 Nov 2009 13:31:00 PST

Earlier today, we wrote about how even the MPAA's own members have shown they don't need to break your TV and DVR with selectable output control in order to release video-on-demand movies prior to DVD releases. Yet, if you hadn't noticed, the MPAA has been on a big rampage lately insisting that they need to do this to add yet another window to its release schedule. That's because the way Hollywood thinks is that they only way to make money is to take away what consumers want and, instead, add more annoying "windows." This is faulty thinking. However, it's even more faulty to claim that they need to break your TV and DVR to release this content. The MPAA's basic argument is that without this, there will be piracy -- but even the MPAA admits that every movie is pirated by the time it's in the theaters (i.e., before it would need this window).

Want to know why the MPAA got 60 Minutes to run its propaganda piece on movie piracy this week? Because it knew this fight was close to a deciding point, and a little moral panic might help tip it over the edge into Hollywood's favor.

For a while, the FCC has pushed back and refused to grant the movie studios an exemption in order to break your TV, but word is coming down that, despite promises to make decisions based on "evidence," the FCC is ready to give in and let the MPAA break your TV and DVR in order to stop you from recording the movies it releases. Why? There's no good reason at all, other than the administration's cozy relationship with Hollywood these days. The industry's own actions show that this will do nothing to make it easier for it to release movies earlier. The industry's own claims show that it will do nothing to decrease piracy.

The only thing it will do is harm millions of consumers who believe their TV and DVR should work the way they were intended to work.

Public Knowledge is asking people to send a letter to the FCC, protesting this decision. I'm not a fan of "form letters," but I would suggest reading over the suggested letter and then crafting your own (polite, well argued) version, and sending it to the FCC. Hopefully the FCC realizes that breaking your TV and DVR for the sake of protecting Hollywood's billions (which still continue to go up) is not progress. It's a blatant attempt to take away consumer rights.

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Oh Look: Hollywood Doesn't Need To Break Your TV To Release PPV Movies Early

Mike Masnick — Thu, 5 Nov 2009 10:32:15 PST

For a while now, the MPAA and the major movie studios have been asking the FCC for permission to break your TV and DVR by enabling "selectable output control," which would block the recording of certain movies. The MPAA's claim for why they needed this is to add another "window" for releasing movies as video on demand prior to them being released on DVD. But that makes no sense. As we pointed out, when they first made this claim, there is absolutely nothing stopping them from releasing these movies earlier for VOD. There's nothing to stop them from doing so -- and it's not like SOC would actually block the movies from being online. Every movie ends up online around the same time (usually before) it gets into the theaters, so these movies would all be available for file sharing prior to the VOD release anyway. The MPAA keeps saying that it simply can't release the movies earlier without this form of DRM, but it appears that the studios own actions prove that we were right, and the MPAA was lying. Public Knowledge is pointing out that Warner Bros. has released two recent movies for VOD prior to DVD, even as the MPAA is still insisting that it's simply impossible. Oops.

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Public Knowledge Points Out MPAA's Lies On Why It Wants To Break Your TV

Mike Masnick — Fri, 16 Oct 2009 13:58:15 PDT

For quite some time now, the MPAA has been asking the FCC for permission to break your TV, so you won't be able to record certain movies shown on TV. Specifically, it wants to be allowed to use something called "Selectable Output Control" to tell DVRs that they can't record a show. It's basically the whole "broadcast flag" concept all over again. The MPAA's argument for why it needs this makes no sense at all. It basically makes two arguments, neither of which are true. The first is that they need this in order to be able to put movies on TV earlier. This is not true. There's nothing stopping the studios from putting movies on TV earlier, other than a misguided fear that people will "pirate them." And that's the second problem: even the industry admits that the movies they'd release on TV are already pirated and available on file sharing networks, so it's not like having this would stop that. The movies will still get out there. SOC won't stop piracy at all -- but it will piss off a ton of people who bought a DVR expecting to be able to record what they want to watch.

Consumer rights group Public Knowledge, thankfully, has now sent a letterexplaining all of this to the FCC:

"The MPAA has submitted no proof that grant of the waiver will serve the public interest at all. To the contrary, what proof exists in the record shows that the 'problem' of a longer window for release of movies to MVPDs than for release on DVDs is a business decision made by MPAA's members. Rather than shed crocodile tears for the poor shut-ins and busy parents who must either subscribe to NETFLIX to get the earlier window or wait a whole thirty days, MPAA's members could simply negotiate a shorter release window."

Hopefully the FCC listens.

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Cable Lobbyists Side With MPAA On Getting Permission To Break Your TV

Mike Masnick — Fri, 18 Sep 2009 15:01:39 PDT

As Hollywood keeps asking for permission from the FCC to break your TV with Selectable Output Control, it's picked up an unsurprising ally. Cable companies. NCTA, the lobbying group that represents the cable industry has come out in favor of the request, claiming that it will let them offer movies earlier. This is a myth that they want regulators to believe. The MPAA and cable companies could offer up movies whenever they want. They just don't want people to record them, because they want to introduce yet another annoying window. So, they declare that they need to break your TV and DVR from recording. Hopefully, the FCC knows better than to break TVs and piss off so many people just because Hollywood is upset some people will want to record movies.

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Hollywood Asks FCC For Permission To Break Your DVR Again

Mike Masnick — Thu, 3 Sep 2009 11:21:00 PDT

Every few months for the past year and a half or so, the MPAA has basically begged the FCC to let it make use of "selectable output control" on televisions to block DVRs from recording stuff shown on TV. The MPAA claims this is necessary to release certain movies on TV, but that's hogwash. Rather than focusing on what consumers want, the movie studios are simply trying to add in yet another "window" to try to squeeze more money out of people. And, of course, like any DRM system, it won't do a damn thing to stop file sharing of the content (all anyone needs is one copy, and by the time any movie is broadcast on TV, it's too late, the content is out there). All this would do is piss off legitimate viewers, who are pissed off because their TiVos didn't record some movie, despite it being on TV.

In the MPAA's most recent attempt, it's back to begging the FCC, but Matthew Lasar notes that the MPAA is finally admitting that if it gets its way, it may actually require some people to buy new equipment. So, not only will the plan functionally break lots of DVRs by not letting them do the one thing they're designed to do (record what's on TV), but they may break other parts of the process as well, such that people will need to buy new equipment.

And all for what? It won't stop or even slow down file sharing. But it will piss off a lot of people. The MPAA insists that it physically cannot release movies on TV prior to its DVD release unless it gets this DRM enabled. But that's ridiculous. If the studios wanted to they could absolutely release the movies for TV viewing prior to the DVD release. It won't change a thing. But they really, really, really want to believe the myth that somehow file sharing magically goes away, and no legitimate customers get annoyed, when they try to lock up their content.

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Hollywood Takes Another Crack At Getting Permission To Break Your DVR

Mike Masnick — Fri, 6 Feb 2009 13:28:00 PST

The movie studios and the MPAA have been pushing hard over the last year to get the FCC to let them use "selectable output control" to basically block DVRs from recording certain broadcasts of movies. Their somewhat creative (but totally ridiculous) argument is that this would allow more consumer choice. Now, you might ask how limiting what consumers can do with products they already purchased can possibly allow more consumer choice, but this is where the MPAA tries to play a bit of a jedi mind trick. It claims that if it's allowed to block recording of movies, then it would add another window to its windowed release program of movies (i.e., theater -> special locations (airplanes/hotels) -> DVD -> cable TV -> network TV). If they can break your DVR, they claim that they'll also release it to TV before it's even out on DVD.

Now, it doesn't take much thought to see the logical flaw in the MPAA's plan, but since some politicians are a bit slow, we'll spell it out for them. You don't need to block recording to release the movies early. There's absolutely nothing stopping the MPAA from offering this "consumer choice" right now. The MPAA is simply trying to confuse politicians into thinking that they can't possibly add this other way to get paid for the same content without this DVR-breaking DRM. The simple fact is that (a) selectable output control won't stop the movies from being recorded by some and (b) it won't stop the movies from being offered in unauthorized format online. It won't do a damn thing to stop "piracy." But it will annoy an awful lot of people who bought a DVR to record what they see on TV and are seriously pissed off at why they can't actually make the product they bought work legally.

In other words, it's not at all about "expanded consumer choice." It's about giving the MPAA another way to block legitimate watchers from doing perfectly legal time shifting of the content on their TV.

The good news was that when Kevin Martin ran the FCC, he turned down the MPAA. Though we heard mixed reasons on why (one story is that he tried to do some "horse trading" whereby he would give the MPAA what it wanted if they would side with him on things like a la carte cable), it at least kept the MPAA down. Of course, with Martin gone, it hasn't taken long at all for the movie studios to rush right back up to the new FCC yammering on and on about "expanded consumer choices." Hopefully Michael Copps (the temporary FCC boss) and the rest of the FCC are smart enough to recognize that you don't expand consumer choice by breaking their DVRs.

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MPAA Tries Out Its New 'Up Is Down, Day Is Night' Strategy

Mike Masnick — Thu, 4 Dec 2008 10:17:57 PST

The MPAA has been pushing the FCC to allow it to basically add a kind of DRM to broadcasts. As it stands, the FCC blocks broadcasters from using "selectable output control" (SOC) to stop people from recording shows broadcast on television. They do this realizing that recording for the purposes of time or place shifting is perfectly legal, and allowing broadcasters to block consumer rights would be tremendously undesirable.

The movie studios, however, are trying to figure out yet another way to get money, and they want to rejigger release windows for movies. The way they're done now, movies are released to theaters, then special locations (airplanes, hotels), then DVD, then cable and finally network TV. What the studios would like to do is charge cable companies a lot of money to show movies on cable after they're in theaters but before they're released on DVD. Their (misguided) fear is that, if they show them on TV, people will record them and make them available via file sharing sites, killing off the DVD business. This is wrong on many levels, especially since high quality versions of the movies are almost always available on file sharing networks long before they are released on DVD, anyway. So, blocking the ability to record the movies on your DVR (which is what loosening SOC restrictions would do) wouldn't actually do anything to stop piracy -- but would piss off an awful lot of DVR owners out there, who want to know why they can't record the latest movies on TV.

The MPAA has been saying a lot of funny things in trying to defend its position, claiming that this form of DRM is necessary to let the studios release the movies early. That's simply wrong. There is nothing stopping the studios from releasing the movies in this manner right now. It's just their own misguided fear of people doing what they're legally allowed to do (record stuff on their TV) that's stopping them.

Yet, now, as a bunch of you have sent in, it seems the MPAA is going even further in this "up is down, black is white" argument in favor of being able to use SOC. It's claiming that it's the movie studios who are being pro-innovation here, and it's the consumer electronics companies (and consumers) who are anti-innovation:

"At its core, the position of CEA is that technology should be frozen in time, and any new services that require advanced technology should be banned," the MPAA told Adelstein on November 25. "This position is quite astonishing, coming from an organization that in the past has advocated in favor of technological innovation."

This is a neat bit of intellectual judo. Take your opponents (accurate) argument, and claim that it's actually your argument. The MPAA is lying, of course. They don't need SOC to innovate and release movies however they want. And, the CEA is quite pro-innovation, in letting consumers actually make use of their rights to record content. It's quite a statement for the MPAA to claim that taking away consumer rights is innovation. But, I guess that's what you get from a dying organization fighting for its life.

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Dear MPAA: DRM Is Not A Requirement For Releasing Movies

Mike Masnick — Wed, 6 Aug 2008 09:04:00 PDT

We've written about the request from the MPAA to the FCC to grant a waiver that would allow the MPAA to use "selectable output control" (SOC) in order to block DVRs from recording their movies. As we noted, the movie studios basically would like to add in another movie release window, letting movies appear on television before they're released on DVD. Of course, there's absolutely nothing stopping them from doing so today. However, they claim that it's impossible for them to do so unless they get to implement DRM via SOC to stop people from recording these movies. The MPAA's own defense of this plan was exceptionally weak, but now some others are actually coming forward to defend the MPAA's position.

Ryan Radia, over at the Tech Liberation Front, has a long and thoughtful article where he tries to paint the MPAA's position as being pro-market and anti-regulation: "Consumers are willing to pay to watch new movies at home, and content producers are willing to transmit them, but government is standing in the way." It's a neat twist, but it's 100% wrong. The government is not standing in the way. If consumers are willing to pay, the movie industry can absolutely offer up the movies and let them pay.

Radia's claim is based on the entirely false premise that the MPAA needs this special kind of gov't approved DRM in order to release its movies. Radia plays a neat trick in spinning this the other way, claiming: "But content owners aren't required to ensure that all movies can be easily timeshifted and archived." Yes, indeed, nor are movie studies required to use DRM.

There is absolutely nothing stopping the movie industry from making use of this "new business model" other than its own unsubstantiated fear of non-DRM'd content. It's not a government regulation. It's not some weird FCC rule. It's the MPAA itself.

Mark Cuban gets it right when he points out what a huge mistake the MPAA is making in even bringing this issue up in the first place:

For all the money the RIAA wasted on trying to stop digital piracy, about all they accomplished was explaining to everyone exactly where and how to steal music. Please do not make the same mistake. Right now its a hassle to unitlize the analog hole to copy movies. Most people have no idea how to do it, particularly for HD delivered movies. Please do not go through a big process of teaching people exactly what the analog hole is in hopes of getting companies to prevent its use. All you are going to do is turn on the lightbulb for many who would otherwise not have a clue.

The theatrical exhibition industry just experienced a phenomenal several weeks with The Dark Knight setting record after record. People by the 10s of millions went to the theater, many multiple time to enjoy the unique experience of going to a movie. Could you please, please, please use the money you are going to spend fighting the unfightable and instead spend it on promoting the fun of going to the movies ? More people going to the movies is more people getting excited about movies. More people getting excited about movies means more people watching movies on TV, which is good for revenues, and more people buying DVDs or legal downloads of the movies. Again, good for revenues.

Piracy is not, and has never been, a real threat to the movie industry. The movie industry is doing incredibly well by releasing good movies that people want to see. Even if they're available for unauthorized download, movie watching is a social experience, and the better the industry makes that social experience, the better it will do. Wasting time demanding unnecessary DRM isn't necessary. It's not blocking any business model. Wasting money fighting for this "analog hole" to be patched won't stop piracy at all. If anything, it will attract more attention to that analog hole, while pissing off more viewers and making it that much harder to get movie fans to want to pay money to see movies. Even if the MPAA prevails, it won't put a dent into unauthorized file sharing. People will figure out how to get around the SOC protection, and once a single copy is out there, it's everywhere. Focusing on stopping file sharing is a lose-lose proposition.

So, please, movie industry, stop pretending you need DRM for your business models. You don't. You never have. And the more you pretend you do, the more trouble you're causing.

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MPAA Doubletalk On FCC Request To Block DVR Recordings

Mike Masnick — Tue, 22 Jul 2008 03:36:19 PDT

You may recall back in June we wrote about the MPAA's petition to the FCC to block DVR recordings of certain movies by removing a restriction on "Selectable Output Control" (SOC), allowing it to set rules that forbid recording. What the MPAA is clearly trying to do here is start releasing movies on TV before they're available on DVD, but wants to do so in a way that users won't be able to record on their DVRs (though, they hardly come out and say that). Matthew Lasar has an absolutely hilarious interview with an MPAA representative where the MPAA guy tries to pretend that this has nothing to do with blocking recordings of movies and everything to do with stopping piracy.

"I can't emphasize this enough," Oster finally exclaimed. "We've hit on this a number of times so you might sense some frustration in my voice. 'Recording'�”take it off the table. Put it out of your mind. This has nothing to do with recording at all in any way."

"Ok. I guess I'm confused," I replied. "What is selectable output control about then?"

"It's in large part, first and foremost, about the fact that our industry has a multibillion-dollar theft problem, which is that billions and billions of dollar's worth of film content is stolen every year," Oster replied.

"How is it stolen? What's the mechanics of its being stolen?" I asked. "What happens?"

"It comes in many forms," Dean Garfield interjected. "It comes in camcording."

"Did you just say the word 'recording'?" I asked.

"No!" Oster intervened. "He said 'camcording'!"

"But isn't that just basically recording?" I begged.

"No!" Oster insisted. "What we want is to offer consumers high-definition content earlier than they can today. That's what we want to do! We want our studios to have the flexibility to put in place business models that allow them to offer high definition content on demand to the home, earlier than they do now. Period! Full stop!"

Let's translate this for everyone. Basically, the MPAA falsely believes that it has a problem with camcording. It likes to come out with all sorts of bogus stats that don't add up. The truth is that camcorded versions don't keep people from going to the movies, and most movies online have studio quality versions leaked from insiders.

So what does that have to do with SOC? Not much, really. But the MPAA wants to change the release window pattern it currently uses for movies. Rather than theaters, video, PPV, cable TV, it wants to be able to put some movies on TV before they're released to video, hoping that it can charge cable channels a lot for showing them. But, if it does that, it's worried that it will undercut its own business model in the video rental space. So, it falsely believes that it needs this "exemption" from SOC to effectively enable DRM on those movies to prevent them from being recorded. It's the same old mistake, believing that DRM somehow enables new business models when the truth is that DRM only restricts opportunities. The content will still get recorded and released. The effective DRM will do nothing to stop that -- and once the content is out there, it's out there. However, this will be a pain for plenty of legitimate viewers who start wondering why their DVRs don't work properly.

It's not about stopping any kind of piracy. This won't do that. It's not about enabling any new business models or new content. It's about a misguided MPAA which thinks it needs DRM to add yet another way for it to make money while pissing off legitimate users. For that, the FCC should not grant a special exemption.

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MPAA Asks FCC To Allow It To Block DVR Recording Of Certain Movies

Mike Masnick — Mon, 9 Jun 2008 20:54:04 PDT

The entertainment industry lobbyists are basically working ever possible angle to get more "control" over its content. We've already seen how they mess with the legislation process and the international treaty process, and now they're trying to use the FCC as well (not for the first time, either). The latest is that the MPAA is asking the FCC to remove certain restrictions that forbid it from blocking the recording of certain movies and from downgrading the ability to record certain movies. Basically, the MPAA is asking the FCC let it make use of "Selectable Output Control" to keep its rapidly disappearing "release windows" business model possible.

As you probably know, the movie business has worked for many years on the model of "release windows," where films first show up in theaters, then at special locations (hotels/airplanes), followed by video, then PPV, cable and finally network TV. This is a legacy of an old business model, where the studio had a lot more control over content -- but it makes less and less sense these days, in a world where people have a lot more options for their entertainment time and money. These "windows" have been shrinking, because that's exactly what the customers demand -- and it actually has worked out well for the studios, because with shorter windows they actually get more benefit from a single advertising campaign plus consumers are happier since they have more options about how they consume the content. But the industry is so focused on these windows, that when anyone dares to upset the norm, they freak out.

The latest situation is because the studios want to keep this totally unnecessary window process in place. So they're asking the FCC to let it either degrade recordings or block recordings of movies if they occur before the movies go to DVD/video rental. The MPAA reasoning behind this is pure bunk, claiming that it would encourage more people to buy HDTVs, speeding up the transition to digital TV. There are multiple inaccuracies in this claim by the studios. First, while HDTV's are digital, one does not need to upgrade to HDTV to switch to digital TV. More importantly, basically, the studios are pretending that it's someone else's fault that they're unwilling to put good HDTV content on TV. They're basically saying "oh, if you let us block copying, then we'll put much more good content on TV." That's hard to believe for a variety of reasons. There's plenty of demand for content on TV, and if the studios aren't willing to put on good content, then others are finding plenty of ways to fill in the gaps.

Furthermore, there's nothing stopping the studios from releasing movies earlier. Claiming that they need this extra copy protection is a myth. The copy protection won't actually stop copies from being made. "Professional" pirates will easily get around the protection schemes. The only people who won't are your average home family user, who the industry is trying to screw over by making them pay over and over again for the same content. Besides, even the FCC knows that the MPAA's argument is incorrect. In its own report, it stated:

"In particular, we are concerned that selectable output control would harm those 'early adopters' whose DTV equipment only has component analog inputs for high definition display, placing these consumers at risk of being completely shut off from the high-definition content they expect to receive."

In other words, for every person that "more HDTV content" encourages to upgrade, you're probably going to get more than one person pissed off that their DVR can't record that content. Hopefully the FCC tells the MPAA that its regulatory power isn't designed to let it prop up an obsolete business model.

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