Hollywood facilitates online with film downloads
MIL/Agencies/Release, Apr 4, 2006. Joshua Chaffin, New York
Hollywood's largest studios is likely to offer consumers probably on Monday the facility to download and own films from the internet on the same day when they are released on DVD. It shall prove a milestone in the industry's embrace of digital distribution as per experts. This service is being instituted by Movielink, an online joint venture formed in 2002 by MGM Studios, Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Brothers.
As per the releasing instructions, the founding studios, along with 20th Century Fox, have agreed to adapt the service so those customers should be able to buy the films and store them on a hard-drive.
It added that the films, including recent hits like King Kong and Harry Potter and The Goblet of Fire, can be transferred to two additional personal computers. They can also be copied on to a back-up disc, although it will not be compatible with DVD players.
"It's an important milestone," said Rick Finkelstein, president and chief operating officer of Universal Pictures, whose film Brokeback Mountain will be the first to appear on Movielink and in DVD format on Tuesday.
As per Joshua Chaffin in New York, Digital Distribution has long held appeal for Hollywood. It could supply higher margins than DVD sales since there is no cost of transport and stockpiling.
However, the studios have been reluctant to release their best products to on-demand services in a timely manner for fear of damaging relations with retail partners, such as Wal-Mart and Tesco, which they rely on to sell DVDs. There are also concerns about piracy.
That reluctance appears to have dropped amid the popularity of services such as Apple's iTunes online music store and the emergence of new "digital rights management" software to hinder pirates. The new service represents a potential coup for Microsoft. Its Windows Media format will be the technical standard for Movielink.
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