Releasing Films for Internet Download

Throughout the year 2000, several studios have been seeking partnerships with other studios to find ways to provide a wider selection of first-run movies. To date, two likely scenarios are emerging. One foresees Sony heading a group that would use emerging technologies that allow end-users to download movies for their personal library (Hofmeister A1). Another scenario envisions that studios such as Fox and Disney will explore streaming video technology for one-time viewing, alternately referred to as "video on demand" or a sort of pay-per-view system for downloadable films.

In the latter case, the studios even hope to link multiple Web sites or cross-license titles to make it easier for consumers to locate their favorite movies, even without knowing which companies made them (Hofmeister A1). And in April 2000, Walt Disney Company's Miramax Films unit signed an agreement with Web company SightSound.com to that made 12 Miramax films available for online downloading. The titles are available on a pay-per-view basis, allowing Web users to download the film for viewing during a specific time period, probably a day, after which the movie is disabled (Orwall, B8). In an attempt to protect its copyright and discourage piracy, SightSound.com encrypts the films and encodes them to block pirates. In addition, SightSound.com has developed a filter that only allows users in the United States to download the films because Mira

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to the studios' copyright concerns (Hofmeister A1). One such technology is DivX, which produces files that play video clips at a quality level somewhere between that of VHS tapes and DVD and in a much smaller size than earlier video formats (Musgrove E11). Before the advent of DivX, broadcast-quality video files were too large to be easily posted or downloaded off the Web. However, DivX can now compress files to a much more manageable size. Consequently, a movie such as "The Matrix," which is identified as a hot property among DivX users, can be compressed down to about 500 megabytes in DivX form--small enough to fit on a CD- ROM or download in two to three hours with a cable-modem or DSL connection (Musgrove E11). Eric Smith, founder of OpenCodex.com, a site that encourages programmers to develop new audio and video compression standards, hopes that programmers can find legitimate uses for DivX technology but notes that "[m]ost of what's being done right now is completely illegal" (Musgrove E11). In addition, studios have been exploring options such as emerging wireless technologies that might allow them to bypass existing cable pipes that bar them from directly getting onto televisions. Several studios are currently in dis
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