Hollywood's Control Freaks

As an under-25 recent college graduate now working in her second "real" job in Washington, DC, I continue to be amazed at the bone-headed moves being made by supposedly "smart" people running major industries and companies.  Having grown up in a world where I can hardly remember life prior to Google, it's hard for me to fathom why some people industries continue to fight against the zeitgeist.  Clearly nobody under 30 is in the board rooms.  Today's consumers have been trained to expect 21st century products -- yet some industries seem stuck in the 20th century top-down command-and-control model.  The movie industry is one such example.

Admission:  I own a lot of dvds.  Too many, to be honest, and would love to be able to legally upload them to my iPhone and computer.  After all, what if I lose one, or a roommate "borrows" one???  Right now, making a copy is not permitted by Big Hollywood Brother, though pirated software does allow one to illegally do so if they are willing to break the law.  A company called RealDVD has invented a technology that would allow me to legally make a personal copy of my movies, but the movie industry in Hollywood sued them.  Sadly, the courts have granted the studios a temporary injunction, which basically means no RealDVD player under my tree this Christmas.  Rather than embracing this product, Hollywood sued them.  How un-21st century.  You can't imagine the cool companies like Facebook or Apple doing something so unwise.  In an age when bands like Radiohead give away music for free (in order to make money in other ways and stay in the game), Hollywood is stuck in 1991. 

This is literally so bad that Hollywood has united the LA Times and conservatives.   

In an editorial out this week, titled, "Hollywood's Control Freaks," the LA Times' editors write, 

"RealNetworks' RealDVD software and Kaleidescape's home servers drew fire in part because they can make permanent copies of the rented or borrowed discs. But people who are so inclined can do that already with tools that are cheaper and less restrictive. More important to the studios, RealNetworks and Kaleidescape add value to a movie collection by making it easier to manage and watch. In so doing, they increase the incentive to own a movie rather than just rent it.One lesson from the technology industry is that there is a trade-off between controlling products and unleashing the innovation that spurs growth. Just look at how well the iPhone has fared since Apple invited independent developers to create applications for it. Hollywood should remember the principle underlying the case against China: Centralized control stifles a market. Rather than trying to stop potentially disruptive technologies and business models, Hollywood should find a way to harness them."

The editor-in-chief of the influential Wired magazine, Chris Anderson, is out with a new book titled "Free".  Essentially, he argues that everything from newspapers to dvds, traditional business structures are becoming obsolete because of the new wave of free stuff.   

As an under-25 recent college graduate now working in her second "real" job in Washington, DC, I continue to be amazed at the bone-headed moves being made by supposedly "smart" people running major industries and companies.  Having grown up in a world where I can hardly remember life prior to Google, it's hard for me to fathom why some people industries continue to fight against the zeitgeist.  Clearly nobody under 30 is in the board rooms.  Today's consumers have been trained to expect 21st century products -- yet some industries seem stuck in the 20th century top-down command-and-control model.  The movie industry is one such example.

Admission:  I own a lot of dvds.  Too many, to be honest, and would love to be able to legally upload them to my iPhone and computer.  After all, what if I lose one, or a roommate "borrows" one???  Right now, making a copy is not permitted by Big Hollywood Brother, though pirated software does allow one to illegally do so if they are willing to break the law.  A company called RealDVD has invented a technology that would allow me to legally make a personal copy of my movies, but the movie industry in Hollywood sued them.  Sadly, the courts have granted the studios a temporary injunction, which basically means no RealDVD player under my tree this Christmas.  Rather than embracing this product, Hollywood sued them.  How un-21st century.  You can't imagine the cool companies like Facebook or Apple doing something so unwise.  In an age when bands like Radiohead give away music for free (in order to make money in other ways and stay in the game), Hollywood is stuck in 1991. 

This is literally so bad that Hollywood has united the LA Times and conservatives.   

In an editorial out this week, titled, "Hollywood's Control Freaks," the LA Times' editors write, 

"RealNetworks' RealDVD software and Kaleidescape's home servers drew fire in part because they can make permanent copies of the rented or borrowed discs. But people who are so inclined can do that already with tools that are cheaper and less restrictive. More important to the studios, RealNetworks and Kaleidescape add value to a movie collection by making it easier to manage and watch. In so doing, they increase the incentive to own a movie rather than just rent it.One lesson from the technology industry is that there is a trade-off between controlling products and unleashing the innovation that spurs growth. Just look at how well the iPhone has fared since Apple invited independent developers to create applications for it. Hollywood should remember the principle underlying the case against China: Centralized control stifles a market. Rather than trying to stop potentially disruptive technologies and business models, Hollywood should find a way to harness them."

The editor-in-chief of the influential Wired magazine, Chris Anderson, is out with a new book titled "Free".  Essentially, he argues that everything from newspapers to dvds, traditional business structures are becoming obsolete because of the new wave of free stuff.   

As an under-25 recent college graduate now working in her second "real" job in Washington, DC, I continue to be amazed at the bone-headed moves being made by supposedly "smart" people running major industries and companies.  Having grown up in a world where I can hardly remember life prior to Google, it's hard for me to fathom why some people industries continue to fight against the zeitgeist.  Clearly nobody under 30 is in the board rooms.  Today's consumers have been trained to expect 21st century products -- yet some industries seem stuck in the 20th century top-down command-and-control model.  The movie industry is one such example.

Admission:  I own a lot of dvds.  Too many, to be honest, and would love to be able to legally upload them to my iPhone and computer.  After all, what if I lose one, or a roommate "borrows" one???  Right now, making a copy is not permitted by Big Hollywood Brother, though pirated software does allow one to illegally do so if they are willing to break the law.  A company called RealDVD has invented a technology that would allow me to legally make a personal copy of my movies, but the movie industry in Hollywood sued them.  Sadly, the courts have granted the studios a temporary injunction, which basically means no RealDVD player under my tree this Christmas.  Rather than embracing this product, Hollywood sued them.  How un-21st century.  You can't imagine the cool companies like Facebook or Apple doing something so unwise.  In an age when bands like Radiohead give away music for free (in order to make money in other ways and stay in the game), Hollywood is stuck in 1991. 

This is literally so bad that Hollywood has united the LA Times and conservatives.   

In an editorial out this week, titled, "Hollywood's Control Freaks," the LA Times' editors write, 

"RealNetworks' RealDVD software and Kaleidescape's home servers drew fire in part because they can make permanent copies of the rented or borrowed discs. But people who are so inclined can do that already with tools that are cheaper and less restrictive. More important to the studios, RealNetworks and Kaleidescape add value to a movie collection by making it easier to manage and watch. In so doing, they increase the incentive to own a movie rather than just rent it.One lesson from the technology industry is that there is a trade-off between controlling products and unleashing the innovation that spurs growth. Just look at how well the iPhone has fared since Apple invited independent developers to create applications for it. Hollywood should remember the principle underlying the case against China: Centralized control stifles a market. Rather than trying to stop potentially disruptive technologies and business models, Hollywood should find a way to harness them."

The editor-in-chief of the influential Wired magazine, Chris Anderson, is out with a new book titled "Free".  Essentially, he argues that everything from newspapers to dvds, traditional business structures are becoming obsolete because of the new wave of free stuff.