Paul Sweeting is the editor of ContentAgenda.com and a columnist for Video Business. He has covered the home entertainment industries since 1985 for Billboard, Variety, Publishers Weekly and other leading business publications. He is based in Washington, DC.
5.1 In general, submissions from organisations associated with the film industry argue that section 110AA [which allows analog-to-digital copying of non-encrypted content] should not be changed [to allow digital-to-digital copying of encrypted content]. These organisations include bodies representing international and Australian film makers and distributors as well as owners of a cinema chain.When you're making those sorts of promises to the government you'd better at least look like your trying to deliver.
5.2 The Australian Visual Software Distributors Association (AVSDA) argues there is no need for the Government to support changes to section 110AA. The submission states that the film industry has a philosophy of ensuring that its content can be viewed by the consumer in whatever way the consumer wishes to acquire and purchase the content in order to maximise consumer enjoyment and commercial return. It points to continuing efforts to develop new distribution models for film and TV products which will meet consumer needs.
5.3 The AVSDA submission argues that consumer practices such as those which lead to the introduction of a wider format-shifting exception for music (s 109A) do not apply to film. It refers to the recent attempt to launch ReelTime Media that offered new release audio-visual content for download in the Australian market. AVSDA goes on to state that ReelTime Media went into receivership [bankruptcy] in February 2008, implying there is a general lack of demand for this type of digital product at this time. This example is given as evidence of the willingness of the film industry to support new markets but also, in contrast to music, the lack of significant demand at present by Australian consumers to pay for legal downloads of film material over the Internet.
5.4 The AVSDA submission outlines a number of current and forthcoming business models that would provide new DVD products. The Department notes that some of these models are expressly designed to allow consumers to make managed copies of content in different formats. ‘Managed copy’ is the film industry’s term for an authorised copy of film made in a different format from a legitimate original DVD where the copy has technological protection applied to it (i.e. to prevent further unauthorised copying and distribution). The film industry believes that the provision of managed copies will substantially meet legitimate consumer expectations as to choice and flexibility. For example, the film industry suggests that Australian consumers who wish to own a copy a film in a Windows or Apple format for use on a portable player will soon be able to buy DVDs that allow that kind of managed copy to be made [emphasis added].
5.5 The new business models go beyond DVD products. They include the possible use of set-top boxes capable of receiving content that is downloaded or streamed over the Internet or rented downloads carried in a portable device.
5.6 AVSDA and AFACT argued that the film industry depends on technological protection measures (such as CSS and AACS) for the distribution of DVDs for home use. They express concerns that the widening of format-shifting exceptions to include digital-to-digital copying would encourage the circumvention of such measures.