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May 01, 2007

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Peter Kohan

Question: What do the film studios have to gain here? Normally on physical goods they control the manufacturing of DVDs and reap the profit accordingly. While consumers wold benefit from increased selection - online, not in bricks and mortar stores - where do the studios make their normal profit stream here? What bargain have copyright owners struck here to make this a viable option for their businesses?

Yuval Tobias

Looks to be in line with the new printers they are coming out with - faster, more efficient, but targeted for more centralized locations rather than homes:

http://www.informationweek.com/news/showArticle.jhtml?articleID=199000343

Stefan Engeseth

Interesting concept. When it comes to changes behavior it is more complex than computers. I hope that the entertainment business has learned it this time around.

qkslvrwolf

@Peter:

I think that that is the primary problem with the recording industry today. Rather than try and make profits by sellings as many copies as possible, they are interested in profit AND CONTROL. Profit-wise, the potential for increased profits increases with the potential for increased sales. The problem is, now you have to contend with every joe on the street with an artistic bent and a good story to tell, and they don't want that. It would mean while there are more total profits to be made, the wealth would like be distributed over more people, and that seems a Bad Thing to the film studios.

Elad Kehat

There's already a way to crank out DVDs on demand - it's called bittorrent. I download whatever "untapped" content I want, say Karate Kid 2, and burn it to a DVD :)
And how exactly does printing DVDs on demand help selling digital video onto iPods and phones? Or is HP planning an iPaq with a DVD drive too?

Joel Kleinberg

The true benefit to the Studios is the ability to sell years and years of catalog titles. There are countless titles that have not been produced in DVD form because of the impracticality of manufacturing and then storing them is a warehouse.

If you are a Noir Film fan, or a B-Movie grindhouse fan, you now may have access to tons of films previously unreleased in DVD format. The studio can monitize the titles they own with low overhead.

Jon Fortt

Thanks for the compliment, Chris. For those wondering what HP's DVD strategy has to do with iPods and whatnot, check out the story I did for this month's B2. It should be clearer and deeper than my blog.

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But HP plans to expand the initiative beyond Wal-Mart. Using a model akin to its Snapfish digital photography service, which handles online services for Wal-Mart, Walgreen, Costco and other huge retailers, HP wants to be the force behind the scenes that’s powering online DVD stores for all sorts of big companies. Vyomesh Joshi, the HP executive vice presidentmaple story powerleveling who leads the imaging and printing division, told me that Snapfish handles 50 percent of all online photo printing in the U.S. through the combination of its branded service and the white-label services it runs for Wal-Mart and others.

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Tidbits

The Long Tail by Chris Anderson

Notes and sources for the book

FREE was available in all digital forms--ebook, web book, and audiobook--for free shortly after the hardcover was published on July 7th. The ebook and web book were free for a limited time and limited to certain geographic regions as determined by each national publisher; the unabridged MP3 audiobook (get zip file here) will remain free forever, available in all regions.

Order the hardcover now!