Quote:
Originally Posted by
sheff 
The studios are trying to protect something not worth protecting. DVD and physical media are dead. It is dead for music and it will be dead for movie soon. Partner with Apple, Amazon and Netflix and they are set for life to milk those companies as they do all the heavy lifting of distribution.
Quote:
Originally Posted by
solipsism 
I could swear I keep hearing that Blu-ray is the totally awesome wave of the future and iTunes Store movie quality is unwatchable.
Physical media is far from dead, but it's certainly in decline. Blu-ray is up about 20% over last year and I believe last year at this time it was up 46% from 2009 (I don't have access to the numbers from where I am.) DVD is certainly down, but is being largely (but not completely) replaced by BD sales. IIRC, U.S. physical sales grosses are equivalent to theatrical boxoffice, so the numbers are still quite large.
Furthermore, 2011 will be the first year that digital downloads will exceed physical media in the music business.
If there's any proof that physical media is not dead, it's the furor over the recent Netflix decisions and reversals in their attempt to isolate the physical media business.
The fact is that physical and digital media will exist concurrently. They both have their advantages and disadvantages. And Blu-ray remains the way to view movies with the highest picture and sound quality, especially at home. Having said that, there are plenty of people who have no problem watching a movie on their 3" smartphone.
Partnering with Apple, Netflix, etc., does not set anyone "for life". If you want proof of that, look at the music industry. U.S. industry sales (for both physical and digital combined) are now half of their 1999 peak and that's not even taking inflation into account. However, the music industry has one major disadvantage that the the film industry doesn't have: what's killed the music industry is the fact that due to digital downloads, it's once again become primarily a singles market.
Some other posters are proposing date and date home video distribution for movies. Although some studio execs agree with you, this will kill the theatres. If you kill the theatres, you kill the budgets for movies and most movies will have the quality of "direct to video" releases. IMO, the industry should return to longer theatrical windows to insure that theatres survive, because movies are becoming a commodity that no one really cares about anymore, but that will never happen because they're more concerned with quarterly cash flow than anything else, which is why all the CEOs care about is opening weekend. IMO, the industry is on a slow train to suicide.
All this studio cloud thing is really about is providing a way for purchasers of physical product to be able to also watch their purchases on other devices without the studios having to supply a "digital copy" in the physical package. And for people who move away from physical or don't want the physical, they'll have the infrastructure already in place. This isn't necessarily a bad idea as long as ALL the studios, including the independents and the TV show distributors participate. But Disney going its own way is insane. And at the very least, it provides competition to Apple and Netflix, which will encourage them to keep prices low and quality/experience higher.