March, 2010

Blu-ray: Licensed to be killed

Back in 2008, explaining the lack of Blu-ray Disc drives on Apple’s newest line of notebooks, CEO Steve Jobs famously described the licensing process around the format as “a bag of hurt.” After this week’s announcement by the newly formed BD4C Licensing Group, he’s going to need some more bags.

Photo: ArsTechnica

The members of the new group, Toshiba, Warner Bros., Thomson and Mitsubishi, claim to own, collectively, a portfolio of patents “that are essential for BD Products.” Though none of the four are known to have contributed much original IP to the Blu-ray spec, they do own a number of patents essential to DVD products. Insofar as the Blu-ray spec requires that BD devices be backwardly compatible with the older format, device makers are stuck (or stuck up, depending on which end of the deal you’re on), to the tune of $4.50 per Blu-ray player, $7.00 per Blu-ray recorder and $4.00 per Blu-ray drive.

Blu-ray media manufacturers and replicators are also on the hook, the group claims, for 4 cents per disc and 8 cents per BD/DVD flipper disc. Read More »

Memo to Hollywood: You can't go backwards on consumer functionality

Back when the VCR first appeared, along with the video-rental market it spawned, it offered consumers something they had never had before in their home entertainment experience: do-it-yourself programmability. Renting a movie from the video store bought you not just two hours of entertainment. It bought you any two hours of entertainment–on your own schedule, continuous or not, experienced once or repeatedly–anywhere you had a VCR, which fairly quickly became anywhere you had a TV. In exchange for that flexibility, consumers were willing to suffer the inconvenience of a return trip to the video store.

The studios flattered themselves by insisting their content was “king,” and that their movies provided most of the value for renters. But the evidence says otherwise. For a decade and a half, consumers routinely put up with having to rent something other than their first choice of title because the basic value proposition of renting–any two hours of entertainment–was greater than the value of any particular title. Read More »