Creators: Kill The Hobbit To Save Regular Earth, And Win!

from the with-apologies-to-martin-freeman dept

Last week, we wrote about an article by Joe Karaganis discussing the huge tax subsidies and political concessions wrested from the New Zealand government by Warner Bros. in order to film The Hobbit in the country. The editorial was entitled Kill The Hobbit Subsidies To Save Regular Earth, which inspired an editorial cartoon that Bloomberg View attached to it, which in turn has inspired Joe to launch a contest for creative interpretations of The Hobbit as an allegory for the situation.

First, I confess I hadn't fully thought through how to map the various heroes and villains of ‘Kill the Hobbit’ back onto ‘The Hobbit.’ But on reflection, this drawing seems a bit off. In my version of the story, the hobbit is the villain, stealing gold from the people of New Zealand (I guess to take back to Hollywoodshire?) This would make Smaug the dragon the public, and Smaug’s giant pile of gold the commonwealth (that’s why it’s so large). Smaug should be casting the Expecto Patronum (EP) spell to banish the Hobbit, not the other way around.

But hey, people may see it differently, and their right to publish those perspectives on our common culture is part of what’s at stake in ‘Kill the Hobbit to Save Regular Earth’ (pivoting here to New Zealand’s support for the IP-enforcement-on-steroids Trans-Pacific Partnership Agreement).

So with that in mind, I am happy to announce the ‘Kill the Hobbit to Save Regular Earth’ Initiative– KH2SREI for short (pronounced Kisstory, after the ancient Elven admonition to beware Hobbits bringing gifts).

I invite you to flesh out the Kisstory allegory in whatever direction makes most sense to you. If you send me pictures, I will publish them here (as long as they are not obscene or gratuitously nasty). I will even try to talk the good people at Bloomberg View into running them. And if we get enough submissions we will have a public vote to award copies of the “semi-epic” Media Piracy in Emerging Economies to the two most worthy entries (plus whatever other awards we can accumulate in the meantime.)

As for those "other awards", we're throwing a Techdirt t-shirt into the mix. So if you're a creator, whatever your medium, we hope you'll submit something! Head on over to the contest page for more details and some "extra points" guidelines, including a "Special award for the best pro-Hobbit, pro TPPA, pro Warner Bros art, if we get any" because hey, political cartoons can cut both ways.

Filed Under: hobbit, hollywood, infringement, movies, new zealand, subsidies

Pundits And Politicans Very Quick To Blame Video Game & Movie Violence For Newtown

from the of-course-he-does dept

The tragedy last week in Connecticut is still horrifying to think about on many different levels -- but the constant search for blame, and using it to support pet political ideas is troubling. This isn't to say that we don't necessarily need to have a "conversation" on various hot potato political issues, but basing it around an event like this isn't likely to be a productive and informed conversation, but one driven purely by emotions. I understand the desire, and the idea that making use of such a tragedy to create political will to do something, is all too tempting. But I fear what happens when we legislate around emotions, rather than reality. And, no I'm not even going to touch the question of gun control or mental health treatment. Both obviously evoke strong opinions from people on all sides of the issue (and, contrary to popular opinion, there are more than two sides to those issues). Instead, let's talk about the rush to blame video games and TV shows, as seems to happen every single time there's a mass shooting -- and almost always done with no evidence.

We already talked about people rushing to blame a video game, after the incorrectly named "original" suspect in the shootings had, possibly, at some point "liked" the game on Facebook. But, of course, now the politicians are stepping in, and retiring Senator Joe Lieberman is using the tragedy to push forth one of his pet ideas that he's brought up in the past: violent video games and TV must have something to do with it. He's trying to set up a commission to "scrutinize" "the role that violent video games and movies might play in shootings" among other things (yes, including gun control and mental health care).

Lieberman, not surprisingly, was not the only one. A large group of politicians and pundits immediately jumped to the conclusion that video games and movies must have something to do with all of this:

A disturbing number of public figures have lashed out at video games since the atrocity committed at Sandy Hook Elementary on Friday. A bipartisan group of legislators embraced this scapegoating on the Sunday news programs; from Democrats like Sen. Joe Lieberman and Gov. John Hickenlooper to Rep. Jason Chaffetz and former Pennsylvania Gov. Tom Ridge.

They were joined by members of the media – sadly, too many to count.

On MSNBC on Monday, Chris Jansing asked her guests what connection Adam Lanza’s interest in video games had to his murderous shooting spree. She quoted senior White House advisor David Axelrod who tweeted “shouldn’t we also quit marketing murder as a game?” Liberal contributor Goldie Taylor revealed that she refused to let her child play games until he was 14-years-old.

[....]

On Fox & Friends on Monday, legal analyst Peter Johnson Jr. delivered an offensively sermonizing renunciation of entertainment producers and videogame makers who are “clinging to guns economically.”

“They are glamorizing guns in this country. They are the scourge in terms of these guns,” Johnson Jr. said of game and filmmakers

Of course, time and time again when these shootings happen, the reports later show... that video games and movies played little to no role. Yes, sometimes the killers played these games, but it's difficult to find teenagers these days who have not played a violent video game or watched a violent movie. It's like saying that we should explore "the role that breakfast plays" in such shootings. How many of the killers ate breakfast that day? In fact, studies seem to suggest that, if anything, violent movies may actually decrease incidents of violence.

Bizarrely, the person with the most thoughtful explanation on some of this might be movie critic Roger Ebert, in a review of Gus Van Sant's movie Elephant from nearly a decade ago. That movie portrayed a similar school shooting, and did so by making it clear that sometimes there are no answers and there is no "other thing" to blame. Sometimes (perhaps many times) these things don't make sense, no matter how many times we want them to make sense. But Ebert also points to another factor that rarely gets discussed:

Let me tell you a story. The day after Columbine, I was interviewed for the Tom Brokaw news program. The reporter had been assigned a theory and was seeking sound bites to support it. "Wouldn't you say," she asked, "that killings like this are influenced by violent movies?" No, I said, I wouldn't say that. "But what about 'Basketball Diaries'?" she asked. "Doesn't that have a scene of a boy walking into a school with a machine gun?" The obscure 1995 Leonardo Di Caprio movie did indeed have a brief fantasy scene of that nature, I said, but the movie failed at the box office (it grossed only $2.5 million), and it's unlikely the Columbine killers saw it.

The reporter looked disappointed, so I offered her my theory. "Events like this," I said, "if they are influenced by anything, are influenced by news programs like your own. When an unbalanced kid walks into a school and starts shooting, it becomes a major media event. Cable news drops ordinary programming and goes around the clock with it. The story is assigned a logo and a theme song; these two kids were packaged as the Trench Coat Mafia. The message is clear to other disturbed kids around the country: If I shoot up my school, I can be famous. The TV will talk about nothing else but me. Experts will try to figure out what I was thinking. The kids and teachers at school will see they shouldn't have messed with me. I'll go out in a blaze of glory."

In short, I said, events like Columbine are influenced far less by violent movies than by CNN, the NBC Nightly News and all the other news media, who glorify the killers in the guise of "explaining" them. I commended the policy at the Sun-Times, where our editor said the paper would no longer feature school killings on Page 1. The reporter thanked me and turned off the camera. Of course the interview was never used. They found plenty of talking heads to condemn violent movies, and everybody was happy.

Meanwhile, Danah Boyd has a related, but somewhat different perspective on the whole thing, noting how the media frenzy around these events also tends to mess with everyone else who are trying to cope with the situation, and makes sure their lives can never go back to any semblance of normalcy. She talks about running into some kids who had gone to Columbine high school, a few months after those attacks:

What I heard was heartbreaking. They had dropped out of school because the insanity from the press proved to be too much to deal with. They talked about not being able to answer the phone – which would ring all day and night – because the press always wanted to talk. They talked about being hounded by press wherever they went. All they wanted was to be let alone. So they dropped out of school which they said was fine because it was so close to the end of the year and everything was chaos and no one noticed.

As she notes, it's not the press's fault either. They're also giving the public what they want -- and, she agrees, that some of these topics are important and should be discussed. But the focus on the people in Newtown isn't helping.

But please, please, please… can we leave the poor people of Newtown alone? Can we not shove microphones into the faces of distraught children? Can we stop hovering like buzzards waiting for the fresh meat of gossipy details? Can we let the parents of the deceased choose when and where they want to engage with the public to tell their story? Can we let the community have some dignity in their grief rather than turning them and their lives into a spectacle of mourning?

Yes, the media are the ones engaging in these practices. But the reason that they’re doing so is because we – the public – are gawking at the public displays of pain. Our collective fascination with tragedy means that we encourage media practices that rub salt into people’s wounds, all for the most salacious story. And worse, our social media practices mean that the media creators are tracking the kinds of stories that are forwarded. And my hunch is that people are forwarding precisely those salacious stories, even if to critique the practices (such as the interviews of children).

What happened last week was senseless and tragic and painful to think about in all sorts of ways. And, yes, there are reasons to hope that such an event might lead to ideas that would prevent such things in the future, but the way we go about things on such discussions doesn't provide much hope that we're going to do anything valuable or thoughtful in response. Instead, it becomes a rush to do something purely out of an emotional response, and it's unclear how that helps.

Filed Under: jason chaffetz, joe lieberman, john hickenlooper, movies, newtown, politics, sensationalism, shooting, tom ridge, video games

Disney Chooses Netflix As Its Exclusive Distributor Beginning In 2016

from the mouse-in-the-house dept

Shock generally isn't an emotion I feel when I come across a story to write for Techdirt. Anger? Sure. Sadness? Of course. Dismay? You know it. But not shock. I can't say that's true in this instance. Recall two recent stories we've had about Netflix. The first is a piece I wrote about Disney opting out of their Netflix streaming deal, resulting in so-called Disney knock-offs to spring up to fill the void. The second is a story Leigh Beadon covered in which one television analyst somehow looked at parents having the ability to provide their children with more entertainment choices via Netflix and decided that was a bad thing, urging companies like Disney to veer away from Netflix altogether.

It would appear that Disney is now reversing course and embracing the ever-living hell out of Netflix as the future of its distribution model.

If you’re a Netflix subscriber and you have kids, you’re about to make those kids happier. Netflix and Disney just inked a new deal, making the former the exclusive American subscription TV service for “first-run live-action and animated feature films from The Walt Disney Studios.”

This marks the first time that a major Hollywood studio decided to side with a digital distribution rather than a traditional TV provider. The deal is also a high-water mark for a company that some were speculating was ripe for takeover as recently as last month.

According to the press release by Netflix, Disney's releases, and those of its subsidiaries (including, presumably, LucasFilm), will be available on all platforms beginning in 2016. Ostensibly, this would include Netflix's streaming platform, which is a break from Disney's previous dropping of streaming through NetFlix. Perhaps even more impressive, Disney is releasing at least a portion of their back catalog through NetFlix as well, as early as this coming year.

The article goes on to note that if you think this is a dagger in the heart for pay-TV, there's still another massive hurdle to leap.

“The pay TV business as we know it is on really safe grounds until sports distribution changes,” Cryan added. “It’s technically difficult to distribute that stuff online at scale. In addition to that, the business is stacked up so you pay a lot for ESPN and other sports channels not available elsewhere. Until that changes, the core of the pay TV business is on relatively safe ground.”

Now, I happen to think that sports streaming isn't the challenge Dan Cryan makes it out to be, but he's right that the barrier is still there and it's massive. Still, keep in mind that ESPN, unfortunately the king of cable sports, is a Disney owned operation. If the house of mouse is beginning to shift the aim of its movie distribution towards a digital provider, it isn't a huge leap to bring sports streaming along with it.

Filed Under: distribution, movies, streaming
Companies: disney, netflix

$1.5 Billion In Taxpayer Funds Go Directly To Movie Studios Each Year... And Very Few Jobs Created

from the and-they're-complaining-about-what? dept

If you've been following MPAA boss Chris Dodd ever since the death of SOPA, you'll be aware of his stump speech. He seems to give it every chance he can: "the movie industry is all about jobs, jobs and more jobs." Of course, he lies about the number. He usually trots out his favorite 2.1 million figure, ignoring the fact that the Congressional Research Service showed it's really 374,000 people employed in the movie business.

What isn't mentioned so much (though, it depends on the audience) is the fact that various tax subsidies that different states pay to movie studios means that $1.5 billion in taxpayer money goes straight to Hollywood studios. Perhaps that would be justifiable if it created jobs. But the evidence there is actually lacking. That link involves the NY Times looking closely at Michigan, which not too long ago put in place massive subsidies for Hollywood to make movies in their state. The cost? Suffering Michigan citizens foot the bill. However, Michigan Governor Jennifer Granholm thought it was worth it because a local movie director wanted more work at home (and because, when she was younger, she had hoped to be a movie star). Lots of studios are looking to make movies in Michigan now, because the cash back from the state is way too lucrative to pass up.

Within two months, 24 movies had signed up to film in Michigan — up from two the entire year before. The productions estimated that they would spend $195 million filming there, and in return they would be refunded about $70 million in cash.

Before long, residents were rushing out on their lunch breaks to catch a glimpse of celebrities like Drew Barrymore, who was filming her movie “Whip It” in Ann Arbor, and Clint Eastwood, who was shooting “Gran Torino” in the Detroit area. Even Michael Moore, who was filming a movie about corporate welfare called “Capitalism: A Love Story,” sought and received incentives.

But does it create jobs? Not really. The story is horrifying. It involves Hollywood hotshots continually demanding more and more subsidies from the state and insisting that jobs would be plentiful as soon as they could get things up and running, but balking any time anyone asked them to put the job promises in a contract:

Ms. Granholm declared the city in a financial crisis in February 2009 and appointed an emergency manager, Fred Leeb. The city’s budget was $54 million a year, but it was overspending by an estimated $7 million to $12 million. Pontiac was also still weighted down by old incentives it had given to businesses like G.M.

The movie studio was an added challenge, since it was seeking financial incentives from the city — not to mention from other branches of the government. It won redevelopment tax credits from the federal government and separate aid from the state that included incentives for technology companies that hire residents.

Job creation became a point of contention with beleaguered Pontiac, which was being asked to waive virtually all property taxes for the studio. The investors claimed that thousands of people would be employed, but Mr. Leeb said that when he asked for job numbers to be written into the contract, the investors refused. “We started seeing some backpedaling,” said Mr. Leeb, who added that the negotiations featured “knock-down, drag-out fights.”

But wanting to bring the big lights of Hollywood to Michigan, eventually the state agreed to it. Who paid for the subsidies? Former state workers basically were forced to bet their pensions on Hollywood:

Over the objections of some local officials, the state agreed to use the state workers’ pension funds to guarantee the bonds. If the investors failed to pay, the retirees would be on the hook.

And the promised jobs? Keep looking. Sure, some crews from LA flew in, but for locals? Almost none.

The studio had created only 200 positions by the summer of 2011, according to correspondence between the company and local officials. And when temporary construction workers were excluded from the tally, Pontiac’s records show, the studio reported only two employees in 2010 and 12 the next year.

Earlier, in the article, they note that this particular project was pushed through with the promise of 3,600 jobs. You don't do that by hiring two people one year and a dozen the next.

How about tax revenue from the local operations? Yeah, big Hollywood studios have ways of avoiding paying that sorta thing, even as they're collecting millions in local subsidies:

The city later had problems collecting some of the taxes because Disney operated through a separate business entity that was difficult to track down, he said.

“This is a glamorous industry if you want to talk about Hollywood, but it’s not very glamorous for the municipality that wants to collect something,” Mr. Schimmel said. Pontiac, he said, was outgunned.

Disney declined to comment.

And... soon after that, the studios moved on to other sexier states that suddenly offering up bigger incentives than Michigan. And who did it cost? Oh yeah: remember those state workers' pensions? Yup. Them.

When the bill for the studio’s bond interest came due in February this year, it paid only a portion, $210,000. The state pension fund had to pick up the remaining $420,000....

In August, the studio defaulted on the entire $630,000 payment on the bond, despite a decision by Mr. Snyder to temporarily allocate some film incentives.

All around, it's a horror story that's being repeated in other states and countries around the globe. Hollywood studios go around pitching "jobs!" and demanding special taxpayer-funded incentives, offering giving them millions to film in a certain location. The filmmakers take the subsidies, bring in crews from LA, hire a couple people here or there... and then move on, leaving a mess in their wake. And this is the industry that is demanding even more protection from the federal government via copyright law? When is enough enough?

Filed Under: chris dodd, economics, jobs, michigan, movies, subsidies, taxpayer
Companies: mpaa

Kenyan Filmmaker Looking To Cuts Costs By Using 'Pirates' As His Distributors

from the pirates-as-middlemen??? dept

It's not often you'll see a filmmaker turn to pirates for help. Almost every American film takes great pains to inform paying viewers just how awful these people are and how much trouble they'll be in if they're ever caught. That's "our" culture, as delivered by the MPAA: the only good pirate is an arraigned pirate (or one that has a boat, died a couple hundred years ago and resides safely on the MPAA's side of the screen).

But that's the US. Other cultures have their own take. Notable Indian filmmaker Anurag Kashyap views piracy as just another way to get his message to the masses. Incredibly efficient pirates in Nigeria spread purloined films as far as they could reach, creating new markets for Nigerian filmmakers. China's film industry continues to thrive despite being held up constantly as an example of unchecked IP infringement.

Here's another filmmaker who recognizes what pirates can offer a filmmaker on a budget. Patrick Mureithi, a Kenyan filmmaker who currently lives in Springfield, Missouri, is hoping to show his documentary on post-election violence and rebuilding in his home country, and is raising travel funds via Indiegogo. Most of this $5,000 will go directly to travel expenses, as Mureithi is counting on some of his countrymen to handle the rest.

I need to raise at least $5,000 for airfare, meals and transportation. Airfare is $2,000, transportation and meals another $2,000, and $1,000 is for miscellaneous expenses. My hope is to show the film on national television, and also to distribute it at minimum cost via the DVD piracy industry. Anything extra that I raise will go towards venue and equipment rental so that I can host public awareness forums.

When money's tight, no one does better, cheaper distribution than those whose only "business" is cheap distribution. With this "industry" already well established in Kenya, Mureithi simply needs to get his finished film into their hands and let them do what they do best -- get his film into the hands of as many Kenyans as possible.

"Kenya: Until Hope is Found," tells the story of severely traumatized men and women who learn various ways of taking responsibility for their own healing. This is a message that will resonate in the hearts of many, and will help start conversations about the need to heal from trauma, without which there can be no lasting peace. This is a message that is relevant not just in Kenya but to EVERY human being on the planet.

Hopefully, Mureithi will get his film funded and spread throughout Kenya. Roger Ebert has tweeted his support, calling the filmmaker's project an "urgent documentary." With Kenya teetering on the edge of genocide (according to Genocide Watch), the upcoming 2013 election could prove to be the tipping point, one that Mureithi hopes to head off with widespread viewing of his film.

Filed Under: anurag kashyap, distribution, kenya, movies, piracy

New Study: Megaupload Shutdown May Have Hurt Box Office For Smaller Movies

from the makes-sense dept

TorrentFreak points us to an interesting new study from Christian Peukert of the Munich School of Management, and Jorg Claussen from the Copenhagen Business School, that looks at the shutdown of Megaupload to see if they can determine what impact it had on the box office for various movies. The findings are probably not what Hollywood wanted to see: basically, the evidence shows that taking down Megaupload didn't suddenly send people running back to the theaters. In fact, for many, many movies there appeared to be a tiny decrease in box office take, though the results are not statistically significant. The one exception to this was for "blockbuster" films that appeared on more than 500 screens. There there was a similarly tiny increase in box office. Considering that the MPAA and studio heads keep insisting that they're really concerned about indie filmmakers when they try to stamp out piracy, this suggests they may be doing it wrong.

Of course, you shouldn't read too much into non-statistically significant findings, but at the very least the data does pretty clearly show that there wasn't a sudden rush by people to go back to the theaters once Megaupload went away. Furthermore, it's possible that at least some movies -- perhaps a lot of movies -- were slightly harmed by less word of mouth. As the researchers note:

Our counterintuitive finding may suggest support for the theoretical perspective of (social) network effects where file-sharing acts as a mechanism to spread information about a good from consumers with zero or low willingness to pay to users with high willingness to pay. The information-spreading effect of illegal downloads seems to be especially important for movies with smaller audiences.

At the very least, it seems like a good area of research that deserves more study going forward.

Filed Under: box office, infringement, movies, sharing, study
Companies: megaupload

Budweiser Asks Paramount To Remove Their Beer From The Movie Flight

from the maybe-their-lawyers-were-drunk? dept

As product placement in television and film becomes more prevalent, it was only a matter of time before intellectual property silliness had to follow. For example, we've seen such wonderful cases of egocentrism as a copyright claim over a painting shown in a movie. Couple that with product placement examples that are awkward for all involved and you've got a recipe for litigious fun not seen since a murder trial involving a former Buffalo Bills running back.

Reader Chris writes in about a story that appears to be a nice crossroads of these two aspects of product placement, in which several alcohol companies are apparently upset that their products are being shown in the movie Flight doing what those products do: get people drunk.

Anheuser-Busch said Monday that it has asked Paramount Pictures Corp. to obscure or remove the Budweiser logo from the film, which at one point shows Washington's character drinking the beer while behind the wheel.

Budweiser is hardly the only alcoholic beverage shown in "Flight," which earned $25 million in its debut weekend and is likely to remain popular with audiences. Washington's character frequently drinks vodka throughout the film, with several different brands represented. William Grant & Sons, which distributes Stolichnaya in the United States, also said it didn't license its brand for inclusion in the film and wouldn't have given permission if asked.

Now, you may be asking yourself, "Why didn't the film get permission to use the products in their film?" The answer is about as complicated as a straight line; they don't have to. Studios are not required to ask for permission to include every little brand in their movies -- even if some companies now think that's the case. True, Denzel Washington's character in the film is a drunk and Budweiser may not be pleased to be associated with that aspect of the story, but the law isn't concerned about Budweiser's pleasure. Trademark law isn't about making sure you're always happy about how your product is displayed.

Even going beyond trademark law, it's not like they were "misrepresenting" anything. I, for one, can assure you that the depiction of beer being able to get a person hammered is spot on accurate, and if you won't take my word for it, I'll give you the phone numbers of some of my neighbors who can relate their experiences living near me on NFL Sundays. The point is that there's a reason these companies didn't give their permission: nobody asked them for it.

Trademark laws "don't exist to give companies the right to control and censor movies and TV shows that might happen to include real-world items," said Daniel Nazer, a resident fellow at Stanford Law School's Fair Use Project. "It is the case that often filmmakers get paid by companies to include their products. I think that's sort of led to a culture where they expect they'll have control. That's not a right the trademark law gives them."

Jay Dougherty, a professor at Loyola Law School, said the use of brands in films has generally been protected by the courts, even when the companies aren't pleased with the portrayals. "It wouldn't have been as effective a film if they used a bunch of non-generic brands," said Dougherty, who is also the director of the school's Entertainment & Media Law Institute. "In a normal situation, if the alcohol were just there as a smaller part of the movie, they might have created an artificial brand for it."

Unfortunately, with the wonderful garden of permission culture that IP laws have fertilized so well for us, companies think they can control...and control...and control. But just because sometimes filmmakers seek out product placement, that doesn't mean that all brand appearances need to first receive approval. Thankfully, thus far, the courts have recognized that they cannot keep their products out of film this way. Now let's all go have a non-generic beer.

Filed Under: budweiser, flight, movies, product placement, trademark
Companies: anheuser-busch, paramount

The Proof That Movies Won't Get Made Any More Is That... More Movies Are Being Made Today

from the consistency-is-all-I-ask dept

The Hollywood Reporter recently had an article which is pretty much all doom and gloom about the movie industry, based on a conference at USC about the "Entertainment Law and Business." Seeing as it's an LA event, it's not surprising that much of the story took the typical Hollywood line about how terrible things are these days. But what's amazing is that it seems to treat the success stories as if they're failures. It quotes YouTube star Sam Tsui, who points out that "you can't become complacent as a content creator -- you need to do new, exciting stuff" and turns that into the complaint that artists have to spend all their time running "to keep in the same place." Most of us call that "a job."

But the really stunning bit is that right after three paragraphs moaning about the state of the indie film business today, there's this:

Even when the indy news is good, it isn’t: Wilson said she saw more films on offer at the Cannes Film Market in May than she’d seen in a decade. That bountiful crop translates to an oversupply of product, a point Zimmer emphasized when he noted that there are only three key buyers of arthouse product remaining, Focus, Fox Searchlight and The Weinstein Company.

Er. Wait. That is good news. More films at Cannes than in a decade? Seems like lots of people are still making movies, and still have tremendous incentive to create, even if some of the old guard haven't quite figured out the business model just yet. Even more hilarious is the "explanation" for this "oversupply":

Panelists spoke ominously of films getting made "that shouldn't have gotten made."

Remember, these are basically the same people who are complaining all the time that movies won't get made if they don't get extra special protections. These are the same folks who say that the film business is collapsing and it's all a disaster. And then... when the evidence to the contrary is shown -- with more movies showing up at Cannes than any year in a decade -- that too is suddenly incorporated into the "disaster narrative" even though it goes directly against their claims. So, apparently, the movie business is collapsing and movies won't get made any more, and the evidence of this is that a ton of new movies got made last year.

Filed Under: business models, good news, hollywood, movies

Warner Brothers And Redbox Sign New Deal: Rental Blackout Window Cut From Ridiculous 56 Days To Equally Ridiculous 28 Days

from the 'half-as-stupid'-isn't-the-same-as-'twice-as-smart' dept

Redbox has ended its "standoff" with Warner Brothers and, despite its earlier moves, has come out on the losing end of the deal. If you'll recall, earlier in the year Redbox decided to let its contract with Warner Brothers expire after the studio decided to withhold its new releases for 56 days -- up from the already ridiculous 28 days. Redbox looked at the obscene size of this window and said, thanks but no thanks, we'll just purchase your movies elsewhere.

This couldn't have made WB too happy, what with Redbox exercising the right of First Sale to bypass the studio's window and let itself in the front door. As for those looking to rent new releases while they were still new, Warner Brothers basically told them to shove off, and go look elsewhere for their entertainment. Having cut off a source of income and given more than a few potential customers a reason to check out alternate sources, the studio finally decided to renegotiate.

Here's how it all works out for Redbox (and by extension, the customers):

For titles with street dates between January 1, 2013 and December 31, 2014, the studio will grant Redbox the rights to offer Warner Bros. theatrical titles on Blu-ray Disc and DVD 28 days after their retail release dates.

Apparently, a stupid window is slightly less stupid when it's half the size it previously was. (But more stupidly, it's exactly where the window sat previously, before Warner decided not enough people were buying during the rental shutout). What Warner refuses to understand is that people want to rent movies when they logically should be available (i.e., day and date with the DVD release), rather than at some arbitrary point in the future. Warner is still willing to trade rentals for sales, even if it means giving up some rentals for file sharing. But the stupidity of the deal gets worse:

In addition, Redbox announced plans to join the Digital Entertainment Content Ecosystem (DECE) and has agreed to promote UltraViolet through a program of mutually agreed-upon promotions and marketing tactics designed to help retail customers discover UltraViolet.

On top of being forced to humor Warner's ignorant windowing, Redbox is now being made to play nice with the studio's too-little-too-late digital "offering." It's a bad deal all around, but the press release ignores all reality to paint a gloriously rose-tinted future for all involved.

The arrangement will improve the economics for both Warner Bros. and Redbox while ensuring consistent availability of Warner Bros. titles for the consumer.

Really? Judging from past experience, it seems more likely that Warner will continue to cripple the rental service by adding ridiculous agreements and stipulations while slowly killing off the everything anyone liked about it. There's nothing about this equation that "improves economics." Warner opens itself up to more piracy by setting up arbitrary windows and consumers looking for the latest Warner releases still have 28 days to kill before they become "consistently available."

Here's some more rah-rah, go team doublespeak from Warner Bros.

"We are pleased to once again have a direct relationship with Redbox, providing their consumers access to our movies," said Ron Sanders, president, Warner Home Video. "In addition, we look forward to working together on other key initiatives such as UltraViolet and creating promotional opportunities to offer consumers great content when and where they want it."

Translation: We are pleased that we have prevented Redbox from simply purchasing our movies from a third party and renting them out during our arbitrary blackout periods. In addition, we look forward to pushing our clunky digital services and creating restrictive "opportunities" to offer consumers great content when and where we say they can have it.

Filed Under: movies, rentals, windows
Companies: redbox, warner bros.

DMCA Exemptions Announced; Exemption For DVD Ripping Rejected; Phone Unlocking Going Away

from the ridiculous dept

It's that time again, when the Librarian of Congress and the Register of Copyright announce their triennial "rulemaking" on DMCA exemptions for the anti-circumvention clause. Just the fact that they have to do this every three years should show how ridiculous the anti-circumvention clause of the DMCA is. Basically, it's so screwed up that, every three years, the Librarian of Congress gets to randomly decide when the law can be ignored. Maybe... instead of doing that, you fix the law? There are some interesting exemptions, though they're limited. For example, people making "noncommercial" remix videos can apparently use clips from DVDs with specific limitations.

Motion pictures, as defined in 17 U.S.C. § 101, on DVDs that are lawfully made and acquired and that are protected by the Content Scrambling System, where the person engaging in circumvention believes and has reasonable grounds for believing that circumvention is necessary because reasonably available alternatives, such as noncircumventing methods or using screen capture software as provided for in alternative exemptions, are not able to produce the level of high-quality content required to achieve the desired criticism or comment on such motion pictures, and where circumvention is undertaken solely in order to make use of short portions of the motion pictures for the purpose of criticism or comment in the following instances: (i) in noncommercial videos; (ii) in documentary films; (iii) in nonfiction multimedia ebooks offering film analysis; and (iv) for educational purposes in film studies or other courses requiring close analysis of film and media excerpts, by college and university faculty, college and university students, and kindergarten through twelfth grade educators. For purposes of this exemption, "noncommercial videos" includes videos created pursuant to a paid commission, provided that the commissioning entity's use is noncommercial.

In explaining this, they specifically call out the examples of remix videos as to why this should be allowed:

Creators of noncommercial videos provided the most extensive record to support the need for higher-quality source material. Based on the video evidence presented, the Register is able to conclude that diminished quality likely would impair the criticism and comment contained in noncommercial videos. For example, the Register is able to perceive that Buffy vs Edward and other noncommercial videos would suffer significantly because of blurring and the loss of detail in characters' expression and sense of depth.

Of course, it's not all good news. Public Knowledge had put forth a request for an exemption for being able to rip legally purchased DVDs for the sake of watching them on a computer or tablet. This is something that a ton of people already do, but which technically violates the anti-circumvention part of the DMCA. Unfortunately, this request was rejected -- even though it's already acknowledged as legal to do the same thing with CDs -- and, as PK's Michael Weinberg points out, even movie studio bosses seem to recognize that it should be legal to rip your own movies:

And the RIAA and the MPAA agree with you. In 2005, their lawyer (now the Solicitor General of the United States) assured the Supreme Court that "The record companies, my clients, have said, for some time now, and it's been on their Website for some time now, that it's perfectly lawful to take a CD that you've purchased, upload it onto your computer, put it onto your iPod."

Movie executives agree as well. Mitch Singer, the Chief Technology Officer of Sony Pictures Entertainment explained to author Robert Levine that the idea for the movie industry's UltraViolet program evolved out of Singer's own frustration with transferring movies between PCs in his home.

So do members of Congress. Earlier this year, Representative Darrell Issa did a IAmA on Reddit. Rep. Issa told Redditors that it was already perfectly legal to make personal copies of DVDs for their own use.

So what is the reasoning for the rejection? Well, they argue that space shifting might not be legal after all, despite all of the above. They claim that key cases involving the VCR and the mp3 player -- both of which were found to be legal -- do not "provide the legal basis for a broad declaration that space shifting of audiovisual works is a noninfringing use." Think about that for a second.

Also troubling: phone unlocking -- which was an exemption for the past few rounds -- will no longer be an exemption:

In 2006 and 2010, the Librarian of Congress had permitted users to unlock their phones to take them to a new carrier. Now that's coming to an end. While the new rules do contain a provision allowing phone unlocking, it comes with a crippling caveat: the phone must have been "originally acquired from the operator of a wireless telecommunications network or retailer no later than ninety days after the effective date of this exemption." In other words, phones you already have, as well as those purchased between now and next January, can be unlocked. But phones purchased after January 2013 can only be unlocked with the carrier's permission.

And politicians wonder why no one respects copyright any more.

Filed Under: anticircumvention, copyright, dmca, dvds, exemptions, fair use, movies, ripping