Murray+Blog+Analysis

To: Proximity Video Team From: Gregg Murray Subject: NYT Article on Portable Video Files Date: January 5, 2010 I analyzed an article that reported on an attempt by the major Hollywood studios to create a standard media platform for videos. Below I discuss the significance of this effort and recommend we find out if there is interest in this new video format.

Hollywood studios have formed an organization called Digital Entertainment Content Ecosystem (DECE) to create a single digital video format that allows viewers to purchase a video file once and view it on many different platforms. This five major studios in involved in DECE (Warner Brothers, Paramount, Fox, Sony and NBC Universal) are trying to boost declining video sales in a market where those sales now determine whether a film makes a profit. Under the DECE plan, files will be stored on a secure internet site where customers can access them through many different devices.
 * What New Technology Provides **

The DECE studios have two concerns: piracy and distributor monopolies. Internet piracy of video files has drastically cut into sales of the current video formats. The studios also fear that one company like Amazon with its Kindle or Apple with the iTunes store may corner the market for digital video files and thus be able to dictate pricing.

This technology could change the video industry and the way consumers view video files. The major issues that need to be addressed are piracy and the limited growth potential for the video format. · __Piracy__ –Video files are easily accessible on the internet. The growth of the internet has made it easy for individuals to find free versions of the current video formats. This may not change in the future. · __Growth Potential__ – Will this new digital format have a long lifespan? Consumers will be more likely to switch to a new format if the product will be in existence for more than a couple of years. Questions that need Answers ** We should answer a few questions to determine if this new video format will be accepted by consumers.
 * Issues for this Technology **

· Are consumers willing to purchase new hardware and software that they may currently own? · Do consumers currently use multiple hardware devices to view digital video? · Do consumers regularly download video from free sites?

Proximity needs to start with these questions to determine if this new format has a shot in the market.

Stone, B. (2010, January 4). Trying to Add Portability to Movie Files. //New York Times//. Retrieved January 4, 2010, from []
 * Reference **