TAILIEUCHUNG - Hollywood vs. Consumers: Does Tinseltown Hurt Itself with Consumers By Stifling 21st Century Innovation?

In order to historicize the Workman montages, I want to point first to the Oscars telecast for 2002, a year in which no Chuck Workman pieces appeared, and the first year the awards were held in Hollywood. This Oscars was different: the show was held in a theater that seated 1500 fewer guests than some previous venues (Anderton), but whose location within the new media complex and mall at Hollywood and Highland offered— for virtual guests—geographic cachet, ersatz Intolerance elephants, and big-screen video displays. As commentators and stars alike remarked, this. | Hollywood vs. Consumers Does Tinseltown Hurt Itself with Consumers By Stifling 21st Century Innovation by Wayne T. Brough . Executive Summary Fighting a slump in DVD revenues and a rapidly changing marketplace the motion picture studios recently filed a lawsuit to ban RealDVD new software that allows consumers to make a single backup copy of DVDs they have legally purchased to the hard-drive of their computer. While doing little to quell illegal DVD piracy one cannot use RealDVD to burn movies onto a disc or load movies onto the web banning new products will impose substantial new limitations on consumers and their use of the DVDs they purchase. Should the motion picture industry succeed with their lawsuit which will be heard later this week in a Federal courtroom in San Francisco consumers will lose fair use rights that have been carefully defined and protected by the courts. Banning new products such as RealDVD will also hamper competition and technological innovation in one of the most dynamic sectors of the economy. Wayne T. Brough wbrough@freedomworks. org is Chief Economist and Vice President for Research at FreedomWorks Foundation in Washington . Freedomworks Four dation 6Ữ1 Pa TSylvania Averua N . . . Mon- Building Suite 7ŨŨL Washington DC 2ŨŨỬ Ní H. F reed 0 m Wo rk s. erg Phone 2o2j 7HB-sa7U ax 3 2 M42-. MH I oil I res Rather than adapt to compete with and ultimately embrace new revenue streams some key industry players hope to use litigation to shut down innovation. Introduction Summary Technological innovation drives change in every sector of the economy. It is also the source of new challenges as markets evolve and businesses continually adapt to new conditions and consumer demand. Nowhere is this more evident than in the entertainment world where the digital revolution has fundamentally altered the market for creative content. Technology s dramatic pace of change has provided consumers a stunning array of new choices with respect to both .

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