Why Are The ISPs Siding With Hollywood Over File Sharing?

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capitol.jpgThe entertainment industry is always looking for new ways to stop illegal file sharing, but a new lobby called Art + Labs is an interesting step. Why? Because the lobby is backed by players you'd expect --  NBC Universal, Viacom and the Songwriters Guild of America --  but it’s also backed by AT&T, Cisco Systems, and Microsoft, the NYT reports.

Basically, the pipe owners (like AT&T) and service providers are getting together to help fight file sharing with the content makers (like NBC U). But if you remember back when it was music file sharing that was under the spotlight, rather than video, the ISPs weren’t jumping to the rescue of the music biz. So why are they doing it now?

Because they value the video content more than they did the music. They want to be able to sell video either through advertising or direct sales, either via the Web (Microsoft), or via TV (AT&T's new Uverse offering). They wouldn't mind selling music, too, but it's not a lucrative or core business, which means the music labels never had any real leverage -- Universal Music Group had nothing to take away if the ISPs didn't play ball. But if Disney takes ESPN or Pixar movies away from an ISP or cable system, that's a very big deal. Expect a lot more Hollywood/distributor displays of unity in the future.

See Also:
Guns N' Roses Piracy Spikes After FBI Arrests Leaker
Metallica Finally Realizes It Can’t Fight The Internet
A Victory For Video Sites: Court Grants Veoh Its DMCA Defense In Copyright Case



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7 Comments

bnputek said:
Don't forget that they don't want to layout any money to upgrade their bandwidth capacities, they would rather restrict traffic than handle the actual problem.

Justine Bateman said:
"Hollywood" is not teaming up with the ISP providers. The MEDIA CORPORATIONS are teaming up with the ISP providers. This is exactly what all the Content Creators: the writers, directors, actors, and crew members that make up the real "Hollywood", do NOT want.
The Real Hollywood, the creative community that is the future of entertainment, wants Net Neutrality. Period.

@Justine Bateman: Good point, it's not the creative community, it's the people who control the content. (By the way, if this Justine Bateman the actress -- You were awesome in Arrested Development).

Martin Olausson said:
I agree that they value video higher than music (as rightly they should) but for the “pipe owners” this has more to do with network economics than the new revenue they think they will get from distributing video. People downloading 5Mb music tracks from a P2P network doesn’t really impact telecom operators’ opex that much – people starting to download 40Gb HD movies, now that’s a different story all together…

waseem (URL) said:
I agree with Justine Beatman.An excellent point, Good. Not "HOLLYWOOD" but actually media is tearning up with ISP`s providers. U r awesome in that point.


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