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Movie Studios Fear iPiracy

Mark Ramshaw
0 comments  13 June 2007

Although Apple is in negotiations with a number of movie studios for its upcoming movie rental service, Hollywood still has concerns over Apple’s latest technology.

In addition to previously aired concerns over the effect selling movies via iTunes could have, the film studios are concerned that the Apple TV device could be used to view pirated material in the same way that iPod users can download ripped content from illegal file sharing sites. The studios are apparently pushing for Apple to take more aggressive steps to combat piracy. One requirement would be to take advantage of watermark technology to ensure that only legitimate copies of films could be played via the Apple TV.

"Our position is, if you want our content, you have to protect our business," one studio executive told the L.A. Times. There is still speculation, however, about the longevity of Apple TV. Some see it as a pioneering service, but one that won’t ultimately become the market leader. Even Steve Jobs has referred to it as the company’s ‘hobby’ project, referring to a reluctance to put too much faith in its future. So far the unit, which will soon be able to play YouYube content, has sold only in the hundreds of thousands.

"Apple TV is not a mass-market pleaser — it's a 1-million-person pleaser," said Forrester Research analyst James McQuivey. "Beyond that 1 million, where do you go from there?"
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