HOLLYWOOD -- In his first public address since landing
the job in January, Movielink CEO Jim Ramo said Internet-based video-on-demand
services must proceed despite security holes because the resulting
expansion of the entertainment market would outweigh the potential
losses from piracy.
Speaking at the Southern California Technology Venture Forum on
Thursday, Ramo provided a primer on
VOD technology for the assembled venture capitalists and attorneys.
He said Movielink -- created by Sony, Paramount, Universal, MGM and Warner Bros. --
is scheduled to launch this year even without an overall industry
consensus on download security technology because time is of the
essence when it comes to setting up some sort of legal structure for
online movie downloads. New service will deliver movies directly to
computers via such downloads.
"Digital rights management can separate honest viewers from
crooks," Ramo said. "There is no
silver bullet to prevent piracy; everyone in the industry knows
this. But if you have a business model up and running, the Internet
generation will be encouraged to embrace it."
Ramo said entertainment has always
had a problem with people trying to access content for free -- from
kids sneaking into movie theaters via back doors to the theft of
cable and satellite signals. But the response of consumers to
digital video recording services such as TiVo and fledgling VOD
systems from cable operators proves that the legitimate market on
such services can result in a significant revenue stream.
"New technology inevitably outpaces the law and business models,"
he said. "It's no surprise that under these circumstances, consumers
become aggressors. It's up to business to
respond."
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