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...supposedly disruptive technology facing the film industry is peer-to-peer networking. Whereas the original Napster offered free music only and was easy to shut down, its successors--Kazaa, Grokster, Morpheus et al.--trade movies too and have proved more resilient. The music labels fought all instances of unfettered file sharing until Apple CEO Steve Jobs helped broker a cease-fire in the form of the iTunes Music Store, which won praise from consumers and a route to profits for the labels. The film industry, however, is still in the trenches, trying to stall what it sees as an onslaught...

Author: /time Magazine | Title: Invasion of the Movie Snatchers | 10/11/2004 | See Source »

...Hollywood is pinning its hopes on a new tactic: federal legislation that would essentially target file-sharing technology. If passed, the so-called Induce Act, backed by such powerful legislators as Senate majority leader Bill Frist and Senator Hillary Clinton, would close the legitimate-copying loophole and empower the MPAA to sue peer-to-peer file-sharing services like Grokster after all. Opponents of the bill include usual suspects like the Electronic Freedom Foundation--the A.C.L.U. of the digital world--but also a surprising number of big businesses...

Author: /time Magazine | Title: Invasion of the Movie Snatchers | 10/11/2004 | See Source »

...same time, the studios can't exactly argue that file sharing is about to put them out of business. DVD sales, which grew 33% last year, and box-office receipts have never been stronger. So if technological breakthroughs were a boon for the movie industry in the past, why is the industry acting as if the sharing of movies online, as Valenti said a year ago, heralds the "undoing of society...

Author: /time Magazine | Title: Invasion of the Movie Snatchers | 10/11/2004 | See Source »

...copyright management has hamstrung the movie industry's attempts to make a business out of file-sharing technology. Two years ago, major studios launched a service called Movielink, which offers movies for downloading to your computer at about the same time they hit the pay-per-view window. Not only do the movies take hours to download, but they also disappear from Movielink's catalog altogether 90 days later, when they enter the premium-cable window. Because channels like HBO and Starz! offer lucrative licensing deals, Movielink has not been able to compete in the latter window...

Author: /time Magazine | Title: Invasion of the Movie Snatchers | 10/11/2004 | See Source »

...much time is open to debate. Ramsay says the industry has five years to figure out how to work file sharing into its business; Hastings thinks it's more like 10. (Both caution that contrary to some reports, we're not likely to see a full-fledged Netflix-TiVo deal in the immediate future.) The delay in incorporating file sharing has a lot to do with the slow speed of most Americans' Internet access. Even with cable and DSL connections that average 2 megabits per second, it can take 16 hours to download a movie with just a third...

Author: /time Magazine | Title: Invasion of the Movie Snatchers | 10/11/2004 | See Source »

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