Spell said:
what if the new system is just implemented on every new tv set or dvd player? i can't see people stopping buying dvds just for that. if, as it is likely, the market should be in the slums, it will be there just for a short-ish time... just enough to make everybody buying the new equipment, happy or not with this new system.
sure enough, a couple of years of losses might prove too bitter for most film studios to just go on with the technology... and yet, there is a possibility of that happening.
Not very likely.
The entertainment industry isn't one monolithic entity, no matter what the MPAA may want you to think. For that to work, every company would have to stop making and selling DVD players (and there are lots of companies in the world that do, and those that do it just to spite the others, like companies that make region-free DVD players). Then every distributor and motion picture studio would have to decide to use the same next-generation "secure" format, between the two that are offered, and move away from DVD, a risky move hoping that they won't lose too much money from people who refuse to upgrade and adopt the new technology. You've got small-time outfits that make DVD's of independent and low-budget movies, several movie studios, importers of anime and foriegn TV shows and movies. Among all this, there is the existing DVD standard which is widely adopted, widely supported, and proven to work. Then there are two new technologies that are competing and not a huge market-driven urge to replace the existing technology. DVD was adapted pretty much universally because a consortium of most of the industry in the late-90's decided on the format together, thinking it would be a robust and secure medium that would last for some time. With replacements for DVD, there is no such consensus, and little customer drive apparently.
Companies make big money from those DVD sales, and something as little as Shrek 2 not selling as well on DVD as expected was treated as a problem that caused a significant stock price drop. Jumping to a whole new format, leaving behind everybody else is just asking for a big new gap, and lost sales for a while, and gambling it comes back soon enough. Stockholders hate it when sales figures drop very sharply, especially when they didn't have to because it was from an intentional decision.
Honestly, as long as I can get Episode III on original DVD, there is enough movies and TV shows on DVD to entertain me for many, many years, and I'd simply stop buying new discs if some new "secure" format came to prevalence that would require me to buy a compatible TV and whole new player. I don't think I'm alone on that one.