Exits are all the rage this week, so naturally, I had to take advantage with a story this week where the MPAA threatens a “MPAAExit” from Europe (kinda) if the EU bans geo-blocking. I also threw some eggs out because they were way past their used by date – “Eggexit”. I still have a running nose from whatever plague I was infected with last week: “Phlegmexit”? You get my drift.
A very quiet week again, so on to the news …
Everyone is picking on the EU this week, the MPAA has joined in the fun as well. The MPAA has warned Europe not to outlaw geo-blocking, or else they will risk fewer movie productions and higher prices for consumers. This is apparently because without geo-blocking, and regional based releasing (even within EU countries), investors will be less likely to invest in films and somehow this will lead to higher prices for all. In other words, by not being able to gouge individual markets by making consumers pay higher prices for the same thing, and then using technical measures like geo-blocking to prevent true competition, investors may be less willing to invest in productions.
Now I don’t know much about movie productions, but if their business models is reliant on a bit of geo-blocking code that’s easily bypassed, then maybe they need to rethink things a bit. Especially considering how much a boost to piracy things like geo-blocking gives.
Back in the US, where geo-blocking really isn’t an issue (not when you get everything first, and very likely at the cheapest price too – Canadian Netflix occasionally excepted), it’s pretty clear to see that improving access to legal options (ie. making it cheaper, more readily available) is having an effect on piracy. The latest Sandvine report shows that BitTorrent usage is down again during peak usage times, while Netflix, iTunes, and especially Amazon Video usage in the last year have all become more popular, at least when it comes to bandwidth usage.
Netflix’s share of peak bandwidth is actually down a bit – now whether that’s down to declining market share, or more likely, due to bandwidth saving technology that has been implemented in the last year, it’s unclear. But Amazon Video’s share is up, rising above BitTorrent for the first time. Both services will probably see a rise in bandwidth usage next year, when high bandwidth 4K and HDR streams become more popular. BitTorrent usage is down to 3% during peak hours, from the almost unbelievable 31% it used to occupy (back in 2008 though).
The report noted that Hulu and HBO usage may not be indicative of each service’s popularity because the data captured by the report, in March, may not be when the most popular programming on these services are first released (think new seasons of TV shows on Hulu, and Game of Thrones on HBO).
But its clear that people are now watching more stuff through legal outlets than via illegal ones like BitTorrent, and that’s not because of DRM or geo-blocking (quite the opposite, I think).
The PS4 Neo could be coming in 2016, a full year before Microsoft’s Xbox One ‘Scorpio’. I don’t know about this. If the Neo is so close to being released, why didn’t Sony reveal it at E3 (I don’t buy the “we tried to keep our E3 purely focused on software” line)? But it also does make sense because how else would Microsoft be sure that it’s Scorpio would be the most powerful console on the market when it is released for holidays 2017 (if it’s coming a year after the Neo, they will have plenty of time to make sure their claim is true).
If the Neo comes this year (or early next year), why is Microsoft’s updated console coming so late then? It could be because Microsoft was caught off guard in regards to the Neo and couldn’t come up with their own version quickly enough. If Microsoft’s Scorpio is just a somewhat late reaction to the Neo, then this could explain why Microsoft’s console would be coming a year later, and why the company needs to release two new consoles – the S would compete in part with the Neo, at least in terms of 4K media support. Microsoft “beating” Sony to the punch by announcing the Scorpio a full year and a half before it’s even available, may also be just a bit of strategy on Microsoft’s part, to cover up the fact that they’re actually going to be way late to the game.
Don’t mind me, I’m just guessing out loud.
And with that, we come to the end of another WNR. See you next week, when the WNR will most likely also have exited the EU (will last one out please turn off the lights).