Weekly News Roundup (November 11, 2018)
Hello again, and welcome back after the brief hiatus. No, it wasn’t to do with the US election, although it was again extremely fascinating to observe US politics. Here in Australia, our election campaign season is very limited, to only a couple of weeks, intentionally done so to prevent the non stop campaigning, fundraising and news cycles that seems to dominate everything in the US. We also only use paper ballots, using the advanced technology known as a pencil to make our mark (literally, and figuratively on our democracy), and none of our votes goes wasted, even if you vote for minor parties (there’s a thing called preferences that allows you to direct votes to eventually the major parties if your minor party candidate fails to be one of the two frontrunners). It all seems to make a lot more sense than what happens in the US, what now with yet another recount in Florida.
Anyway, with the election somewhat out of the news cycle, we have some news to cover here at the WNR.
The company behind Denuvo is trying to convince more game publishers to sign up to the anti-tampering system by claiming that AAA games not protected by Denuvo could be losing $21 million in revenue due to piracy. The company behind Denuvo, which used to be also called Denuvo but has since been acquired by Irdeto, came to this figure by calculating the number of pirated downloads of an unnamed AAA sports game, that managed to rack up more than 300,000 pirated downloads in the first 2 weeks after release. Irdeto then took this number and multiplied it by the retail cost of the game and came up with the $21 million figure.
While I can’t blame Irdeto for trying to push their product on game publishers, the fact of the matter is that there is no way that unnamed AAA sports game managed to lose $21 million to piracy. For that to happen, every single downloaded pirated copy would have to translate to a paid for copy, and that just does not reflect reality in any way. I wouldn’t be surprised if the conversion rate, the rate that pirated downloads translate to paid copies if the pirated copy did not exist, would be something low like 2% to 5%, which means at most, this would translate into $1 million in lost sales. And that would also be income, not revenue. I’m not sure how much it costs game companies to license Denuvo, but it may not be a straight forward thing, especially given how gamers hate Denuvo and there’s probably a few percent of paying gamers who avoid games that have it. But of course, there’s really no way to find out either way, so publishers, out of fear, rely on Denuvo and Denuvo can sell them the appearance of security, if not actual security. And everyone sleeps better at night. Except for gamers.
We now know a little bit more about Disney’s upcoming streaming platform, which will now be officially known as Disney+ (read: Disney Plus). Another thing we now know – there will be a second Star Wars live action TV series, set as a prequel to Rogue One and starring Rogue One’s dashing hero Andor, again played by Diego Luna.
Disney boss Bob Iger also let known how Disney+ will be differentiated to Hulu (now majority owned by Disney), in that Disney+ will be more family oriented compared to Hulu, which has a younger user base. So shows like FX’s American Horror Story won’t appear on Disney+, but will on Hulu, for example.
And you just know Disney+ will heavily rely on Disney’s biggest IPs, Star Wars, Marvel and Pixar, because even in the promo graphics provided by Disney, the logos for Star Wars, Marvel and Pixar were quite prominently shown.
Iger also expanded a little on the idea of releasing movies on home video a little bit earlier. Not on Disney+, in which Iger was adamant that the existing restrictions would stay, but for Blu-ray, DVD and Digital sell-through. Iger was keen to stress this does not mean changing the theatrical window (which would get all the cinema chains all riled up), but there is a gap between the theatrical window and the home video window that Disney wants to exploit. Bringing the home video window forward would also allow the streaming window to open up a bit earlier too, maybe.
So 2019 looks like an exciting year for streaming, lots of changes appear to be coming.
That’s all we have for this week. See you in seven!