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Video Industry Should Learn From Its ‘Older Brother's' Mistakes

28 Apr, 2004 By: Erik Gruenwedel

In discussions with various home video distributors at the recent National Association of Video Distributors (NAVD) powwow in Santa Monica, Calif., Kirk Kirkpatrick, president of Waxworks, remarked that a strong rental industry discourages piracy.

He cited ever-shrinking rental rates and consumer-friendly return terms as psychological deterrents as potent as software firewalls against illegal copying of DVD movies.

“When a movie is $3.50 [to rent], the perceived [economic] value of watching a movie is lessoned,' Kirkpatrick said. “So why go out and make a copy?”

He said the movie industry has to look no further than its brethren, the music industry, to see how a stubborn devotion to the CD at the expense of the single (download) has resulted in soft sales and booming piracy.

“We owe a lot to having an older ‘brother' like that,” Kirkpatrick deadpanned.

Makes sense to me.

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