Intellectual Property Law

Hollywood and Network Neutrality

By Michael Scott

I was interested in an article that appeared in the Los Angeles Times shortly before Christmas. It indicated that some of the major writers were meeting with venture capitalists to see of they could start their own production companies to create entertainment products specifically for the Internet. The writers apparently see this as one way to regain control of their work and make sure they are paid properly for its exploitation online.

My reaction to the news story was twofold. My initial reaction was ?What took you so long to figure it out?? The main reason that the TV networks and movie studios are stonewalling writers? efforts to get a cut of the money for repurposing their shows for the Internet is that the networks and studios see that the Internet (and wireless) is quickly going to become a major platform for their entertainment products. They want to make sure the stranglehold they exercise over the broadcast channels and movie distribution network will be duplicated online and they don?t want to have to share a major portion of the revenues from online distribution with the writers (or actors, directors, etc.) It is a classic case of monopolists in one industry trying to extend their monopoly into a new field. So, the thinking goes, if the creative talent can bypass the studios and networks and go directly to the Internet, they can break the bottleneck on getting their content to viewers and will be able to keep most of the revenues for themselves.

However, my second reaction was ?This is a lot of hullabaloo about nothing.? Because even if Hollywood talent can get away from the current studios and networks that control their lives, they will simply be facing a new host of monopolists unless Congress insures network neutrality. Today, anyone can put up a website and (except for people living under repressive governments) everyone who has access to the Internet can access that site. So, when YouTube got started, every Internet user could go to www.youtube.com and watch the myriad videos posted online by users. And, if the writers want to start their own ?network? online to showcase their own programming, anyone will be able to come to their website and watch the programs. But that is not likely to continue unless the government steps in.

Full post as published by Singularity on January 15, 2008 (boomark / email).