Please ensure Javascript is enabled for purposes of website accessibility

This Insanity Has to Stop

By Anders Bylund – Updated Apr 6, 2017 at 12:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Blu-ray players from a major manufacturer suffer serious blind spots after an update that shouldn't be necessary in the first place.

The idea behind copy protection is admirable, in a Plato's Cave sort of way. Ideally, all of this trickery would foil any and all attempts to make unauthorized copies of the material on the disc, while proper, paying customers could watch their movies, play their games, and enjoy whatever other content is on there without as much as a hiccup. This ideal state of affairs is just a dream, though.

When Sony (NYSE: SNE) designed the Blu-ray disc standard, it built multiple layers of copy-protection into the format. Hollywood loves this stuff, and the extra protective measures may have helped decide the Blu-ray versus HD-DVD wars. Sorry, Toshiba, your standard wasn't obtuse enough. More on that in a moment.

The latest evidence of this restrictive security model's ultimate failure comes from Samsung, where the firmware (software required to run the player) for some of its Blu-ray players needed an update in order to "improve a specific BD title's playback capability." This in itself is a needless hassle created by a flawed standard, but it gets better. Worse. You know what I mean.

That seemingly benign update promptly disabled many titles from two leading content providers: Time Warner (NYSE: TWX) subsidiary Warner Bros. and Vivendi/General Electric (NYSE: GE) property Universal Studios. Somewhere in the process of improving the experience with one title, several others were broken.

Who's to blame?
I don't blame Samsung for anything other than shoddy quality assurance testing before publishing this update. Blu-ray is an insanely complicated standard, and I'm frankly surprised that the players work as often as they do. Roll back to the previous update instead, and you'll get your Warner and Universal love right back. Besides Samsung, you often have to update the software for Sony's own Blu-ray players to play the latest and greatest new discs. Panasonic (NYSE: PC) is in the same boat, as is Philips (NYSE: PHG) and Sharp and many others. It's not just Samsung's problem.

Neither is it really Sony's fault. The company did what it had to do in order to appease the studios and win that pesky format war. All is fair at Hollywood and Vine, and Sony took some extreme measures. Congratulations -- you won!

No, the blame for this fiasco falls squarely on Hollywood. It only takes a quick online search to find downloadable copies, ripped right from a Blu-ray disc, of Warner's "The Hangover" or "Inglourious Basterds" from Universal, or pretty much any movie ever released on the format.

Fighting a losing battle
Copy protection and digital rights management is, as the WOPR computer tells Dr. Falken in WarGames, "A strange game. The only winning move is not to play. How about a nice game of chess?" Sure, every new security measure makes the pirates sweat a little bit -- but you can rest assured that they will find a way around it. Who's really suffering? Fully paying customers.

Meanwhile, both studios and their technology partners spend time, effort, and money on these hair-brained schemes that fail in the end. That drives prices up to nobody's benefit, except maybe the security researchers who get paid for doing the dirty work.

So what -- do nothing?
I'm not saying that the studios should simply give everything away for free, and there's even a real-life precedent today for how the issue should be handled: Steve Jobs raised eyebrows when Apple (Nasdaq: AAPL) let its iTunes music store run wild and free in the unprotected MP3 format. That show is still playing, and digital music sales never dropped off a cliff. Instead, iTunes is now the biggest music market anywhere -- and iTunes customers get to play their legally purchased songs anywhere the ubiquitous MP3 format is accepted.

If catching or otherwise foiling the pirates is of paramount importance, every download could be watermarked with a trackable code that's invisible to the end user. That way you can catch the perp with a minimum of fuss and effort. Wouldn't that be the perfect outcome?

This is exactly the way to do it: Give consumers a solid reason to buy content because your online store is so much nicer than Pirate Bay, or your selection is unmatched in the industry, or maybe you get a foot massage with that $50 download. Provide something that's better than pirated entertainment, and consumers will leave the scallywags behind in a heartbeat. Pricing isn't everything.

Fourth and goal
I thought Walt Disney (NYSE: DIS) was catching on to this fact three years ago, but the House of Mouse still insists on full protection. Warner Home Video head boss Kevin Tsujihara seems to get it, but corporate red tape and decades of unbreakable tradition are holding him back from launching a wholesale revolution. Someday, one of these pockets of sound reasoning will go all out and prove to the rest that today's model is far from optimal.

Have you had enough of this insanity yet, or is digital rights management the best thing since sliced sushi? Discuss in the comments below. You know which side I'm on.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Walt Disney is a Motley Fool Inside Value choice. Apple and Walt Disney are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$98.12 (-1.39%) $-1.38
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.77 (0.23%) $0.34
General Electric Company Stock Quote
General Electric Company
GE
$64.35 (-0.19%) $0.12
Time Warner Inc. Stock Quote
Time Warner Inc.
TWX
Sony Corporation Stock Quote
Sony Corporation
SONY
$66.70 (-2.53%) $-1.73
Koninklijke Philips N.V. Stock Quote
Koninklijke Philips N.V.
PHG
$15.52 (-2.14%) $0.34
Panasonic Corporation Stock Quote
Panasonic Corporation
PCRFY
$7.33 (-2.91%) $0.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.