Digital copy use grows with consumer acceptance
Studios add feature to TV, catalog titles
By Susanne Ault -- Video Business, 6/13/2008
JUNE 13 | Digital copy, just months ago a novelty on a limited number of DVD new releases, is now being offered by nearly all the major studios amid an upswing in consumer awareness.
After 20th Century Fox Home Entertainment and Warner Home Video released the first embedded copies last year, all the majors with the exception of Paramount Home Entertainment have jumped into digital copy. The feature will soon be included on upcoming TV DVD releases from Warner and on a high-profile catalog title, Walt Disney Studios Home Entertainment’s collector’s edition release of A Nightmare Before Christmas on Aug. 26. (The title will be Disney’s first release with digital copy.)
Although the studios have not advertised digital copy much beyond signaling its inclusion on the DVD’s box art, 35% of respondents in a recent Warner survey said they were aware of the technology, in which a digital copy of the movie is embedded in the DVD or delivered as a Web download for playback on computers and portable video devices.
Executives say digital copy has organically snowballed. Jim Wuthrich, Warner senior VP of digital distribution, said the studio’s second title released with digital copy, I Am Legend, drew about 20% more use of the digital copy than its first, Harry Potter and the Order of the Phoenix.
Such results, in turn, have motivated retailers including Best Buy and Target to highlight titles with digital copy in their weekly newspaper circulars. In a recent Best Buy circular, Fox’s June 10 release Jumper was stamped with a new logo for digital copy, a picture of a computer emblazoned with an arrow.
Disney is branding its digital copy “Disneyfile,” beginning with the release of Nightmare.
“With other studios migrating to digital copy, that sends a clear message to consumers,” Warner’s Wuthrich said. “Retailers have been very positive about it, where [the feature] seems to sell more DVDs. And it allows them to offer product that plays in the digital space, which is complementary to other devices they might sell.”
Amazon.com also is rallying around the feature as enhancing value for titles.
“They provide customers with an extra level of convenience, because now you can view that movie or TV show you just purchased on DVD on just about any device of your choice,” site spokeswoman Tammy Hovey said.
Wuthrich and other studio executives admit they are largely operating on a trial and error basis as they fine-tune the new feature. Warner is offering a variety of embedded and downloadable digital copies, mostly depending on the size of the files and the discs.
For TV DVD releases One Tree Hill on Aug. 26 and Supernatural on Sept. 2, the copies will be downloadable from a Warner site, because a full season of episodes takes up so much disc space.
Others, such as Warner’s upcoming July 29 Blu-ray Disc releases of the made-for-DVD Lost Boys sequel and Harold and Kumar Go to White Castle will hold embedded copies.
Generally, users can transfer an embedded copy relatively quickly, but they might have to wait longer for a Web download. Warner is the exception, however, with all other studios choosing to mostly roll out copies affixed to discs.
“This is still in the experimental phase,” said Wuthrich. “We’ll try it on a couple of TV series. … We’ll be watching closely. As we get more titles in the marketplace, we will be able to have more accurate comps to find out if this performed or not performed.”
Disney dove into embedded digital copy because its own research indicated that some customers were frustrated with certain elements of today’s digital delivery services.
“We’ve been part of iTunes and Vudu … and the consumers have said that speed and convenience is something that they like, and you can address some of those issues with digital copy,” said Lori MacPherson, Disney general manager of North America.
As studios also try out copies with different compatibilities to hardware, there is currently no playback standard for them. Warner’s work with PCs, Windows Media portable devices, but not iPods. Digital copies from Fox, Disney and Lionsgate can play on iPods. Sony Pictures Home Entertainment adds another wrinkle with its copies only compatible with the PlayStation Portable, along with PCs.
However, one common theme is that the studios are mostly featuring copy on titles that target young early adopter types.
With its Nightmare entry, MacPherson added, “we chose that one because we felt the title’s demographic would have a lot of interest" in digital copy.
Digital copy might still be coming into its own, but studios feel confident that they have permanently raised the bar on home entertainment.
“If you buy Blu-ray with digital copy, it serves all potential needs for the household,” said Steve Feldstein, Fox senior VP of marketing communications. “You can watch it on the computer, on the iPod or on the big screen.”
