@ Media Summit: Without A Seamless Model For Digital Revenue, Costs Will Rise

The costs of securing ownership rights for TV, film, music and photographs and any other media that can be digitized will rise significantly this year, as the industry will continue to struggle with issues of piracy and usability, warned Jason Hirschhorn, president, Sling Media Entertainment speaking on a Media Summit panel on The State of Media, Entertainment and Technology. “You can have a clip of a TV show you produced be the number one video on YouTube or Yahoo, and you’re probably not seeing any revenue because of that,” Hirschhorn said. “It’s either deal with several different sets of lawyers to track down every place that’s running your clip or charge more because someone else is making money off your product.” He expressed frustration that more media companies, aside from CBS, haven’t picked up his company’s new clip+sling service to share video legally online. [Ed. Note: Jason makes a good point in the comments; he wasn’t referring to the take rate for the very new clip+sling but that “everyday that passes where technologies like clip+sling or similar ones are not embraced, untrackable piracy and the inability to monetize that content continues.”] He’s pitching it as a way to combat piracy: “People don’t want to steal. They want access. If you won’t let them have it, they’ll find away.” Meanwhile, he and Daniel Scheinman, SVP and GM, Cisco Media Solutions Group, Cisco Systems, both derided Steve Jobs’ “Down with DRM” memo. Scheinman: “Speaking as someone who’s involved in a lawsuit with them, I don’t see why Jobs just doesn’t open up FairPlay — make it FreePlay.” Hirschhorn: “I don’t think he’s being fair to the record companies — they’re the ones writing the check and producing the music. He’s not virtuous.”
This Just In: Steve Jobs To Music DRM: Drop Dead


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