Hollywood to Stay Ahead of Content Protection ‘Curve,’ Conference Told

Singer declined to elaborate on the security system that the 4K server is using. “We feel very confident that none of those elements” from the server are “going to find their way out into the ether,” he said. In general, he expects 4K security solutions will be stronger than the solutions being used by other devices today, he told the summit. The other film industry executives on the panel agreed. What should make it easier to update 4K content security is that all 4K devices will be connected, said Singer.

"There is a certain level of content protection that we need to maintain business,” and “we're always striving to get ahead of the curve with higher standards of technology,” said Singer. “But I think where we are today, I believe that we're managing this in a way that allows us to develop a business model. So, I'm happy where we are today, notwithstanding the fact that you can access our content the Monday after theatrical release if you really wanted to,” he said. Today’s digital rights management solutions are “providing a lot of security” for content, “for the most part,” he said.

The movie industry has moved away from movie screener discs, to more easily controlled online distribution of such titles, said Singer. That’s one way in which the industry is “closing holes,” he said. Sony also uses a watermark on every theatrical release to protect its content, he said. “We use every tool that’s available to stop piracy,” from the point at which the content is captured to the point at which it’s displayed, he said. Singer’s “fantasy” would be that any 4K camcorder that reaches the market is “required to detect a watermark,” he said. That way, if somebody is sitting in a theater trying to record a movie with a 4K camcorder, they will not be able to because the camcorder will recognize the watermark and automatically shut down. The industry still has “a lot of work to do” to get there, said Singer.

There’s data indicating that when consumers find they can’t view a pirated disc of a current theatrical release they've purchased due to some form of content protection technology on the hardware they own, they will often get frustrated and wind up going to see the film in a theater instead, said Singer. There’s “a very high substitution rate,” he said. “The only question for me on this stuff is ‘how do we get it implemented in more devices?'"

"One of the things that has changed recently” with content protection is “sort of a transition from software-based solutions to more hardware-based solutions,” said Jackie Hayes, Warner Bros. Home Entertainment senior vice president and deputy general counsel-legal and business affairs. That’s “made us more comfortable,” and “allowed us to authorize more innovative and more expansive usage models,” she said. Warner’s “main goal is that we want consumers to be able to consume content the way they want to consume it within a realm of reason,” she said.

"One of the main things you really want to protect is rental,” and the film industry still has “a big rental” business, said Bill Mandel, Universal Pictures vice president-technology and digital platforms. “I think there’s five times as many transactions on rental as there is sellthrough, and we want that protected,” he said. There’s been “really good innovation” of late with security for over-the-top services, he said. He predicted there will be more solutions and said the film industry is working closely with chip makers. “Ideally we want this to all just be in some magic black box … and we're actually getting closer and closer to that,” he said.