DEC. 5 | Blockbuster Video last week called on the studios to eliminate
region codes on DVDs in order to combat piracy.
Keynoting the Perspectives in European Video conference in Marseilles,
France, Blockbuster Inc. president and COO Nigel Travis said, "The extra
time and windows created by regional coding is an opportunity that
pirates exploit."
Travis's comments represent the first time the giant retailer has spoken
out publicly on the controversial issue of regional coding. The system,
set up at the time DVD was launched, is meant to prevent discs released
in the U.S. from playing on decks sold in other territories, where
release dates often trail the U.S. by several months.
However, DVDs released in the U.S. frequently find their way overseas,
where they can be played on modified, or "chipped," players.
"Despite having lived in Dallas for nearly 5 1/2 years, I still have
strong connections with the U.K.," said Travis, a British ex-pat.
"People there tell me of the opportunity to buy discs straight from the
U.S."
Travis cited the recent case of Disney's Finding Nemo, which was
released in the U.S. Nov. 4 but will not officially reach the U.K. until
March 18, 2004.
"Pirates take advantage of this and can drive the proverbial cart and
horses through these holes in the release schedule, and the loss of
revenue hurts us all--studios, distribution and retailers," Travis said.
By agreement between the studios and hardware makers, all DVD players
are supposed to contain circuitry to recognize and respond to region
codes included on the discs. In many international territories, however,
players are widely sold with the circuitry disabled or never included in
the first place.
"Some of the DVD product for release in the U.S. is being directly
sourced by placing orders on e-commerce sites," Travis said. "As a
result, while the studios strictly comply with the regional coding, the
DVD hardware manufacturers and retailers often don't, and at least in
Latin America, Europe and Asia, they are selling multi-region hardware
units."
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