The problem is that the studios would like to allow this functionality -- but want to be sure the people uploading DVDs own them. An obscure group that controls the DVD license is actually preventing the studios from allowing this "managed copy".
The reason it is illegal otherwise is that studios provide movies in both rental and sell-through form (both from electronic download and from DVD sales). This enables studios to charge less for rental than they would have to charge for a sale. If it was legal to pay for rental and keep a copy for ever (or to borrow from a friend and keep a free copy) then studios would have no way to pay for movies - or would need to eliminate the rental model and assume every transaction is a sale. People DO like to see movies and ARE willing to pay for them - but big picture, unlimited copies would prevent that from happening.
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The problem is that the studios would like to allow this functionality -- but want to be sure the people uploading DVDs own them. An obscure group that controls the DVD license is actually preventing the studios from allowing this "managed copy".
The reason it is illegal otherwise is that studios provide movies in both rental and sell-through form (both from electronic download and from DVD sales). This enables studios to charge less for rental than they would have to charge for a sale. If it was legal to pay for rental and keep a copy for ever (or to borrow from a friend and keep a free copy) then studios would have no way to pay for movies - or would need to eliminate the rental model and assume every transaction is a sale. People DO like to see movies and ARE willing to pay for them - but big picture, unlimited copies would prevent that from happening.