Let the hive mind of Engadget get that for you.
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There are multiple problems with digital distribution holding it back. The biggest one is there isn't any standard for digital delivery. The industry could do itself a big favour by defining a single common specification for delivery, encryption, rights management, file format, audio/video codecs, bitrates, resolutions etc. and opening it up so any hardware manufacturer or vendor can sell titles in that format. THAT might get the concept going.
Anyone who actually buys a digital movie to own in the current climate of proprietary devices tied to a single store with no means to freely shift their content really needs their head examined. Digital distribution is only suitable for rental or a subscription service while every solution is proprietary and so heavily restricted.
"The industry could do itself a big favour by defining a single common specification for delivery, encryption, rights management, file format, audio/video codecs, bitrates, resolutions etc. and opening it up so any hardware manufacturer or vendor can sell titles in that format."
What? And lose the ability to to take their toys and go home? Never! :-P
These companies are really all so damn myopic. Apple, Comcast, Amazon, Vudu, Microsoft are all fighting to keep their toys to themselves and in the process they are holding back the digital content industry as a whole. Instead of carefully grooming their little walled gardens they need to cooperate on the a real digital distribution format that would allow them all to build huge kingdoms.
Blu-ray, like it or not, is a real format that is not tied down to any one company's hardware and that is its greatest selling point to anyone who is interested in buying content. DVD is the same as is the mp3. Real formats require the cooperation of competitors for the greater good. Because consumers like consistency and reliability and if they don;t get it they just wait on the sidelines. Aside from early adopting gadget lovers who really wants to be caught in the middle of all this overpriced, locked down, DRM infested nonsense?
Take off the DRM, give us good quality at a reasonable price in an industry-wide format that will works on pretty much all devices and they would see digital distrinution skyrocket.... you know sort of like it did for music after they fought it for 10 years. Its really sad that we have to go through this painful process with these companies again before they learn their lesson.