Who needs theaters?

Here's a story that might turn out to be a big deal, even if the technology issues remain hard to figure out. At stake is the ability of studios to stream movies, including those just being released, directly into set-top boxes and then onto your TV screen. Such a feat would be possible through something called Selectable Output Control, or SOC, which as the name suggests selectively controls what's coming into your box, something the FCC now prohibits.

The Motion Picture Association of America has been trying to get a waiver on that prohibition. The use of these controls, claims the MPAA, would somehow help control piracy, but consumer groups opposed to the waiver say there's no evidence of any such ability. Besides, the groups say, it's just a bad idea to allow studios to control what goes in and out of your box.

As you might imagine, theater owners aren't wild about this idea either. They're worried that folks will just stay home. There is currently a window between the time a movie hits the theaters and the time it's available on other platforms (DVD, video-on-demand and the like), but the studios are looking for more eyeballs and this might be the way.

The debate has been going on for some time and all the obvious interest groups have a position. The FCC is expected to rule soon on the waiver request, although I suspect there will be appeals up the wazoo. The big picture behind all these machinations is the ability of content providers to directly reach their audiences without concern about a middleman, whether it's a movie theater or a TV station. Here are stories from The Wrap, the National Journal, Broadcasting & Cable, Variety and the LAT that might help you navigate.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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