I recently got a comment on a blog which asked about Keychest and Ultraviolet, and I’m here to tell you I found out some not-so-good news regarding “the future of entertainment.” In a nutshell, I think the industry may be going down the path of confusing us with choices we will have to make. While the industry seems to be trying, it is still coming up short. Here’s what I’ve found out:
Disney and Apple are on their own
Imagine a world without Toy Story, Finding Nemo, Pirates of the Caribbean, The Lion King, Up, Cars, or The Chronicles of Narnia. The top 10 movies from Disney have grossed an impressive $3.3 billion in US box office. Despite being in 4th place for box office take so far in 2010, Disney is world famous for its franchises that earn billions of dollars. No one can argue the staggering impact that this studio has had on merchandising, plush toys and bedroom decorations for little boys and girls across the world.
Continue to imagine a world without a close friend and ally of Disney’s: Apple. They continue to capture the world’s Luddites with its stupid-simple devices. A not-unnoticed factoid with this company is that if you add the market caps of massive brands – take Microsoft ($230 billion), throw in two retailers like Best Buy ($18 billion) and Target ($40 billion) – and you come up with a few billion short of Apple ($292 billion)! No one can argue the impact that Apple has had on the industries it plays in.
At the moment, UltraViolet, the industry’s leading consortium to create device and content interoperability so that we can enjoy content anywhere, anytime, anyplace, is heading down a path without Disney or Apple. Disney instead is creating its own ecosystem called Keychest. The principles are the exact same as UltraViolet, only they have created an island. With Steve Jobs on the Disney board, both Disney and Apple will likely continue to live on their own island and extend invitations to only those that are willing to play by their rules. As a result, the content that is so popular around the world may not be part of UV, and will therefore limit my choice. The devices that are so prevalent from Apple, will not work.
But what about choice?!
A deep, complete selection of titles from ALL studios from which I can choose and enjoy on any of my devices – from my living room to my devices in the pocket – is critical for me to join to a service. UltraViolet has done an admirable job in bringing 60+ companies to the table to discuss how to create an alternative in the marketplace, yet driving a truly revolutionary service offering that will inspire me to buy legitimate sources of content still comes down to a fundamental issue: I want unlimited choice.
So long as there are islands, consumers will learn that their freedom of choice is limited, and they will understand that the evolving promises of both Keychest and UV are deeply flawed. As consumers lapse into apathy and not participate in either UV or Keychest, the industry will continue its gradual decline. With home entertainment representing more than 50% of a studio’s revenues, studios will stop making movies. I don’t know about you, but I don’t want to see that happen.