Bain Almost Gets It

In the Hutong
Checking the Prevailing Winds and my home radiometer
1129 hrs.

Bain & Company is now telling Hollywood that if it doesn’t want to be crushed by digital piracy, it needs to build a strong electronic distribution system, and fast.

Great point, guys, but why stop there? Why not take the next, logical step, and suggest that the most important step Hollywood could take to end piracy in any form has less to do with lawyers and a lot more to do with distribution.

Warner Home Video gets it – they sell legitimate DVDs of Warner Brothers movies and TV shows for $1.50 – $2.75 in 8,000 stores all around China. And they’re making money as China’s increasingly affluent want higher quality DVDs to show on their plasma TVs.

Laws and law enforcement will not end the piracy problem. Giving consumers a better alternative, on the other hand, will close the gap faster than raids and regulations.

Now if only Disney, News Corporation, Viacom, Sony, and Universal would figure that out, instead of sending the MPA to come to Beijing, bang on the table, and make the whole industry look like a bunch of school kids.