WEBVTT - Blu-ray vs HD DVD

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<v Speaker 1>Welcome to tech Stuff, a production of I Heart Radios,

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<v Speaker 1>How Stuff Works. Hey there, and welcome to tex Stuff.

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<v Speaker 1>I am your host, Jonathan Strickland. I'm an executive producer

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<v Speaker 1>with How Stuff Works and I heart radio and I

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<v Speaker 1>love all things tech and you know what, guys, Originally

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<v Speaker 1>I thought this was going to be the last in

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<v Speaker 1>an epic six part series about the history of the

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<v Speaker 1>evolution of entertainment media and our relationship with it. But

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<v Speaker 1>as it turns out, that was being uh optimistic. This

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<v Speaker 1>is going to be part six of I think seven

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<v Speaker 1>episodes now because there's just so much to say, and

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<v Speaker 1>there's so much that goes into this and that that

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<v Speaker 1>is reflective of our relationship with media and also the

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<v Speaker 1>business of media. This is a really complicated, deep topic,

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<v Speaker 1>and obviously I could have looked at launching a full podcast,

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<v Speaker 1>not just an episode, but a full series around the

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<v Speaker 1>technology of media and its evolution and our our relationship

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<v Speaker 1>with it. That could have been, you know, a mini series,

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<v Speaker 1>like a fifteen part mini series or something. But I

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<v Speaker 1>do want to continue this and conclude it, so I'm

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<v Speaker 1>hoping that in this episode of the next one, I'll

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<v Speaker 1>be able to do that. We'll see how that goes.

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<v Speaker 1>But in our last episode, I ended by talking about

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<v Speaker 1>how DVDs rose up to take the torch from VHS,

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<v Speaker 1>the VHS video cassette tapes, and how the DVD became

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<v Speaker 1>the dominant form of media in the home theater space.

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<v Speaker 1>But I ran out of time to talk about a

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<v Speaker 1>few other interesting points about DVDs, such as why some

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<v Speaker 1>entertainment companies were excited about the DVD format and some

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<v Speaker 1>were reluctant to support it. Now, to understand all this,

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<v Speaker 1>we need to think about the television industry at the

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<v Speaker 1>time that the DVD was starting to to come about.

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<v Speaker 1>And it's been a while since I've talked about television

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<v Speaker 1>in this series, and in a much earlier episode, I

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<v Speaker 1>talked about the birth of cable and also the transition

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<v Speaker 1>that happened between black and white to color television, which

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<v Speaker 1>was actually pretty early in the days of TV, but

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<v Speaker 1>it took more than a decade for color TV to

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<v Speaker 1>become kind of the norm in households across the world.

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<v Speaker 1>But besides cable delivery, you also had the rise of

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<v Speaker 1>satellite television, and with that customers could access more channels

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<v Speaker 1>than what over the air broad broadcast could support in

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<v Speaker 1>those days. So if you had rabbitier antenna or you know,

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<v Speaker 1>an antenna up on the roof and you're using that

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<v Speaker 1>to pull down signals to watch on TV, you had

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<v Speaker 1>a certain number of channels at your disposal, but cable

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<v Speaker 1>customers and satellite TV customers had access to far more channels.

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<v Speaker 1>Some of them were premium cable channels like HBO or

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<v Speaker 1>pay per view services, and it meant that customers had

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<v Speaker 1>way more options than they would if they just got

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<v Speaker 1>their their television over the air. And it also meant

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<v Speaker 1>that some of the control for media was leaving the

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<v Speaker 1>hands of the entertainment studios that were producing it and

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<v Speaker 1>going more toward the companies that were distributing it, so

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<v Speaker 1>cable companies, satellite companies, that sort of thing. So that

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<v Speaker 1>meant that some of the studios were starting to get

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<v Speaker 1>a little antsy, because every player in a game wants

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<v Speaker 1>to be in the lead. You don't want to see

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<v Speaker 1>another element in that game start to outperform you. And

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<v Speaker 1>that was sort of the feeling that these studios were

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<v Speaker 1>getting at the time. And meanwhile, you had another player

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<v Speaker 1>on the field that was also causing issue. That would

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<v Speaker 1>be blockbuster video. It had ascended to a position of

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<v Speaker 1>dominance in the video rental market. It controlled almost half

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<v Speaker 1>of the market share of all video rentals across the

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<v Speaker 1>United States, and that gave Blockbuster a lot of power

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<v Speaker 1>at the negotiating table when working with studios. Blockbusters gain

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<v Speaker 1>meant lower profits for those studios that were actually producing

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<v Speaker 1>the content, and the entertainment world is a cutthroat environment.

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<v Speaker 1>The various entities are constantly maneuvering to get a better

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<v Speaker 1>deal than the other guy has. And also during this time,

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<v Speaker 1>we saw entertainment companies began the process of consolidation with

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<v Speaker 1>other big, big companies like providers and building towards what

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<v Speaker 1>we would see today with these movie and television studios

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<v Speaker 1>being part of gigantic telecommunications companies. So you could argue

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<v Speaker 1>that these days, these mega giants are setting all the rules.

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<v Speaker 1>But this was still in a time where everyone was

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<v Speaker 1>kind of maneuvering. It was sort of a game of thrones,

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<v Speaker 1>but in the entertainment industry, not in a sword and

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<v Speaker 1>sorcery kind of way. Anyway, back to why this matters

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<v Speaker 1>for DVD, the studios preferred selling copies of movies to

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<v Speaker 1>customers rather than the rental model. Because the studio has

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<v Speaker 1>got a larger share of the sales revenue for sold

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<v Speaker 1>movies than they would get from a rental royalty. It

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<v Speaker 1>would take time for Blockbuster to make the switch from

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<v Speaker 1>VHS to DVD. In fact, the lack of speed on Blockbusters.

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<v Speaker 1>Part of this is frequently cited as one of the

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<v Speaker 1>many reasons that company eventually went bankrupt. But I did

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<v Speaker 1>full episodes on Blockbuster already, so I'm not gonna go

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<v Speaker 1>back into that. Warner Brothers in particular, was really jazzed

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<v Speaker 1>about developing the DVD technology. Meanwhile, Disney, Paramount, and Fox

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<v Speaker 1>were less enthusiastic. There was a fear that the copy

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<v Speaker 1>protection on DVDs wouldn't be sufficient to keep piracy at bay,

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<v Speaker 1>so these companies really wanted stronger DRM put on two

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<v Speaker 1>DVDs and for DVD players. Plus to use the DVD technology,

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<v Speaker 1>the companies would have to pay a royalty fee to

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<v Speaker 1>Warner Brothers. Because Warner Brothers was one of the entities

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<v Speaker 1>that it was involved in the development of the DVD format.

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<v Speaker 1>So if you wanted to put your movies on DVD,

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<v Speaker 1>it meant that you had to pay a small, well

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<v Speaker 1>not that small, but a licensing via Royalty v to

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<v Speaker 1>Warner Brothers, and as it turns out, entertainment companies are

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<v Speaker 1>rarely keen to send cash to their direct competitors. Funny

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<v Speaker 1>thing that getting those studios on board ended up taking

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<v Speaker 1>a lot of negotiations and deals. For example, Fox agreed

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<v Speaker 1>to jump on board the DVD wagon when Warner Brothers

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<v Speaker 1>president Warren liber Fab was able to negotiate for Time

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<v Speaker 1>Warner to carry Fox News on its cable package. Time

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<v Speaker 1>Warner had previously refused to carry Fox News because the

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<v Speaker 1>company had been in a pretty public spat with Rupert Murdoch,

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<v Speaker 1>the owner of Fox News, so liber Fat was able

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<v Speaker 1>to smooth that out to get Time Warner to say,

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<v Speaker 1>all right, we will carry Fox News on our cable

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<v Speaker 1>subscription packages if, in turn, twentieth century Fox agrees to

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<v Speaker 1>support the DVD standard. Now, while the first DVD players

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<v Speaker 1>on the market cost around eight hundred dollars, that was

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<v Speaker 1>still cheaper than the first VCRs, particularly if you take

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<v Speaker 1>into account inflation, and that price dropped fairly quickly. In fact,

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<v Speaker 1>the DVD player would become one of the fastest adopted

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<v Speaker 1>consumer electronics gadgets ever. It debuted in and by two

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<v Speaker 1>thousand three, DVD rentals were outperforming VHS rentals, but it

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<v Speaker 1>was in sales where you really saw the big difference.

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<v Speaker 1>Not only were studios making lots of moolah from the business,

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<v Speaker 1>but also lead to big companies like Target and Walmart

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<v Speaker 1>getting truly enormous by selling DVDs in their stores. Big

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<v Speaker 1>retailers were carrying DVDs and it was a profitable business.

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<v Speaker 1>And it was because of a change in consumer behavior

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<v Speaker 1>ce DVDs managed to do something that vhs had largely

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<v Speaker 1>failed to do. It made buying movies a fairly mainstream activity.

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<v Speaker 1>There were a few people out there who had impressive

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<v Speaker 1>libraries of movies on VHS tape, but most people were

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<v Speaker 1>buying blank tapes and copying stuff off television. They might

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<v Speaker 1>own one or two prerecorded movies. Often they were family films,

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<v Speaker 1>things that were appropriate for families, in other words, but

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<v Speaker 1>most people were just renting VHS video cassettes. They weren't

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<v Speaker 1>going out and buying a copy. But DVDs were a

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<v Speaker 1>different story. Average consumers were more likely to purchase a DVD,

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<v Speaker 1>and so we see how a change in technology changed

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<v Speaker 1>our consumption of the media. On that technology, rather than

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<v Speaker 1>rent something so that we could watch it. We would

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<v Speaker 1>actually go out and purchase something so we could own

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<v Speaker 1>a copy, and DVD became a place where a film

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<v Speaker 1>that performed poorly at the box office could thrive in

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<v Speaker 1>the home market. Fight Club is one of the most

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<v Speaker 1>cited examples of this particular phenomena because in the movie

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<v Speaker 1>came out in nine it made a paltry thirty seven

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<v Speaker 1>million dollars at the U S box office against a

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<v Speaker 1>budget that was estimated at sixty seven million, so it

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<v Speaker 1>was by all definitions a box office flop. But then

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<v Speaker 1>it came out on DVD. It was stacked to the

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<v Speaker 1>brim with special features, which helped to kind of define

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<v Speaker 1>what special features would be for DVDs, and it flourished

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<v Speaker 1>on in the home market. It became a best seller.

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<v Speaker 1>There was another film that had a similar story, Office Space.

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<v Speaker 1>It made a measly ten point eight million dollars at

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<v Speaker 1>the box office, but it would go on to become

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<v Speaker 1>a big success on home video, particularly after the cable

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<v Speaker 1>channel Comedy Central aired the film in two thousand one.

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<v Speaker 1>Now I could get into some armchair psychology to talk

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<v Speaker 1>about the implications of renting versus owning, but Frankly, I'm

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<v Speaker 1>not qualified as a psychologist, so I'm not gonna really

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<v Speaker 1>do that. However, it does seem interesting to me that

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<v Speaker 1>we saw a shift from renting a film, so we

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<v Speaker 1>might say I never got around to seeing that movie,

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<v Speaker 1>I want to rent it and watch it, and then

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<v Speaker 1>we shift over to purchasing a copy of a film

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<v Speaker 1>that we can watch whenever we want. And DVDs began

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<v Speaker 1>to really appeal to collectors, particularly if those collectors were

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<v Speaker 1>interested in special features that were available on many DVDs.

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<v Speaker 1>And I'm one of those people. I certainly fell into

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<v Speaker 1>the trap of collecting DVDs. I probably own a dozen

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<v Speaker 1>that I've never even taken out of the shrink wrap.

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<v Speaker 1>But it has been years since I bought a DVD,

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<v Speaker 1>so I'd say I'm mostly over it until the next

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<v Speaker 1>Uber Super Definitive edition of Evil Dead comes out, anyway.

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<v Speaker 1>But like the VHS tape, the DVD craze also followed

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<v Speaker 1>a peak and a decline. The early to mid two

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<v Speaker 1>thousand's would mark the height of the DVD's dominance in

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<v Speaker 1>home theater media. It was king, but by two thousand

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<v Speaker 1>seven those numbers were starting to dip. In the United States,

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<v Speaker 1>In other places, the sales would continue to climb a

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<v Speaker 1>little bit longer. For example, in the United Kingdom, two

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<v Speaker 1>thousand nine would mark the first year that would see

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<v Speaker 1>a decline in sales. So why we're DVD sales on

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<v Speaker 1>the decline by two thousand seven to two thousand nine. Well,

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<v Speaker 1>one big reason for the decline was the next generation

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<v Speaker 1>of home video media was emerging at that time. The

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<v Speaker 1>media would be able to take advantage of another advance

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<v Speaker 1>in technology that would affect our consumption, and that was

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<v Speaker 1>the development of high definition television. The history of HDTV

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<v Speaker 1>is a surprisingly long one, and it could merit a

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<v Speaker 1>full episode on its own, but I'll give a short

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<v Speaker 1>overview all the way back in nineteen seventy, a Japanese

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<v Speaker 1>company called the Japan Broadcasting Corporation or n h K,

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<v Speaker 1>began researching how to develop high resolution televisions along with

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<v Speaker 1>the formats that those televisions would rely upon. By nine

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<v Speaker 1>seventy seven, the Society of Ocean Picture and Television Engineers

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<v Speaker 1>would form a committee called the Study Group on High

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<v Speaker 1>Definition Television. That group worked on recommendations for standards, including

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<v Speaker 1>a recommendation to shift away from the four by three

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<v Speaker 1>aspect ratio of television at the time to the widescreen

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<v Speaker 1>format or the sixteen by nine format. The group published

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<v Speaker 1>their recommendations in nineteen eighty. Now work was continuing on

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<v Speaker 1>developing the technology for HD, but progress was slow, and

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<v Speaker 1>that wasn't just because of technological limitations, but also the

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<v Speaker 1>need to establish agreed upon standards and regulations. So in

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<v Speaker 1>the United States, the FCC formed an Advisory Committee on

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<v Speaker 1>Advanced Television Service UH and they stacked it with people

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<v Speaker 1>from the private industry to kind of talk about, argue

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<v Speaker 1>over and and hash out the proposals for a high

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<v Speaker 1>definition television standard. The initial versions would rely on analog

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<v Speaker 1>technology analog signals in high definition format, but by nine

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<v Speaker 1>the committee had largely abandoned those ideas to consider an

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<v Speaker 1>all digital approach. Eventually, a confederation of companies proposed an

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<v Speaker 1>all digital format for h D t V to the

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<v Speaker 1>f c C in nineteen and after some additional tweaks,

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<v Speaker 1>the FCC established the standard for digital TV and hd

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<v Speaker 1>TV prodcasting at the end of nineteen ninety six in

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<v Speaker 1>the United States. The standard definition resolution in the US

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<v Speaker 1>ends up essentially being six forty by four a d

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<v Speaker 1>pixels we usually refer to it just as four A D.

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<v Speaker 1>H D is a little more confusing because you could

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<v Speaker 1>get a h D screen that was twelve e d

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<v Speaker 1>by seven twenty pixels in wide screen. Uh, there were

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<v Speaker 1>some that were sold that were nine sixty by seven twenty,

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<v Speaker 1>which you could argue as not really HD, but is

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<v Speaker 1>better as a higher resolution than standard mission. It was

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<v Speaker 1>also in the old four by three aspect ratio. And also,

0:14:04.559 --> 0:14:07.280
<v Speaker 1>just in case you are wondering what I mean by resolution,

0:14:07.760 --> 0:14:10.040
<v Speaker 1>think of your Your image that you're seeing on a

0:14:10.040 --> 0:14:13.360
<v Speaker 1>television is a collection of pixels, little points of light.

0:14:14.120 --> 0:14:16.760
<v Speaker 1>The more points of light you have, the smaller they

0:14:17.160 --> 0:14:19.640
<v Speaker 1>each have to be to fit on the screen. Uh.

0:14:19.680 --> 0:14:23.000
<v Speaker 1>The higher your resolution is, the sharper the image, the

0:14:23.080 --> 0:14:25.720
<v Speaker 1>more clear the details are. So if you have a

0:14:25.800 --> 0:14:30.040
<v Speaker 1>higher resolution image, it just it typically looks better up

0:14:30.080 --> 0:14:32.360
<v Speaker 1>to a point. You start to reach a level of

0:14:32.400 --> 0:14:37.440
<v Speaker 1>resolution that ends up being greater than what the eye

0:14:37.440 --> 0:14:39.840
<v Speaker 1>can detect. And at that point it doesn't really matter

0:14:40.080 --> 0:14:41.920
<v Speaker 1>if you have higher resolution because you wouldn't be able

0:14:41.960 --> 0:14:46.120
<v Speaker 1>to tell the difference that ranges from person to person. Personally,

0:14:46.560 --> 0:14:50.200
<v Speaker 1>I find it very challenging to tell the difference between say,

0:14:50.240 --> 0:14:53.160
<v Speaker 1>an eight K set and a four K set. To me,

0:14:53.240 --> 0:14:57.480
<v Speaker 1>they look practically the same unless I'm really close to

0:14:57.520 --> 0:15:00.000
<v Speaker 1>the screen and in some cases have a magnifying glass

0:15:00.080 --> 0:15:02.880
<v Speaker 1>in my hand. Anyway, back to resolutions, So you had

0:15:02.880 --> 0:15:08.080
<v Speaker 1>the seven twenty version, that's one version of HD, but

0:15:08.160 --> 0:15:12.200
<v Speaker 1>you also had a nineteen twenty by ten eight HD screens,

0:15:12.280 --> 0:15:15.080
<v Speaker 1>so we usually referred to that as seven twenty versus

0:15:15.080 --> 0:15:18.800
<v Speaker 1>ten eight. In addition, there were other little letters that

0:15:18.840 --> 0:15:22.240
<v Speaker 1>were attached to these, like P or I. P means

0:15:22.240 --> 0:15:26.160
<v Speaker 1>progressive scan, I means interlaced, which made it a bit

0:15:26.160 --> 0:15:28.600
<v Speaker 1>of a head scratcher for consumers. They were a little

0:15:28.600 --> 0:15:31.800
<v Speaker 1>confused as to what that actually meant. But the message

0:15:31.880 --> 0:15:35.800
<v Speaker 1>was that these televisions and broadcast standards would provide much

0:15:35.880 --> 0:15:39.600
<v Speaker 1>higher resolution images than standard television was able to do,

0:15:39.920 --> 0:15:42.920
<v Speaker 1>and the next generation home video systems would likewise be

0:15:43.000 --> 0:15:47.640
<v Speaker 1>able to deliver high resolution video because a DVD has

0:15:47.680 --> 0:15:50.760
<v Speaker 1>a limit to the resolution it could deliver, and that

0:15:50.840 --> 0:15:54.720
<v Speaker 1>limit was seven twenty by four eight d pixels for

0:15:54.840 --> 0:15:57.880
<v Speaker 1>the n t SC format or seven twenty by five

0:15:57.960 --> 0:16:01.560
<v Speaker 1>seventies six for PAL, and that doesn't really qualify for

0:16:01.800 --> 0:16:06.000
<v Speaker 1>HD standard. So even with a DVD with the best

0:16:06.080 --> 0:16:09.360
<v Speaker 1>picture you could get. It was not the same as

0:16:09.440 --> 0:16:13.400
<v Speaker 1>high definition, so the next generation of home media would

0:16:13.480 --> 0:16:17.120
<v Speaker 1>change that. And before I jump into that hornet's nest,

0:16:17.480 --> 0:16:20.040
<v Speaker 1>I should also mention that the FCC would eventually rule

0:16:20.280 --> 0:16:23.960
<v Speaker 1>that all United States based TV signals would have to

0:16:24.040 --> 0:16:27.360
<v Speaker 1>switch over to digital transmission. They made that decision in

0:16:27.520 --> 0:16:32.040
<v Speaker 1>June of two thousand nine. That caused an enormous amount

0:16:32.040 --> 0:16:35.280
<v Speaker 1>of confusion in the United States, largely based off ignorance.

0:16:35.560 --> 0:16:37.720
<v Speaker 1>People were worried about whether or not they'd be able

0:16:37.760 --> 0:16:40.600
<v Speaker 1>to get anything on their televisions once the switch happened,

0:16:40.920 --> 0:16:44.440
<v Speaker 1>and despite numerous efforts to communicate what this all meant,

0:16:44.920 --> 0:16:48.480
<v Speaker 1>people were really confused, and it turned out that the

0:16:48.720 --> 0:16:51.640
<v Speaker 1>people who needed to worry about this represented only a

0:16:51.720 --> 0:16:55.760
<v Speaker 1>small percentage of the overall population. Those were people who

0:16:55.760 --> 0:16:59.400
<v Speaker 1>are getting their television broadcasts over the air, as opposed

0:16:59.440 --> 0:17:02.560
<v Speaker 1>to people who are getting their broadcast through satellite or cable.

0:17:03.000 --> 0:17:06.439
<v Speaker 1>If they had older analog TV sets, they would have

0:17:06.480 --> 0:17:10.159
<v Speaker 1>to purchase a digital converter box and that would allow

0:17:10.320 --> 0:17:14.359
<v Speaker 1>them to accept incoming digital transmissions. It would go through

0:17:14.400 --> 0:17:16.840
<v Speaker 1>this converter box, which would then convert that to an

0:17:16.880 --> 0:17:20.639
<v Speaker 1>analog signal and then pass that analog signal on to

0:17:20.760 --> 0:17:23.760
<v Speaker 1>the television. So it's just just a converter, that's all

0:17:23.800 --> 0:17:26.840
<v Speaker 1>it was. And for months there were stories about people

0:17:26.880 --> 0:17:30.400
<v Speaker 1>buying converters even though they didn't really need one because

0:17:30.480 --> 0:17:34.040
<v Speaker 1>they weren't getting their television over the air, or they

0:17:34.080 --> 0:17:36.159
<v Speaker 1>had a newer television that didn't need it in the

0:17:36.200 --> 0:17:39.520
<v Speaker 1>first place. We even did a classic Tech Stuff episode

0:17:39.520 --> 0:17:41.920
<v Speaker 1>about that to explain what was going on. I've thought

0:17:41.960 --> 0:17:45.280
<v Speaker 1>about doing a classic rerun of that episode just for fun,

0:17:45.880 --> 0:17:48.680
<v Speaker 1>but ultimately decided not to do it because it's it's

0:17:48.680 --> 0:17:52.000
<v Speaker 1>completely obsolete. It doesn't it doesn't have any bearing on

0:17:52.040 --> 0:17:55.520
<v Speaker 1>anything anymore, so it really is just a footnote. No.

0:17:56.080 --> 0:17:58.280
<v Speaker 1>What I really wanted to do, though, is get into

0:17:58.320 --> 0:18:01.439
<v Speaker 1>a really big format war, one that was similar in

0:18:01.480 --> 0:18:05.120
<v Speaker 1>some ways to the Beta Max versus VHS fight back

0:18:05.160 --> 0:18:07.879
<v Speaker 1>in the nineteen seventies. So I'm going to talk about

0:18:07.920 --> 0:18:12.840
<v Speaker 1>Blu Ray versus h D DVD, but first let's take

0:18:13.080 --> 0:18:23.560
<v Speaker 1>a quick break. High definition televisions began to enter the

0:18:23.600 --> 0:18:27.080
<v Speaker 1>consumer market in the early to mid two thousand's. Like

0:18:27.200 --> 0:18:31.720
<v Speaker 1>most technologies, they're really freaking expensive when they first came out,

0:18:31.800 --> 0:18:35.000
<v Speaker 1>so there was a limited market at the very early days.

0:18:35.359 --> 0:18:38.360
<v Speaker 1>There were also there's limited content. There wasn't a whole

0:18:38.359 --> 0:18:40.840
<v Speaker 1>lot you could watch on them. DVDs couldn't match the

0:18:40.880 --> 0:18:43.879
<v Speaker 1>resolution of even a seven twenty P h d t

0:18:44.040 --> 0:18:47.119
<v Speaker 1>V set, let alone the ten A d P and

0:18:47.240 --> 0:18:51.159
<v Speaker 1>ten A d I models. There were very few channels

0:18:51.160 --> 0:18:55.679
<v Speaker 1>that offered h d t V format, so it was

0:18:55.920 --> 0:18:58.600
<v Speaker 1>kind of hard to sell these. However, it was clear

0:18:58.680 --> 0:19:01.280
<v Speaker 1>the demand was there. People wanted to be able to

0:19:01.320 --> 0:19:05.359
<v Speaker 1>see this higher resolution television at home, and eventually there

0:19:05.359 --> 0:19:09.360
<v Speaker 1>were enough early adopters to allow prices to gradually fall

0:19:09.480 --> 0:19:12.280
<v Speaker 1>enough so that more consumers could jump on board. And

0:19:12.359 --> 0:19:15.200
<v Speaker 1>so this created the incentive to develop a high resolution

0:19:15.280 --> 0:19:19.720
<v Speaker 1>optical media disc format. Now, unlike the DVD, which evolved

0:19:19.760 --> 0:19:23.040
<v Speaker 1>as a standard thanks to a unified effort among numerous

0:19:23.080 --> 0:19:26.240
<v Speaker 1>companies to avoid another format war, the next generation of

0:19:26.280 --> 0:19:30.840
<v Speaker 1>technologies coagulated into two opposing camps. So on one side

0:19:31.000 --> 0:19:33.440
<v Speaker 1>you had Sony and Pioneer, and they were showing off

0:19:33.440 --> 0:19:37.119
<v Speaker 1>a prototype system that at the time was called DVR Blue.

0:19:37.359 --> 0:19:39.840
<v Speaker 1>This would be around two thousand. This is what would

0:19:39.920 --> 0:19:43.920
<v Speaker 1>evolve into Blu Ray. Sony had also explored an alternative

0:19:44.160 --> 0:19:48.240
<v Speaker 1>called ultra density optical, but ultimately that technology would be

0:19:48.240 --> 0:19:50.800
<v Speaker 1>reserved for professional use and not really make its way

0:19:50.840 --> 0:19:54.200
<v Speaker 1>into the consumer video market. It did exist in parallel,

0:19:54.359 --> 0:19:57.119
<v Speaker 1>but for other uses. Now on the other side, the

0:19:57.160 --> 0:20:01.400
<v Speaker 1>other camp was being led by Toshiba. The company initially

0:20:01.440 --> 0:20:06.600
<v Speaker 1>resisted Sony's approach because the early version of Sony's DVR

0:20:06.600 --> 0:20:11.159
<v Speaker 1>Blue was expensive. Sony was proposing an optical disc reader

0:20:11.240 --> 0:20:14.040
<v Speaker 1>that used a blue laser rather than the red one

0:20:14.080 --> 0:20:16.960
<v Speaker 1>that DVD players used. So why do that? Why switch

0:20:17.040 --> 0:20:20.119
<v Speaker 1>to blue once? Because a blue laser can detect smaller

0:20:20.119 --> 0:20:23.639
<v Speaker 1>objects than a red laser can. And it's all because

0:20:23.640 --> 0:20:26.040
<v Speaker 1>of the wavelength of light. So if you look at

0:20:26.040 --> 0:20:29.399
<v Speaker 1>a rainbow, you can see the spectrum the roy G BIV.

0:20:30.400 --> 0:20:33.720
<v Speaker 1>Those colors also denote the range of wavelengths of light

0:20:34.119 --> 0:20:37.240
<v Speaker 1>and it goes from longest to shortest. Red light has

0:20:37.240 --> 0:20:41.119
<v Speaker 1>a longer wavelength than blue light. The shorter wavelength lights

0:20:41.440 --> 0:20:45.400
<v Speaker 1>can detect smaller pits on the surface of an optical disc,

0:20:45.840 --> 0:20:49.159
<v Speaker 1>and pits are what represent information. So if your laser

0:20:49.200 --> 0:20:52.359
<v Speaker 1>can detect smaller pets, that means you can pack more

0:20:52.520 --> 0:20:56.240
<v Speaker 1>pits into the same amount of space of an optical

0:20:56.320 --> 0:20:58.480
<v Speaker 1>disc right, you can fit more of them on there

0:20:58.520 --> 0:21:01.879
<v Speaker 1>because they are tinier. So if you make the pits smaller,

0:21:02.119 --> 0:21:04.200
<v Speaker 1>you fit more information on there. You can have a

0:21:04.359 --> 0:21:09.200
<v Speaker 1>high resolution video stored on there. However, blue lasers are

0:21:09.240 --> 0:21:13.400
<v Speaker 1>also more expensive than red ones, and Sony's initial design

0:21:13.520 --> 0:21:17.800
<v Speaker 1>required a special protective case around the discs. Uh the

0:21:17.840 --> 0:21:20.440
<v Speaker 1>original one, it was almost like a cartridge that carried

0:21:20.680 --> 0:21:22.640
<v Speaker 1>the disc and it was meant to protect it from

0:21:22.680 --> 0:21:26.440
<v Speaker 1>being handled and getting scratched up. And that also meant

0:21:26.480 --> 0:21:28.560
<v Speaker 1>that it was going to cost more to produce those

0:21:28.560 --> 0:21:31.080
<v Speaker 1>discs because you had to produce little case that they

0:21:31.119 --> 0:21:34.240
<v Speaker 1>would come into. And Toshiba wanted to find a different way,

0:21:34.440 --> 0:21:39.080
<v Speaker 1>so the company eventually would propose its own blue laser format.

0:21:39.320 --> 0:21:44.000
<v Speaker 1>The DVD Forum adopted to Sheba's proposal as the successor

0:21:44.119 --> 0:21:47.640
<v Speaker 1>to the DVD format and it would be called HD

0:21:47.760 --> 0:21:50.840
<v Speaker 1>d v D. This was around two thousand two. So

0:21:50.920 --> 0:21:53.800
<v Speaker 1>now you have the two camps that eventually became known

0:21:53.840 --> 0:21:56.560
<v Speaker 1>as the Blu Ray Disc Association or b d A.

0:21:57.080 --> 0:21:59.800
<v Speaker 1>That's with Sony and its team, and then you have

0:21:59.880 --> 0:22:03.760
<v Speaker 1>the DVD Forum with Tashiba, and each tried to establish

0:22:03.960 --> 0:22:07.520
<v Speaker 1>their technologies as the standard, and it would be a

0:22:07.520 --> 0:22:11.320
<v Speaker 1>few years before either group would produce anything for consumers.

0:22:11.359 --> 0:22:15.320
<v Speaker 1>So this is all happening behind closed doors at the

0:22:15.560 --> 0:22:18.760
<v Speaker 1>at the time, they tried a few times to agree

0:22:18.880 --> 0:22:23.080
<v Speaker 1>upon a unified standard, but ultimately one side would say, no,

0:22:23.160 --> 0:22:25.040
<v Speaker 1>I don't want to do it your way, you should

0:22:25.040 --> 0:22:27.400
<v Speaker 1>do it my way, and the others I would say,

0:22:27.720 --> 0:22:30.080
<v Speaker 1>pound sand, I don't want to do it your way.

0:22:30.240 --> 0:22:32.840
<v Speaker 1>We're gonna do it my way, and so no agreement

0:22:32.880 --> 0:22:36.439
<v Speaker 1>was ever reached. They had hoped that they could avoid

0:22:36.440 --> 0:22:39.600
<v Speaker 1>the kind of format war that Sony and JVC had

0:22:39.600 --> 0:22:43.720
<v Speaker 1>fought in the nineteen seventies. Sony was backing Beta Max

0:22:44.240 --> 0:22:49.040
<v Speaker 1>and JVC was backing VHS. Sony lost that fight. The

0:22:49.080 --> 0:22:51.520
<v Speaker 1>company was not eager to go into another format war,

0:22:52.840 --> 0:22:54.960
<v Speaker 1>but they were never able to come to any kind

0:22:54.960 --> 0:22:57.520
<v Speaker 1>of agreement. And you can sort of understand why, because

0:22:57.520 --> 0:23:01.720
<v Speaker 1>whichever group was responsible for establishing the technology that everyone

0:23:01.800 --> 0:23:03.880
<v Speaker 1>was going to use could make a ton of money

0:23:03.920 --> 0:23:06.959
<v Speaker 1>off of it in royalties or licensing fees. So no

0:23:07.000 --> 0:23:09.600
<v Speaker 1>one was eager to give that up. No one wanted

0:23:09.640 --> 0:23:12.359
<v Speaker 1>to say, find your idea is good, now, let me

0:23:12.440 --> 0:23:15.600
<v Speaker 1>pay you for the privilege of being able to use

0:23:15.640 --> 0:23:19.399
<v Speaker 1>your technology. Now, most of these fights happened well outside

0:23:19.480 --> 0:23:22.639
<v Speaker 1>of the consciousness of the general public. H d t

0:23:22.800 --> 0:23:26.000
<v Speaker 1>V was barely even a thing yet, and most people

0:23:26.000 --> 0:23:29.280
<v Speaker 1>were still marveling over DVDs, so most homes didn't have

0:23:29.320 --> 0:23:32.240
<v Speaker 1>an hd TV at the time. But behind the scenes,

0:23:32.480 --> 0:23:36.280
<v Speaker 1>the DVD form and the Blu Ray Disc Association were

0:23:36.440 --> 0:23:41.080
<v Speaker 1>making deals with entertainment studios to get exclusivity agreements for

0:23:41.160 --> 0:23:44.800
<v Speaker 1>their formats. It's a lot like how video game consoles

0:23:44.920 --> 0:23:49.360
<v Speaker 1>will sign an exclusive title for their individual programs, and

0:23:49.720 --> 0:23:52.960
<v Speaker 1>uh game consoles would play a role in this HD

0:23:53.040 --> 0:23:56.880
<v Speaker 1>DVD versus Blu Ray format war as well. The PlayStation three,

0:23:57.160 --> 0:24:02.000
<v Speaker 1>Sony's video game console. Unsurprised Rising Lee would support Blu

0:24:02.160 --> 0:24:04.920
<v Speaker 1>Ray It was a Blu Ray player. In fact, when

0:24:04.960 --> 0:24:07.160
<v Speaker 1>the p S three came out, it would be one

0:24:07.200 --> 0:24:11.280
<v Speaker 1>of the cheapest Blu Ray players available, So it really

0:24:11.359 --> 0:24:15.280
<v Speaker 1>helped Blue Ray or p S three sales because people

0:24:15.280 --> 0:24:17.439
<v Speaker 1>who wanted a video game console would pick it up

0:24:17.440 --> 0:24:19.280
<v Speaker 1>for the video games, people who wanted a cheap Blu

0:24:19.400 --> 0:24:21.720
<v Speaker 1>Ray player would pick it up and both got to

0:24:21.840 --> 0:24:27.960
<v Speaker 1>enjoy all the different aspects of that device. Microsoft did

0:24:28.000 --> 0:24:32.040
<v Speaker 1>not make HD DVD support native to its own console,

0:24:32.080 --> 0:24:35.240
<v Speaker 1>that would be the Xbox three sixty. But the company

0:24:35.280 --> 0:24:39.680
<v Speaker 1>did manufacture an HD DVD accessory drive that you could

0:24:39.720 --> 0:24:42.880
<v Speaker 1>purchase and then connect to an Xbox three six console.

0:24:43.160 --> 0:24:46.800
<v Speaker 1>So you couldn't put an HD DVD disk directly into

0:24:46.840 --> 0:24:49.320
<v Speaker 1>an Xbox three six and have it play, but you

0:24:49.359 --> 0:24:53.520
<v Speaker 1>could go out and buy the successory this peripheral, attach

0:24:53.560 --> 0:24:56.760
<v Speaker 1>it to your Xbox three sixty and watch them that way. Now,

0:24:56.760 --> 0:24:59.520
<v Speaker 1>on the Blue ray side, you had studios like Sony

0:24:59.600 --> 0:25:03.760
<v Speaker 1>Pictures again no big surprise, Walt Disney Studios and twentieth

0:25:03.800 --> 0:25:07.960
<v Speaker 1>Century Fox on board. They had signed on to that camp.

0:25:08.400 --> 0:25:11.720
<v Speaker 1>Over on the h D DVD side, you had Paramount

0:25:12.040 --> 0:25:16.160
<v Speaker 1>Universal Studios and Warner Brothers signing on. And the hope

0:25:16.200 --> 0:25:19.040
<v Speaker 1>each side had was to get the support of entertainment

0:25:19.040 --> 0:25:23.159
<v Speaker 1>studios in an effort to force the other side to

0:25:23.280 --> 0:25:25.560
<v Speaker 1>give up and to say, all right, fine, we'll go

0:25:25.880 --> 0:25:29.080
<v Speaker 1>with your way. But that didn't happen, and development of

0:25:29.119 --> 0:25:32.680
<v Speaker 1>both technologies continued. So it's kind of like a giant

0:25:32.880 --> 0:25:36.480
<v Speaker 1>game of chicken, with Tashiba driving one car for h

0:25:36.600 --> 0:25:40.640
<v Speaker 1>D DVD at Sony driving the other for Blu ray,

0:25:40.720 --> 0:25:43.240
<v Speaker 1>and each of them had three movie studios sitting in

0:25:43.280 --> 0:25:47.200
<v Speaker 1>the back seat of their vehicles, and as the time

0:25:47.240 --> 0:25:50.520
<v Speaker 1>got closer for these two technologies to actually debut on

0:25:50.560 --> 0:25:54.439
<v Speaker 1>the consumer market, the studios in the back seat began

0:25:54.520 --> 0:25:59.080
<v Speaker 1>to get a little nervous. As production time neared, Paramount

0:25:59.200 --> 0:26:01.240
<v Speaker 1>and Warner brother there is, within days of each other,

0:26:01.400 --> 0:26:04.200
<v Speaker 1>flinched a bit, and both studios announced that they would

0:26:04.200 --> 0:26:07.920
<v Speaker 1>support both formats going forward. They would no longer just

0:26:08.640 --> 0:26:11.960
<v Speaker 1>agree to be exclusive to h D DVD. That came

0:26:11.960 --> 0:26:15.040
<v Speaker 1>as a blow to Tashiba, which can no longer hold

0:26:15.080 --> 0:26:17.840
<v Speaker 1>that exclusivity as a point of leverage, and this was

0:26:17.880 --> 0:26:20.920
<v Speaker 1>in two thousand five. This was a year that Tshiba

0:26:21.040 --> 0:26:24.359
<v Speaker 1>was supposed to actually launch the h D DVD player,

0:26:24.840 --> 0:26:28.880
<v Speaker 1>but that ended up being delayed. Production problems and other

0:26:28.960 --> 0:26:33.280
<v Speaker 1>delays forced their hand and they would actually launch in

0:26:33.400 --> 0:26:37.119
<v Speaker 1>April two thousand six. Even so, even with the delayed start,

0:26:37.480 --> 0:26:41.440
<v Speaker 1>they had a headstart over Blu Ray. The first consumer

0:26:41.440 --> 0:26:44.840
<v Speaker 1>Blu Ray player was from Samsung, which ran into some

0:26:44.880 --> 0:26:48.280
<v Speaker 1>production issues of their own, and that delayed launch until

0:26:48.400 --> 0:26:52.920
<v Speaker 1>June of two thousand six, and then the gloves were off.

0:26:53.359 --> 0:26:56.600
<v Speaker 1>Both sides had some early issues. Some early h D

0:26:56.760 --> 0:27:00.480
<v Speaker 1>DVD players weren't terribly reliable. It's a common problem with

0:27:00.520 --> 0:27:04.480
<v Speaker 1>brand new tech products. That's why I frequently suggest that

0:27:04.520 --> 0:27:07.680
<v Speaker 1>you wait for the second generation of a technology before

0:27:07.720 --> 0:27:11.080
<v Speaker 1>you jump into it, because frequently the first generation still

0:27:11.080 --> 0:27:13.040
<v Speaker 1>has a lot of bugs in it. And then on

0:27:13.080 --> 0:27:16.120
<v Speaker 1>the blue ray side, some of the early film transfers

0:27:16.359 --> 0:27:20.120
<v Speaker 1>were shockingly sub bar. You had this high expectation, I mean,

0:27:20.160 --> 0:27:24.840
<v Speaker 1>here you're supposed to get this high definition, high resolution video,

0:27:25.040 --> 0:27:28.639
<v Speaker 1>and some of those transfers were not good. It actually

0:27:28.640 --> 0:27:32.040
<v Speaker 1>prompted some recalls of some of those disks. And both

0:27:32.080 --> 0:27:36.160
<v Speaker 1>technologies allowed for different digital rights management strategies to help

0:27:36.160 --> 0:27:40.720
<v Speaker 1>prevent piracy, but those same strategies also posed some potential

0:27:40.760 --> 0:27:46.920
<v Speaker 1>problems for legitimate customers. In general, these entertainment companies really

0:27:47.000 --> 0:27:50.960
<v Speaker 1>like to have super strong DRM attached to the technologies

0:27:51.000 --> 0:27:56.840
<v Speaker 1>to prevent piracy, but in general consumers aren't crazy about

0:27:56.880 --> 0:28:00.320
<v Speaker 1>it because often it has a negative impact on how

0:28:00.359 --> 0:28:04.560
<v Speaker 1>we can access the stuff we actually buy. So the

0:28:04.920 --> 0:28:11.080
<v Speaker 1>perception is it's technology that actively penalizes people who have

0:28:11.200 --> 0:28:15.399
<v Speaker 1>been purchasing and supporting that technology, and it often is

0:28:15.400 --> 0:28:17.680
<v Speaker 1>not a very effective way to stop piracy, but it

0:28:17.840 --> 0:28:22.280
<v Speaker 1>is an effective way to irritate your customer base. Anyway,

0:28:22.560 --> 0:28:25.479
<v Speaker 1>this was when DVD sales were starting to slow down. Uh,

0:28:25.560 --> 0:28:28.800
<v Speaker 1>some people were jumping onto the HD bandwagon and they

0:28:28.840 --> 0:28:32.280
<v Speaker 1>would back one format or another. So some people were saying,

0:28:32.280 --> 0:28:33.879
<v Speaker 1>all right, well, I'm gonna get an h D DVD

0:28:33.960 --> 0:28:35.960
<v Speaker 1>player and go with that, somewhere going with Blu Ray.

0:28:36.840 --> 0:28:39.880
<v Speaker 1>Other folks like myself said, you know what, I'm gonna

0:28:39.880 --> 0:28:42.560
<v Speaker 1>wait and see to find out which format is going

0:28:42.640 --> 0:28:45.040
<v Speaker 1>to stand the test of time. I'm not too keen

0:28:45.320 --> 0:28:51.000
<v Speaker 1>on either jumping on one or worse yet, investing in both.

0:28:51.880 --> 0:28:54.400
<v Speaker 1>And we also spent time worrying that no format was

0:28:54.720 --> 0:28:56.880
<v Speaker 1>ever going to win out and that would end up

0:28:57.240 --> 0:29:00.280
<v Speaker 1>creating a split market and some films would oly be

0:29:00.360 --> 0:29:03.480
<v Speaker 1>available on one format and other films would only be

0:29:03.520 --> 0:29:06.560
<v Speaker 1>available on the other format. The release of the p

0:29:06.760 --> 0:29:09.360
<v Speaker 1>S three and November of two thousand six was a

0:29:09.480 --> 0:29:12.720
<v Speaker 1>huge help to Blu Ray gamers who love the PS

0:29:12.760 --> 0:29:14.840
<v Speaker 1>platform and only got a game console, but a Blu

0:29:14.960 --> 0:29:17.600
<v Speaker 1>Ray player as well. Meanwhile, Xbox fans would have to

0:29:17.640 --> 0:29:20.400
<v Speaker 1>shell out extra money for the HD DVD accessory. It

0:29:20.400 --> 0:29:23.760
<v Speaker 1>did not come standard with the Xbox three sixty, so

0:29:24.160 --> 0:29:26.960
<v Speaker 1>that was a score for the Blu Ray camp. I

0:29:27.000 --> 0:29:28.959
<v Speaker 1>say that, by the way, as an Xbox fan, I

0:29:29.000 --> 0:29:33.080
<v Speaker 1>loved and still do the Xbox three sixty. I preferred

0:29:33.120 --> 0:29:36.240
<v Speaker 1>it to the p S three, But if you're looking

0:29:36.240 --> 0:29:39.360
<v Speaker 1>at it as far as features go, the Blu Ray

0:29:39.400 --> 0:29:43.120
<v Speaker 1>player on the p S three, I think far put

0:29:43.120 --> 0:29:48.920
<v Speaker 1>it ahead of Microsoft's support for h D DVD. Now,

0:29:48.960 --> 0:29:52.520
<v Speaker 1>I said before that these two formats were incompatible. You

0:29:52.520 --> 0:29:54.560
<v Speaker 1>could not put a Blu Ray disc into an h

0:29:54.680 --> 0:29:58.560
<v Speaker 1>D DVD player and watch it. The Blue ray format

0:29:58.720 --> 0:30:02.240
<v Speaker 1>could hold more data than the HD DVD discs, but

0:30:02.280 --> 0:30:04.440
<v Speaker 1>there was some disagreement over whether or not that would

0:30:04.440 --> 0:30:08.920
<v Speaker 1>translate to an actual, perceivable improvement and picture compared to

0:30:09.040 --> 0:30:12.480
<v Speaker 1>h D DVD, and HD DVD was able to have

0:30:12.760 --> 0:30:16.680
<v Speaker 1>a feature called h d I which allowed for interactive

0:30:16.720 --> 0:30:19.959
<v Speaker 1>content based off the Java platform, so you could have

0:30:20.160 --> 0:30:23.800
<v Speaker 1>a more rich, dynamic, interactive experience with h D DVD

0:30:23.840 --> 0:30:26.040
<v Speaker 1>than you could with Blu Ray. So they each had

0:30:26.120 --> 0:30:29.040
<v Speaker 1>things that set them apart from the other. And while

0:30:29.080 --> 0:30:31.800
<v Speaker 1>the two formats weren't compatible, there were some companies that

0:30:31.840 --> 0:30:35.920
<v Speaker 1>began to produce dual player devices that essentially had two

0:30:35.920 --> 0:30:38.680
<v Speaker 1>sets of optical pathways inside them. In order to read

0:30:38.800 --> 0:30:41.800
<v Speaker 1>the different formats. The first of those was from l G,

0:30:42.240 --> 0:30:44.840
<v Speaker 1>but usually it also meant that you couldn't access all

0:30:44.880 --> 0:30:48.800
<v Speaker 1>of the features of a true player. So, for example,

0:30:49.040 --> 0:30:52.680
<v Speaker 1>with LGS dual Player, you couldn't access h D I

0:30:52.880 --> 0:30:55.960
<v Speaker 1>features in an HD DVD set it didn't support them.

0:30:55.960 --> 0:30:58.320
<v Speaker 1>You would need to get a dedicated h D DVD

0:30:58.360 --> 0:31:02.640
<v Speaker 1>player for that. Not first, h D DVD held the

0:31:02.760 --> 0:31:06.520
<v Speaker 1>largest market share for the HD media market, no big surprise.

0:31:06.520 --> 0:31:09.240
<v Speaker 1>It also had a two month head start, but by

0:31:09.240 --> 0:31:12.080
<v Speaker 1>the beginning of two thousand seven things had started to

0:31:12.120 --> 0:31:16.000
<v Speaker 1>shift into Blue rays favor. Now one big blow that

0:31:16.080 --> 0:31:19.480
<v Speaker 1>the b d A dealt The DVD Forum was in

0:31:19.560 --> 0:31:23.240
<v Speaker 1>a deal with Blockbuster. Blockbuster announced it would only carry

0:31:23.240 --> 0:31:26.840
<v Speaker 1>Blu ray discs for HD content in many, but not

0:31:26.920 --> 0:31:31.600
<v Speaker 1>necessarily all, of its stores. The DVD Forum would strike back,

0:31:31.920 --> 0:31:34.680
<v Speaker 1>and in the fall of two thousand seven, both DreamWorks

0:31:34.680 --> 0:31:39.080
<v Speaker 1>and Paramount announced that moving forward, all of their releases

0:31:39.280 --> 0:31:42.960
<v Speaker 1>in HD would be on the h D DVD format,

0:31:43.320 --> 0:31:47.320
<v Speaker 1>not Blu ray. So Paramount had started out as part

0:31:47.360 --> 0:31:49.800
<v Speaker 1>of h D DVD, then kind of hedged its beets

0:31:49.800 --> 0:31:52.040
<v Speaker 1>and said we're gonna support both, And then the fall

0:31:52.080 --> 0:31:54.040
<v Speaker 1>of two thousand seven, said Nope, just kidding, We're gonna

0:31:54.080 --> 0:31:57.480
<v Speaker 1>totally be with the h D DVD folks. It ticked

0:31:57.480 --> 0:32:01.920
<v Speaker 1>off some people movies like Transformers would exclusively move to

0:32:02.120 --> 0:32:04.800
<v Speaker 1>h D DVD. I would argue that that was actually

0:32:05.240 --> 0:32:07.640
<v Speaker 1>in favor of Blu ray but that's me inserting my

0:32:07.680 --> 0:32:11.160
<v Speaker 1>opinion of Michael Bay's Transformers movies. The less said about

0:32:11.320 --> 0:32:14.760
<v Speaker 1>the better, the gap between the two formats would narrow

0:32:14.800 --> 0:32:16.720
<v Speaker 1>a bit in the market, but Sony was still in

0:32:16.720 --> 0:32:19.479
<v Speaker 1>the lead at the end of two thousand seven. Just

0:32:19.720 --> 0:32:22.480
<v Speaker 1>a short time before c e S two thousand eight,

0:32:22.520 --> 0:32:25.400
<v Speaker 1>which happens c e S happens in early January each

0:32:25.480 --> 0:32:29.160
<v Speaker 1>year it's the Consumer Electronics Show, Warner Brothers made an

0:32:29.200 --> 0:32:32.880
<v Speaker 1>announcement that would in retrospect serve as the death knell

0:32:33.280 --> 0:32:36.320
<v Speaker 1>for h D DVD. Warner Brothers said they were going

0:32:36.360 --> 0:32:39.760
<v Speaker 1>to concentrate exclusively on making Blu ray discs from that

0:32:39.800 --> 0:32:44.000
<v Speaker 1>point forward, and Toshiba, rocked by this news, canceled an

0:32:44.120 --> 0:32:47.520
<v Speaker 1>h D DVD press conference at c e S, and

0:32:47.600 --> 0:32:51.200
<v Speaker 1>shortly after ce S, companies like Netflix, Best Buy, and

0:32:51.280 --> 0:32:54.640
<v Speaker 1>Walmart all shifted their focus to Blu ray disc rental

0:32:54.800 --> 0:32:59.200
<v Speaker 1>or disc sales. Toshiba considered its options but chose to

0:32:59.240 --> 0:33:02.760
<v Speaker 1>throw in the towel. They ceased productions on HD DVD

0:33:02.880 --> 0:33:05.960
<v Speaker 1>players and discs, and by the end of two thousand eight,

0:33:06.280 --> 0:33:09.680
<v Speaker 1>no major companies were pressing films to h D DVD,

0:33:10.320 --> 0:33:14.640
<v Speaker 1>and so Blu Ray would win the format war. This

0:33:14.680 --> 0:33:17.480
<v Speaker 1>war was hard on consumers, but at least it was

0:33:17.560 --> 0:33:19.600
<v Speaker 1>over by the end of two thousand eight, and at

0:33:19.640 --> 0:33:22.800
<v Speaker 1>that point less than half of all households in the

0:33:22.880 --> 0:33:26.640
<v Speaker 1>United States had a high definition television. So while the

0:33:26.680 --> 0:33:30.080
<v Speaker 1>format war had a negative impact on early adopters, a

0:33:30.160 --> 0:33:33.280
<v Speaker 1>large number of consumers never even really had to worry

0:33:33.280 --> 0:33:35.360
<v Speaker 1>about it because they didn't have a television they could

0:33:35.400 --> 0:33:39.120
<v Speaker 1>watch high definition content on the first place. But did

0:33:39.160 --> 0:33:41.440
<v Speaker 1>shake things up, and it also set the stage for

0:33:41.480 --> 0:33:44.640
<v Speaker 1>the next generation of media players, the Ultra h D

0:33:44.920 --> 0:33:49.240
<v Speaker 1>Blu Ray format, also known as four K. This format,

0:33:49.320 --> 0:33:52.600
<v Speaker 1>which requires an Ultra HD Blu ray player because older

0:33:52.640 --> 0:33:56.240
<v Speaker 1>Blu ray players are not compatible with it, can display

0:33:56.360 --> 0:33:59.320
<v Speaker 1>video at a resolution of three thousand, eight hundred forty

0:33:59.440 --> 0:34:04.280
<v Speaker 1>by two in sixty pixels, a much higher resolution than

0:34:04.800 --> 0:34:09.239
<v Speaker 1>h D and way way higher than standard definition. That

0:34:09.360 --> 0:34:12.279
<v Speaker 1>format would hit the market in two thousand sixteen. But

0:34:12.400 --> 0:34:14.880
<v Speaker 1>more on that later as it plays into the shifting

0:34:14.920 --> 0:34:18.919
<v Speaker 1>behaviors of consumers. Now, while Blu ray won the war,

0:34:19.400 --> 0:34:23.120
<v Speaker 1>it didn't become as ubiquitous as the DVD player. In

0:34:23.200 --> 0:34:27.960
<v Speaker 1>two thousand seventeen of all US households with a broadband

0:34:27.960 --> 0:34:31.160
<v Speaker 1>connection owned a Blu Ray player. This is according to

0:34:31.200 --> 0:34:35.520
<v Speaker 1>a Fortune magazine. Meanwhile, around eight seven percent of all

0:34:35.600 --> 0:34:39.480
<v Speaker 1>households owned a DVD player, So DVD was able to

0:34:39.680 --> 0:34:45.400
<v Speaker 1>displace VCRs, but Blu ray didn't quite displace DVD players,

0:34:45.760 --> 0:34:48.040
<v Speaker 1>and Blue Ray sales have been on the decline for

0:34:48.080 --> 0:34:50.239
<v Speaker 1>several years in a row. A big reason for that

0:34:50.680 --> 0:34:54.120
<v Speaker 1>falls to the Internet and digital files. So now I'm

0:34:54.120 --> 0:34:57.080
<v Speaker 1>going to switch gears and talk about the digital revolution

0:34:57.440 --> 0:35:00.360
<v Speaker 1>and how that changed the way we access entertainment. And

0:35:00.400 --> 0:35:02.920
<v Speaker 1>it's another complicated story, and it's one that requires me

0:35:02.960 --> 0:35:06.040
<v Speaker 1>to go back to talking about audio for a little bit.

0:35:06.640 --> 0:35:10.040
<v Speaker 1>So back in the late nineteen eighties, a German company

0:35:10.080 --> 0:35:15.759
<v Speaker 1>called frown Hoffer Gazelle Shaft funded research into audio compression technology.

0:35:16.040 --> 0:35:19.280
<v Speaker 1>According to Karl Heinz Brandenburg, who would play a pivotal

0:35:19.360 --> 0:35:22.640
<v Speaker 1>role in the development of the MP three compression format,

0:35:22.920 --> 0:35:25.440
<v Speaker 1>it all started with a discussion about how to transmit

0:35:25.560 --> 0:35:29.040
<v Speaker 1>music over digital phone lines, which happened all the way

0:35:29.080 --> 0:35:32.640
<v Speaker 1>back in nine two. The idea was theoretically possible, but

0:35:32.680 --> 0:35:35.680
<v Speaker 1>the technology was not yet up to the task, and

0:35:35.719 --> 0:35:39.200
<v Speaker 1>that remained the case until nine six. What happened next,

0:35:39.680 --> 0:35:50.120
<v Speaker 1>I'll tell you right after we take this quick break. So,

0:35:50.400 --> 0:35:54.000
<v Speaker 1>beginning in nineteen eighty six, Brandenburg and his colleagues were

0:35:54.000 --> 0:35:58.200
<v Speaker 1>hard at work on creating a psychoacoustic approach to audio compression.

0:35:58.480 --> 0:36:00.200
<v Speaker 1>And by that I mean they were trying to think

0:36:00.239 --> 0:36:04.160
<v Speaker 1>about the actual physical process of hearing sounds. Now, as

0:36:04.160 --> 0:36:06.360
<v Speaker 1>I mentioned in the previous episode about c d S,

0:36:06.600 --> 0:36:09.759
<v Speaker 1>the range of human hearing is limited. Sounds with a

0:36:09.760 --> 0:36:13.680
<v Speaker 1>pitch below twenty hurts or higher than twenty killer hurts

0:36:13.719 --> 0:36:17.640
<v Speaker 1>are imperceptible to the vast majority of human beings. But

0:36:17.719 --> 0:36:20.440
<v Speaker 1>there are other limitations to our hearing as well. So

0:36:20.520 --> 0:36:23.840
<v Speaker 1>for example, if you have a very quiet sound following

0:36:23.960 --> 0:36:26.520
<v Speaker 1>right behind a very loud sound, we tend to not

0:36:26.719 --> 0:36:29.520
<v Speaker 1>hear the quiet one. So if you're trying to come

0:36:29.560 --> 0:36:33.040
<v Speaker 1>up with a way to encode audio in a digital format,

0:36:33.480 --> 0:36:36.200
<v Speaker 1>and you're trying to save as much space as you can,

0:36:36.680 --> 0:36:39.680
<v Speaker 1>you might do what Brandenburg and his fellow researchers decided

0:36:39.719 --> 0:36:44.480
<v Speaker 1>to do. You exclude any information that wouldn't be perceptible

0:36:44.600 --> 0:36:47.200
<v Speaker 1>in the first place, because if you can't hear it,

0:36:47.200 --> 0:36:50.120
<v Speaker 1>it doesn't need to be there. This is what makes

0:36:50.160 --> 0:36:53.960
<v Speaker 1>the MP three a lossy format. It means that some

0:36:54.080 --> 0:36:57.960
<v Speaker 1>of the information in the original recording gets discarded through

0:36:57.960 --> 0:37:01.600
<v Speaker 1>the compression process, so the rest file does not contain

0:37:01.760 --> 0:37:05.719
<v Speaker 1>all the information of the original file. In nineteen eight,

0:37:06.360 --> 0:37:10.279
<v Speaker 1>the International Organization for Standardization requested the formation of a

0:37:10.360 --> 0:37:14.480
<v Speaker 1>group to oversee standards in audio recording. In response, the

0:37:14.600 --> 0:37:19.760
<v Speaker 1>Moving Picture Experts Group or IMPEG formed. The chief goal

0:37:19.960 --> 0:37:22.320
<v Speaker 1>of this group was to standardize a way to record

0:37:22.440 --> 0:37:26.359
<v Speaker 1>video to CD ROM discs, and audio compression was part

0:37:26.440 --> 0:37:29.200
<v Speaker 1>of that approach. It was had its own subgroup in

0:37:29.239 --> 0:37:32.960
<v Speaker 1>the department. Different groups worked on individual solutions to this,

0:37:33.040 --> 0:37:35.600
<v Speaker 1>with one group coming out on top. That group designed

0:37:35.640 --> 0:37:38.919
<v Speaker 1>a mode that was called Layer three, which we see

0:37:38.960 --> 0:37:42.000
<v Speaker 1>represented in the file extension of MP three. And it

0:37:42.040 --> 0:37:44.959
<v Speaker 1>took a long time to get the compression model right

0:37:45.320 --> 0:37:49.440
<v Speaker 1>in order to preserve fidelity and also reduce the file

0:37:49.520 --> 0:37:52.440
<v Speaker 1>size to the point where it was practical. Uh the

0:37:52.560 --> 0:37:56.719
<v Speaker 1>MP three technology would be unveiled in ninete two as

0:37:56.760 --> 0:38:00.760
<v Speaker 1>a potential audio encoding technology. The MP three file extension

0:38:00.920 --> 0:38:05.279
<v Speaker 1>wouldn't come along until and while the original concept was

0:38:05.320 --> 0:38:07.840
<v Speaker 1>to use the technology to transmit songs over I, S,

0:38:07.920 --> 0:38:10.560
<v Speaker 1>d N lines, it would be the Internet where the

0:38:10.680 --> 0:38:13.399
<v Speaker 1>MP three would really take off. Now, I gotta point

0:38:13.400 --> 0:38:17.120
<v Speaker 1>out the MP three is not the only audio file

0:38:17.200 --> 0:38:20.719
<v Speaker 1>format out there. Far from it. There are tons of

0:38:20.760 --> 0:38:24.919
<v Speaker 1>audio files and audio file formats, I should say, out there.

0:38:25.680 --> 0:38:29.160
<v Speaker 1>It's not even the only audio compression technology. There are

0:38:29.160 --> 0:38:33.520
<v Speaker 1>other lossy forms of audio compression, and they're also loss less,

0:38:33.640 --> 0:38:37.840
<v Speaker 1>meaning the compressed audio file contains all of the information

0:38:37.920 --> 0:38:42.480
<v Speaker 1>of the original file. However, MP three became the dominant

0:38:42.800 --> 0:38:45.880
<v Speaker 1>one on the Internet, and it lead to gadgets like

0:38:46.000 --> 0:38:49.040
<v Speaker 1>the MP three player, which is kind of a misnomer

0:38:49.360 --> 0:38:52.680
<v Speaker 1>because MP three players frequently could play lots of different

0:38:52.719 --> 0:38:56.759
<v Speaker 1>audio file formats, but we tended to call them MP

0:38:56.840 --> 0:39:00.160
<v Speaker 1>three players. The first portable MP three players be end

0:39:00.160 --> 0:39:04.319
<v Speaker 1>to hit the market around Apple would then introduce the

0:39:04.400 --> 0:39:07.279
<v Speaker 1>iPod in two thousand one, and I find it really

0:39:07.320 --> 0:39:10.920
<v Speaker 1>fascinating that MP three sort of became shorthand for audio files,

0:39:11.120 --> 0:39:13.960
<v Speaker 1>even if the person using the term MP three was

0:39:13.960 --> 0:39:17.920
<v Speaker 1>actually referring to other file formats and compression strategies. And

0:39:17.960 --> 0:39:20.360
<v Speaker 1>then not long after that, you had the introduction of

0:39:20.400 --> 0:39:23.759
<v Speaker 1>the iPod, and the term iPod sort of became shorthand

0:39:23.800 --> 0:39:26.800
<v Speaker 1>for digital audio file players or m P three players.

0:39:26.920 --> 0:39:29.000
<v Speaker 1>People would refer to it as an iPod, even if

0:39:29.040 --> 0:39:32.879
<v Speaker 1>it wasn't an Apple iPod. Heck, the reason we call

0:39:32.960 --> 0:39:36.759
<v Speaker 1>shows like mine podcasts is because of the iPod. Even

0:39:36.760 --> 0:39:40.440
<v Speaker 1>though most people aren't listening on dedicated iPods anymore, the

0:39:40.520 --> 0:39:43.680
<v Speaker 1>name stuck even as the technology would play itself out

0:39:43.719 --> 0:39:47.440
<v Speaker 1>tour fade a bit from prominence. Now, when the MP

0:39:47.560 --> 0:39:51.000
<v Speaker 1>three debuted, it was filling a real need in the

0:39:51.040 --> 0:39:54.480
<v Speaker 1>market because people wanted a way to share music. But

0:39:54.520 --> 0:39:57.440
<v Speaker 1>a raw music file is pretty big. It was way

0:39:57.520 --> 0:40:01.040
<v Speaker 1>too large to transfer easily, especially back in those days.

0:40:01.800 --> 0:40:04.120
<v Speaker 1>I dug up an article from c net back in

0:40:04.280 --> 0:40:10.439
<v Speaker 1>nine at quoted an analyst named Robert Katzev who said

0:40:10.480 --> 0:40:13.360
<v Speaker 1>that the sweet spot for a hard drive size on

0:40:13.440 --> 0:40:19.839
<v Speaker 1>a PC in was four gigabytes. Okay, so my smartphone

0:40:20.239 --> 0:40:22.880
<v Speaker 1>has a hard drive space of a hundred twenty eight

0:40:23.120 --> 0:40:28.120
<v Speaker 1>gigabytes on my phone back in a sweet spot for

0:40:28.160 --> 0:40:32.160
<v Speaker 1>hard drive was four. An uncompressed raw audio file tends

0:40:32.200 --> 0:40:35.239
<v Speaker 1>to run at about thirty four megabytes per minute if

0:40:35.360 --> 0:40:38.719
<v Speaker 1>you have a bit depth of twenty four bits and

0:40:38.840 --> 0:40:42.120
<v Speaker 1>a sample rate of ninety six killer hurts for stereo audio.

0:40:42.719 --> 0:40:46.920
<v Speaker 1>Obviously that that amount of space is dependent upon the

0:40:47.120 --> 0:40:49.480
<v Speaker 1>bit depth and the sample rate. If you played with those,

0:40:49.560 --> 0:40:52.239
<v Speaker 1>you could change how much space it takes. But if

0:40:52.280 --> 0:40:56.640
<v Speaker 1>you were using those uh uh standards as your your

0:40:56.680 --> 0:40:59.960
<v Speaker 1>recording or your encoding method, if you had a three

0:41:00.000 --> 0:41:02.040
<v Speaker 1>a minute song, it would take up about a hundred

0:41:02.120 --> 0:41:06.000
<v Speaker 1>four megabytes of space. And so you have an album

0:41:06.080 --> 0:41:08.719
<v Speaker 1>worth of songs, you've got at least a gigabyte worth

0:41:08.800 --> 0:41:11.440
<v Speaker 1>of data there. It doesn't take long before you've used

0:41:11.520 --> 0:41:14.880
<v Speaker 1>up that four gigs of storage space. Now, the data size,

0:41:14.880 --> 0:41:17.120
<v Speaker 1>again depends on sample rate and bit depth. So if

0:41:17.160 --> 0:41:18.920
<v Speaker 1>you started cheat with that a little bit, if you

0:41:19.040 --> 0:41:22.560
<v Speaker 1>made the sample rate lower, you decrease the bit depth,

0:41:23.040 --> 0:41:27.160
<v Speaker 1>you could fit more stuff onto a hard drive. But

0:41:27.360 --> 0:41:30.400
<v Speaker 1>the more you do that, the more you toy with

0:41:31.239 --> 0:41:35.600
<v Speaker 1>compromising the audio quality of the actual recording itself. So

0:41:36.080 --> 0:41:37.759
<v Speaker 1>something you have to keep in mind when you're playing

0:41:37.800 --> 0:41:40.440
<v Speaker 1>with these sort of things. Also, Internet speeds back in

0:41:40.480 --> 0:41:43.520
<v Speaker 1>the early two thousand's were not super fast. Most people

0:41:43.560 --> 0:41:46.520
<v Speaker 1>were relying on dial up internet, so they're actually using

0:41:46.560 --> 0:41:49.400
<v Speaker 1>a dial up modem, they're not using um, you know,

0:41:49.640 --> 0:41:52.120
<v Speaker 1>kind of a cable modem or anything like that. And

0:41:52.200 --> 0:41:54.960
<v Speaker 1>in the United States, less than twenty percent of households

0:41:55.000 --> 0:41:58.720
<v Speaker 1>had a home broadband subscription as late as two thousand five,

0:41:59.360 --> 0:42:03.279
<v Speaker 1>So it was necessary to have a compression format that

0:42:03.320 --> 0:42:06.120
<v Speaker 1>would allow people to store songs to a drive and

0:42:06.200 --> 0:42:09.440
<v Speaker 1>also to transfer them over the Internet without eating up

0:42:09.480 --> 0:42:12.600
<v Speaker 1>all their data plan or or taking hours to transmit.

0:42:12.880 --> 0:42:16.080
<v Speaker 1>B MP three and similar compression formats were solutions to

0:42:16.160 --> 0:42:19.360
<v Speaker 1>that problem, but those formats also opened up the floodgates

0:42:19.440 --> 0:42:23.359
<v Speaker 1>for piracy in an unprecedented way. Now, as we've seen

0:42:23.400 --> 0:42:26.560
<v Speaker 1>in this series, the history of the evolution of media

0:42:26.920 --> 0:42:29.560
<v Speaker 1>is one in which the industry tends to freak out

0:42:29.800 --> 0:42:33.719
<v Speaker 1>about the possibility of unlawful copies flooding the market every

0:42:33.800 --> 0:42:37.440
<v Speaker 1>time there's a new form of media that that arises.

0:42:37.800 --> 0:42:40.160
<v Speaker 1>And most of the time that fear was kind of

0:42:40.200 --> 0:42:44.040
<v Speaker 1>hard to justify because, yeah, sure, in theory you could

0:42:44.160 --> 0:42:47.040
<v Speaker 1>make copies of VHS tapes. In fact, not theory, you

0:42:47.120 --> 0:42:49.400
<v Speaker 1>could practically do that. If you had two VCRs, or

0:42:49.760 --> 0:42:53.279
<v Speaker 1>a VCR that had to cassette readers on it, or

0:42:53.760 --> 0:42:57.880
<v Speaker 1>you had some professional duplication equipment, you could do that.

0:42:58.200 --> 0:43:01.160
<v Speaker 1>You could also transfer albums onto cassette if you wanted to.

0:43:01.400 --> 0:43:03.160
<v Speaker 1>You could burn c d s if you wanted to.

0:43:03.640 --> 0:43:07.160
<v Speaker 1>But these processes were typically time consuming and they required

0:43:07.280 --> 0:43:10.400
<v Speaker 1>an investment because you needed to transfer the content to

0:43:10.480 --> 0:43:12.880
<v Speaker 1>a physical medium. You had to go buy blank discs,

0:43:13.000 --> 0:43:17.000
<v Speaker 1>or blank video cassettes or blank audio cassettes. Digital files

0:43:17.360 --> 0:43:20.399
<v Speaker 1>removed a lot of those barriers. Duplicating a digital file

0:43:20.440 --> 0:43:22.600
<v Speaker 1>and storing it on drive as easy. You can do

0:43:22.640 --> 0:43:24.960
<v Speaker 1>it as many times as you like. You'll never wear

0:43:25.000 --> 0:43:27.759
<v Speaker 1>out the original file. You can distribute the file to

0:43:27.880 --> 0:43:30.759
<v Speaker 1>a wide audience, or that was far more common. You

0:43:30.800 --> 0:43:33.400
<v Speaker 1>can make a digital file available for other people to

0:43:33.520 --> 0:43:37.360
<v Speaker 1>copy and download from a central source. There's already software

0:43:37.360 --> 0:43:39.759
<v Speaker 1>out there that would let you rip audio tracks off

0:43:39.800 --> 0:43:41.520
<v Speaker 1>a CD in a computer. You put a CD in

0:43:41.560 --> 0:43:44.279
<v Speaker 1>your computer, you ripped the music off of it. You've

0:43:44.280 --> 0:43:47.680
<v Speaker 1>got them in digital files. You could then just compress

0:43:47.760 --> 0:43:49.880
<v Speaker 1>them if you wanted to run through a compression program.

0:43:50.239 --> 0:43:52.239
<v Speaker 1>You could upload the files to a server, or you

0:43:52.239 --> 0:43:55.040
<v Speaker 1>could join up heer to peer network and suddenly you

0:43:55.120 --> 0:44:00.160
<v Speaker 1>are bypassing the entertainment companies entirely. And boy how d

0:44:00.440 --> 0:44:04.239
<v Speaker 1>the companies hated that. They hated it a lot, and

0:44:04.360 --> 0:44:08.240
<v Speaker 1>there was enormous pressure from record labels, on law enforcement

0:44:08.400 --> 0:44:11.920
<v Speaker 1>and elected officials to do something about it. This was

0:44:11.960 --> 0:44:15.080
<v Speaker 1>when we started seeing some pretty dramatic claims about what

0:44:15.280 --> 0:44:18.280
<v Speaker 1>digital piracy was doing to businesses like the music industry,

0:44:18.520 --> 0:44:20.920
<v Speaker 1>and this also applies to the software industry and a

0:44:20.960 --> 0:44:23.759
<v Speaker 1>little bit later to film and television as well. I'd

0:44:23.800 --> 0:44:25.719
<v Speaker 1>say a lot of those claims were at best not

0:44:25.960 --> 0:44:28.480
<v Speaker 1>supported by evidence. I might even argue that some of

0:44:28.520 --> 0:44:31.000
<v Speaker 1>them were essentially made up. But let's break it down.

0:44:31.520 --> 0:44:34.480
<v Speaker 1>Music piracy was a thing, whether it was off of

0:44:34.560 --> 0:44:37.200
<v Speaker 1>servers or more frequently through peer to peer services like

0:44:37.280 --> 0:44:41.239
<v Speaker 1>kaza or Napster. People were sharing music files and other

0:44:41.280 --> 0:44:44.160
<v Speaker 1>types of files as well, without paying for them. Peer

0:44:44.200 --> 0:44:47.160
<v Speaker 1>to peer technology is a valid way to transfer files

0:44:47.200 --> 0:44:49.399
<v Speaker 1>from computer to computer, and it's meant to make those

0:44:49.440 --> 0:44:52.879
<v Speaker 1>processes fast by sidestepping the need for the traditional server

0:44:53.080 --> 0:44:57.640
<v Speaker 1>client model. Quick explanation. With that traditional model, you have

0:44:57.760 --> 0:45:00.719
<v Speaker 1>a central server, it's got files on it, and the

0:45:01.080 --> 0:45:04.520
<v Speaker 1>computers that are connecting to it are clients requesting copies

0:45:04.520 --> 0:45:06.640
<v Speaker 1>of that file. If a lot of clients are all

0:45:06.719 --> 0:45:09.719
<v Speaker 1>contacting the same survey can get bogged down. Peer to peer,

0:45:10.040 --> 0:45:12.839
<v Speaker 1>all the computers on the network are peers of each

0:45:12.880 --> 0:45:15.640
<v Speaker 1>other and they can share files between them. The more

0:45:15.760 --> 0:45:19.880
<v Speaker 1>computers that have a specific file on them, the faster

0:45:20.040 --> 0:45:24.040
<v Speaker 1>those transfers tend to go. So there's nothing illegal about

0:45:24.120 --> 0:45:26.920
<v Speaker 1>peer to peer networks on their on the basis of

0:45:27.000 --> 0:45:30.960
<v Speaker 1>it like that, that's a completely legitimate way to distribute files. Uh,

0:45:31.080 --> 0:45:34.520
<v Speaker 1>it's illegal if you are sharing files that you do

0:45:34.680 --> 0:45:37.480
<v Speaker 1>not have the right to distribute, like music files that

0:45:37.520 --> 0:45:40.680
<v Speaker 1>you didn't record yourself. Now, the music industry argued that

0:45:40.800 --> 0:45:45.000
<v Speaker 1>this was costing them lots and lots and lots of money. Critics,

0:45:45.120 --> 0:45:49.880
<v Speaker 1>including the Government Accountability Office, would counter that, saying there's

0:45:49.960 --> 0:45:53.720
<v Speaker 1>probably an impact to the revenue of the industry because

0:45:53.760 --> 0:45:57.520
<v Speaker 1>of piracy, but it is impossible to determine because you

0:45:57.640 --> 0:46:00.479
<v Speaker 1>cannot say for certain that someone who download did something

0:46:00.640 --> 0:46:04.800
<v Speaker 1>illegally would have purchased a legal copy if they didn't

0:46:04.840 --> 0:46:08.399
<v Speaker 1>have the opportunity to get it illegally. So, in other words,

0:46:08.600 --> 0:46:12.759
<v Speaker 1>if I download a copy of the Wolverine origin. That's

0:46:12.800 --> 0:46:15.239
<v Speaker 1>a great one because a lot of people did that. Um,

0:46:15.880 --> 0:46:19.480
<v Speaker 1>then you you can't tell me, oh, if you hadn't

0:46:19.520 --> 0:46:22.200
<v Speaker 1>downloaded that copy, you would have gone out and bought one.

0:46:22.920 --> 0:46:25.480
<v Speaker 1>Maybe I wouldn't have bought it at all. Either way,

0:46:26.480 --> 0:46:29.720
<v Speaker 1>the companies aren't getting my money. They're either not getting

0:46:29.760 --> 0:46:32.279
<v Speaker 1>it because I didn't even bother watching it, or they

0:46:32.320 --> 0:46:35.080
<v Speaker 1>didn't get it because I stole it. But the point

0:46:35.160 --> 0:46:40.160
<v Speaker 1>being that you cannot easily translate piracy to lost revenue

0:46:40.560 --> 0:46:42.880
<v Speaker 1>doesn't make piracy right. By the way, this is not

0:46:42.960 --> 0:46:46.480
<v Speaker 1>a justification for piracy. It's merely to say you cannot

0:46:46.560 --> 0:46:51.240
<v Speaker 1>make the argument that someone pirating digital files uh directly

0:46:51.360 --> 0:46:55.279
<v Speaker 1>translates to lost revenue. Now, the entertainment industries saw the

0:46:55.400 --> 0:46:59.080
<v Speaker 1>threat of technology like the Internet long before services like

0:46:59.200 --> 0:47:02.600
<v Speaker 1>Napster werepping up, and they lobbied hard to get updated

0:47:02.680 --> 0:47:06.560
<v Speaker 1>copyright protection laws in place to take into account the

0:47:06.640 --> 0:47:09.360
<v Speaker 1>power of the Internet. And in the United States, this

0:47:09.480 --> 0:47:12.200
<v Speaker 1>took on the form of the Digital Millennium Copyright Act

0:47:12.280 --> 0:47:14.520
<v Speaker 1>or d m c A, which was signed into law

0:47:14.719 --> 0:47:17.520
<v Speaker 1>in n The rules of the d m c A

0:47:17.560 --> 0:47:20.120
<v Speaker 1>would allow companies to go after people and entities that

0:47:20.160 --> 0:47:23.360
<v Speaker 1>were violating intellectual property law, while also allowing for the

0:47:23.440 --> 0:47:27.160
<v Speaker 1>concept of safe harbor, meaning the Internet service providers wouldn't

0:47:27.160 --> 0:47:30.000
<v Speaker 1>be held responsible for the actions that their customers were

0:47:30.080 --> 0:47:33.759
<v Speaker 1>taking while using their services. But there were also requirements

0:47:33.800 --> 0:47:35.960
<v Speaker 1>in there for the I s p s to follow.

0:47:36.719 --> 0:47:38.840
<v Speaker 1>They had to follow these rules in order to to

0:47:39.120 --> 0:47:42.480
<v Speaker 1>warrant safe harbor. That included taking steps to act on

0:47:42.520 --> 0:47:44.759
<v Speaker 1>the notification that a customer was using his or her

0:47:44.840 --> 0:47:48.480
<v Speaker 1>connection to share files illegally. Now, in our next episode,

0:47:48.560 --> 0:47:51.160
<v Speaker 1>I'm going to talk more about how digital files changed

0:47:51.200 --> 0:47:54.719
<v Speaker 1>the entertainment industry and how piracy and downloading gradually gave

0:47:54.800 --> 0:47:58.640
<v Speaker 1>way to a different business model, that of streaming. That'll

0:47:59.000 --> 0:48:02.759
<v Speaker 1>finally bring us up to our current situation, which I

0:48:02.840 --> 0:48:06.279
<v Speaker 1>think I've promised four times at this point in this

0:48:06.480 --> 0:48:08.640
<v Speaker 1>series because I kept getting bogged down with all these

0:48:08.680 --> 0:48:14.200
<v Speaker 1>cool details. But again, it shows how this nature of technology,

0:48:14.520 --> 0:48:19.680
<v Speaker 1>business and consumer behavior has changed dramatically over relatively short time.

0:48:19.880 --> 0:48:23.439
<v Speaker 1>I mean, the history of recorded media is not that long,

0:48:24.080 --> 0:48:27.960
<v Speaker 1>and yet we've seen some really dramatic shifts in consumer

0:48:28.040 --> 0:48:31.799
<v Speaker 1>behavior in that time. Within my own lifetime, I've seen

0:48:31.840 --> 0:48:34.160
<v Speaker 1>it changed dramatically. So we're gonna talk more about that

0:48:34.200 --> 0:48:36.680
<v Speaker 1>in the next episode. If you guys have suggestions for

0:48:36.800 --> 0:48:39.120
<v Speaker 1>future episodes of tech Stuff, send me a message. The

0:48:39.160 --> 0:48:42.120
<v Speaker 1>email address is tech Stuff at how stuff works dot com,

0:48:42.760 --> 0:48:44.960
<v Speaker 1>or if you want to check out our website, that's

0:48:45.080 --> 0:48:48.520
<v Speaker 1>tech stuff podcast dot com. You'll find an archive of

0:48:48.680 --> 0:48:52.040
<v Speaker 1>all of our previous episodes there. You also find links

0:48:52.080 --> 0:48:55.160
<v Speaker 1>to our social media accounts, so you can follow us

0:48:55.239 --> 0:48:57.919
<v Speaker 1>on Facebook or Twitter and reach out to us there.

0:48:58.320 --> 0:49:00.960
<v Speaker 1>And you can find a link to our online store,

0:49:01.160 --> 0:49:03.120
<v Speaker 1>where every purchase you make goes to help the show

0:49:03.120 --> 0:49:06.160
<v Speaker 1>and we greatly appreciate it, and I will talk to

0:49:06.200 --> 0:49:13.600
<v Speaker 1>you again really soon. Text Stuff is a production of

0:49:13.680 --> 0:49:16.719
<v Speaker 1>I Heart Radio's How Stuff Works. For more podcasts from

0:49:16.760 --> 0:49:20.480
<v Speaker 1>my heart Radio, visit the i heart Radio app, Apple Podcasts,

0:49:20.640 --> 0:49:22.640
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