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DVD Region Encoding on Verge of Collapse? 597

Spudley writes "It seems like the infamous Region Encoding system used by DVD manufacturers to prevent us buying disks from overseas is about to collapse - due to widespread flaunting of the system. This article on the BBC doesn't go into much technical detail, but does include an interview with a company that manufactures DVD players ("You can find codes for more or less all brands of DVD player including ours") and some speculation on the future." It always seemed like an idea destined to fail.
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DVD Region Encoding on Verge of Collapse?

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  • Dude, wrong word. (Score:3, Informative)

    by Anonymous Coward on Monday August 19, 2002 @10:18AM (#4097302)
    s/flaunting/flouting/
  • Re:why? (Score:4, Informative)

    by trajano ( 220061 ) on Monday August 19, 2002 @10:20AM (#4097318) Homepage Journal
    Its usually because of the licensing and copyright restrictions by the artists and manufacturing companies.

    When someone wants to put a soundtrack or put an actor on a movie, they have to specify who they are distributing it to in the contract.

    So usually they sometimes go this anime sound track can only be distributed in Japan. No where else.

    Or this European actor can only be shown in theaters playing in Russia.
  • Re:why? (Score:5, Informative)

    by Caballero ( 11938 ) <daryll@@@daryll...net> on Monday August 19, 2002 @10:21AM (#4097325) Homepage

    Strictly economics. The studio wants to control the spread of the movie to maximize profit.

    Movies often open in the US 6-9 months before they show in Europe. In many cases, the US DVD is out before the move has opened in Europe. With region codes they make it hard for Europeans to buy the DVD instead of going out to the theater.
  • A point of grammar (Score:1, Informative)

    by Anonymous Coward on Monday August 19, 2002 @10:24AM (#4097354)
    That's flout, not flaunt. You flaunt a new coat. You flout a rule.
  • by Anonymous Coward on Monday August 19, 2002 @10:24AM (#4097357)
    Region Encoding is a joke. In fact, about the only place these days which still "enforces" Region Coding is....the USA! The rest of the world treats it like the joke it is. You can walk into a Supermarket and a buy a DVD player which is advertised as Region Free in Europe.

    The only people who pay any attention to Region Coding is the DVD-CCA. The player manufacturers couldn't give a crap; why do you think all these players have a "hiden" menu in them that can disable it? Ooops, someone accidently "leaked" the instructions on how to access it...oh dear...
  • More links (Score:4, Informative)

    by countach ( 534280 ) on Monday August 19, 2002 @10:25AM (#4097361)
    Here is the press release [tne.net.au] from the Australian Competition and Consumer Commission's investigation into the legality of Sony's region encoding. Here is Sony's response [zdnet.co.uk]. Here is more info about the ACCC's stance [geocities.com]. And Here's what aussies think of it all [news.com.au].
  • Apex (Score:4, Informative)

    by Apreche ( 239272 ) on Monday August 19, 2002 @10:26AM (#4097367) Homepage Journal
    is a particularly cool company. If you haven't heard of them they make very very cheap DVD players. Like 60 bucks for some of the models. As far as I know they were the first to have "cheat codes" to unlock regions. And some people are paying hundreds for region free players! The really cool thing about Apex players is that some of the models have PAL converters in them. So you will really have no problem watching DVDs from England or anywhere else.
    Be warned though. Apex's players are 60 bucks for a reason. They are made of cheap parts and cheap plastic. Basically they are pieces of crap, and the region changing/pal converting is the only feature they have. I don't even think they all have optical audio out. Yeah, so check them out, it's the cheapest solution I've found.
  • by crow ( 16139 ) on Monday August 19, 2002 @10:26AM (#4097370) Homepage Journal
    If it were just a matter of scheduling releases (which is the most often cited reason for the coding), then they wouldn't include region coding except on recent movies. But look at DVDs of classic movies; they're all region coded.

    Why?

    They want to maximize profit by charging different prices in different markets. They know that if they set the price 50% or 100% higher in some region, then people will import from the cheaper region. Region coding is supposed to stop that. In practice, this is the main reason that people want to bypass region coding--cheaper discs from other regions.
  • Re:why? (Score:4, Informative)

    by FatRatBastard ( 7583 ) on Monday August 19, 2002 @10:26AM (#4097372) Homepage
    Mainly its because in some cases different companies have the rights to distribute a movie (and / or its video release) in different regions. Thus, if Company B paid Company A for the exclusive rights to distribute a movie in video form in Europe, its none too happy about Company A making money from European viewers who purchase said video from Amazon USA.

    Now, just because Company B is potentially taking in the pants due to out of region sales doen't mean that the Region Encoding is a good thing, but its an explanation over why the movie industry pushed for it in the first place.
  • Re:why? (Score:3, Informative)

    by Pascal Sartoretti ( 454385 ) on Monday August 19, 2002 @10:29AM (#4097395)
    Movies often open in the US 6-9 months before they show in Europe.

    Not true anymore. The delta between US and Europe has shrunk to a few weeks, thus reducing the need for DVD zoning. That's the reason.
  • Price Controls (Score:3, Informative)

    by Ezubaric ( 464724 ) on Monday August 19, 2002 @10:30AM (#4097404) Homepage
    If region encoding fails, it's going to hurt people in poorer countries far more than it will us. Although it still will, if you import movies.

    Region encoding allows the studios to time the release of movies, sure. But it also allows them to sell the DVDs at different prices around the world. I just bought Der Herr der Ringe in Berlin for far less than I could in the US. People in Africa, Russia, and China get even better discounts.

    So while the US is used to paying $20 for a new DVD, if the region system breaks down . . .

    Everybody will have to pay the same equivalent amount of money. It probably won't affect the prices of Anime, though. A global economy, eh?
  • Re:why? (Score:3, Informative)

    by comcn ( 194756 ) on Monday August 19, 2002 @10:34AM (#4097438) Journal
    ...and some "overground" ones, too. One of the best places I've found to buy DVDs from is CD WOW!, http://www.cd-wow.co.uk/ [cd-wow.co.uk]. Most DVDs there are less than £15, but can be any region (they tell you what region it is). They are also good in that you pay what you see: no VAT or postage to add on top.
  • Re:why? (Score:5, Informative)

    by tftp ( 111690 ) on Monday August 19, 2002 @10:35AM (#4097447) Homepage
    The business justification is simple. Advertisement of a movie in one country costs N million dollars; if you do it in M countries you must have N*M million dollars. But this is expensive, and where the money would come from? Especially right after the movie is done and all the investment/loan money already spent?

    The easy way out is to start in few countries, collect money, recoup your advertising expenses, and reinvest into advertising in another country or group of countries. This way you only need N million dollars regardless of how many countries you sell the movie to. This, of course, takes time, and that's where the delay comes from.

  • Re:why? (Score:1, Informative)

    by Anonymous Coward on Monday August 19, 2002 @10:35AM (#4097451)
    A reel of film is very very expensive. Do the US run and then use the same film reels to do the European run.
  • by Dacobi ( 315664 ) on Monday August 19, 2002 @10:36AM (#4097456)
    > Just think how many people still can't program the time on a
    > VCR. Do you seriously think they're going to find a go-around
    > to Regional encoding when they're barely competent enough
    > to wipe their own arse?

    Well in Denmark (and I guess many places in Europe) most cheep DVD players are region free, and the more expencive ones can be modified as an option often proposed by the salesman. So Joe Sixpack doesn't really have to think that hard to get around regional encoding.

  • Region codes on a player are actually stored as a bit-field where having bit 'n' set means the player can play region 'n+1' disks. So-called 'multi-region' players allow the user to set this bit-field to 0xff and hence 'play all regions' [Note this means that 'Region 0' plyers are better termed 'Region 255' :)].

    Some of the bigger studios (notably Fox) are starting to use something called 'Region Code Extension' (RCE) on their disk. With this the first commands the DVD player find on the disc are (in pseudo code):

    let r = Region Code;
    if(r == 1)
    jump to movie
    else
    jump to naughty person page
    endif

    Where 'jump to naughty person page' jumps to a still-frame saying somthing like 'You can't play this disk in this region'. A multi-region player can't cope with this since it reports its region mask as 0xff so will still jump to the still-frame.

    Only a plyer set to play region 1, and only region 1 can play the disk. Hence to play it you need a DVD player which allows you to reset the region an arbitary number of times (rarer) rather than a 'multi-region' one (more common).

    Of course some Linux DVD players [sf.net] simply have a 'region' field in their config file which defeats this :)

  • Good article (Score:5, Informative)

    by Featureless ( 599963 ) on Monday August 19, 2002 @10:49AM (#4097566) Journal
    This covers the subject pretty well, discussing the economics, sizes of markets, theoretical justification for region subdivisions, etc.

    DVD Region Coding [necg.com.au]

    Region coding is a perfect example of how the content production trusts abuse their special status. You see, our government, in its infinite corruptibility, has granted legal sanctity to the IP producer's content control systems. But the MPAA isn't just trying to use this new favor to prevent theft. They really see themselves as the natural owners of the whole transport layer and presentation medium, and they exploit it in any way possible - including with region coding, which (I suspect) allows them to sidestep the perils of free trade to further control prices.

    What gets me is that I don't even see region codes as a big loss for the MPAA; I'm curious about the substance of the price differences across region boundaries that this allows them to create. I understand that the movie industry is in the habit of doing theatrical releases months apart on different continents, and that this allows them to make sure that the American DVD does reach Australia before the movie hits theaters, but really, how often is that in danger of happening? I suppose there are cases where they decide some time after a release in one country to go for a release in another (probably based on sales figures)... But how much hardship are we really talking about, I wonder?
  • Re:why? (Score:3, Informative)

    by Anonymous Coward on Monday August 19, 2002 @10:54AM (#4097600)
    Something that should be pointed out, and i haven't seen mentioned yet, is that studio's sometimes split costs of production on a film.

    For example, New Line and Fox (I believe, but could be wrong) own varying rights to Lord of the Rings. New Line initally owned it all, but to cover their asses in case it flopped (remember, when they first started making it - it was far from a surefire hit), they sold foreign distribution rights to FOX for something like 100-150 Million.

    This means fox gets all the money from non-north america stuff, both in terms of tickets sold at theatre's, and DVD release. If the disks were region free, New Line could "steal" profits from Fox. Its not just stuido's trying to get different amounts from different markets, and stagger releases. Its them protecting profits from each other on split productions.
  • summer vs. winter (Score:2, Informative)

    by imperator_mundi ( 527413 ) on Monday August 19, 2002 @11:01AM (#4097640)
    Traditionally movies are released in summer in US and in fall/winter in Europe.

    Maybe at the beginning there was some translation issues, but now that movies movies are released in english (at least in north europe) I think that's because now people are are accustomed to see major releases in winter (in particular in the pre Christmas period).
  • by Ldir ( 411548 ) on Monday August 19, 2002 @11:11AM (#4097720)
    No, i think it did its job spledidly. It prevented the general populace from spreading movies where they don't want, and it still does . How many people do you think buy a Gateway Computer, with DVD, tech support, ect., and don't know jack about Regional encoding.

    I think that's a U.S.-centric view of the situation. Region-free and region-selectable DVD players aren't that widespread in the U.S. simply because there's little incentive to do the mods here. We already get the widest selection of titles at the lowest prices. There are exceptions, of course, like Japanese anime lovers and film buffs looking for a certain, often uncut version of a film, but they're a small portion of the overall U.S. market.

    The rest of the world is in a different boat. When you read about region-coding hacks, you are almost invariably reading about someone who wants to play Region 1 discs. This article is a case in point.

    If you do a Google search for "region-free", most of the sites you find will be overseas. The retailers who sell region-free players and mods are everywhere but the U.S. When I ordered a mod board for my Pioneer, I ordered it from a European site and paid in Euros, even though the company shipped the product from an office in the U.S. Their major focus is Europe; they don't do much business here in the USA.

    Having said that, I will be astonished if Hollywood really gives up on region-coding. They are the ultimate control freaks; it's hard to imagine they'll suddenly start selling what the customer wants instead of what Hollywood wants.

  • Get the Daewoo... (Score:2, Informative)

    by SparkyUK ( 10333 ) on Monday August 19, 2002 @11:14AM (#4097736)

    I got my region-free, 110/220volt, NTSC/PAL/SECAM/everything DVD player from :

    www.110220volts.com [110220volts.com]

    Plays my UK PAL DVD's on my NTSC TV with zero hassle.

    The build quality isn't excellent but its not crap and for the money (about $120 as I recall) if it breaks I'll just buy another one.

    For me at least, region coding is already over.

  • by Hanno ( 11981 ) on Monday August 19, 2002 @11:25AM (#4097819) Homepage
    Europe have much less censorchip of movies than the US!

    Nope. Europe has a very different censorship than the US.

    We in Europe don't mind nudity or sexuality on screen - as long as it serves the story. (Porn is usually defined as nudity/sexuality without a plot. The French take this very literally - there are movies that show explicit sexual intercourse but that are not rated "porn" in France.)

    However, our censors get all giddy-up with violent / numb action movies.

    The US seems to be the other way round. Violence is ok, even in kid's movies, while a nipple can already be enough to qualify for an R rating. Eddie Murphy's "Boomerang" made a nice parody on this where an advertisement featured all sorts of atrocities, but a woman's breast was too much for the target audience...
  • Re:why? (Score:2, Informative)

    by Ravenn ( 580407 ) on Monday August 19, 2002 @12:15PM (#4098168) Homepage
    Because the film-makers are assuming that American audiences are stupid, and won't equate "philosopher" with a wizard-like feel, but will think along the lines of "a guy who talks too much".

    There are other examples of this in the same movie/book. Words like cardigan swapped to sweater, etc. I'm sure that even the American education system can handle synonyms, but the film-makers seem to disagree there.

    Most of the rest of the world would understand the situation when you mention George III, but again the film-makers want to ensure you can only think one way. Their way.

    In short: those that control the way you percieve the world, are ensuring that you percieve only what is approved by them. Sorry.

    Ravenn
  • by hrm ( 26016 ) on Monday August 19, 2002 @01:12PM (#4098612)
    For people who are wondering about the picture of Homer Simpson with the caption "controversial advocate of dvd hacking" in the BBC article, read this article [bbc.co.uk].

    Basically, the UK fox site had a DVD faq section where Homer answers the question "what is regional coding?" with "I have no idea whatsoever what regional coding means, but it is essential that you buy a multi-region player. Do it now."

    Nowadays, Fox's UK Simpsons site, here [fox.co.uk], has Homer saying [fox.co.uk] "I have no idea what regional coding means. But if you find out, let me know. Don't worry, I'll still be waiting here when you get back."

  • Re:Apex (Score:3, Informative)

    by Longstaff ( 70353 ) on Monday August 19, 2002 @01:21PM (#4098684)
    Yes, I have, on a friend's old first-gen Sony DVD player. Worked perfectly. Disc was a DVD-R burnt from an Apple SuperDrive (Pioneer drive).

    The first-gen sony's actually were more compatible w/ burned media than the second-gen. In a strugle to reduce the price and gain market penetration, they used cheaper laser assemblies.

    My second-gen sony will *not* play *any* burned media.
  • Re:Head Butt? (Score:4, Informative)

    by Jucius Maximus ( 229128 ) on Monday August 19, 2002 @01:25PM (#4098721) Journal
    "They removed a head-butt? Why?"

    The head-butt was removed from Episode 2 because, according to the UK ratings board, was violence that was easily replicable by children.

    They don't mind light sabers because kids can't replicate that and hurt each other. But a head butt could easily be imitated.

  • by Catmeat ( 20653 ) <mtm&sys,uea,ac,uk> on Monday August 19, 2002 @01:27PM (#4098732)
    According to this [techtronics.com], two portable DVD players (Sony FX1's) sent to the Internation Space Station so astronauts could watch movies in their time off, where region hacked by a British company.

    The station has an international crew, NASA just wanted them to be able to see movies in their native languages if they wanted. Doing it Holywood's way would have meant shipping up 5 identical machines.

  • by Zathrus ( 232140 ) on Monday August 19, 2002 @02:16PM (#4099081) Homepage
    I mean seriously, does ANYONE see DVD region-encoding as ANYTHING but a ludicrously obvious effort by producing companies to introduce market control and artificial scarcity, thus allowing inflated pricing?

    Well, if you're totally ignorant about the entire industry I suppose you could see it as that alone.

    The reality, however, is that one company often doesn't own the distribution rights worldwide... or in all formats. This is less common now (for movies, for TV syndication it's still very common), but it still impacts modern day reality because of old distribution agreements.

    Paramount may have produced the movie. Domestic (US) home viewing rights may have been sold to Warner Bros (now AOL/Time-Warner). European distribution rights may be owned by Universal. Distribution in Asia or Africa may be owned by more regional companies.

    And while this mostly affects older movies and (new or old) TV shows, it does have impact on new movies. A movie produced in the US may not hit foreign markets for 2-4 months, during which dubbing and other region-specific changes are made. By the time the movie premieres in Asia it may be coming out on DVD in the US. Having it available worldwide would cause some obvious problems.

    Is region encoding used for artificial scarcity? Sure. Especially in Australia, and in some cases the US (mostly for TV shows, where syndication rights have royally screwed up ownership legalities). But you can bet that similar technology will be included in every digital medium for the forseeable future -- the industry is built around the concepts, and there's legacy titles that have rather nasty ownership issues that dictate this be a necessity. Will there be some people who hack the technology away? Sure. But it's going to be a small minority of people, particularly in the cash cow countries like the US.
  • Re:Head Butt? (Score:2, Informative)

    by Ollierose ( 202763 ) on Monday August 19, 2002 @03:08PM (#4099516)
    Yeah... it was the difference between a 12 and 15 rating, I believe. Almighty $ comes into play again, except in pounds sterling. There was a headbutt in Lord of the Rings which was screened in the UK, but that was deemed to be less violent due to the non-human characters taking part
  • Re:why? (Score:3, Informative)

    by rodgerd ( 402 ) on Monday August 19, 2002 @03:36PM (#4099714) Homepage
    One reason is prints. Movie prints are mondo expensive to manufacture, so Hollywood studios may make enough for the opening in the US (a few thousand for a big release) and then ship them overseas, rather than making tens of thousands of prints for worldwide releases.

    The revenue stream is another, since staggered releases provide the peak of a new release when business tails off in another market.

    Local market variations may be a factor, too - school holidays are at different times in different countries, which is when studios like to have kids' films in the theatres.

    It's fucking annoying, though, when you live outside the States, because it's all but impossible to avoid picking up more information than you wanted about things before they arrive here.
  • Re:why? (Score:3, Informative)

    by CaptainCarrot ( 84625 ) on Monday August 19, 2002 @05:04PM (#4100302)
    See, this is one of my pet peeves. (The irritation, not the poltergeist.) The American publishers should have come up with an entirely different title -- if it was indeed necessary to retitle the book -- rather than change the name of the artifact in question. There's no such thing as a Sorcerer's Stone. OK, there's no such thing as a Philosopher's Stone either, but the point is that medieval alchemists thought there was, and that is in fact the name of the object they were trying to create. Nicholas Flamel is a genuine historical figure, a bookseller, scribe and alchemist of the 14th century, and one of the few who was reputed to have been successful.

    The irony is that the American publisher of the Harry Potter series, Scholastic Books, mainly publishes educational books. Yet they miss out on this genuine bit of medieval history in the most popular children's series of all time.

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