Downloading for Dollars

The future of Hollywood has arrived. "The real issue for the Hollywood studios is how they can dig into this potential gold mine without undermining their existing revenue streams. Since the 1980s, the studios have managed their revenue by employing a system of "windows" to release their products to different markets... But giant retailers, to spur their seasonal sales, have been demanding their DVD delivery earlier and earlier, and they've thrown this system into turmoil.

To avoid that outcome, and a potentially dangerous confrontation with Wal-Mart, the studios would have to delay the download release until well after the DVD release. But while the studios may find this embarrassment of choices somewhat paralyzing at present, as more and more consumers get digital recorders or video iPods, downloading for dollars may prove irresistible—even if it means doing away with the windowing system."