In a speech at the CineEurope convention, MPAA CEO Chris Dodd warned his listeners that removing geo-blocking in Europe will "cause great harm" to the movie industry. Geo-blocking allows movie studios to release movies on different schedules for different regions, thereby maintaining control of the distribution in ways to maximize profits for the movie studios. The European Commission is debating whether or not to allow such control, with a decision expected this fall. If they do away with geo-blocking, Dodd warns that fewer movies will be released, and prices will increase.
Dodd based part of this assertion on a study done by Oxera which seems to support his thoughts that releasing movies simultaneously across Europe would have deleterious effects. One should note however, that the study was: Prepared for a group of members of the international audio visual industry. This means the study was almost certainly paid for and presented to the MPAA or some of its members and thus is hardly objective.
Dodd asserted that: “The European Union is made up of 28 different nations with different cultures, different languages, and different tastes. Forcing every film to be marketed and released the same way everywhere, at the same time, is a recipe for failure.”
He also urged members of the cinematic community to keep pressure on their representatives to stop the commission.
Personally, I believe this is a matter of control, rather than economic necessity, but that is just a layman's perspective. It will be interesting when the commission releases its recommendations as part of the Digital Single Market reforms.
You can read more on the story at TorrentFreak.
