Bad Business Models Fail

They say 90% of all business fail within the first year. In the next five years, 90% of the remaining business fail. But, beyond the statistics, historically, all businesses fail, unless you’re still working for Pharaoh, which would be kinda news worthy.

There are those in Hollywood who make a lot of money, and they have a financial interested in things continuing the way they have been, without change, without improvement. The reason, most likely, is because those executives refuse to adapt to the changing nature of the world and and the implications that those changes have on their industry. Such changes may limit the flow of money, at least in their direction.

Take this recent write-up on Techdirt about a great idea that is rendered useless. The Cinema One copies any disc you put into it, then stores it on a pretty big hard drive. It then, via an app on your iPad, allows you to access those discs, instantly. No getting up. No sifting through your shelf, leaving the room, etc.

That’s the way it was designed to work, anyway. Then Hollywood’s good-idea-crippling-machine saw the Cinema One’s awesome and got scared. To Hollywood, copying sounds like piracy, and piracy sounds like money draining away. 

Here’s their solution: the Cinema One (which can be yours for a whopping $4,000) will only instantly play its digital version of the disc if you, go back into the other room, sort through your shelf, load the original disc back into your machine. It needs physical proof you still own the disc.

What they’ve yet to grasp is that all those discs in your library, along with nearly every other movie, album, etc. ever made, are already freely available via a BitTorrent seed somewhere on the net. 

So, Hollywood’s efforts to make semi-rich people who can actually afford a $4,000 solution suffer through the crippling of the Cinema One achieves nothing. They’re just hurting their paying customers because the people who aren’t paying, still aren’t going to pay, and they’ve already modded their Xbox’s (available on Ebay for as low as $60) to do what Cinema One does, without the burden of paying for or organizing the discs.

Hollywood, as its business model currently works, and like every other business of the past, is failing.

Gandhi said, “Be the change you wish to see in the world.” That’s why we’ve made ALGORITHM independent of the Hollywood system, and why we’ll be distributing it as DRM-free as we can make it.