Warner Bros. To Offer Content Online via Guba

By SARAH MCBRIDE
Wall Street Journal

June 27, 2006; Page B2

http://online.wsj.com/article/SB115136867088291353.html?mod=home_whats_news_us


Time Warner Inc.'s Warner Bros. has made a deal to distribute movies and TV 
shows online via Guba LLC's search engine and video-sharing community, 
Guba.com, in one of the first moves by a major studio to embrace 
user-generated content.

Until yesterday, Guba displayed videos submitted mostly by amateurs, along 
with some professionally created material such as music videos posted 
illegally on the site. Now, the site will sell movies such as "Harry Potter 
and the Goblet of Fire" along with TV shows such as "Babylon 5."

Studios and record labels have been struggling with how to embrace Internet 
distribution while fighting online piracy. While the technology lures 
studios with the promise of an expanded market, it also allows online 
pilfering of movies, TV shows and other copyrighted content.

"The mistake of the [movie] industry has been to worry too much about 
piracy and not enough about providing easy, simple ways to find content 
legally online," says Thomas McInerney, chief executive officer and founder 
of Guba. He believes putting the titles in front of the 503,000 unique 
monthly visitors to Guba should drive sales and rentals.

The number of visitors is far behind sites like MSN Video, with more than 
16 million unique visitors, or YouTube.com, with more than 13 million, 
according to research firm comScore Networks Inc. Mr. McInerney believes 
even those who have illegally downloaded movies and shows in the past would 
be willing to pay for them on Guba. Many users already are used to paying 
Guba for certain search subscriptions.

New movies will cost $19.99 on Guba, and older titles will cost $9.99. New 
titles can be rented for $2.99. Movies will be available to buy the same 
day they come out on DVD, while rentals will be available a few weeks later.

Alongside the legal Warner titles, Guba users can find unapproved material, 
such as videos from Beyoncé and Madonna. Guba says it has a technology that 
searches for copyrighted material and removes it. The system is constantly 
updated to catch copyrighted content.

"Nothing is ever perfect," said Darcy Antonellis, executive vice president 
for digital technology and operations at Warner Bros. "But they are 
applying all the right resources and technology" to fight piracy.

Last month, Warner cut a deal with BitTorrent Inc. to sell and rent movies 
using that company's peer-to-peer technology.

At the start of the year, Warner Bros., Bertelsmann AG and its subsidiary 
Arvato announced a service for the German market that relies on 
peer-to-peer technology called In2Movies. In the U.S., Warner launched 
In2TV, an advertising-supported service that allows viewers to watch 
classic TV shows free online.

All the major studios sell movies through specialist online sites Movielink 
LLC and CinemaNow Inc.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         



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