Chad B.
Second Unit
- Joined
- May 16, 1999
- Messages
- 279
from THEADVERTISER.COM.AU
Regulator challenges DVD zones
By Consumer Affairs Reporter MICHAEL OWEN-BROWN
24may01
A REGIONAL zoning system that forces consumers to pay up to 20 per cent more for DVD movies is being challenged by the Australian Competition and Consumer Commission.
The ACCC says major Hollywood studios have collaborated with the manufacturers of digital video disc players to prevent discs manufactured in the US, Europe or Asia from working in Australian machines.
The commission has asked the Australian subsidiaries of US film companies to explain their actions in what could lead to the world's first legal challenge to the Regional Playback Control system.
Under RPC, the world is divided into six regions. Australia is in region four with New Zealand, the Pacific Islands and South America.
Each disc and DVD player is encrypted with a digital code so that only discs programmed for sale in region four will work with Australian players. This prevents people from buying cheaper DVDs overseas or through the Internet. DVD movies cost about $35 here. The system aims to protect cinema ticket sales by preventing people ordering DVD movies yet to be released in Australia.
However, the arrangement may breach the Trade Practices Act.
ACCC Commissioner Ross Jones said in a recent speech the zoning system prevented small film companies from distributing their movies around the world.
"Their sales are generally too small to justify catering for region four. This reduces competition to the advantage of US studios," he said.
By the end of 1999, there were 720 DVDs available in region four, but more than 5000 in the US.
Australian Consumers Association spokesman Charles Britton said yesterday the zoning system imposed a "severe restriction of choice".
Although unsure whether ACCC action could realistically force Hollywood moguls to scrap the system, Mr Britton said "a statement of principle would be very useful".
He said it was feasible that a court could order that all DVD players sold here have a multi-zone capability.
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DVDs
Regulator challenges DVD zones
By Consumer Affairs Reporter MICHAEL OWEN-BROWN
24may01
A REGIONAL zoning system that forces consumers to pay up to 20 per cent more for DVD movies is being challenged by the Australian Competition and Consumer Commission.
The ACCC says major Hollywood studios have collaborated with the manufacturers of digital video disc players to prevent discs manufactured in the US, Europe or Asia from working in Australian machines.
The commission has asked the Australian subsidiaries of US film companies to explain their actions in what could lead to the world's first legal challenge to the Regional Playback Control system.
Under RPC, the world is divided into six regions. Australia is in region four with New Zealand, the Pacific Islands and South America.
Each disc and DVD player is encrypted with a digital code so that only discs programmed for sale in region four will work with Australian players. This prevents people from buying cheaper DVDs overseas or through the Internet. DVD movies cost about $35 here. The system aims to protect cinema ticket sales by preventing people ordering DVD movies yet to be released in Australia.
However, the arrangement may breach the Trade Practices Act.
ACCC Commissioner Ross Jones said in a recent speech the zoning system prevented small film companies from distributing their movies around the world.
"Their sales are generally too small to justify catering for region four. This reduces competition to the advantage of US studios," he said.
By the end of 1999, there were 720 DVDs available in region four, but more than 5000 in the US.
Australian Consumers Association spokesman Charles Britton said yesterday the zoning system imposed a "severe restriction of choice".
Although unsure whether ACCC action could realistically force Hollywood moguls to scrap the system, Mr Britton said "a statement of principle would be very useful".
He said it was feasible that a court could order that all DVD players sold here have a multi-zone capability.
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DVDs