Can BitTorrent thrive in the mainstream?

By Greg Sandoval
News.com

http://news.com.com/Can+BitTorrent+thrive+in+the+mainstream/2100-1025_3-6070357.html

Story last modified Tue May 09 13:22:18 PDT 2006



Peer-to-peer technology took another step toward joining respectable 
society with Monday's news that the file-sharing company BitTorrent would 
distribute video over the Internet for Warner Bros. Entertainment, industry 
insiders said.

Long considered in Hollywood as part of an extensive and despised piracy 
tool kit, BitTorrent's file-sharing system will be used by Warner Bros. to 
distribute films and TV shows starting sometime this summer, the companies 
announced Tuesday.

The entertainment industry has for some time feared that file-swapping 
services would allow users to violate the studios' copyrights and engage in 
piracy of their music and movies. Studios have aggressively filed lawsuits 
against peer-to-peer companies.

Entertainment executives now appear willing to partner with file-sharing 
companies. One reason, said Nitin Gupta, research analyst for The Yankee 
Group, is that Hollywood needs a cheap and speedy way to transfer huge 
video files via the Web. Peer-to-peer technologies can do that. Another 
reason is that by offering the public a legal and inexpensive way to 
download video, the studios may feel they can remove the need to pirate 
content while the industry is still in its infancy, Gupta says.

"If you look at the music industry, they waited too long before doing 
anything about piracy," Gupta said. "Anything (the studios) can do now to 
raise awareness of a legitimate online distribution system means they are 
getting ahead of the trouble."

Even BitTorrent's competitors say the Warner Bros. agreement is a good deal 
for everyone.

"I think it's good for the industry that peer-to-peer technologies are 
finding markets," said Mike Homer, who founded Kontiki, one of the top 
peer-to-peer distribution systems. "It's good public relations. This shows 
that media producers have more confidence in that technology."

At the same time, Homer and others in the sector say Hollywood should move 
slowly with regard to untested file-sharing systems. BitTorrent has yet to 
prove that it can safeguard video distributed over the Net, offer studio 
executives the kind of distribution control they want and appeal to 
mainstream Internet users.

"BitTorrent's audiences are people who want free content and are willing to 
rip it off," Homer said. "The file-sharing crowd is looking for illegal 
content. They haven't been very attractive to media producers."

BitTorrent's president, Ashwin Navin, dismisses talk that the technology 
can only be used for evil. BitTorrent, the company, has always been a model 
corporate citizen says Navin. The company signed with Warner, the first of 
many deals the company expects, because it simply works.

"Much of the negative perception of BitTorrent came from the press," Navin 
said. "BitTorrent has become synonymous for one thing with our users: fast 
on-demand entertainment. The content providers are going to see BitTorrent 
in the same way."

BitTorrent allows a single file to be broken into small fragments that are 
distributed among computers. People then share pieces of the content with 
one another. This reduces bandwidth costs for content providers.

While it might be useful in moving large files, BitTorrent has yet to prove 
that its technology is a successful consumer service. To send movies across 
the Internet on a wide scale, entertainment chiefs are going to want 
absolute control over where the video goes, who sees it and who pays, says 
Todd Johnson, Kontiki's former chief executive.

"It's an incredibly complex problem," said Johnson, who has helped his 
company sign deals with such entertainment companies as AOL Time Warner and 
the BBC. "I'm going to be interested in finding out whether BitTorrent can 
provide all the central control and meet the requirements content owners 
are going to have."

What everybody in the sector agrees on is that peer-to-peer technologies 
are only going to appear more attractive as more people start demanding 
high quality Internet video.

The higher the quality, the more information that has to be pumped through 
broadband systems. A typical episode of "Lost" requires Apple Computer to 
transfer 200 megabytes of data to a customer. A feature film could take up 
to 500 megabytes. Gupta says that the expense of distributing movies in 
high-definition quality could send costs skyrocketing tenfold.

"The key here is keeping costs down," Gupta said. "The low margins for a 
lot of the video content distributors make it critical for them to use 
peer-to-peer to deliver high quality video."


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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