Access to video: Don't forget the developing world

No matter which way one looks at it, the optical disc being displaced. An astonishing – and very short – 20 or so years after the introduction of the ‘most successful media format ever’, consumer demands have changed from quality to convenience. The hardware they use has changed from set-top boxes to mobile devices and the PC, and buying patterns are changing from purchase to view-on-demand rental, all of which can be fulfilled by high speed Internet access which has become standard in the developed economies.

After years of denial, the studios are now accepting the inevitable: they are taking the internet seriously. They now license their films for web delivery, whether streaming or download, as they see consumers voting with their wallets.

Whether the drop in demand for physical media is due to pirate or legal downloads, or both, there is no doubt that it is driven by the internet, which offers immediacy, convenience and quality, without one having to leave one’s living room. We can now browse huge catalogues of content, then choose what we want to watch, serve the popcorn, and start viewing without even having to get up off the couch.

Which is fine, of course, IF you have the internet! While high-speed internet is widespread in the developed markets, there are an awful lot of people in the world who don’t have access to it.

True, high-speed internet is making its way to the most obscure corners of the world, but mainly as 3G, which, good as it is, just isn’t good enough for streaming films, and certainly not in HD. And, even if the technology can manage ‘view on demand’, there is also a question of payment.

Despite the developed markets already talking about the ‘cashless society’, in developing countries cash is still king and credit cards are rare for the masses of people. Even if they are lucky enough to have one, the majority of European and American websites will not accept third-world-country issued cards for payment.

So, while internet delivery might be fine for markets in Europe, North America and some parts of Asia, it’s of limited use for the vast masses who live in the southern countries of the world.

It is not as if there is no audience. In Morocco, where I operate, between 30 and 50 million pirate discs are sold each year – between one and two discs per person per year – the vast majority of them Hollywood films. The situation is the same throughout the African continent. No doubt, this will remain the same after internet delivery becomes standard as in the developed markets. No DRM system is secure, so it will not be long before films may arrive in the Morocco courtesy of the internet, but will be distributed into local homes on disc by ‘sneaker-net’, at $0.30 or so per film.

Given that the major studios make no attempt to cater for third world consumer buying habits, an entire audience – an audience which wants product as legal and legitimate as those available in the developed market – is being abandoned and told they ‘don’t matter.’

But it’s not just economic and technical issues. There is also the question of cultural influence. For much of the developing world, ‘Hollywood’ is the face of the West. It represents the hopes and aspirations of many. And if Hollywood is giving up on vast sections of the world, there is another cultural – and technological – power which is vying for influence. The Chinese film industry is starting to tailor its output with a more world-wide audience in mind. And they have also recognised that a vast section of this audience will continue to rely on optical disc long after it has passed into ‘curio’ status in the western world.

Of course, economically, it matters little to China whether they sell blank discs to Africa for piracy, or pre-recorded discs containing the latest Hong Kong or Shanghai-produced blockbusters. They make money whatever way. But they are acutely aware (as it seems western studios are not) that developing nations wish to be taken seriously and have the chance to consume the same sort of products already available in more mature markets. China has long manufactured the masses of players for the southern markets, and has now developed an optical disc standard for HD which I am sure it will market, both players and discs, in developing countries just as aggressively.

Perhaps I am just nostalgic of a film industry which seems to be rapidly waning, and certainly of the optical disc industry, which I witnessed the birth and which, I am afraid, I am also going to see coming to an end. What is frustrating is that this is not because of a lack of consumers, but a lack of will to capture them.


Anthony I.P. Owen started in the DVD industry just as the format was launched in Europe, being invited to open a compression and authoring studio for Angel Films in Copenhagen, Denmark. At the turn of the millennium he moved to London and was DVD studio manager for Metropolis studios, responsible for many successful music and concert DVDs.

In 2005, Anthony moved to Morocco where he gave advice and training in the optical disc field to various government departments, the Gendarmerie and the armed forces, and worked for some years negotiating with various parties to bring legal home entertainment to the country. Unfortunately the global economic slowdown and change of focus by the major studios led to the abandonment of these efforts.

Anthony is currently involved in the design and construction of what is to become one of Africa’s most advanced all-digital studio and post-production facilities, based near the capital Rabat. Opening is scheduled for next year and it will cater for both domestic and international broadcasters, news organisations and content creators. Contact: anthony@lts-network.com
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