An industry executive speaks

In a series of Q&As, frontline practitioners in all facets of the packaged media and digital delivery industry share their views of things past, present and yet to come. It's the turn of MATHEW GILLIAT-SMITH, CEO of Fortium Technologies, a content protection solutions provider.

Where do you see your company's comparative advantage in this highly competitive market?

By creating innovative and customised security solutions for studios in the pre-release and home entertainment space Fortium has been able to create a solid niche business that is distinct from others. Our advantage is being able to offer a production line of relevant and updatable security solutions that measurably protect content.

Amongst the range of services you offers, which one did grow in importance over the past 2 years, which one diminished, and which new service(s) will you be offering in the coming 2 years?

Without doubt file security has been the largest growth area in response to customer demand from those who have found that file delivery, especially via the cloud, is not secure. Our MediaSeal solution which protects proxy files 'at rest' on Avid, Final Cut and Adobe systems during post production is a good example of meeting such demand.

DVDs predictably continue to be in remission, but Patronus anti-rip and DVD PIN-play continue to be popular for higher value pre-release and special interest content. Blu-ray seems nascent in Europe, while in the US early interest in protecting discs has not materialised although piracy levels continue to rise. In the coming year, we are creating a major new digital security solution for the leading distributor of non-theatrical movie content.

There is a lot of alarmist talks about the rapid demise of packaged media in the face of online delivery. What is your view as to how long discs will be around?

If my family is anything to go by, there has been a notable transformation over the last three years. Back then we were buying DVDs, two years ago we were renting packaged discs and this year we using VOD from Sky, Apple TV, catch up TV and so on. The exception being Christmas stocking fillers and birthdays where you need something physical. I think the availability of better quality TV programmes particularly from the US and the lack of new movie content via the above means TV is winning the battle for consumers' time and wallets.

Given the slower than expected take-up of 3D, do you thing 3D is here to stay or consumer interest in stereoscopy is temporary?

The profile of 3D has certainly dwindled. I believe 3D is here to stay for theatres and is an excellent attraction to get you out of the house for the all-important full quality cinema experience. But for mass-market consumption it doesn't seem to have won the necessary appeal. Novelty is good for business, but the ROI for whoever is providing it is never guaranteed.

Do you think the consumer take-up of 3D depends on the arrival of glasses-free autostereoscopic systems. If yes, how many years do you believe consumers will have to wait for a high-quality glasses-free system to rival the existing shutter glasses 3D systems?

I think people would love to watch 3D if they didn't have to change their habits or spend more money. When you attend CES, NAB and IBC and try the latest and greatest 3D experience with and without glasses some solutions seem very compelling while others are disorientating with blurred backgrounds so the jury is out as to how long glasses free will be available.

Cloud-based UltraViolet digital delivery has yet to make inroads in Europe. What needs to happen for consumers to embrace this digital service? Could UltraViolet be superseded by large retailers' own digital locker system like Tesco's Blinkbox?

Explaining UltraViolet to anyone outside the industry is an unenviable task. UV will be adopted more widely when it becomes seamless to the consumer and packaged with something of value.

Do you think UltraViolet has the potential to increase sales of BD discs (as the studios intended) or be the death knell of the packaged media?

There will always be different camps with those who want to own their content and those that are happy just to watch once. For those who like to own, UV is a great concept and it should build BD sales.

What do you see as the opportunities and pitfalls associated with Digital Copy on a disc?

It will surely be seen as a competitor to UV. The name Digital Copy sounds logical, but I understand the concepts pre-dates many of the current DRM propositions which may be more technologically adept at achieving the same goal.

How much of a revolution does smart TV represent, given that consumers are already comfortable using other screens (laptops, tablets and smartphones) to access Internet-?delivered content?

This is another niche sector appealing to a limited sector. Laptops, tablets and smartphones are the established way of accessing content online and it will be hard to change habits to something that may be considered less easy to use.

Ultra high definition 4K TVs are coming to the market. Is it a response to consumers demanding a better quality picture or a push by CE manufacturers who need to introduce higher-margin products?

I think it is the latter but 4K is going to be a fantastic viewing experience for a niche market due to cost and lack of available content. I think it is very important to keep innovating in this way.

Do you think 4K could be the shot of adrenalin Blu-ray needs given that a BD disc is best suited to bring ultra HD content to the home?

In theory yes, but the problem is technologically how to get such large content in to the home in a cost-effective and timely manner.

How to you see Hollywood squaring the circle between the inexorable fall of high-revenue producing packaged media and the unstoppable rise of low-revenue generating online digital delivery?

Studios are experienced marketers and I am sure have looked at most things in trying to heighten the perceived value of the packaged media over online. Meaningful discounts for future purchases authenticated by proof of prior purchases, and other such concepts where consumer feels they are getting a good deal, much like Tesco offers at the checkout, would help.

If you let your imagination run wild, what system, format, application aimed at delivering content to the home would you like to see implemented in 10 years time?

Immediate seamless viewing of new movie content on my home TV for which I would be happy to pay a premium for.

Contact: www.fortiumtech.com....

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