Cloud-based media service M-Go signs on most Hollywood majors

Problem: DVD/Blu-ray sales are dropping. People aren't making up for the lost sales via Apple or Amazon rentals. Solution: M-Go. The joint venture between Technicolor and DreamWorks Animation will let people buy movies (and eventually other content) that will be stored in the "cloud." So just like you can access your Gmail from any computer, people would be able to watch
movies on any of their devices. For families and individuals with multiple TVs, computers, tablets, and cell phones, this sounds like a perfect solution. However, there are still a few hills for M-Go to climb.

One is that all the studios need to make their content available via M-Go. The service just announced a big win in that department. Almost all the major studios have signed on: NBCUniversal, Paramount Pictures, Sony Pictures Home Entertainment, Twentieth Century Fox and Warner Bros. Digital Distribution. I don't see any indies in there, but M-Go probably wants to roll out the service with majors first. One noticeable absence is Disney, but that's not a huge surprise. The studio is notoriously protective of its content and rarely follows suit when it comes to new formats or modes of distribution. In fact, it pursued its own service, Keychest, though the status of that project is uncertain. However, if customers really like the M-Go service, I expect Disney to sign on or actively pursue Keychest.

The other big problem is device compatibility. M-Go will also be compatible with UltraViolet, another cloud-based service. However, Apple's iPads and iPhones will not be able to play movies purchased with M-Go. Only Samsung (which has a bit of a beef with Apple right now), Intel, and Vizio devices will be able to play movies with M-Go. That's the disappointing part. People don't like to buy content that can only be played on specific devices or in certain ways. They want freedom. That being said, this is an improvement over earlier DRM (digital rights management) that controlled how much people shared their content. Apple songs used to be only playable on a certain amount of devices. My Windows Media Player used to go berserk whenever I tried to play a DVD on my computer. One time it broke my whole computer. "Yeah, that DRM stuff, it messes everything up," said the techie assigned to fix my laptop. I switched to another media player on his advice.

The third problem is that these projects aren't necessarily great innovations for consumers, but another way for studios to monitor their content and extract fees. If M-Go is anything like UltraViolet, there will be some fine print attached. This editorial is quite scathing, but it points out at least two red flags for consumers. One, under certain circumstances an UltraViolet $15 movie purchase will be subject to upcharges if you play it on, say, more than three devices. The other huge red flag is that digital downloads are only valid for one year. I can't even believe that would be true.  The other part of UltraViolet is WalMart's Vudu service, which allows people to bring in old DVDs and get a digital copy for $2-$5. Which apparently has a built-in self-destruct device. Why would people go through the trouble of converting to a digital copy only to discover they don't really own their movie after all? It's worth pointing out, as author Molly Wood does, that tech-savvy people can easily rip a DVD themselves and enjoy it without restrictions on devices, expiration dates, or fees. But that's illegal, mainly because those ripped DVDs can easily turn up on torrent sites. If people feel like they don't really own their content, they could pay one-fifteenth as much and rent it on Redbox.

It's nice that Hollywood is acknowledging the reality that people want to watch content on more than just their TV, but studios should be aware that heavy-handed DRM will turn off tech-savvy people who can circumvent regulations while burdening people who simply want convenience and the ability to easily share content in a household.