The panel was unanimous that the issue of digital rights management is the largest hurdle to be overcome. Greenhall said the Internet currently is no good for delivering movies. Consumers will start to see digital distribution of movies begin in earnest by the end of 2001, Greenhall said. In nine months, it will be physically possible. The rollout will gradually increase over the next nine to 18 months.
Rights management is the biggest issue, but broadband is important, as is quality.
Morley said Qualcomm is looking at the picture from a different angle than the studios. For the content holders, it is more about protection than anything. Lelyveld said Disney expects to be competitive in the new digital community, but said the company respects the old community too. As digital cinema rolls out, we think of it as raising a community. Lelyveld thinks Disney will use digital cinema for distribution some time in the next three years, but said the studio is not rushing.