For now, the MPAA is wading through constant legal battles in an attempt to stave off video piracy. But increasingly, consumers are capable of trading film files the same way they've been trading songs. If the MPAA takes a stronger stance on digital distribution, it could be very influential. In its fight against Napster, the music industry has been led by the Recording Industry Association of America. The MPAA could play a similar role for the movie industry and could even inspire the studios to work proactively to avoid duking out every round in court.
Sources say the movie studios do have plans of attack but that they are several and scattered.
Each studio seems to be developing its own, proprietary encoding system, a scheme that could be as disastrous as taking no action at all. There is going to have to be one way or a third party to come up with a standard. Privacy Policy Stock data provided by Stockpoint and its data suppliers.