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Before Napster started shaking up the music business, the industry was alsways disorienting to sell to. Pre-dating all the copyright fights, the problem is that the labels did their budgeting on a CD-by-CD basis. They rarely bought marketing infrastructure at the corporate level. The Internet copyfights changed part of that, and I bet that 360 deals will change more. As the timeframes that the record companies care about stretch out, so will their ability to amortize infrastructure.
What hit me like a ton of bricks the other day was — now that movie copying is catching up with music copying, what’s the Hollywood equivalent of the 360 deal? And, will that make the studios more willing to budget on the life of a story franchise instead of movie to movie?