Maybe studio execs are getting smarter. Or they’re finally hoisting up the white flag and deciding that if you can’t beat piracy, then why not discourage it and make money too? Ad-sponsored streaming just might become more pervasive while paid downloads slowly get phased out.

Or at least, that’s the plan say execs at a Variety magazine-hosted panel at CES. One soundbite from Dan Fawcett of Fox: “People online want to watch for free, because they can get content for free via piracy. Give the man a ’stating the obvious’ medal.

TV networks and studios just might decide that ad-streaming just might be the way to go, now that broadband penetration is gaining ground. Monday saw Sony Pictures TV announcing its distributing its Minisode Network. Minisode shrinks old TV shows to friendly Web format for the likes of say, Youtube. Sony is currently the only major Hollywood entity distributing more than flashy promos on YouTube. They will get a cut of revenue from the ads flashed at the bottom of said episodes.

Though studios aren’t making a killing yet with ad-supported content but according to Paramount digital prexy Tom Lesinski, “It’s not a lot, but we’re not losing money.”

What does this hold for the future and where does paid downloads come into this? Well, right now, despite iTunes still going strong and Amazon still trying to compete, legal downloads are still outpaced by a large margin compared to free, dubious downloads. It wouldn’t be surprising if media creators decide to put more resources into ad-supported content and create a win-win situation. Freeloaders get content without paying and content owners still make money from ads. And don’t we all deserve a DRM-free happy ending?

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Entry was posted on Tuesday, January 8th, 2008 at 1:16 pm under Online video, Web2.0.

Read more entries by Erna Mahyuni.
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