NEWS REEL October 2002

 

A Panel Discussion


American Pavilion
Cannes Film Festival
Friday, 24 May 2002

Panelists:

Eric Bassett
Managing Consultant, davidlynch.com

Erkki Liikanen
Member of the European Commission for Enterprise and Information Society

Sean Maloney
Executive Vice President, Intel Corporation
General Manager, Intel Communications Group

Wim Wenders

Moderator:

Frank Rose
Contributing Editor, Wired Magazine


CYNTHIA SPENCE:
On behalf of Intel, we are delighted to present this panel discussion, "WIRED in Cannes: The Promise of Broadband." We are thrilled to be partners with WIRED on this. They are an esteemed publication that covers the entertainment and technology industry, and they are also part of the Condé Nast Publications family. I am particularly delighted to introduce their contributing editor, Frank Rose. Mr. Rose has been covering entertainment and technology for a considerable amount of time. His depth and breadth in this category extend to two books he has written. One, called West of Eden, is about the Sculley-Jobs relationship at Apple; the other is a book entitled The Agency, about the William Morris Agency. With that, Frank Rose.

FRANK ROSE, WIRED:
Thank you. We are here today to talk about broadband Internet access and how it is changing the entertainment business, and the film business in particular. Broadband is one of those concepts that has been around for so long that people have almost given up on it. I was talking about it with Howard Stringer, who is the CEO and Chairman of Sony Corporation of America, and he said that if he ever did an autobiography, he was going to have to call it "Waiting for Broadband." It's been ten years, he said, and it still hasn't arrived.

The Godot-like experience of waiting for broadband has tried our patience, it's true. But it has also given us the opportunity to experiment with what we have - to imagine, to take baby steps, and sometimes fall on our faces. Unlike Godot, broadband will actually arrive sometime. In fact, there are signs that it is at the door today. It is on the verge of going mainstream now in the US, in Western Europe, and particularly in East Asia, where in South Korea, which is probably the most wired nation on the planet, more than 60% of homes are already wired with broadband. In the US, it is now about 10%. The number of homes with a broadband connection has doubled in the past year, and Americans are actually signing up for broadband faster than they bought color televisions in the '60s, than they bought VCRs in the '80s and cellular phones in the '90s.

So it is happening, but what is it? Well, it's a lot more than just a faster Internet connection. It is something that transforms the Internet from something we read primarily - Web pages - to something we watch - video. And it allows you, as a filmmaker, to have direct contact with the audience. As a director, as a producer, you'll be able to offer your programming directly to the public for the first time. Another part of this is high-speed wireless networks in the home - things that come with geeky names like 802.11b. The point of them is that they will link the personnel computer with entertainment devices - with sound systems, TV sets, and game consoles. That means you will be able to download music and video from the Internet onto your PC and then direct it to any room in the house, even out to the car in the garage. CDs and DVDs will probably become obsolete within a few years. And there are other opportunities. In Japan, for example, there is a service called PercasTV, which stands for "personal broadcasting" and which transforms individuals into broadcasters. You link a Handycam to a personnel computer, you book time on a website from Sony, and you can stream your own videos to people anywhere on the planet, in real time. So to paraphrase Andy Warhol: In the future, everyone can be a TV station for 15 minutes. When that happens, I think, show business is going to be transformed forever.

The people who we have here: To my extreme left is Eric Bassett, the managing consultant of davidlynch.com, which has been doing "The davidlynch.com Cannes Diary" every day for the duration of the festival. Erkki Liikanen is a member of the European Commission in Brussels, responsible for Enterprise and Information Society, which is a fancy word for "broadband." Wim Wenders, the filmmaker, is certainly no stranger to Cannes. And Sean Maloney, who is an executive vice president of Intel, is essentially responsible for the technology that makes broadband possible. So we have a wide range of people from every side of the business.

Wim and Eric, I direct my first question to you. Broadband combines for the first time the production values of cinema and the interactivity, the possibility of interactivity, of the Web. How are filmmakers going to respond? Is film still going to be a storyteller's medium, or will it incorporate interactivity?

ERIC BASSETT, davidlynch.com:
For davidlynch.com, broadband allows us to create our own TV station on the Internet and reach our customers directly. That also means we need to produce everything. There is a fine line I think between Internet production right now and TV or film production, and that's one of the things we struggle with most - finding a production model that will allow us to deliver economically to the Web. It is a great thing, though, and it allows us to tell stories on the Web, as I said, directly to our customers. We have a pay-per-view model, so we take that revenue to help pay for it. Ultimately, for David Lynch, it's the creative freedom that it gives him. Many people have heard of the trials and tribulations with ABC over Mulholland Drive - well, now he can create a series on the Internet and go directly to his public, and if he does something that's very good, he'll get money back for it through pay-per-view. So it lets the public decide.

WIM WENDERS:
I want to answer not so much as a filmmaker but as a professional optimist. And my optimism consists of the fact that I think that storytelling in the widest sense, and cinema as an independent industry, are a work in progress. Now, there are people who are interested in progress - storytellers, filmmakers by definition, are interested in anything that is innovative, are interested in anything that enlarges their vocabulary. Our enemy, and I say that not literally of course, is the industry as such, because they are always happy with the way things are. At the moment we are at the birth of a new era - the digital era. As filmmakers, we are extremely happy because we can for once really enlarge our vocabulary, we can extend storytelling like never before. Four generations before us were dreaming of the possibilities we have now. We can do fantastic things, but we do it in a dead-end street. We can make fabulous movies on a PD-150 or whatever the tool, and at the end we have to transfer it to film in order to get it shown. Theaters don't have digital distribution and the only digital tool we have to show what we are able to do today is the DVD.

So the movie industry is willing to move if somebody is firing up their asses. And broadband is exactly what we need in order to force television, especially television to move their asses. Maybe it will become obsolete. And if we zap through French, Italian, and German channels these days, maybe none of us would miss television much, if you can have whatever you want on your computer. I wonder what television is going to do to react. They are going to have to react. And that's the fabulous thing, that's the great moment we're living in at this moment in the history of cinema or entertainment. Everything is moving. We can move beyond storytelling, we can invent new things - David is just inventing a whole new thing that never existed before. And that is just the tip of the iceberg. A lot of young people are making movies that you can't even dream of, and they are running smack dab against the wall because they have no opening. They have to convert to film and then they still have to find a distributor, so the whole beauty of the freedom they have today with digital filmmaking is ruined. They run against the wall. Broadband will make a big hole in that wall and you will see the wall will be flushed away by everything that is going to go through that hole.

ROSE:
It is obviously great for a person like you or David Lynch to be able to have your own distribution opportunities and to reach the public directly. But what about people who aren't well known, people who might actually need the benefit of a studio or a television network to promote them, not just distribute them but to establish an identity for them with the public. What are the opportunities there?

WENDERS:
The opportunities are endless because even if you have no name at all but if you make something that is worthwhile, you find a little audience over the Internet. If it's good, it will find its audience - I can only react as an optimist. Of course we are going to be flooded with a million digital movies that are all bullshit, but there will be jewels in there. They will be unknown in the beginning and the studio will buy them, of course, they always do. The unknown filmmakers who create notoriety will be picked up - I can promise you that. There are enough people in Hollywood whose only business it is to find out people who have talent, and they will find them. And I think it will change the landscape. I envy kids who make their first movies today because I seriously think they have a better chance then ever before.

ROSE:
Do you think we have finally reached the point in the US and Europe where broadband, via DSL and cable modem, has begun to become a mass-market phenomenon?

SEAN MALONEY, Intel:
Many of these statistics can stick in your mind, but the one that gets me is, if you look at the US right now - and I think this is true of Europe as well - the number of hours the consumer spends on broadband now exceeds the amount of time they spend watching television. And that is quite extraordinary, because everybody has very difficult, busy lives and often in their difficult, busy lives they sit in chairs like these at computers, and they go home and instead of plopping in front of the television they choose to spend more time on the Internet, even though it's a relatively uncomfortable experience in front of a screen.

Why do people do that? The reason they do that is because people are inherently incredibly inquisitive - they're curious. They want to control their lives, they want to find out things themselves. And that is an extraordinary opportunity. All these curious people form this popular new mass market. Most of the traditional powers that be are not going to take advantage of that opportunity. Clearly over the last ten years they have looked at it and they are choosing to see more how to limit it rather than to use it. And I think it is going to be the newer, more innovative or independent companies that are going to take advantage of it. But it's already a mass market - 150 million broadband users in the next two years, up to three people per household - we're getting into half a billion people. It's already a mass market.

ROSE:
When you talk to the big, quote-unquote, "content companies" like Disney you get the sense that, as far as they're concerned at least, broadband is being held back by computer piracy. Twenty years ago, Universal sued Sony and other hardware manufacturers - this of course was before Sony was in the movie business - claiming that their videocassette recorders were promoting illegal duplication of film. And Jack Valenti made these wild comments that sound exactly like the stuff you hear from him today about broadband - really, it's a time capsule. This actually went to court. And if Universal had won, the industry would have cheated itself of one of its most important revenue streams. So, is there a lesson here? Should filmmakers and producers and content companies see broadband as a marketing opportunity instead of just a threat?

BASSETT:
Security is a really big deal to us, especially to David Lynch, and we have put in every possible security measure that we can. All our users not only get a warning that's welded onto the site, but we also have a mechanism that tracks all their actions so we can find out if they are downloading something, and they have to hack it to download it. It still happens though - we have a long way to go. But in music, in film, people are always stealing things. It is going to happen to a certain extent, but you just have to do your best to keep it under control, and I think it would be a terrible shame if that's what kept us from moving forward. It's not stopping us.

WENDERS:
As an artist you have to see that some of that pirating is your best promotional tool. On the other hand, you don't want it to eat up all your resources, and I have a lot of musician friends who realize their resources are gone - for every CD they sell, five to ten times as many are pirated. So if it ends up eating up all your resources, then it's sort of hara-kiri, it's suicide. I think you have to protect yourself, and on the other hand some of these people that you protect yourself from are your best friends and your audience - so we have to find a middle way.

MALONEY:
I think we have to reach a solution, because we can't build an industry based on constant theft. You can't build a business where whatever happens could potentially get stolen. On the other hand, the industry has to recognize the concept of legitimate consumer use, and if somebody buys a piece of video or audio over the Web and is then unable to make a single copy of it or use it on another device, it is just not going to work - people are not going to accept that. We've had ten to fifteen years of building up a common law of reasonable consumer use, and at the moment the most extreme people in the entertainment business are saying, If you buy it, you can't even make a back-up copy. Well, we all know how unreliable computers are - guilty as charged! - and if you fill your hard drive up with Wim's latest works and it crashes and you have to go out and buy everything again, it's not going to work. So we are going to have to move towards some reasonable understanding of consumer rights, and at the moment I don't believe enough effort is being placed in that direction. But if the work is put into it, the opportunities are enormous.

ROSE:
Let's talk about Senator Hollings's bill. Many of you may know that in Washington, Senator Ernest Hollings, chairman of the Senate Commerce Committee, has introduced something he calls "The Consumer Broadband and Digital Television Promotion Act." You always know you're in trouble when you get a name like that. The idea of this basically - at least my interpretation of it - is to criminalize the computer industry if it doesn't somehow make illegal copying impossible. In other words, it's supposed to force manufacturers to protect their copyrights. From my point of view, it's sort of like asking the gun industry to sell weapons that only shoot bad people. But is this feasible? Technologically, could this even work?

MALONEY:
I do squirm when you compare us to gun manufacturers. We've worked for years and years and years on ways of copyrighting, protecting, and watermarking content, and it can all be done. But it's not a technology issue, it's a social policy issue. And it's the area we discussed earlier on, which is that there has to be an acceptance of consumer rights. When you buy something, you must have some reasonable ability to use it in other parts of your life. And at the same time, there has to be useful technology to prevent theft.

ERKKI LIIKANEN, European Commission:
The problem we are faced with in Europe now is that they put levies on computers, because some of them anyhow download films, so they all must pay. What I am worried about is, if we don't have something to see to it that those who watch films pay a price for them, it will easily slow down development and growth.

MALONEY:
I agree with you - the idea of putting general purpose levy on a computer or digital device in anticipation that that person may go buy something is absurd and unfair to consumers.

ROSE:
There is broadband and there is broadband. Cable modem and DSL can reach a certain speed, but they don't get you to a speed where you can watch a movie on your computer, or anywhere else for that matter, the same way you can watch a movie or a TV show on your television. How do we get to the next level? How do we get to a direct fiber connection - which is what we are really talking about here?

LIIKANEN:
The majority of Europeans now have a connection that is too slow. I think what we need to do, because I am a policy maker, is that we must guarantee that we have such a competitive framework that different technologies compete. Our approach is such that we don't pick one thing, but we try to create a level playing field where ADSL, cable, satellite, and fiber can compete with each other, and that guarantees maximum availability.

ROSE:
One last question. When the Internet allows anyone from me to David Lynch to put up a personal Web site and charge $10 a month to access whatever I've created, what does that mean for cable and satellite operators - not to mention TV networks? Do they lose their role as gatekeepers, or will governments permit them to block access to Internet sites that don't have a monetary relationship with them? In other words, could the Internet become a series of walled gardens?

LIIKANEN:
I'm a strong believer in convergence based on the Internet approach, which means that we need to have all these technologies based on all these standards interoperable, so that your content has to have access to different kinds of technologies. There are many technologies - PCs, mobiles, digital television, satellite, cable. If you respect this interoperability, you cannot actually block access by one means. Next week the European Commission is coming out with an action plan for broadband which is strongly based on convergence and technological parity. If I want to see Buena Vista Social Club, I want to have digital channels stored somewhere that I can order when I need.

BASSETT:
That's our philosophy as well at davidlynch.com. We are going to be there some day when the TV and the Internet merge. We don't feel that you can watch a feature film on a PC. Our longest are 10 minutes, there's one that's actually 12 minutes, but we are going to tell stories in that fashion until the convergence comes. We thought it would be here by now, but we'll hopefully be there when that happens.

ROSE:
Interactive television, digital television, was obviously a very big deal in Europe, but it has yet to take off in the US at all. What do you think about that, Sean? Do you think it will happen in the US?

MALONEY:
I think it definitely will. The difficulty is that a lot of these next-generation TV devices tend to be very difficult to use. People can't figure them out, and consumers can't understand them. As they get easier to use, inevitably they will take off.

LIIKANEN:
I don't totally agree. I was actually in Madrid two weeks ago. We had a show, this television station showed a channel where they had a few basic Web services - they had Yahoo.com and three or four government services and then you could order films. Of course, it was not the Internet. I found it almost easier to use than a PC, I didn't have to wait this ten or fifteen seconds before it comes on - it was on from the first second, and in a big screen, not so bad. The key question for me is that this standard must be interoperable so that it can work on different platforms. If we have standards for television, then if we have different PC standards, and a third one for mobile, we just lose it. We must keep it all open - create competition, real possibilities.

ROSE:
Anything from the audience? Any questions?

Q: Actually, I would like to take issue with your opening speech. It was very "WIRED," it was very typical of WIRED magazine to sort of decide what something should be and then write or speak as if that is how it will be. There is a very big gap between where we are now and where you are talking about, and there is an awful lot of speculation in there. The point I want to make is, the existing level of ADSL-style broadband is attractive to a lot of people primarily because (a) it's on all the time, so you don't get billed by the minute, you go flat rate, and (b) it's nice for downloading MP3 files as well as the fact that surfing's quicker. Now, there isn't any content out there that is going to make it compelling to people to move to the next stage of broadband while they are watching on their computers. The devices that link computers to TVs are fundamentally not there. We don't have this ability to use that pipe and then shovel it into the place where we've got the comfy chairs and so forth. So, what is going to make it so compelling that that gap will be bridged and we'll end up with the brave new world that the true believers want to have?

ROSE:
That is a very good question. I will say that every consumer electronics company in the world, from Japan, from Korea, from China - which is basically where all of them are from these days - is working on wireless home networks, local-area networks that will work within the home, that will make it possible to download something on the Internet and send it to your stereo or to your set-top box, or to your PlayStation or whatever game console you have. Microsoft is also very big in this area. But that said, it is definitely a couple years away, and again, there is broadband and there is broadband. What's available now, which is 802.11b, does not have the bandwidth to allow you to, for example, stream video from your PC to anywhere else. There is another technology in the works called 802.11a which is much, much faster. But again, that's going to take a few years to take off. In general, I think that we're all engaged in a huge experiment here. Some things are going to work, and some things are going to look incredibly foolish in retrospect - and "in retrospect" can mean as soon as six months from now. Witness much of the dot-com phenomenon, where you had four different companies that all offered pet food online - you know, it's really not all that interesting. …

BASSETT:
I think that just like everything else, it's money-driven. If it can be proven that people will pay money for content on the Internet, then all the great content will come - just as people accepted that they would pay $4 for a bottle of water when you can get it out of a tap for free, or the crazy guys that invented HBO that gave you movies all the time and everybody thought they were idiots and now it's this huge, amazing network. So as soon as the money is there and you get A-level content for all this infrastructure that's built, it will be a very fast transition - a very, very fast transition. That's the barrier we're trying to break down at davidlynch.com - trying to get that kind of content that people will be passionate about, to have a Twin Peaks-type series where people have to see it, have to see what happens next, and suddenly money isn't an issue.

MALONEY:
I don't think we are necessarily painting a rosy picture, we are just discussing what is actually happening. Broadband use has been growing at about 30 percent a year. There hasn't been any previous technology that's grown particularly faster than that. If you go to China, where people can get 100 megabits in their home for $10 a month, they're all signing up for it - well, they're not all signing up, but it's going up 50, 70, 80 percent a year. People are doing it without DVD-quality video, without all that kind of stuff, because they want instant-on access to the Internet. I think it would be really great if we did have more content and I'm sure it will come along, but in reality it is growing anyway.

Q: My question is, where's the blockage? If can take a cable input that goes into a television you can get a big, full-screen, color image, and if you take the same cable input and put it in a computer, you get a little box. Where's the blockage there? There's obviously enough room on that cable to get the information across, so why can't you get it full-screen on a computer?

MALONEY: Typically you get a 6 megaHertz channel on a cable, and if you stick the same signal into a PC, if you handle it properly, you can get the whole screen. Typically what people do is they use a smaller channel to send the video signal. That tends to be a policy issue. The technology is there to send TV-quality images. Now we do have bottlenecks around the Web, so your server slows down and pages freeze and all kind of of thing. So there are still problems to be solved.

Q: How far are we away technologically from getting full-screen video via the Internet?

MALONEY:
If you have a proper DSL signal - and I don't mean one that is crimped by slow service, if you get 300 to 500 kilobits per second reception - then you can get an image which is indistinguishable from a television image. But this is a piecemeal, because the cable speeds up and then you find that the servers are slow, and then you upgrade the servers and - every little thing has to be gradually, gradually upgraded.

Q: Is it being worked on?

MALONEY:
It is. It helps when it's not a recession, for sure.

Q: There is an infrastructure that's going to help everybody get access and also help consumers find out what's going on, and we're probably all carrying one at the moment, which is the mobile phone. The opportunity, I think, is really for the electronic program guide to move onto the mobile phone and use a space where you don't have bottlenecks, on the whole, and you don't have crimped access and the regulatory issue has been bypassed. And the lesson for us all is that this isn't a model that comes from TV or film, it comes from people instinctively learning how to use SMS text messaging - which is something the phone manufacturers never put in as a content channel but now everybody understands it as a content channel. Is that something you can work with to create compelling EPGs that become people's point of reference and can direct them to content on a regular basis?

BASSETT:
I would say no. At least in our model you can't. We are going to start delivering content - I'm not sure if everyone's familiar with a show called "DumbLand" that David did, a very crude kind of show, but we're going to start delivering that to handhelds. But that's all vector-based content. I don't think we could ever deliver a mainstream dramatic series.

LIIKANEN:
Two comments: I'm sure that if you had such a service available next week in France where you can have a videoclip of a film on your mobile phone and you can then push a button and get the whole film in your PC, there would be millions of clients. Another comment on mobile: Mobile is one auxiliary experience people have learned to pay for. On the PC, people don't pay. And I think this experience has shown that a business model at least exists.

Q: We have a Web site - Over the Moon Productions, overthemoonproductions.com. We put away a short film in 1998, April. So far we have 17,698 hits on it. We keep in contact with people all over the world. So we promised them something else this year. We are working on a very short script called "Wenders' List," about a good, lovely German director who tries to get his lonely friends into a party at the Martinez. So we're all outside screaming, "Can you get us in?" and Wenders says, "Please, get them in, get them in. They're not anybody, they're just freeloaders! They need canapes! "

WENDERS:
So how many hits have you had so far?

Q: 17,698 - bordering on 18,000 in the last 3 years. In the last eleven months, we have had 8,000, just by word of mouth. [Approaches the stage] We'd like to just do this little bit. All you've got to say is "Please, let them in! let them in!"

WENDERS:
Let them in!

ROSE:
The next question now.

Q: Earlier you said something about this is money-driven, and up until this point it has been very personal - personal from a consumer point of view, personal from a filmmaker's point of view. And since it's money-driven, I would like you to give us an idea of this universe - who's out there and who the players are. Is it companies? Is it people who have deep pockets? Who is in control of what's going on? I would like a larger view, please.

ROSE:
Well, I think the people - the good part and the scary part is nobody is in control, but the people who might be in a position to be in control are deathly afraid of it. I'm talking about companies like Disney, Universal, and so forth. They are trying to lead, but they're trying to follow at the same time - for example, when somebody like Universal issues CDs in Europe that have extremely restrictive copy protection mechanisms. And therefore, it is up to people like us - Wim and Eric and David - to do what we can.

BASSETT:
That is the beauty, it puts it in our hands. It allows guys like David Lynch to do it themselves - they don't have to have an MGM or a Disney behind them. It's still expensive, but you can do it for way less than you could as a television broadcast. I think that is what is so exciting about it.

Q: I'd like to ask your reaction to Canal Web - what went wrong there, and what we can learn from that? For three years it was pretty viable as a television station on the Internet.

LIIKANEN:
The money, the money. There was no real revenue model.

ROSE:
Content is not self-replicating, so somebody has to ultimately pay for it.

Q: On the possibility that it may be actually impossible to prevent people from copying digital content on the Internet - there is significant differentiation between Evian water and tap water, but there is absolutely no differentiation between a zero on one hard disk and a zero on another hard disk, so you are getting exactly the same thing. Is it perhaps necessary now to really shake things up and develop new business models based on giving away certain content and selling certain peripherals? I have been developing this myself with my record label, where I make available all the music free for download but only release on vinyl, which has to be the equivalent of a theatrical release, and then I do other peripherals - live events and so on.

BASSETT:
We do that at davidlynch.com. David has a section for experiments and then we have original series - pay-per-view series. And if one does really well, we make it into a DVD, which we also do ourselves. So you can see a poorer quality version on the Internet, and if you like it we've tied them all together and you could buy the whole two hours on the DVD.

Q: But what if somebody buys that whole two hours, copies it, and - in the not so distant future - just emails it as an attachment to 200 friends on his e-list?

BASSETT:
That would be a big attachment.

Q: With very, very fast connections and the possibility of accessing information very rapidly, it wouldn't be unfeasible.

BASSETT:
There are certain technical things you can do - you can give them "time to live" in programming, or you can give them how many times they can be watched, things like that. I think that's what would happen with MPEG-4. But you're thinking right along the lines of what we're thinking.

Q: The concern with all these kind of programmed-in security measures is that they're only secure if some 14-year-old doesn't crack them and post it on the Internet.

MALONEY:
There has been a digital content business for the last twenty years, which is the computer software industry. And yes, people can pirate software, but over a period of time the amount of software that's pirated in nearly every place in the world has reached some relatively stable amount. The majority of people understand that it's theft, in the same way that walking into a shop and taking something is theft. So yes, it is difficult to stop entirely, but there are ways of making it more difficult, and there are ways of getting it within social norms.

WENDERS:
I am a little scared of it becoming too difficult, for one simple reason - and I have to refer to analog times. I grew up as a pirating kid. It was even before television. I had inherited a crank projector and a box of eight-millimeter films from my dad, all Charlie Chaplin and Buster Keaton stuff. So of course I was traveling with this machine - I was at every birthday party and I was the projectionist. And when they got too bad, because I showed them hundreds of times, I started to cut them up, and I found this little machine - my friend had one - that could paste them together and make new movies out of them. And it worked beautifully - Buster Keaton and Charles Lloyd suddenly interactive was fantastic! So I am very, very scared that for a contemporary generation of kids that possibility to take it and use it and do what they want to with it is all of a sudden gone, because they block it all and it is out there but you can't eat it anymore and use it for your imagination. So my heart beats for every fourteen-year-old who cracks any of these.

Q: I am a film student at Northwestern in Chicago, and we have not had cable in our dorm, ever. This year the school announced that we're getting cable next year, except instead of installing cable, they're going to do it all with broadband. We're going to not have TVs in our room, we're just going use our monitors, and the cable's going to be pumped in through the Ethernet connections in our rooms. How are initiatives like that going to change the way cable and broadband are connecting? And what are initiatives like that - which I guess are pretty experimental and not very commonplace - what is that going to do for this whole picture that we're talking about today?

WENDERS:
What is that going to do for our sex lives?

ROSE:
I was in New York last week and I met with the chief marketing officer of Samsung, who told me that - I don't know how this relates to their sex lives, but in Korea and Singapore and China and Hong Kong, Samsung is working with developers who are building huge, high-rise residential complexes to do essentially the same thing. This is what's going to make it happen. I think when you start from scratch and you make this kind of thing available, people find uses for it.

MALONEY:
Arithmetic is a lovely thing, and every year or so a hard drive doubles in size. If you carry on - and it is going to carry on - by 2008 the hard drive will be about ten terabytes, which means it will be able to hold the entire US Library of Congress. Carry that another two or three years and every movie ever made can sit on a hard drive. So if you connect pipes into computers like that, they can store huge amounts of content locally. It's another reason why it's almost impossible to stop the technology from moving on.

Q: I have sort of an esoteric question. Coming from the point of view of an emerging filmmaker, I am still holding on to the romance, which is maybe a little old-fashioned, of realizing a dream like Paris, Texas and seeing it on the big screen - just the ceremony of having your work shown that way. And I've got to say that I can't get terribly excited about doing all that to beam out a little film on a little picture like this. Is that a dream I should maybe let go of? I know it's great for promotion, having broadband, but what about the ceremony of going to a big theater and seeing a movie?

WENDERS:
It will be much more than a great promotional tool - a tool to maybe even remind people of all the different ways you can tell stories and experimental movies and God knows what sort of filmmaking that right now has disappeared. But I think I won't be scared at all - I think the better and the more we have of this, the more theater owners will be forced to give us the real thing. And I don't think that in ten years theaters will be gone - they will be even better than today, they'll be much better. And I am happy about all this firing energy into a lethargic industry which basically wants to keep it as it is, because they will be forced to make things better, and in ten years you will see movies so much better than today. We'll have digital projection that will allow theaters to be so much more versatile. If you want to see the original version, you come two hours later and you'll see the original version of the same thing. Or depending on how many people show up at the box office that want the subtitled one, you won't get the dubbed one.

I think the movie experience will continue to be the top of the line. It will still be the biggest attraction. In the '80s everything was always the end of cinema, and what happened? It became bigger and better. It will become even better. Some of these things that will be developed in these years of transition by these filmmakers and that might only come true because of broadband - I don't know how, but they will change the face of cinema too. In ten years you might see filmmakers on the big screen that couldn't have made it if they didn't have this door that they have now.

 

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