"The most important thing is that it catalyzes getting premium content onto the Internet so people can actually receive this into their homes, protect the value of the content through encryption and create a good business model I think for the content providers much like some of the music sites have done for the music content providers."
A former Sony Pictures executive will head ClickStar…..which will launch its new service early next year. Ottelini says digital rights management…preventing people from being able to copy movies they download…will be a key to its success…
"The beauty of this model is each transaction has an individual encryption key, not like the DVD distribution system today where there's 11 or 12 keys and you break once and you break them all. This is…if you break it once…it's only broken for that one transmission."
The challenge will be to convince Hollywood to go along with the plan to allow the downloading of movies while they are still in theatres. Current online movie services…such as Movielink and CinemaNow….only make movies available after they are released to the home market on DVDs. About Intel's role…
"We're not intending to become a content company. We're intending to help provide some start-up funding for companies that help catalyze this kind of content coming onto the Internet."
Bloomberg Boot Camp, I'm Fred Fishkin.