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Antitrust complaint at the FTC about 3D content on BD

post #1 of 40
Thread Starter 
I am preparing to file a complaint with the antitrust division of the Federal Trade Commission against the practice of keeping 3-D blu-ray discs off the general market by giving exclusives to certain manufacturers of 3-D displays. I would like to have as much specific citable examples as possible. I think I know of most of them, but just to make sure that I don't miss any, would everyone please list here all the examples they know of. Additionally, my complaint certainly shouldn't dissuade any of you from filing your own complaints -- the more the merrier. After I file, I will provide you all with a copy of my complaint.
Thanks; Phil
post #2 of 40
Check Blu-ray.com for the most complete list of exclusives.

http://www.blu-ray.com/3d/

BTW, is there any precedent for prohibition of exclusive deals? What is the legal basis of the Complaint? I guess I wonder what the anti-competitive damages would turn out to be.
post #3 of 40
Thread Starter 
Quote:
Originally Posted by advocate2 View Post

Check Blu-ray.com for the most complete list of exclusives.

http://www.blu-ray.com/3d/

BTW, is there any precedent for prohibition of exclusive deals? What is the legal basis of the Complaint? I guess I wonder what the anti-competitive damages would turn out to be.

Thanks for the cite. Much precedent--primarily the Sherman Antitrust Act. This is not about damages --that would be a private court action. We would be seeking injunctive relief, just to stop it.
post #4 of 40
Is this something that could or would be pursued as a Class Action? Perhaps members that are interested in being Class representatives could volunteer?
post #5 of 40
Thread Starter 
Quote:
Originally Posted by advocate2 View Post

Is this something that could or would be pursued as a Class Action? Perhaps members that are interested in being Class representatives could volunteer?

The FTC would be the ones doing the real work and bearing the cost of litigation under my approach. A class action is appropriate if we wanted to go to court for damages--but that is not what I intend to do. It might be appropriate for us to have multiple complainants if a lot of us wanted to join and if it could be done in no more than a few days(it wouldn't be of benefit if it delayed the filing significantly).
post #6 of 40
Has it occurred to you that the fee these CE manufacturers are paying for exclusivity may well be the financial backing for the mastering of the films themselves in stereoscopic 3D Blu-ray format?

In other words, this content may not exist if it weren't for these deals.

The actual unit sales of the titles are miniscule.

Compensation may not be entirely financial, either... for example, what if Sony provided their $50,000 3D Blu-ray mastering software package for free in exchange for short-term exclusivity of a title?

Furthermore (ignoring for the moment the overly litigious nature of this entire theme), there is no legal basis to oppose this because title exclusivity is a standard business practice across the video distribution industry. Or do you plan to initiate legal action to have exactly the same titles available across Netflix, Amazon, iTunes, Microsoft Zune, Sony PS3 Video Marketplace, Comcast, DishNetwork, DirecTV, etc? There are movies that you'd have to buy a particular set top box in order to see, at least for some period of itme.

At least with exclusive 3D Blu-rays, you can usually find them on eBay or borrow them from someone, whereas with direct video streaming you have to buy the appropriate set top box.
post #7 of 40
What KC Coldbrook says above is somewhat true, Panasonic actually did the leg work on Ice Age 3 and Coraline to get them 'ready' for @home 3D.

Best of luck with the complaint, I think we all agree that it is a bit bullish at this point.

Jason
post #8 of 40
Thread Starter 
Quote:
Originally Posted by KC Coldbrook View Post

Has it occurred to you that the fee these CE manufacturers are paying for exclusivity may well be the financial backing for the mastering of the films themselves in stereoscopic 3D Blu-ray format?

In other words, this content may not exist if it weren't for these deals.

That could be part of a legitimate defense -- if it were true

Quote:


The actual unit sales of the titles are miniscule.

I think you are confusing cause with effect.

Quote:


Compensation may not be entirely financial, either... for example, what if Sony provided their $50,000 3D Blu-ray mastering software package for free in exchange for short-term exclusivity of a title?

All unlawful combinations in restraint of trade involve considerations of one type or another -- that does not make them lawful.

Quote:


Furthermore (ignoring for the moment the overly litigious nature of this entire theme), there is no legal basis to oppose this because title exclusivity is a standard business practice across the video distribution industry. Or do you plan to initiate legal action to have exactly the same titles available across Netflix, Amazon, iTunes, Microsoft Zune, Sony PS3 Video Marketplace, Comcast, DishNetwork, DirecTV, etc? There are movies that you'd have to buy a particular set top box in order to see, at least for some period of itme.

At least with exclusive 3D Blu-rays, you can usually find them on eBay or borrow them from someone, whereas with direct video streaming you have to buy the appropriate set top box.

Apparently you believe that all consumer protection enforcement is over litigious; your beliefs notwithstanding, the FTC is charged with both consumer protection and antitrust enforcement. None of these other examples you give are comparable or unlawful because they do not involve a restraint of trade-- Netflix, Amazon, et al. do not conspire with the blu-ray producers to deal exclusively with them.
post #9 of 40
LOL - this is the government we are talking about - the FTC. By the time they even acknowledge your actions, the movies themselves will be available at retail.

IMO, you don't have a leg to stand on legally. The movie(s) are the property of the studio(s). There is no restraint of trade nor a monolopy. The CEMs are giving them away. They are not selling them. It is a marketing deal between a studio(s) and a CEM(s).
post #10 of 40
Thread Starter 
Quote:
Originally Posted by DaGamePimp View Post

What KC Coldbrook says above is somewhat true, Panasonic actually did the leg work on Ice Age 3 and Coraline to get them 'ready' for @home 3D.

Best of luck with the complaint, I think we all agree that it is a bit bullish at this point.

Jason

If Panasonic could show that absent their participation IA3 and Coraline would not have been produced in 3-D blu-ray, that could be part of a legitimate defense. BTW, where can I find support for what you say?
post #11 of 40
Thread Starter 
Quote:
Originally Posted by Lee Stewart View Post

LOL - this is the government we are talking about - the FTC. By the time they even acknowledge your actions, the movies themselves will be available at retail.

That's why I have to file this week. BTW, if the majority of you guys are against my filing this complaint, you can talk me out of it. My interest is no different from your interest -- and I would be doing all the work -- with no billables.
post #12 of 40
Quote:
Originally Posted by pmalter0 View Post

That's why I have to file this week. BTW, if the majority of you guys are against my filing this complaint, you can talk me out of it. My interest is no different from your interest -- and I would be doing all the work -- with no billables.

You mentioned Antitrust in your OP as being the basis for your complaint. IMO, I don't see a foundation - there is no money involved. These exclusives are marketing deals between the studios and the CEMs.

I am basing my opinion on this:

http://en.wikipedia.org/wiki/Competition_law
post #13 of 40
Thread Starter 
Quote:
Originally Posted by Lee Stewart View Post

LOL -
IMO, you don't have a leg to stand on legally. The movie(s) are the property of the studio(s). There is no restraint of trade nor a monolopy. The CEMs are giving them away. They are not selling them. It is a marketing deal between a studio(s) and a CEM(s).

Virtually 100% of all antitrust actions, involve a "marketing deal" regarding the "property" of one party or the other. The relevant considerations are whether or not there is a "restraint of trade" (interfering with the normal competitive marketing of a product) and injury to competitors or consumers. Without knowing what your profession is, Lee, I know it does not involve antitrust law
post #14 of 40
Hey - you feel confident - it's your time and money - Good Luck!
post #15 of 40
Thread Starter 
Quote:
Originally Posted by Lee Stewart View Post

You mentioned Antitrust in your OP as being the basis for your complaint. IMO, I don't see a foundation - there is no money involved. These exclusives are marketing deals between the studios and the CEMs.

I am basing my opinion on this:

http://en.wikipedia.org/wiki/Competition_law

There probably is money or other "valuable" consideration involved. Lawful "marketing deals" involve efficiency considerations that produce consumer benefits. I don't believe there has ever been a lawful "marketing deal" where there are significant "economic rents" (where the price on the secondary market exceeds that of comparable products; e.g. a used Coraline selling for four times the price of a new CWACM).
post #16 of 40
I don't believe the FTC would rule on such an issue.

Moderators Note: I've edited the topic title to be more specific. pmalter0, let me know if it looks good to you. I've also deleted the other topic on the same subject.
post #17 of 40
Quote:
Originally Posted by pmalter0 View Post

If Panasonic could show that absent their participation IA3 and Coraline would not have been produced in 3-D blu-ray, that could be part of a legitimate defense. BTW, where can I find support for what you say?

I had read it before on the net, do not recall where as it was over a month ago and I also heard the same information from a Panasonic rep that was working a Magnolia special event. It appears that Panasonics own production plant was involved here, they actually made the blu ray discs themselves from what I read and what the rep stated. Now I cannot say if this is 100% factual but it is circulating and sounds likely since the major studios are still hesitant to produce 3D blu rays (well other than Sony but they are in a unique position).

Jason
post #18 of 40
two issues:
1. Very few people are ready for 3d bluray in truth. You need a compatible tv and player. This issue affects a very miniscule number of (very) early adopters. That's not saying your complaint is invalid, but:
2. Do we not assume that these titles are exclusive only for a limited time? That is what I assume. As Christmas approaches more people will be getting the proper 3d tv's and players and I expect some of these exclusives to then become available to all. There is no way these are long-term exclusives. 3D blurays main problem for the near future is CONTENT. They need all they can get. 3D bluray would never get off the ground if you couldn't get half the discs because they were exclusive to other tv's. Most if not all of these will be freely available to all by Christmas or at worst by next summer, by the time your complaint gets where it needs to be... it will no longer be valid. (they would not be announcing these wide releases until as late as possible, because they WANT you to think you have to get x tv in order to get the 3d disc you want most.

I think patience is your best friend here. I was patient for several years where I refused to buy many dvd's because I was waiting for HD discs. Fortunately the wait for 3d discs will not be as long, just wait till Christmas.
post #19 of 40
Thread Starter 
Quote:
Originally Posted by Ken H View Post

I don't believe the FTC would rule on such an issue.

To the contrary, that is exactly what it was established for.

Quote:


Moderators Note: I've edited the topic title to be more specific. pmalter0, let me know if it looks good to you. I've also deleted the other topic on the same subject.

No, you haven't made it more specific; you've made it into something very different from it's original intent(would we support asking the FTC to stop the exclusive 3-D BD deals) into something this forum has no competence determining: the legality of exclusive deals. Moreover you use the word "demos;" rather than the full length 3-D BDs that I addressed. By changing what I said, you changed the issue completely(of course exclusive "demo" deals are not anti-competitive or unlawful). If you oppose my filing the complaint, please have the courtesy of simply saying so and not modify what I said in such a manner so as to completely pervert it. Accordingly, I would appreciate it if you would return the topic title to the original. Thanks.
post #20 of 40
Thread Starter 
At this juncture, the nays are overwhelming the yeas; so unless there is a significant change by morning, I'm going sailing tomorrow.
post #21 of 40
Quote:
Originally Posted by pmalter0 View Post


No, you haven't made it more specific; you've made it into something very different from it's original intent(would we support asking the FTC to stop the exclusive 3-D BD deals) into something this forum has no competence determining: the legality of exclusive deals. Moreover you use the word "demos;" rather than the full length 3-D BDs that I addressed. By changing what I said, you changed the issue completely(of course exclusive "demo" deals are not anti-competitive or unlawful). If you oppose my filing the complaint, please have the courtesy of simply saying so and not modify what I said in such a manner so as to completely pervert it. Accordingly, I would appreciate it if you would return the topic title to the original. Thanks.

Moderators Hat On: The goal was to clarify the title to reflect the subject of the topic, which the original title did not. Since you didn't like my effort, free free to try again by replying here and I'll edit again.

Moderators Hat Off: As for the issue at hand, I'd like you to take it to the FTC, and see what happens. Again, I'd bet they would not rule on it.
post #22 of 40
Quote:
Originally Posted by pmalter0 View Post

At this juncture, the nays are overwhelming the yeas; so unless there is a significant change by morning, I'm going sailing tomorrow.

wish you luck on this one. but you will lose this one. i no there is alot of people that are excited for 3d content and i think you are one of them. but if you go on with it i hope you win. thanks for the efforts.
post #23 of 40
Quote:
Originally Posted by Lee Stewart View Post

LOL - this is the government we are talking about - the FTC. By the time they even acknowledge your actions, the movies themselves will be available at retail..

That pretty much sums it up! What a complete waste of time and money.
post #24 of 40
Tell them I'm mad that Avatar 3D won't be available for retail, and we have no idea when it will be. It's locked in that bundle and as consumers we should have some idea when it will be a stand-alone release. Even telling us the quarter (Q1, Q2, etc) would be better than nothing.

As others have said, I'm not sure if they'll listen, but if the OP is doing all of the leg work, why not? Add in Ice Age 3 - another title I want where I have no darn idea when it will be for sale. Late 2010? Late 2011? People have resorted to eBay, and that's not pretty.

I don't mind an exclusivity deal for about 3-4 months. But when it gets to over a year (I have a feeling Ice Age 3, Coraline, MvA will go that long), this is just ridiculous. But now that I think about it, video games have long exclusive deals as well - you can't get certain content unless you buy a certain console version (ex. Xbox 360 had extra Downloadable Content for Grand Theft Auto 4 that the PS3 didn't get). So that could be a defense - it's being done all the time.
post #25 of 40
Actually I'm not all that broken up about having to wait for some of these 3-D titles. I have an original PS3 fat boy and if there were tons of 3-D content currently available I might well be tempted to go ahead and purchase the Panny 350 player rather than do what I've decided to do which is to patiently await the promised 9/12/10 PS3 3-D Blu-ray firmware update.
post #26 of 40
Could this not also include video game exclusives?
post #27 of 40
Quote:
Originally Posted by LORDLICH View Post

Could this not also include video game exclusives?

This is exactly why pmalter's case will fail. Video game manufacturers have been providing exclusives with their systems for years. Sure, the hardware platforms are different, but they are in competition with each other. Another example is AT&T as the only carrier for iPhones.

Bundling a product not currently available on the market with another product is not anti-trust. Anti-trust would be if Samsung made a deal with all the movie studios to bundle all 3-D movies with only their TVs, leaving Sony, Panasonic etc. out in the cold. To be anti-trust, one company attempts to control the market at the detriment of all others.
post #28 of 40
Quote:
Originally Posted by Dreamaholic View Post

This is exactly why pmalter's case will fail. Video game manufacturers have been providing exclusives with their systems for years. Sure, the hardware platforms are different, but they are in competition with each other. Another example is AT&T as the only carrier for iPhones.

Bundling a product not currently available on the market with another product is not anti-trust. Anti-trust would be if Samsung made a deal with all the movie studios to bundle all 3-D movies with only their TVs, leaving Sony, Panasonic etc. out in the cold. To be anti-trust, one company attempts to control the market at the detriment of all others.

Yeah but you don't have to buy the console to get the game. The game is for sale to everybody. Even when games are in the box, one can still buy them.
post #29 of 40
If Panasonic obtained a license to produce the Bluray itself as a promo, then I'm not sure there is activity in restraint of trade.

How do Apple and ATT get away with exclusivity deals?
post #30 of 40
Quote:
Originally Posted by thebat68 View Post

Yeah but you don't have to buy the console to get the game. The game is for sale to everybody. Even when games are in the box, one can still buy them.

What good is the game without the corresponding system?
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