[wordup] australian politics doing good!?!

Adam Shand larry at spack.org
Fri Jun 22 18:44:37 EDT 2001


wow, most of the news from oz has been bad for quite a while, but this is
actually a piece of goodness.  go get 'em guys.

adam.

URL: http://www.news.com.au/common/story_page/0,4057,2032464%255E421,00.html

Regulator challenges DVD zones
By Consumer Affairs Reporter MICHAEL OWEN-BROWN
24 May 2001

A REGIONAL zoning system that forces consumers to pay up to 20 per cent
more for DVD movies is being challenged by the Australian Competition and
Consumer Commission.

The ACCC says major Hollywood studios have collaborated with the
manufacturers of digital video disc players to prevent discs manufactured
in the US, Europe or Asia from working in Australian machines.

The commission has asked the Australian subsidiaries of US film companies
to explain their actions in what could lead to the world's first legal
challenge to the Regional Playback Control system.

Under RPC, the world is divided into six regions. Australia is in region
four with New Zealand, the Pacific Islands and South America.

Each disc and DVD player is encrypted with a digital code so that only
discs programmed for sale in region four will work with Australian
players. This prevents people from buying cheaper DVDs overseas or through
the Internet. DVD movies cost about $35 here. The system aims to protect
cinema ticket sales by preventing people ordering DVD movies yet to be
released in Australia.

However, the arrangement may breach the Trade Practices Act.

ACCC Commissioner Ross Jones said in a recent speech the zoning system
prevented small film companies from distributing their movies around the
world.

"Their sales are generally too small to justify catering for region four.
This reduces competition to the advantage of US studios," he said.

By the end of 1999, there were 720 DVDs available in region four, but more
than 5000 in the US.

Australian Consumers Association spokesman Charles Britton said yesterday
the zoning system imposed a "severe restriction of choice".

Although unsure whether ACCC action could realistically force Hollywood
moguls to scrap the system, Mr Britton said "a statement of principle
would be very useful".

He said it was feasible that a court could order that all DVD players sold
here have a multi-zone capability.

This report appears on news.com.au.





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