bruce schneier, as always, hitting on the nail.
Apple pulled it on the recording industry. First iTunes worked in partnership with the major record labels to distribute content, but soon Warner Music’s CEO Edgar Bronfman Jr. found that he wasn’t able to dictate a pricing model to Steve Jobs. The same thing will happen here; after Vista is firmly entrenched in the marketplace, Sony’s Howard Stringer won’t be able to dictate pricing or terms to Bill Gates. This is a war for 21st-century movie distribution and, when the dust settles, Hollywood won’t know what hit them.