Region Encoding: Why?

Region encoding. This is the component of DVDs, BluRay, and HD-DVDs that dictates where those discs can be played. For instance, a DVD bought in England is forbidden from being played in Canadian DVD players. This is enforced through the copy-protection technologies implemented in those discs.

Let’s talk about why region encoding is good: It allows the movie industry to set variable pricing on their media. For instance, DVDs in Latin America will be cheaper than those in Canada. As such, the industry can milk each region for the most they can individually offer. Now this might sound nefarious, but it really isn’t. Think about the alternatives: either a single global price, or variable pricing with no enforcement scheme. If DVDs were globally the same price, then it might end up being too expensive for one region to afford. Likewise, without some kind of means to enforce the region encoding, then Canadians could import cheap DVDs from Latin America, at the expense of the movie studios.

But it’s not all good: region encoding, when implemented, also kills indy movies. I just spent $45 importing a docu-drama from Great Britain. It’s called “Ghost“, and it’s a great movie. Now there are two technical barriers that prevent me from playing this film. The first is that it’s PAL, the television format of UK televisions. This problem is easily solved by playing the film on my computer. The second issue is that it’s region encoded. In other words: Canadians aren’t allowed to watch the movie. Now I can bypass this, but soon, that will be made illegal as Canada adopts DMCA-like legislation. Illegal to watch a legally purchased movie, even when bought from the movie maker themselves – imagine that.

So I really don’t like region encoding. Now some might attribute this to misuse of region encoding, as DVDs can be made to be without such measures. Misuse or not doesn’t change the fact that the problem is still there to begin with. But there is a solution: tariffs on imports. Make people pay more, such that the purchases of cheaper DVDs from elsewhere would be dissuaded.

Now an economist would say: tariffs are bad. The more easily the goods flow through, the better off we all are. And frankly, I agree. But think about what region-encoding actually does: it cuts off that flow entirely.

So one has to ask: which is worse? No flow, or impeded flow. I’d go with the latter. Now the advantage of region encoding is that it’s government independent. The movie industry takes the control of the flow into their own hands, and they don’t have to rely on the slow process of democracy to stop shipments of authentic DVDs about. But let’s also not forget that there’s also a tariff system out there that already is government independent: shipping costs. That last DVD I bought from the UK cost me $13 for the customs alone, and the CD I had imported previously was much the same.

This also brings me to my next point: CDs. CDs do not have region encoding. I can buy a CD from Japan (as I have), and from the UK (as I have), and it will still play in my CD player. There is no scheme there to say “oh – you’re in North America. I refuse to let you play this CD.” Yet, I have yet to hear any stories about how the music industry is suffering because of this lack of implementation. Yes, we hear stories about how the music industry wants better protection systems, but that’s different – we’re talking about legitimate content here, not pirated goods. So what does that say of the usefulness of region encoding in the first place?

The only option to play these region-encoded movies is to obtain the pirated version. Yep, the pirated versions don’t include region encoding, and are thus devoid of such issues. I think that when the pirated version will play, but not the legitimate DVD, there’s a real problem at hand.

Thus concludes my rant.