Schaefer said that original music is produced from the beginning in digital form '“ making it immediately available for online distribution. But movies are first confined to celluloid for distribution in movie theaters, and therefore remain off-limits to illegal online distribution. Only after companies begin marketing movies via videocassettes, DVDs or television do they become candidates for digital online exchange. And by that time, movies have already earned a lot of money at movie theaters and the viewing public and media are focused on the next blockbuster.

Film companies and distributors, rather than fearing the digitalization of films, should embrace the technology, Schaefer said. As broadband Internet connections become prevalent, film companies will be able to easily deliver movies digitally to home users, opening huge potential. Digital delivery '“ often called video on demand '“ is much cheaper and efficient than physically delivering videocassettes.