Article at a glance:

The answer to video piracy

Media companies, broadband providers, and PC makers are stalled as they try to develop video-on-demand services. The copyright owners worry that pirates will steal their content unless protection schemes are in place. The broadband companies and hardware manufacturers are concerned that if they play the role of copyright watchdogs, consumers will reject their services and products. While these companies hesitate, unauthorized online services share millions of music and video files, with no one collecting a dime.

The take-away

The solution to the piracy conundrum begins with more cooperation among the major players. Media companies should give broadband providers a cut of their revenues in exchange for help policing the heavy file-sharing violators. PC makers could encourage video-on-demand services—and the equipment upgrades they will bring—by adopting copyright protection technologies.