Disney Touts a Way to Ditch the DVD

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Walt Disney is close to unveiling technology that it says will enable entertainment companies to adapt their business models to a new reality in which consumers increasingly rely on computers and cell phones in place of DVD players and TVs. The technology, code-named Keychest, could contribute to a shift in what it means for a consumer to own a movie or a TV show, by redefining ownership as access rights, not physical possession. The technology would allow consumers to pay a single price for permanent access to a movie or TV show across multiple digital platforms and devices—from the Web, to mobile gadgets like iPhones and cable services that allow on-demand viewing. It could also facilitate other services such as online movie subscriptions. The company has been quietly demonstrating Keychest for other movie studios and technology companies in a bid to get them to sign on. It plans to unveil the technology next month. Keychest aims to address two of the biggest hurdles blocking widespread consumer adoption of movie downloads: the difficulty of playing a movie back on devices other than a PC or laptop, and limited storage space on those computers' hard drives. As such, Keychest could put Disney on a collision course with an initiative, known as the Digital Entertainment Content Ecosystem, or DECE, that has similar goals.


Disney Touts a Way to Ditch the DVD