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Hollywood says it could get burned by DVD backups

Time: 13:11 EST/18:11 GMT | News Source: USA Today | Posted By: David Gasior

Next week, the first commercial software that promises to let computer users make backup copies of DVD movies will be released, a product that has the potential to be Hollywood's version of Napster. St. Louis-based 321 Studios, developer of DVD X Copy, plans to make the software available for download starting Monday at its site, dvdxcopy.com, for $100.

Using a computer's DVD drive, the software transfers the film's contents from the disc to the hard disk � similar to "ripping" music from CDs � taking about 4 GB of temporary space. The movie files can then be copied back onto blank DVDs, though the files would be far too large for easy Net swapping. DVD burners have slid in price from about $500 during the summer to as little as $300 today; high-end computers from Apple, Hewlett-Packard and Sony feature DVD recorders.

"Studios have a lot to worry about," says Raymond James analyst Phil Leigh. "This is going to impact Blockbuster's business. If the movies end up on the Internet in an open format like MP3, look out."

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