Self-described Hollywood "fat cat" Peter Chernin will take the stage at Comdex in Las Vegas on Tuesday to deliver the technology megashow’s first keynote by a media executive.
As president and COO of the News Corporation, and also as chairman and CEO of the Fox Group, Chernin oversees an international network of news and entertainment companies.
Chernin’s message: The key to a tech sector revival is solving Hollywood’s piracy problems.
"I am going to say two broad things," Chernin said in a telephone interview. "Number one, the stealing or looting of digital content is a bad thing. Stealing's bad. Stop doing it."
Chernin also promised his speech will take apart the most common arguments used against the entertainment industry in discussions about piracy.
"People say it's a bunch of fat cats in Hollywood getting what they deserve. Sure, there are a few fat cats, like me," he joked. "But there are thousands and thousands of people involved in the creation of content. Their careers are absolutely being affected."
More importantly, Chernin will propose that effective antipiracy technologies will pull the tech sector out of its economic slump, by encouraging more and different kinds of digital content. He will cite stats showing the potential upside in sales of broadband connections, home networking gear, digital-rights management software and backend media servers.
"In the long run, the piracy of content may hurt the technology business more than it affects the media business," he said. "If we can work together to solve piracy, I think it could be a driving force for the growth of the technology business."
"I have no illusions that any protection devices are going to be perfect," he said. "But we do need to give people some consciousness that what they're doing isn't right."
Contrary to charges by online activists, Chernin claimed content makers generally support time-shifting and the fair use of personal copies of digital media, because they add to consumers' enthusiasm for music, movies and games.
"Hollywood would be not only willing but anxious to supply content, to the extent it's protected," he said. "God knows we're as interested in making a buck as anybody."
Many technology companies, notably Microsoft and Real Networks, have supported attempts to provide better digital rights management.
Still, Chernin's message will be delivered to a tough audience.
"I hear this all the time. They are always looking for someone else to solve their problem," said Gary Klein, a vice president for the Consumer Electronics Association, a consortium that represents more than a thousand manufacturers. "If Harry Potter is on the Internet before it's in the theaters -– well, whose fault is that?"
