Another problem arises concerning video: the format, which is also true for the Extender. Microsoft can't tacitly promote illegal copying, and so the Extender and the PMC shouldn't be able to play DivX natively. However, the Giant of Redmond isn't very explicit about this point. Supposedly, it's been left up to the manufacturers. Clearly if conversion is necessary, part of the system's attraction is lost.

Anyway, that's not the crux of the issue. No format is going to stop people from doing things - users adopt and manufacturers follow, just as happened with MP3. To really fight pirating, manufacturers must offer solutions that are affordable and in phase with the technology. Whether something is in DivX or not doesn't change anything. If consumers with broadband can access recent, original content at a reasonable fee, they'll buy rather than pirate. We'll have to keep an eye on developments in this area.

In any case, no transcoding (conversion) solution is viable in the longer term. What's needed is a format that's suitable for distribution via network, and DivX or some version thereof seems to have the most promise.

There's another function the Extender won't have: reproducing a DVD played on the Server PC. A dedicated player will still be needed, which again is a solution that will be imitated. This kind of half-hearted attempt to protect content will only slow the overall burgeoning of the industry. Distribution has to adapt to the times, rather than trying to fight progress, which will win out regardless. It's a rear-guard action that's lost before it even begins. The future is with online distribution, and content publishers might as well just accept that.