The Tricky Future of Digital Home Entertainment

March 21 -- Hollywood has seen the future of entertainment. And it's the decidedly tricky realm of digital media.

Players for CDs and DVDs could be just the tip of the digital home entertainment iceberg. Digital technology — from computer hard drives to the Internet to advanced broadcast and movie systems — will bring much more advanced entertainment options in the not too distant future.

"What we're going to have is a massive explosion of new entertainment [choices] for the home," says Victor Harwood, founder and director of Digital Hollywood, an annual trade conference that gathers artists and executives in the media and technology industries.

Click here to see some of the historical highlights of entertainment innovation.

Digital television systems will offer programs that are sharper and clearer than current broadcast systems. The Internet — or some other high-speed communications network — will allow studios to send or "stream" hundreds of digital movies directly to digital theaters and homes. New "set-top boxes" and "digital hubs" in homes will automatically seek out programs and content that matches consumers' interest.

Yet digital technology is also raising thorny issues among Hollywood, technology companies, and consumers.

Chief concern among entertainment companies and consumers, for example, is the balance of copyright and so-called "fair-use." To prevent their digital programs from being perfectly copied and distributed by pirates, Hollywood studios want digital protection schemes in place. But technology companies say such measures would make it more difficult for legitimate consumers to enjoy the benefits of the technology.

While both sides work to figure out solutions to such issues, the march towards digital diversions continues.

Faster, Cheaper and More Flicks?

Since most major motion pictures are edited using computer-based digital editing systems, studios and film-makers can save time by shooting directly onto digital video. Some directors are experimenting with shooting movies directly using digital video rather than traditional film stock. The next installment in George Lucas' Star Wars saga, for example, was shot in a digital format.