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There are lots of bizarre story lines related to this - including, apparently, Apple turning Sony down when approached with a similar deal for iTunes. Or the whole idea of how this might actually show the Hollywood studios the value of releasing movies online at the same time as in theaters (a message many have been trying to send Hollywood for ages, which Hollywood is quite resistant to). And, of course, there's the whole story line about a giant company being bullied by a few stray threats about showing the film in theaters, which almost no one thinks were serious.
Still, the story that is most fascinating to me is tying this whole thing back to that original story, about "Project Goliath" and the plan to conspire to attack Google - and the fact that when Sony needed to find a place to stream the film, it turned to YouTube, a Google-owned company. Huh. Of course, this fits with the long history of the legacy entertainment industry lashing out and attacking the creators of the innovations that industry most needs. The recording industry attacked radio when it first came on the scene, though it eventually enabled the music industry to grow so big. Hollywood, famously, claimed the VCR was "the Boston Stranger" to the movie industry - yet four years after that statement was made, home video brought in more revenue for Hollywood than the box office. The RIAA sued one of the first MP3 players, yet digital music is a major, growing source of revenue these days. And, of course, Viacom engaged in a many years-long battled with YouTube.
Maybe, just maybe, one of these days the legacy entertainment players will get the message that innovators and entrepreneurs aren't the enemy. They're the ones providing Hollywood (and music and other industries) with all the tools to better serve the market.
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