How big of a problem is the lack of an HDCP link for the legacy HDTVs in the market? According to Dtrovision’s founder, Minsoo Park, there could be as many as 6,000,000 sets that can’t pass the best HDTV content. And if Hollywood gets its way, there might not be any way to get HD output from your HD sources sticking early adopters with 480p HD from their Blu-ray or HD-DVD discs that could display amazing 1080p only if their sets had an HDMI input.

The question begs to be asked – should the HDCP movement be blocked to protect the interests of these early adopters? Consumers with a $25,000, two year old top-of-the-line plasma might say ‘yes.’ Worldwide there are over 400,000,000 installed TVs thus the number of sets currently in the marketplace that can’t meet today’s standards are relatively small when you consider the impact of scaring away Hollywood from releasing their movies in 1080p on Blu-ray or HD-DVD. Older DVI-based sets can take HDTV signals through analog inputs and can run high resolution computer images through their DVI inputs. Considering the price drops on flat HDTVs so far and how much lower they will be as HD discs hit the market at some point likely next year, it may be better not to fight.

The consumer with the 63 inch plasma that cost 25,000 and is now worth $6,000 (or less) understandably might not be happy but the hard reality of today’s home theater market is that the sources and displays are much more like computers than the audio gear of yesteryear. There are no guarantees as to the life span or the relevance of the technology one buys unless explicitly stated (which nobody does).

What top video companies should offer is aggressive trade-in programs designed to help the all-important early adopter minimize his or her loss when upgrading to their next set. If savvy video companies can inspire the guy with his old CRT projector to get a better-than-market value trade versus a new HDMI based product, perhaps many people would feel better about giving into copy protection.

Hollywood feels the need to protect their movies more so than ever when given the possibility of 1080p copies being rented at the local Blockbuster. The reality is that it isn’t Joe Schmoe with a Samsung rear projection DLP set at home who has the latest home video blockbuster available on the streets of Beijing the day after its release. More importantly, the people who do feel the need steal Hollywood’s movies will surely find a way around HDCP protection. The real issue comes from looking into HDCP’s protection power in terms of the Fair Use statutes. Coming to a court near you will be a battle to see if Hollywood is even entitled to implement such a protection scheme.

Sources: Widescreen Review, New York Times, DVDsite.org