LAS VEGAS--Hollywood needs to establish a business model for digital distribution of movies before the opportunity to tap potentially huge revenues dissolves into copyright battles. That was the consensus reached during an intellectual-property panel discussion Tuesday at the National Association of Television Program Executives conference.

Doug McIntyre, CEO of broadband video application service provider On2.com Inc., says movie studios are mired in the search for the right technology to protect their content even as broadband grows, increasing the likelihood of movie piracy. "If I were the studios right now, I'd be worried about the fact that I'm dragging my feet when it comes to developing a solution," McIntyre says.

But convincing studio moguls to take swift action is no simple matter, says Howard Weitzman, CEO of digital-rights management firm Massive Media Group. "It's like moving glaciers," Weitzman says. "It's very hard to get someone to make a decision."

Vince Van Petten, executive director of the Producers Guild of America, says this is very much an urgent bottom-line problem: "If we can protect it, it's another area in which we can make money." But rushing the issue could do more harm if it results in flawed piracy protection.