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June 12, 1997: 4:28 p.m. ET

Time NEW YORK (CNNfn) - New technologies for video transmission over the Internet, such as digital video discs (DVDs), represent remarkable potential but also pose an inherent threat to global intellectual property rights, one of the most powerful media executives in the nation said. [INLINE] The Net represents "promise and penalty," Frank Biondi, chairman and chief executive of MCA's Universal Studios, told the audience of the third annual Price Waterhouse media conference here. [INLINE] "At some time, we'll be able to transmit video real-time" over the World Wide Web through the use of technology such as DVDs, Biondi said. However, to succeed, media companies increasingly need to address two principle challenges: protecting intellectual property and promoting the "brand," he added. [INLINE] "By and large, encryption can be broken. That's pretty scary," Biondi said.