Compete? Or Cooperate?

Slow news day, but Slate is running an article about how Hollywood uses a common database system to prevent movies from directly competing with each other. Now I tend to think direct competition is a good thing. The author of the article points out that the common system has plans to expand into other entertainment markets. Doesn't pass the smell test to me. Great Adam Smith quote.

"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."—Adam Smith, The Wealth Of Nations