1)What competitive forces have challenged the movie industry? The movie industry is challenged by increased levels of high-speed Internet access, improved PCs with DVD readers and writers, easy-to-carry video devices, and leading-edge file-sharing services. These forces make the video download easier and faster than ever before. 2)What problems have these forces created? Meanwhile, benefits are not the only things came with these competitive forces, problems came as well. The movie industry has a recession.
They cannot make revenue as much as before by releasing movies, people more like to download a free movie or even it is illegal rather than buy tickets or buy a DVD home. At the same time, these free download things also involve copyright infringement. Most of these download sources are from people who have no permission to upload these movies or clips. 3) What changes have these problems caused the movie and television studios to make? Movie companies have to make some changes to adapt to the market.
They cooperate with sites such as CinemaNow and Movielink to sell downloadable movies online with a 24-hour watch time limitation. Describe the impact of disruptive technology on the companies discussed in this case. YouTube, a video-sharing website, started their operation up in 2005. Many YouTubers upload movies or movie clips without permission which infringe the right of major studios, including NBC Universal, Time Warner’s Warner Brothers Entertainment, and News Corporation’s Twentieth Century Fox.
YouTube cannot deal with this situation well, because hot movie clips are from multiple users and they can be moved as quickly as they were posted. Major studios have a recession on the DVD market, and this infringement behavior leads they lose money in cinemas. Q3. 1)How have the movie studios responded to YouTube? The movie studios are seeking $1. 25 billion from YouTube. And before 2007, after Google purchased YouTube, the movie studios seek a way to cooperate with YouTube about establishing licensing agreements which make copyright content available legally.
2)What is the goal of the response? The goal of the response is to protect their rights from infringement. And their negotiation shows that the movie studios have realized it is important to put more attention to online digital market. The movie industry should move forward to a new potential market. 3) What can the movie studios learn from the music industry’s dealings with online digital music and copyright infringement? The movie studios should know it is an irresistible trend that improvements of the movie and music markets move towards to digitized media.
Digitized media can promote new releases on time-saving and money-saving bases. And it is important protect copyright if you do not want to lose revenue in a biggest movie and music market. Q4. Should motion picture companies continue to use YouTube to promote their new films? Why or why not? Motion picture companies should continue to use YouTube to promote their new releases. There are three reasons. First, promotion on YouTube is time-saving. YouTube, this heavy traffic website, has millions of visitors which are much more than other video-sharing websites.
Thousands of people around the world upload, download, watch and comment on YouTube every second. YouTubers can see a new release at the same time its promotion posted. Second, it is more money-saving. Promotion online saves the cost of advertising expenses (prints and related fees), DVDs stocks, shipping expenses and salaries of salesperson and other expenses in real-life stores. Third, it is trend that world is becoming smaller because of the Internet, and online promotion or release will be the most efficient way for a new product.