Hollywood Killer
Are downloads killing Hollywood? First answer - no, they are still making millions. Just not as many millions, which is why they're up in arms about it. An article I found states "the internet has brought a potent threat: pirates are plundering films and carrying off booty that rightfully belongs to the studios." (2008, p.86). This is true; it is theft. But if they took advantage of this distribution method, they would be cashing in on a market where they have no control. People would be more willing to download a legitimate copy from the comfort of their home for, say, $5? It doesn't seem like much, but it's gaining market share rather than losing profits to pirates. "Protected for years from digital piracy by huge file sizes, it [Hollywood] was not forced to develop an online retail model, as the music business was," but it's all coming a head and something needs to be done.
Are downloads killing Hollywood? First answer - no, they are still making millions. Just not as many millions, which is why they're up in arms about it. An article I found states "the internet has brought a potent threat: pirates are plundering films and carrying off booty that rightfully belongs to the studios." (2008, p.86). This is true; it is theft. But if they took advantage of this distribution method, they would be cashing in on a market where they have no control. People would be more willing to download a legitimate copy from the comfort of their home for, say, $5? It doesn't seem like much, but it's gaining market share rather than losing profits to pirates. "Protected for years from digital piracy by huge file sizes, it [Hollywood] was not forced to develop an online retail model, as the music business was," but it's all coming a head and something needs to be done.
It's tough to devise a system online that works. In 2010 the Digital Entertainment Content Ecosystem (DECE), a consortium of 6 studios, created one that allowed the consumer to purchase a film once and be able to use it on various devices. The issue though is: "Set the price for online films too low, and the studios will revolt against a threat to DVDs. Set it too high, and people will probably go on renting, or downloading films illegally." (2010, p.64) With the internet shoving DVD purchasing out of the way, a drop from 12 billion to 8.7 billion between 2008-9 (2010, p.64), I can see why they're worried and scrambling for a way to keep up. If profits continue to fall then I believe the result will be less investment in smaller, alternate films and more reliance on blockbusters they know will draw crowds.
Reference List
The Economist 2010, ' Business: Coming Soon: Hollywood and the internet', Jan 9th, p.64, viewed 8th September 2011 via ProQuest Central
The Economist 2008, ' Coming Soon; Hollywood and the internet', Feb 23rd, p.86, viewed 8th September 2011 via ProQuest Central.
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