Case Study 1
Submitted in Partial Requirement for
Managing Information Systems
Important Case Facts
Widespread use and ease of access to high-speed internet connections, powerful computers, and portable software devices have changed the way people obtain songs, videos, TV shows, and books. File-sharing and DVR service have increased the ease at which TV shows and music can be uploaded to the internet and shared with other for free. Although these TV shows and music files are illegal to share it the current laws against those who supply and download these digital files have almost no effect on users because of the scarcity in frequency in which these laws are enforced.
YouTube, which was started in 2005, is the most popular video-sharing website. Over 150,000 unauthorized video clips of copyright material show up on YouTube every year. YouTube is working with the copyright owners to remove unauthorized material, but that doesn’t keep users from uploading their copyright files.
To help combat this problem ABC and NBC broadcasting companies, formed Hulu.com, a website that offers TV shows a week after cable broadcasting free-of-charge; the only catch is that you have to watch a few commercials. Even with Hulu.com trying to help quell the overflow of copyrighted material on the internet, many households are cutting their services to cable and satellite companies for Netflix and Hulu.com.
Cable and satellite TV show providers are losing revenue from service payments and fees to those household that are dumping their service. Hulu.com is suffering from corporate growth and last one of its major sponsors. Key Issues
•Ease of access to copyright material on the internet – File sharing and websites in different countries means U.S. law cannot be enforced and files taken down. This problem comes from new technology and new threats and inefficient external business processes. •Powerful computer and handheld devices able to steam videos – these devices allow users to have the same video quality that they receive on their TV’s. Problem comes from changing external environment. •Hulu.com not combating the problem quick and well enough – Hulu.com is slightly effective but it would take all broadcasting and TV shows working together to make the sight a viable weapon against online copyrighted material. The problem comes from the changing external environment. •Netflix being a large competitor – Netflix has the ability to give viewers wanted movies and TV shows as long as the user doesn’t mind waiting a season to catch up on the new episodes. This problem from the changing external environment and adds to declining market share. •No way to control fully control copyrighted material on the internet – There is no way to control what is on the internet unless all countries that can host a webserver collaborated and developed a team of crack computer programmers to create viruses to shut down illegal sites. •Hulu.com lost revenue and shows – Hulu.com lost one of its major suppliers of TV shows. This problem comes from inefficient internal business practices and declining market share. Alternatives/ Evaluation of Alternatives
•Make all cable or satellite TV shows available online and able to stream to any users of choice devices with a subscription for service (cable/satellite).
Making all TV available either one website or multiple respective corporate websites with the same means of access for all the TV shows would be helpful in combating copyrighted internet material because with your cable or satellite subscription for service you could also view your TV live on the internet or wait till later and view at your leisure. The cable and satellite companies would have to program the DVRs to only allow you to fast forward only so many commercial so you have to watch the same about of commercials as you do online. The...