Case Study 3
What competitive forces have challenged the movie industry? What problems have these forces created? What changes have these problems caused the movie and television studios to make? New market entrants and substitute products are the two main competitive forces affecting the movie industry. The traditional outlets for movie viewing, theaters, cable networks, and rental locations are all challenged by the new age of the digital industry. The traditional outlets provided a simpler and more productive means for the industry to get compensated for their efforts. The digital means of using web sites to download from the privacy of your own home has made things more convenient to the consumer but is allowing for there to be infringement on the financial compensation to the production companies. There is a limit to the capability of controlling these activities which has caused some distributors to enter into contracts with some digital networks such as YouTube. YouTube is helping to develop a revenue-sharing model with creators to develop a digital fingerprinting technology that will help control the unauthorized use of copyright protected material. Describe the impact of disruptive technology on the companies discussed in the case study? Disruptive technologies caused by technological changes can have different effects on different companies depending on how they handle the changes. Some companies create the disruptions and do very well. Other companies learn about the disruptions and adapt very well. Other companies are destroyed by the changes because they do not respond well to change with any efficiency and effectiveness. How have the movie studios responded to YouTube? What is the goal of the response? What can the movie studios learn from the music industry’s dealings with digital music and copyright infringement? If you want to blame someone for the plight of the movie industry then the computer hardware and software manufacturers should be the...
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