Competitive Forces Have Challenged the

¶ … 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? The movie industry has been challenged by the competitive forces of iTunes, Guba, Cinemanow, and Movielink where customers can log on and pay a small fee to download or stream an entire movie. Within these forces, other problems have emerged where customers are not getting the same products for their money relative to a hard copy or DVD of the movie.

Often, when the movie is downloaded from an online business site, it does not include many of the special features and products that the hard copy does. This has been a point of contention with customers using these online services. Television and movies studios have had to make changes to the way in which they market and sell movies. Since many customers now prefer to download the movies instead of buying them in a brick-and-mortar store, the movie and television studios have had to repackage their products for online consumption.

This has also led to issues with illegal use of movies and shows and posting these illegal copies to online sites such as YouTube where billion of people can access them for free. 2. Describe the impact of disruptive technology on the companies discussed in this case. The impact of this disruptive technology has been both positive and negative. On the positive side, this technology has allowed movie studios and production companies to market and sell to a customer base that was previously non-existent.

On the negative side of the technology lies the simple fact that these movies and shows are easily pirated and distributed online without having to pay anything for them. This is the double-edged sword of technological innovation within this industry, just as these technologies have become a double-edged sword for the music industry. 3.

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 online digital music and copyright infringement? Initially, most movie studios have responded to YouTube by hiring a staff of employees to constantly search YouTube for illegally posted copies of their products.

Over time, this solution became less and less effective as the sheer volume of YouTube uploads increased and the studios and companies were unable to keep up with the inflow of illegally posted material. Currently, many studios and companies have entered into a revenue sharing agreement with sites like YouTube to help make up for the potential in lost revenue that the illegally posted content presents. In this structure, studios present advertisements before the posted video content where ad revenues are split between both YouTube and the studios themselves.

This has become a common way of trying to recoup some of the lost revenues due to video sharing sites while also opening up new avenues for companies to promote their products online on these sites. The movie industry can learn much from the music industry because they are experiencing what the music industry experienced only a decade or so ago.

This means that movie studios and production companies need to repackage and rethink the way in which they sell their products to reflect the current technologies and markets for their products. Certainly a balance can be struck between digital sales and hard copy sales, given the fact that many customers actually prefer hard copies of movies and television shows for many reasons. 4.