Movie Industry What Competitive Forces

Movie Industry

What competitive forces have challenged the movie industry? The forces that have caused the movie industry to adjust its marketing, distribution models and the way that it gleans revenue through electronic means are the internet and the networks that operate online. However, it is not just the social networks that have affected the way the movie industry competes, it is also the for profit websites that have had an influence as well.

What problems have these forces created? One of the major problems being addressed by the movie industry that can be attributed to these forces is that many of the movies that it costs millions of dollars to produce are either being broadcast for free (in 10 minute clips) through YouTube or are being pirated by other sources and offered online.

What changes have these problems caused the movie industry to make? The major change is that now the movie industry is partnering with such online social networks as YouTube to track the illegal posting of their movies, as well as offering advertising in conjunction with the postings of the movies online.

Describe the disruptions to the movie industry in this case. The disruptions are numerous in that the average cost to produce a movie is $129 million and that money must be recouped in some fashion. When the movies are posted online for free viewing, then the movie industry loses out.

How have the movie houses responded to online problems? The movie industry quickly came to the realization that to fight the illegal downloaders of movies was going to be much more time-consuming and unprofitable than it would be to address the situation through partnerships and negotiations, which is exactly how they approached it.

What is the movie houses response goal? The movies houses would like to take advantage of the fact that YouTube and other social outlets have a massive following. If the movie houses can generate enough excitement by running ads along with trailers and clips of the movies then they turn a negative into a positive. Secondly, the movie houses would like to generate additional revenues from online distribution, but so far, that has been a tough nut to crack.

What can the movie industry learn from the music industry regarding online problems? Since the movie industry is still coping with millions of illegal downloads of music, it would seem that the music industry is still learning itself. That being said, the movie industry has probably taken the only approach that it can possibly take at this juncture and learned to play along with the illegal downloads as much as possible while still attempting to track those who refuse to play by the rules.