Evolution of the home movie industry

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Evolution of the home movie industry

  1. 1. Evolution of the Home-Movie Industry Team Rock Solid: Hannah Houshian Jonathan Kaplan Tara Kuhner Daniel Westfall Michael Yen
  2. 2. Preview Today we will:  Address how things were previously done  Explain how the industry has been affected by advances in data communication  Describe the major data communication vendors and what their products enable  Define the competitive structure of data communications in the industry  Forecast where the industry is headed
  3. 3. How Things Were DonePreviously
  4. 4. VHS Comprised of television pictures and sound placed onto a magnetic tape Linear method of storing information First widespread video cassette can be credited to Sony in 1969 Inability to store mass amounts of data, video recordings becoming digital, inconvenient size, and viewing quality
  5. 5. DVD Phillips and Sony joined together to develop a media format that could hold large amounts of data Replaced VHS tapes in the entertainment industry because they produced high quality video and audio Remain a popular media format
  6. 6. Blu-ray Shuji Nakamura, a University of California at Berkley Professor, invented the blu-ray disc Came in as a major player in the “format wars” because of the need to record play and record HD content Use shorter wavelengths, which in return enable high-density storage Analysts expect more than 32 million blu-ray discs to be sold in the United States in 2011
  7. 7. Internet-Streaming YouTube leads the way in video streaming Convenience, cost, quality, variety, and ease of use have lead consumers to choose internet streaming over physical formats.
  8. 8. How The Industry Has Been AffectedBy Advances In Data Communication
  9. 9. Technologies as a Source ofRevenue Digital events streaming 3D movies IMAX VOD
  10. 10. Replacing Previous Technologies DVD sales dropping Illegal downloading
  11. 11. New Ways to Cut Costs No more film reels Digital files
  12. 12. New Costs Associated withChanging Technologies New equipment Transition costs  Hardware  Software
  13. 13. Major Data Communication VendorsAnd What Their Products Enable
  14. 14. Redbox Founded in 2002 33,000 kiosks Low price and convenience DVDs, Blu-ray, Games QR Codes, iPhone and Droid Apps Streaming service future
  15. 15. Netflix  Founded in 1997  23 million subscribers; world’s largest subscription service  Wide selection and convenience  DVD by mail and streaming service  Service realignment announcement  Expanding into global territories
  16. 16. Blockbuster• Began in 1985 selling video rentals out of physical store location• Strategies: • 60-40 revenue sharing model with movie studios • No initial waiting period • Customized store shelves upon demographics• Decline: • $1.6 billion to a mere $300 million in company value • Netflix, Redbox, Apple TV, On- demand • Cheaper, more convenient, technological advances to fit customer needs • Dinosaur of home-movie industry
  17. 17. Apple TV• Sold in 2007 to enable streamed media driven from content online to play on TV • Access to iTunes, rent/purchase movies, TV shows, audio files, MobileME, Flickr, YouTube, and Netflix• Strategies: • Peer to peer digital media receiver • Works in similar fashion as an iPod • AirPlay allows home-sharing and streamlines to TV• Growth: • 1st to 2nd generation models • Improved Processor • Smaller Bo with same storage • Additional application
  18. 18. Video On Demand • A DSL service over Internet Protocol networks • Digital subscription package from service provider which uses cable tv or satellite to broadcast programs • Spurred out of YouTube craze • Strategy: • Convenience of instant play on preferred video content • Enjoyable features such as pause, play, rewind, jump • Growth: • TIVO already implemented • VOD deliverance through mobile devices
  19. 19. The Future
  20. 20. Change in Trends Digital distribution rising Physical distribution dominant Quick change
  21. 21. Downloading Apple TV  Increased convenience  Netflix addition Amazon Instant Video  Prime membership  All methods
  22. 22. Netflix Netflix  Streaming  Physical disc  Online/physical combination Cross-device service  Xbox  PlayStation  DVD players
  23. 23. UltraViolet Digital Rights Locker  Physical  Digital Partners  Necessary for growth  Possibly Vudu
  24. 24. UltraViolet Advantages to Distributor  Curb piracy  Efficient distribution Effects  Increased smartphones and tablets  Potential for over-usage
  25. 25. Predictions Continued growth  Apple TV  Netflix UltraViolet  Legal  “official”  Ease of cloud  Familiarity of physical disc
  26. 26. Questions?

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