1. The document discusses various ways that movies are consumed now, including streaming services like Netflix and LOVEFilm, illegal downloading, and simultaneous or shortened release windows.
2. It also looks at how the movie industry is trying to adapt to changing audience behaviors and new distribution methods, giving examples like Field in England's simultaneous release strategy.
3. Data is presented on movie piracy trends and the growth of legal streaming services like Netflix that aim to compete with illegal downloading by making movies more accessible.
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In the 1980s and 1990s, people joked about how difficult it was to program a VCR to record a television program. Products like TiVo and other DVRs (digital video recorders) made it easy for consumers to record broadcasted shows and movies. Today, consumers have a wide variety of options in satisfying their desire to watch movies and TV shows. They can rent DVDs and video games from traditional brick and mortar video stores, such as Blockbuster. Cable TV and Satellite TV companies offer premium subscription channels (such as HBO) for a monthly fee, as well as, video-on-demand services. There are other options for those with broadband Internet connections, such as programs that store entertainment and redirection devices (like Slingboxes
). Consumers also can rent or purchase DVDs, Blu-ray discs, and video games at video rental stores, vending machines (like Redbox
), and also can purchase them at electronic stores (such as Best Buy), discount stores (such as Target), or on the Internet (Amazon and Apple, plus many others). In addition, there still is much illegal file sharing of copyrighted digital content. Today, when consumers want to watch a particular movie at any particular time, they have many options.
The U.S. movie "rental" industry has changed. Direct online distribution of content (whether by real-time streaming or downloading for playback) has replaced physical media as the normal method
. Even traditional DVD retail companies like Wal-mart and Target are getting into the digital streaming business
. In addition, many laptops and almost all netbooks and ultrabooks today are being shipped without an optical playback device (i.e., one that can play a CD, DVD and/or Blu-Ray). Obviously, the same is true for smartphones and iPods. In addition to those mentioned above, there also are additional options for receiving digital streaming entertainment, including Internet-enabled TVs, set-top boxes (like Boxee
), game consoles, computers, and readers like the Kindle or Nook. Nonetheless, as of 2010, eighty percent (92 million) of all U.S. households still had at least one DVD or Blu-ray player, leading many to believe the DVD business will retain demand and some profitability for several years to come.
New Competitors and Content
Numerous companies now compete in the shrinking DVD and video game rental industry. Dish Network purchased Blockbuster out of bankruptcy and, in early 2012, has closed 500 of the 1500 remaining stores. Blockbuster, the largest video rental chain in the United States, has launched a variety of initiatives to provide online DVD and game rentals. Dish Network limited the customer base of the current streaming service to pre-acquisition customers and Dish Network subscribers. Recently, Samsung announced (February 20, 2012) a deal with Blockbuster to stream thousands movies to the company's smartphones, tablets, ultrabooks, laptops, smart T ...
Netflix’s unique DVD rental service has revolutionized the industry. They successfully took the best of traditional conventions (like physical media, the U.S. Postal Service) and mixed them with new world internet-conventions. They have also effectively managed to discourage competition from both more established businesses and new entrants. The future growth of Netflix as it expands into streaming media, poses challenges in legal, infrastructure/technology, and through additional costs. In order to remain competitive, it is imperative that Netflix partner with companies with global reach to overcome these challenges. This presentation was part of an MBA class assignment to audit and industry in the the technology sector. The presentation has multiple authors listed on the title page. If you would like copies of the executive summary, complete S.W.O.T. analysis, and/or the transcript of the presentation please PRIVATE MESSAGE ME and I will email it to you.
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Current issues
1. Make a pie chart with a key showing the different
ways you consume movies…
Think about…
Cinema, Netflix, TV, Stream illegally, Torrent, Sky,
OnDemand, Youtube, DVD, VHS Casette etc…
2. How do you think institutions want you to
consume movies?
Think about how your pie chart might change!
3. Let’s recap. A definition for each of these…
• Produsers
• Fragmented audience
• Push/Pull Marketing
• Digital Distribution
• Piracy
4.
5. • The Digital Audience mainly wants three things when it comes to
watching movies: they want them affordable, easy to use/consume,
and available how and when they want it.
• The Hobbit was the most pirated film in 2014 with 8.4 million
downloads (Torrent Freak)
• It's unclear how much of a dent movie piracy is making on box office
revenue - box office earnings were record-high in 2013 with nearly
$11 billion in revenue.
• Orange Wednesdays (example of synergy) allowed audience members
with orange broadband or mobile phones to get 2 for 1 tickets to the
cinema on Wednesdays. What has that be replaced by?
7. The ‘Stop Online Piracy Act’ and Megaupload
Problematic however – the internet is not static, data can be moved and
adjusted.
FindAnyFilm.com is a site where you can find films to watch legally –
whether on the web, bought from a retailer or at the cinema.
Netflix and LOVEFiLM (Which we will discover later)
Blinkbox – newer releases faster, a little more expensive. Part of Tesco.
“The television and movie community is working every day to develop new
and innovative ways to watch content online, and as the internet’s
gatekeepers, search engines share a responsibility to play a constructive
role in not directing audiences to illegitimate content,” - MPAA chairman
Chris Dodd.
8. Choose one of the following questions and create a
brainstorm in pairs to answer…
• Is piracy as big a threat to the film industry as they
suggest?
• Should we consider illegal downloads and file sharing as a
‘new’ form or distribution?
• Where do we go from here? What does the future hold in
terms of piracy and the film industry?
9. • Netflix has become increasingly popular in
English speaking countries, especially Canada,
where it is actively used by 20% of English
speaking households.
• Netflix CEO Reed Hastings has said that ever
since Netflix launched in Canada, BitTorrent is
down 50%.
10.
11. • Netflix has over 100,000 titles in its catalogue with a
large focus on TV shows from both the UK and USA.
• As of September 2013, Netflix reported global
streaming subscribers at 40.4 million (31.2 million in
U.S.).
• Critics have said what Netflix lacks in films is made up
in its sheer mass of TV content and high quality speed.
• It costs £5.99 per month for a subscription to digital
stream content.
• Content is available on multiple devices from the one
subscription fee.
• https://www.youtube.com/watch?v=Puv1lS00ho0
12.
13. • LOVEFiLM has over 70,000 titles!
• You can still download even if you don’t have a rental
subscription to LOVEFiLM. Prices start from 79p and go up
to £1.99 for a feature length film.
• LOVEFiLM also offers a competitive DVD post rental
service.
• A full subscription costs £4.99 for unlimited access to
digital streaming.
• It operates a separate service LOVEFiLM Box Office where
you can digitally rent new and old movies for 48 hours via
a computer for the additional price of £2.49-£3.49 (much
like the service provided by Sky Box Office, iTunes or BT
Vision).
14. 1. Who do you think the two companies are trying to appeal to?
2. Draw up the following table and write down positives and negatives for
digital content streaming sites
Positives (Netflix/LOVEFiLM) Negatives (Netflix/LOVEFiLM)
15. • More and more films are being released as a
‘simultaneous release’ meaning they get released in
theatres, on DVD/VOD and other platforms on the
same day or within a shorter time frame (shrinking
of the theatrical window) than traditional release
strategies, which indicates that studios are seeing a
trend in media consumption.
• A Field in England – more info (director interview)
• Wikipedia
16. • A Field in England
• Basic Info
– Independent British Film (produced by Rook Films, distributed
by Film4 - UK, Drafthouse Films – USA)
– Budget £300,000
– Released 5 July 2013
– Director Ben Wheatley
– Profit?
• Simultaneous Release
• More info (director interview)
• Wikipedia
17. The Road to Guantanamo Bay (2006)
The film premiered at the Berlin International
Film Festival on 14 February 2006.
It was broadcast to the UK on Channel
4 on 9 March, attracting 1.6 million
viewers and released on DVD and the
Internet the following day
18. The House of the Devil (2009)
It was made available through
VOD on October 1, 2009. The film was
given a limited theatrical release in the
On October 30, 2009.The DVD and
Blu-ray of the film were released on
February 2, 2010.A promotional copy
of the film was released on VHS in a
clamshell box like the ones that many
early VHS films of the 1980s came in.
19. Using the BFI site linked below, choose one film
you are interested in or have seen. Click on it’s
link for the case study. Read this document to
learn about it’s marketing and distribution
strategy. These case studies are incredibly
detailed and RELEVANT. An incredible resource.
http://www.bfi.org.uk/film-industry/lottery-funding-distribution/insight-reports-
case-studies-audience-research/new-ways-reaching-audiences-distribution