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Hollywood vs. Internet

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Presentation For Arin6912

  1. 1. Hollywood versus the Internet<br />The media and Entertainment Industries In a Digital and Networked Economy<br />By Andrew Currah<br />
  2. 2. Oligopoly<br />“a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors” <br /> ------Webster online dictionary, 2009<br />
  3. 3. Hollywood Studios<br />Disney<br />Fox<br />Paramount<br />Sony Pictures<br />Universal<br />Warner Bros<br />
  4. 4. Typical characteristics of oligopolistic industry<br />Collusion<br />Strategic interdependence<br />The maximization of revenues <br />The preservation of industry structure<br />
  5. 5. Outline<br />Introduction of peer-to-peer file sharing networks<br />The potential commercial benefits of P2P networks<br />The reasons why P2P is resisted<br />
  6. 6. P2P<br />Peer-to-peer (P2P) file sharing is a system of sharing files directly between network users, without the assistance or the interference of a central server (Tech-Faq, 2006). <br />
  7. 7. Three Types of P2P<br />Pure P2P<br />Hybrid P2P<br />Mixed P2P<br />
  8. 8. New Media: an IntroductionBy Terry Flaw <br />
  9. 9. P2P Threaten Copyright<br />Hybrid P2P(e.g.Napster)lost a law suit<br />Mixed P2P(e.g.Kazza) ruled against by Australian court<br />Pure P2P(e.g.Bit Torrent) still “at large”<br />
  10. 10. Average number of P2P networks<br />
  11. 11. “the economic relationship between P2P file sharing and industry revenues is still extremely unclear” <br /> ---- Condry, 2004; Ganley, 2004;Oberholzer and Strumpf, 2004, cited in Currah, 2006). <br />
  12. 12. Digital Right Management<br />“encodes computer files into a secure format, with a set of usage rules and a price determined by the copyright owner. The file can then be freely shared over the Internet, or even offline via recordable media, but remains locked until a usage license is purchased”<br /> ----Currah, 2006, p447 <br />
  13. 13. P2P’s Potential Benefits<br />More cost-efficient than traditional centralized server-client structure<br />Cost saving to release any product onto a P2P network, esp. not-so-popular products<br />If rewarding legal file sharing, revenue increases<br />DRM technology can release content in multiple formats and versions across regionally segmented markets<br />
  14. 14. Why P2P file sharing networks are not preferred by the Hollywood Studios?<br />
  15. 15. Home video (DVD) contribute most of the revenue<br />----Currah, 2006 P451<br />
  16. 16. New generation of high-definition DVD can generate new revenue and more control<br />
  17. 17. Current legal and territorial structure of asset ownership can prevent legal internet distribution<br />Clearing distribution rights could be expensive<br />Territory based distribution structure is in trouble<br />
  18. 18. Present vested interests holders want to maintain the status quo<br />Home video divisions <br />DVD retailers<br />
  19. 19. Summary<br />Peer-to-peer file sharing networks<br />The potential commercial benefits of P2P networks<br />The reasons why P2P is resisted<br />
  20. 20. References:<br />Currah, A. (2006), ‘Hollywood versus the Internet: the media and entertainment industries in a digital and networked economy’, Journal of Economic Geography, 6(4), 439-68<br />Flew, Terry (2008) New Media: an Introduction. (3rd edn.). Oxford: Oxford University Press. pp.21-37<br />Phillips, William (2002) ‘Music and New Technology: making music in the digital age’ in Kelly, Norman (ed) Rhythm and Business: the Political Economy of Black Music, New York: Akashic Books<br />Pierre-Lou Dominjon (2007) Peer to Peer, retrieved October 20 2008 from<br />Rietjens, Bob (2005) ‘Give and ye shall receive! The copyright implications of BitTorrent’, Scripted vol. 2, 3 September 2005<br />Tech-Faq, (2006) ‘What is Peer-to-Peer (P2P) File Sharing’, retrieved on October 19 2008, from<br />The Register (2006) ‘Judge gives Kazaa deadline to end pirate file-shares’ retrieved on October 18 2008 from<br />Webster online dictionary, (2009). Oligopoly<br />