DVD sales have declined causing a current problem for Sony Corporations subsidiary Sony Pictures Entertainment. Sony Pictures Entertainment Inc. has seen a severe decline in revenue in the past recent months. DVD sales have declined to a level of severe concern, and as such left financial analysts and specialists in the industry deeply worried. We have taken to the field and conducted a number of interviews to decipher the basis of the rationale behind lack of DVD sales. Through the course of the following entailed research and our detailed interview analysis’s, we hypothesis that the drop in sales is due to a number of interrelated reasons including the current economic state and an advance in technologies giving consumers many alternative options to the DVD.
Literature Review
In the past, Production companies could predict how well a film would sell on DVD by how well it performed at the box office. This is no longer the case as box office hits such as “Indiana Jones and the kingdom of the crystal skull” and “Hancock” sold far below the expected amount of DVDs. This is a relevant problem due to DVDs being a big center of revenue for Sony Pictures Entertainment. Chairman and CEO Michael Lynton stated the following about the DVD market decreases, “it isn’t just contracting, and it’s becoming more volatile and unpredictable than it used to be”. Consumers are not only buying fewer DVDs but have also developed a new quality consciousness that is unforgiving. (Goldstein, 2009)
Unlike its competitors, Sony Pictures Entertainment gave in to Red Box in the first round and signed a contract to provide DVDs for rental on the same day they are released for sale. This was a potentially harmful decision considering the other producers ...
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... some insight into he decline in DVD sales. Most attribute their neglect to purchase DVDs to some aspect of price. We’ve heard that DVDs are too expensive and our interviewees mentioned the cheap Red box’s rentals. Quality has also been mentioned, as far as poor quality online streaming and even the quality of the production itself. This quality consciousness discussed in Goldstein’s article in the Los Angeles Times is apparent in the mind of our interviewees. Netflix, Red Box, and Online streaming have all been implicated as a replacement to the DVD by our interviewees. Technology certainly affects the decision making process of these motion picture consumers. These Interviews have validated our suspicions as well as the above literary assumptions that the decline in DVD sales is due to both the negative change in the economy and the advancements of technologies.
The Australian Film Industry has been around since October 1896. The first full length feature film, in 1906 was ‘The Story of the Kelly Gang’. Australian Cinema has only become a much larger industry in like past 10 years with ‘Sanctum’ being Australia’s 10th largest film in the US Box Office history with its exceptional 3D technology and exquisite photography. ‘The Sapphires’ which also had a strong impact on Australian viewers did not reach the capacity of gross making in the US Box Office. The Australian Film Industry has become in crisis because without the Australian movies having an impact on the Australian viewers as a minimum, the money used to make the film will not have profited from the tickets bought to see the actual movie. In this essay I will explain how ‘Sanctum’ and ‘The Sapphires’ can be used in reference to the Australian Film Industry crisis and reason’s for how and why the Australian Film Industry has hit a crisis in film making.
In Conclusion, the SWOT analysis shows that Redbox has many strengths to be profitable and has the potential for future growth in the industry. The DVD movie rental industry is still s...
In Hollywood today, most films can be categorized according to the genre system. There are action films, horror flicks, Westerns, comedies and the likes. On a broader scope, films are often separated into two categories: Hollywood films, and independent or foreign ‘art house’ films. Yet, this outlook, albeit superficial, was how many viewed films. Celebrity-packed blockbusters filled with action and drama, with the use of seamless top-of-the-line digital editing and special effects were considered ‘Hollywood films’. Films where unconventional themes like existentialism or paranoia, often with excessive violence or sex or a combination of both, with obvious attempts to displace its audiences from the film were often attributed with the generic label of ‘foreign’ or ‘art house’ cinema.
Filmmaking, the art of the motion picture, is a comparatively new art form that combines a moving image in conjunction with sound, primarily to tell a story. Due to the medium of capturing the image is evolving, so is the art in its entirety. Modern technology is allowing a more cheaper, streamlined form of production, thus rendering older methods unnecessary. Celluloid filmmaking is the old method of capturing film on a negative film strip and developing it later in its most natural state, whereas digital film is capturing synthetic and manipulatable pixels on a computer-like device. Digital filmmaking should be a primary film medium but not completely eradicate the dying celluloid film culture.
As can be seen in exhibit to solution 2, we have estimated the per-film value of each production company. MCA Universal, Warner Brothers and Walt Disney Co are the only production companies that provide a positive per film value, with values of 9.89, 1.92, 12.56 million respectively. This value is calculated by dividing the net present value of all the movies by the total number of movies. We also calculated the average value of each production company based upon their share of the total number of movies produced. The companies with positive values were MCA Universal, Warner Brothers and Walt Disney Co is also the only production companies that provide a positive per film value, with values of 1.40, 0.37, 1.40 million respectively. These values are based on the average value per film multiplied by the company's average share of the industry.
Movies today are extremely expensive to make and are typically financed through either film studio contracts or from investors willing to take a risk. In order to be successful, movies need to be marketed and distributed either under contract by the film studios or by companies that specialize in such services. The aspects of financing, marketing and distribution of films have changed between the studio and independent systems over the years as the evolution of the film industry took place.
Modernization in the 1980s paved the way for the Hong Kong New Wave, as the studio system set up in the 1950s was dismantled, the film industry experienced more freedom. Since decolonization was heavily present 75% of Hong Kong’s box office revenue were home grown movies, while the meager 15% was left for the foreign market. As one can see the political context of Ho...
When you think about movies think about how long they have been around and how they changed over the years. Movies have changed over the years in many ways for Example, in the passage called How Have Movies Changed Over the Years the author Tanya Jenkins “ the most obvious difference in the movies of today versus the movies from 100 years ago is the addition of of color and sound”. My opinion is that Tanya is trying to inform us that movies we’re better back in the day when it didn’t have any color. I also feel like she is trying to persuade us to watch movies from 100 years ago but i also feel like in the other passage called Making Money in Movies Chris Thompson also known as the writer is telling us about how money use to cost thousands
Fifteen years ago, South Korean cinema was in precipitous decline. It was facing deadly competition from Hollywood as import barriers were dismantled, and had almost no export market. Today, South Korean cinema is widely considered the most successful and significant non-Hollywood cinema anywhere in the world today. It is successful both in the domestic market, and internationally. This essay sets out to understand this phenomenon. First, it attempts to trace South Korean cinema’s comeback story. I feel a need to do this because I find that so many of my South Korean friends and colleagues are reluctant to admit this, or focus solely on the problems the industry is facing in the future. There may be worries about the future and there may be “ifs” and “buts” about the present state of the South Korean film industry. But we should start out by acknowledging its success.
Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...
Two new managers have been appointed at Sony in the last 15 years due to a number of developing problems, including the innovation ‘cogs’ within Sony slowing down, being forced into an aggressive pricing strategy, increased competition, losing the battle of VHS and Betamax, profit and sales remaining flat and the ongoing poor performance of Sony films (Mintzberg et al, 2003). Both managers initiated major strategic changes with varying degrees of success; firstly Nobuyuki Idei was appointed and initiated a major shift from analogue to digital technology, as there was a belief that Sony was falling behind the market in this respect. Idei also targeted the top position in the audio and visual industry, a universal standard in home computer devices and a new distribution infrastructure. He believed his job was the ‘regeneration of the entrepreneurial spirit’ (Mintzberg et al, 2003), believing it had been lost.
[2] Poggi, Jeanine. "Blockbuster's Rise and Fall: The Long, Rewinding Road." The Street. N.p., 23 Sept. 2010. Web. 11 Dec. 2013.
The film industry has always been somewhat of a dichotomy. Grounded firmly in both the worlds of art and business the balance of artistic expression and commercialization has been an issue throughout the history of filmmaking. The distinction of these two differing goals and the fact that neither has truly won out over the other in the span of the industry's existence, demonstrates a lot of information about the nature of capitalism.
...n able to reach otherwise. With unlimited possibilities and the creative minds in the world, the film industry is likely to consider seeing drastic changes. Like the world has in the past, peoples’ likes and dislikes will change with the ever-changing technological world. What we enjoy as a society in 2005 is likely to be considered as bland as we consider the black and white silent films, in the years to come.
Culkin, Nigel & Randle, Keith 2003, Facing the Digital Future: The Implications of Digital Technology for the Film Industry, University of Hertfordshire, Hertfordshire.