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Evolution of the home movie industry

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MJ Yen
MJ Yen

This document summarizes the evolution of the home movie industry from VHS tapes to modern streaming services. It describes how early technologies like VHS, DVDs, and Blu-Ray worked and their limitations. Newer services like Netflix, Redbox, Apple TV, and video on demand enabled streaming and more convenient access to movies. Major data communication vendors provided the infrastructure for digital distribution and new revenue streams. The future of the industry is predicted to include continued growth of digital distribution and services like UltraViolet that combine physical and digital content in a cloud library.

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Evolution of the Home-Movie Industry Team Rock Solid: Hannah Houshian Jonathan Kaplan Tara Kuhner Daniel Westfall Michael Yen
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
How Things Were Done Previously
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
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
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
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.
How The Industry Has Been Affected By Advances In Data Communication
Technologies as a Source of Revenue  Digital events streaming  3D movies  IMAX  VOD
Replacing Previous Technologies  DVD sales dropping  Illegal downloading
New Ways to Cut Costs  No more film reels  Digital files
New Costs Associated with Changing Technologies  New equipment  Transition costs  Hardware  Software
Major Data Communication Vendors And What Their Products Enable
Redbox  Founded in 2002  33,000 kiosks  Low price and convenience  DVDs, Blu-ray, Games  QR Codes, iPhone and Droid Apps  Streaming service future
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
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
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
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
The Future
Change in Trends  Digital distribution rising  Physical distribution dominant  Quick change
Downloading  Apple TV  Increased convenience  Netflix addition  Amazon Instant Video  Prime membership  All methods
Netflix  Netflix  Streaming  Physical disc  Online/physical combination  Cross-device service  Xbox  PlayStation  DVD players
UltraViolet  Digital Rights Locker  Physical  Digital  Partners  Necessary for growth  Possibly Vudu
UltraViolet  Advantages to Distributor  Curb piracy  Efficient distribution  Effects  Increased smartphones and tablets  Potential for over-usage
Predictions  Continued growth  Apple TV  Netflix  UltraViolet  Legal  “official”  Ease of cloud  Familiarity of physical disc
Questions?

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Evolution of the home movie industry

  • 1. Evolution of the Home-Movie Industry Team Rock Solid: Hannah Houshian Jonathan Kaplan Tara Kuhner Daniel Westfall Michael Yen
  • 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. How Things Were Done Previously
  • 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. 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. 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. 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. How The Industry Has Been Affected By Advances In Data Communication
  • 9. Technologies as a Source of Revenue  Digital events streaming  3D movies  IMAX  VOD
  • 10. Replacing Previous Technologies  DVD sales dropping  Illegal downloading
  • 11. New Ways to Cut Costs  No more film reels  Digital files
  • 12. New Costs Associated with Changing Technologies  New equipment  Transition costs  Hardware  Software
  • 13. Major Data Communication Vendors And What Their Products Enable
  • 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. 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. 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. 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. 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
  • 20. Change in Trends  Digital distribution rising  Physical distribution dominant  Quick change
  • 21. Downloading  Apple TV  Increased convenience  Netflix addition  Amazon Instant Video  Prime membership  All methods
  • 22. Netflix  Netflix  Streaming  Physical disc  Online/physical combination  Cross-device service  Xbox  PlayStation  DVD players
  • 23. UltraViolet  Digital Rights Locker  Physical  Digital  Partners  Necessary for growth  Possibly Vudu
  • 24. UltraViolet  Advantages to Distributor  Curb piracy  Efficient distribution  Effects  Increased smartphones and tablets  Potential for over-usage
  • 25. Predictions  Continued growth  Apple TV  Netflix  UltraViolet  Legal  “official”  Ease of cloud  Familiarity of physical disc