...THE CINEMA INDUSTRY.’ PREPARED BY ANNE. N Introduction The cinema industry in is one of the biggest recipients of the negative impact of industrial changes. Currently the industry is literally falling. Opinions may differ on the exact cause of downfall of the industry. Cinema owners, contractors and spectators were unanimous in their view that, changing buyer life styles, cable network, complaints of obscenity, costly tickets, mobile, internet, computers, DVDs and dish antenna have together contributed to the decreased number of cine-goers in recent years Most cinema halls’ property has been bought or is hired by Pentecostal churches in the country which is now redeveloping the buildings as a worship centers’, others have been converted to shopping exhibitions for clothes and mobile phones. a) Technological changes The range of products that are available for consumers to buy is constantly changing. Consumers of only 40 years ago could not even dream of personal computers the internet, mobile phones, quality sound home theatres and even air conditioned cars just to mention but a few. By researching into and developing new products, some businessses have created huge new and profitable markets. Some examples that have negatively affected the cinema industries are; 1. The digital revolution has flooded the market place. Sony and microsoft are two examples of firms in the communication industry, making soft...
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...Power……………………………………………………5-6 Buyer power………………………………………………………..6 Competitive advantage………………………………………………..6-10 Identifying challenges…………………………………………...…..10-13 Reference…………………………………………..………………….14 5 Forces Analysis of the Video on Demand Industry By offering streaming movies through its website, Netflix is entering the Video on Demand (VOD) industry. This industry, along with DVD rentals (both from online providers such as Netflix, and cable services such as On Demand and Pay-Per-View), is part of the larger industry of “watching movies in the home.” However, since Netflix is already positioned in this market, with its online DVD rentals, we will examine the smaller 5 portion of the market that is streaming online movies. This business is too closely related to the movie downloading service to be considered as a separate market. Threat of Potential Entrants Today, internet video rental industry is very profitable and still has a very good develop prospect. After Netflix’s success, the whole video industry starts to change gradually, and more and more people start to consider entering this field. However, for most of those potential entrants, this industry has some big barriers to entry. First of all, the service in this industry is already very complete. With its seven-year-development, Netflix has improved its service better and better; its customers are getting more and more satisfied. For potential entrants, it is extremely difficult to find some new service to add...
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...are the competitive forces in the movie rental marketplace? Do five-forces analysis to support your answer. Firms in Other Industries Offering Substitute Products There is a small amount of possibilities for substitutes. The only substitutes would be illegally obtaining the movies by downloading or streaming, purchasing “bootleg” DVD’s, or waiting until the movie is aired on public or cable TV stations. Suppliers of Raw Materials, Parts, Components, or other Resource Inputs Consisting of only a small number or suppliers, buyers do not have the upper hand. If suppliers run out of stock or decide to cut supplies short, there are not many alternatives to obtain DVD’s or right to a movie. The seller has the power to control distribution and prices. Buyers Buyers have limited powers and options. An avid movie renter is limited to the selection available in store or library on line. The movie rental companies are limited to the supply they can purchase and stock their stores with. They are unable to control prices, but larger companies do have the upper hand since they can order larger quantities to get a better deal. Rivalry among Competing Sellers There are very few competitors in the movie rental industry of which consist of Netflix, Blockbuster, and small businesses. These few control overall market share of the industry. The main competition is between Netflix and Blockbuster. Blockbuster is currently the leader in movie rentals until Netflix introduced...
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...innovations like color television and the establishment of cable caused television to become even more popular. In 1997, an innovative company named “Netflix” emerged that was trying to find a way to instantly play video content on television without the use of DVDs. However, in the mid-2000s high speed internet facilitated video-streaming on computers and Netflix used the technology to stream its content onto televisions. Since Netflix began streaming its content, the company’s impact on television has been substantial and very evident. First, as Netflix’s popularity increased, an increasing number of hardware devices began offering the service. Second, consumers increasingly started viewing Netflix as an alternative to cable while insiders viewed it as a potentially serious threat. Lastly, Netflix has impacted the movie industry by adversely impacting box-office revenue, DVD sales, and DVD rentals. Thus far in the 21st century, Netflix has made the biggest impact on television as it has changed the way many consumers view television and has substantially impacted the two most influential players in television, cable and the movie industry. The history of television was one filled with innovation and the contributions of many individuals. Transmitting an image onto a screen had been experimented with since the early 1900s. Remarkably, some of the technology used to conduct these experiments was the...
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...Questions 22-25 Bibliography 26 Compiled by Paul Noonan The History of Blockbuster Inc. Blockbuster’s mission statement is “To be the global leader in rentable home entertainment by providing outstanding service, selection, convenience and value.” Blockbuster is an American based chain of retail stores renting DVD, Blu Ray, and video games. They have over 9,000 locations in the US and 25 other countries worldwide. It is headquartered in the Renaissance Tower located in Dallas, Texas. The first store was opened in Dallas, Texas 1985 by David Cook. Cook had started a company called Cook Data Services Inc. in 1982 selling software to Texas’s oil and gas industries.[i] When the industry went flat Cook was searching for another source of revenue. His wife a movie fan suggested getting into the movie rental business. At the time rental stores were small, specialized, and inefficient. These stores were mainly family oriented stores that provided few former big hit movies. Cook recognized if they displayed the movies, provided a large former big hits selection, and set up a computerized system he could provide a higher...
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...selling his first company Pure Software Reed Hasting founded this completely new business. Hasting sensed the opportunity for online movie rentals business and founded the company Netflix in 1997. Netflix launched its online subscription service in 1999. Netflix was successful in acquiring about 2million customers in four years. Netflix found that a lot of new customers are attracted towards its online movie rental service because of the information provided by Netflix about each movie in Netflix’s rental library which included critic reviews, member reviews, online trailers and ratings, and the ease with which they could find and order movies; the elimination of late fees and due dates; and convenience of being provided the postage return envelope for mailing the DVD back to Netflix. The company ran a marvelous advertising and marketing campaign from 2001 to 2008.For this reason, company achieved a high level of consumer awareness of Netflix name, its logo, and its movie rental service. Netflix had 2007 revenues of $1.2 billion (up from $501 million in 2004) and its 100,000 movie titles (up from 55,000 in 2005).By July 2008 Netflix had 8.4 million subscribers. Block Buster: Blockbuster was founded in Dallas Texas in 1985. Blockbuster had followed an extensive growth strategy, and achieving a peak of 9,094 companies operated and franchised movie stores worldwide by the year-end 2004. Blockbuster had 3,291 international store locations at the year end 2004 were all over among...
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...Netflix (discussed above), the largest online DVD rental service in the U.S., offers a flat-fee DVD movie rental service that, by 2007, was serving over 6 million subscribers from its collection of 75,000 titles.32 Subscribers can use the website's browse function to search for movies by genre, and use an extensive movie recommendation system based on other users' ratings to add to their ordered list for delivery via mail. At its initial launch, the Netflix business model was based on a pay-per-rental service, but this initial pricing model did not succeed, and the company almost failed. It was clear to management Netflix had to rejig its business model and, between September and October 1999, it reinvented itself with a subscription model (the ‘Marque Program’). It ended its pay-per-rental model entirely, and evolved the monthly fee program to allow subscribers to rent any number of DVDs per month (although only a limited number at any one time). The model was supported by a system of regional distribution centers which ensured next day delivery to over 90% of subscribers. Clearly, it took a while to be able to ascertain the right price points and the manner of pricing that was most acceptable to the customer base for its new service; but as Netflix management figured out viewer convenience, wants and willingness to pay, it adjusted its business model accordingly. This ability to perceive and adapt saved Netflix and laid the foundation for its growth and development: by 2006...
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...Abstract This document will present a technology that has changed the way society sees the movie and TV industry. This paper will present details of how this technology impacted its industry, how it is used, how people, and competitors reacted. Examples will be provided of similar scenarios and what new opportunities this technology has presented to its market, plus how the government and legislation reacted toward this new technology advancement. Technology Effects Technology is a powerful tool that over the years it has evolved continuously providing the human with new options to be more precise in every aspect. Technology not only provides us with new emerging advancements, but they also can make a whole industry change with one revolutionary creation. An excellent example that can be provided of how technology can change an industry very fast is the online movie streaming sites and the self serve renting movie machines. These two different technology creations has come to make an impressive change on how the movie and TV industry currently operates compared to a few years ago. Many years ago the movie and TV industry was strictly dedicated to watching TV shows in the big old box we call a Television, and we could only watched movies at a movie theater or in the television. People would visit different store locations to rent their movies and watch them at home but things have changed drastically since then. These new technology advancements have changed how everything...
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...a group via Internet to buy a certain product or service with a discount. Before mobile payment was introduced in group-buying, customers can only browse the sites every day and buy the deals through online banking in advance. While after mobile payment became possible, customers can use the apps on smartphones buy movie tickets deals minutes before the movie start. According to the Apple stores’ statistic, more than 10 group-buying apps ranked top 50 under “lifestyle” category. Computer is no longer the only carrier in group-buying industry. Explain why mobile payment changed group-buying The concept of cnQianBao (China wallet) for group-buying was first raised by Lashou in 2011. Technology, rapid adoption of smartphones and customer’s increasing demand are the reasons. First of all, the mobile phone has been one of the fasted developing technologies ever seen. In little more than a decade it has evolved from a simple voice and text messaging device into a mini-computer. Today’s devices incorporate a wide range of security technologies that are typically available on a PC. This evolution has overcome doubts from both the customers and the financial industry about the security of mobile transactions. Secondly, the rapid adoption of smartphones has accelerated the combination of...
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...BOM 7094: Operations Management Digital Cinema – Changing the Supply Chain Management of the Movie Industry BOM 7094 Term Paper Dzulhafidz Bin Dzulkifli - 1091200147 10 Table of Contents Introduction ...................................................................................................................................... 2 Literature Reviews ........................................................................................................................... 4 Digital Cinema – The New Challenge for the Movie Industry ..................................................... 4 Security and Rights Management in Digital Cinema................................................................... 4 Digital Cinema Business Model – The Global Outlook ............................................................... 5 Summary of Literature Review ............................................................................................... 6 Operation Management: Supply Chain Management ..................................................................... 7 Motion Picture Supply Chain Management – The Conventional Way ............................................ 8 Ownership Chart: The Big Six ..................................................................................................... 9 The Management of the Chain of Supplies for Digital Cinema. .................................................... 10 Digital Cinema Process .................................
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...Apple Corporation Marketing Strategy Apple is a leading innovator in numerous technological markets, which includes the computer market, tablet market, smartphone market and the MP3 market. Being a leader in these industries comes with many challenges due to the number of competitors in each of the markets. Their main competitors are HP and Dell when it comes to the computer industry. Samsung, Google, HP and Dell are also primary competition in the tablet market. Apple was far and away the leader in the smartphone industry, however Google’s Android and Samsung’s Galaxy are becoming increasingly popular and they have become Apples principal competition. Apple brought MP3 players to a whole new spectrum when the iPod was introduced; however the iPod’s main competition is Apples very own iPhone because of the iPhones music playing capabilities. In order for Apple to stay the alpha leader in all these industries they must constantly be innovating and differentiating their products from their competitors. One of the greatest strengths of Apple is the way that each of their products can seamlessly interact with other Apple products. This is a key element that Apple has a keen edge in over their competition. For example, ITunes was a pioneer for the music storage devices that could be saved on your computer and can now be used to transfer music from your computer/tablet to your iPod/IPhone. Now, Apple has made it even easier to sync not just music from device to device, but also documents...
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...The Modern Film A majority of current movies on the market today most likely have one thing in common, Computer Generated Imagery, or CGI. Imagine how crude a movie would be without the use of computers and the quality they would posses if these technologies didn’t exist. From Star Wars to The Matrix and even a vast majority of all the more recent animated films such as Toy Story or Monster’s Inc have all used computers to enhance the experience of the movie. Movie goers have been enjoying the quality that these technologies have been adding to movies for years, maybe even longer than some might know of. It’s said that John Whitney, Sr. was the first to bring computer graphics to the film industry with his slit-scan technology creating the visually powerful “into the monolith” imagery of 2001: A Space Odyssey. Over the years computers would keep proving there worth in movies such as Tron, the film many people associate with the birth of Hollywood computer graphics. In 1985 Pixar produced what is said to be the first CGI character animation in film with the stained glass window come to life effect in the Young Sherlock Holmes. Disney, the maker of popular children’s movies of all kinds would later acquire Pixar and take animated movies from the classic sketched scenes of Cinderella and Bambi to the first full length CGI movie, Toy Story. Toy Story changed the way of viewing for animated movies making the characters seem more realistic and giving more detail to the worlds...
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...Film It’s hard to believe that the first real use of what we know as computer-generated imagery (CGI) took place in a feature film, Westworld, which was in 1973. But it would be another 20 years before Hollywood experienced a real revolution in special effects, when photorealistic dinosaurs rampaged though Jurassic Park, a Michael Crichton-inspired theme-park-gone-wrong movie. The concept of today’s level of 3D CGI animation is an evolution from basic cartoon animation into a simulated world that seeks to represent realism as accurately as possible. It does this by slicing up the world into the smallest segments possible, and then controlling how those tiny parts of the real world objects move, react and change based on the other objects and conditions within that 3D world (See fig. 1). The history of computer-generated imagery goes hand in hand with the history of the computer, as the computer evolved CGI effects got possible. For the origins of computer-generated imagery we need to go back to the year 1968. In this year a group of Russian mathematicians and physicists headed by N.Konstantinov created a mathematic model of a moving cat across a screen. A program was made for a specialized computer called BESM-4. The computer printed hundreds of frames to be later converted into usable film material. In the 1970′s CGI really got a hold in the designing community. With many people experimenting with new movie and designing techniques the technology rapidly evolved. New CGI developments followed...
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...Netflix is the leading movie and television streaming company which was established in 2007. Netflix began as a disc rental company which offered door to door movie rentals at a monthly rate. The company also began a video streaming service which consumers pay a monthly subscription fee to access thousands of movies and television shows at a low rate of $7.99 per month. This allows the user to watch at anytime, anywhere with an internet access point and a viewing device, to stream as many movies or videos as they like. Netflix has negotiated terms with networks managing titles to either receive a profit of each title or a cut from subscription fees. How strong are the competitive forces in the movie rental marketplace? Do a fiveforces analysis to support your answer. The competitive forces in the movie rental marketplace are not very strong. Netflix’s major competitor is actually just RedBox. Most people would think Blockbuster Express kiosks would be a serious competitor, but actually Blockbuster Express (not related to Blockbuster LLC or Blockbuster stores) is operated by RedBox. According to NPD Group, a market research company, overall disc rentals was down in 2011, but it still managed be the top source of movie media in homes with 62 percent of transactions being disc transactions. At its peak, Blockbuster had operated approximately 9,000 stores, they are now operating approximately 900 stores worldwide. RedBox, a recent competitor, operates approximately 42,000 kiosks....
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...Since founded in 1999, Netflix has grown to become the world’s largest online movie rental service. In the beginning of 2007, Netflix surpassed 6.3 million subscribers. With a catalog that includes more than 100,000 titles, Netflix is leading the movie rental market. Netflix’s subscription-based business model was a disruptive innovation in the movie rental business. By using the internet, Netflix focused on providing convenient and affordable prices for an entertainment industry that was already highly popular. Based on a product that consumers already loved, Netflix’s business model was profitable because it improved the consumer’s rental experience. The company aimed to become the best cost provider. As part of its competitive advantages, Netflix has an intuitive website (easy to use), personalized movie recommendations, and excellent customer service. Netflix has been rated No. 1 in online retail customer satisfaction by Neilsen Online for the past 3 years and for nine consecutive periods by Forsee/FGI Research (Netflix, 2009). Netflix’s strategy for success has included providing a comprehensive selection of movies; an easy way to choose movies, fast delivery, a no late fees policy and a convenient drop it in the mail return system. These strategies ensured a competitive advantage to Netflix and threatened to make the traditional video store obsolete. A combination of its business model and strategic approach carry out the mission of the company. Diagnosis of...
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