Impact of Internet on Film Distribution-Free-Samples for Students

Question: Discuss about the Impact of Internet on Film Distribution. Answer: Introduction Digital distribution, that is also termed as online distribution of films and television is the distribution of such content of entertainment via the World Wide Web. The film and television industry has not generally been considered to be a business that would have the need to incorporate high-end technology. However, the recent advancements being made in the field of digital technology has allowed to change the perception of the aforementioned statement. With the implementation of the internet, studios and producers of movies and television have started delivering content by using technologies such as Video on Demand. The rising of several applications such as Netflix and Amazon Prime further proves the statement of utilization of digital technology to distribute television and films. The rise in the usage of the Internet has jeopardized the traditional ways of distribution of media content such as VHS videocassettes and MP4 CDs. With the evolution of the Video-on-Demand technology, the traditional methods of distributing and delivering movies have been thwarted to a greater extent; it has also addressed the issues of piracy and leaking of content online. Applications such as those mentioned above have resulted in the vulnerability of the sector of video renting. In the west, the Hollywood and Blockbuster rental stores face a great issue to the proposition of value which they predict to offer to their consumers. Video on Demand has addressed the issues of selection and location, which have been two major issues in the industry of video renting. The new streaming services such as Amazon Prime, Netflix and Hulu have addressed these two issues to a great extent. This statement of the essay addresses the extent that internet has on the distribution of films and television. Array of Digital Technologies A wide range of developments in the field of technology has been driving the alterations in the industry of motion pictures. The primary forces of technology comprise of a connection of broadband internet, streaming media, compression of digital files and encryption. Due to the implementation of these types of technology, storing, digitizing and transmitting by using digital networks that has resulted in the reality of the evolution of the service of Video-on-Demand (Gonzalez and Munoz 2017). Services such as streaming online and Video-on-Demand permit the user to select from a large movie and television database and also allow the user to play the movie. These types of services are primarily transmitted via two types of media, namely the Internet and network of digital cables. There are several organizations such as Cox Communications and Time Warner that has leveraged the services of fibre optical network. The online movie and television streaming services allows the user to select a show from a wide range of media content at the exchange of a nominal fee. This is done by the help of net-banking and paying at a reasonable rate. For viewing a movie or a television show, a password is mandatory for launching the file. Encryption of these files is done so that swapping of files can be prevented. Not only paid media, but free streaming video services such as YouTube also helps in the distribution of such content. Excluding this, social media such as Facebook, Instagram and Twitter are also utilized to promote and distribute a movie, making the traditional promotion and distribution of movies and television shows backdated in the process (Yazdani 2017). The Value Chain of Motion Pictures The value chain regarding to motion pictures involve their distribution and production. This essay would only describe about the former. There are several channels that are typically responsible for the distribution of motion pictures. The taste, urgency, willingness and preference differ from customer to customer with respect to a movie. For maximizing revenue, films are released by studios to the channels of distribution in windows of sequential release, generally in the order of movie theatres, stores of video renting, pay-per-view television and premium channels and streaming services. In the recent times, the most significant studios have been confronted with the issues of marketing and production costs, with the mean costs increasing from $27 million to $55 million in the time-span of 1990 to 2000 (Major 2015). The outburst of costs regarding marketing, production and distribution have encouraged and motivated studios to resort to several cost-reducing opportunities. Digital di stribution has been considered to be a similar opportunity. Impact of internet on distributors The role related to distribution of films is to obtain the masters of film from the studios of film, copying them into the media. This comprises of videocassettes and movie theatres for consumers and distribution of products to various types of consumers. This is the field of value chain which would suffer most with the growing relevance of Video on Demand (Arditi 2014). The technology regarding VOD would entice theatres of movies for the investment in the equipment that would be relevant for downloading motion pictures from studios directly, in place of paying via a mark-up of the distributor to obtain a film. Although the necessary equipments are quite costly, theatres of movies would understand that the investment would be profitable, as there would be a substantial decrease in the marginal cost of every film. With the theatres of movies moving towards the brand new model, the significance of distributor of movies would decrease in the process. Both theatres and movie studios stand to obtain via distributor disintermediation and the margin of the distributors are divided between them. The television and movie theatres can now be circumventing the distributors and the films are obtained at a cost of lower units, while the studios of movies would motivate thee increase in adoption off VOD as the costs of distributions are quite low (Ala-Fossi and Lax 2016). Therefore, distributors would be finding themselves squeezed from the suppliers and consumers simultaneously. Reasons for online distribution: The reasons why there has been an extensive utilization of the web for distribution of media content is manifold. Due to the huge improvements made in the network of broadband, specifically in the metropolitan cities, the contents of media can now be downloaded much quicker with the presence of an excellent quality (Belleflamme, Paul, and Martin Peitz 2014). In addition to this, there has been a huge outburst of internet-enabled Smart Televisions; online distribution of media content is increasing extensively. On the other side, there has been a significant increase in the number of providers. Along with the Stores of iTunes that are operated by the portals of Amazon and Apple, a wide range regarding other providers are there like Maxdome which provides fee-based demand on subscriptions (Hashmi 2016). Uses of digital technology: Digital technology can be utilized for downloading a TV program or film onto digital devices such as laptop, mobile-phones, PC or an iPad. A user can also utilize sites such as Pirate Bay or any other site and time can be consumed as per the suitability of the user (Ulin 2013). The media convergence via digital technology has opened up new opportunities for the exhibition and distribution of such content. In the industry of films, the platform number is the place where films can be viewed and results in proliferation are obtained every time. The distribution of media content has augmented the competition in the content of media. Films can also be watched by audiences via a wide range of methods when they wanted to. Streaming media such as YouTube, Hulu and Amazon Prime have been collaborating with some significant distributors such as Paramount and Warner Brothers that has resulted in the decrease in distribution overhead for these two studios (Wallen 2014). With the utilization of d igital technology, filmmakers can utilize the web to develop advertising and marketing plan regarding the project. Now, a film distributor can utilize platforms for self-distribution like Distrify for the creation of campaigns related to market regarding their work. The markets can be controlled to which a project can be distributed to along with the global delivery of content without the need for leaving the room. This is a huge step to a way in which marketing and distribution are carried out for media content such as TV or films. Filmmakers can now select for doing the work on their own if they are capable to do their work, or a small team can work in place of huge machines for marketing which were mandatory prior to digitalization (Simon and Marc 2013). Excluding the tasks being made faster and easier, these sites and applications have resulted in the marketing and distribution to be made more affordable related to filmmakers. A project can now be distributed at a significantly lower cost and several of these sites have the option for payment forms where media distribution can take place at the expense of an appropriate selection of price (Davis and Zboralska 2017). Lower prices would imply that campaigning of the film would be significantly shorter as compared to others. On the other hand, high prices would imply that a large audience of market along with a campaign which would help in the creation of more attention. This has resulted in the revelation of a wide range of methods which film makers can incorporate that was quite impossible prior to the surge of digitalization (Oyeyinka, 2013). Several film and TV distributors these days take an independent method, in which the distribution of these contents with a comparatively lower budget and as a result, it would depend much more on options of self-distribution and crowd-funding sites (Doyle 2016). Internet has also offered several methods for the distribution of media content. There are several forums that have been developed online where well renowned critics of media review media content has tended to attract a large number of groups related to marketing. As a result, independent distributors of motion pictures could learn several ways in the process regarding the marketing of their content. Apart from streaming and video-on-demand technology, BitTorrent has also been another way of distribution of media content. Although, it was regarded as an illegitimate way, it is making in-roads now via Bundles of BitTorrent. This is a service which permits companies and artists for the creation of Do It Yourself campaigns related to online-distribution that reaches an international audience (Nissen 2015). Several renowned movies and TV programs have been distributed significantly larger number of times which acts as a significant threat to theatrical distribution. On the other side, there has been an upsurge in the number of providers. With the operations of the iTunes store or the portal of Amazon, Prime Instant Video, there are also a huge number of providers of service such as Maxdome. It offers fee-based downloads that are dependent on subscriptions or demands (Akpan 2017). The distribution of movies via the aforementioned service providers relied on blockbusters and mainstream entertainment. However, the distribution is now turning out to be much more differentiated. With the arrival of such applications and websites, even old and seemingly unavailable motion pictures are becoming feasible. The oligopoly of entertainment market: Oligopoly is considered to be a structure of industry or market which is heavily dominated and influenced by several large organizations. The minimal density of organizations within the oligopolies of the market results in the creation of barriers for new organisations to enter, like high prices and newer and smaller organizations are kept away from being a part of the industry. In the recent times, the current online market leaders comprise of Hulu and Netflix (Vukanovic 2016). Competing with blockbusters, Netflix allowed their users to rent movies and television content conveniently from their locations by using the web. By the end of the last decade, distribution was revolutionized by Netflix with the implementation of a Watch Instantly mode that permits audiences to select and play shows and movies immediately on their devices. Their online feature of streaming has propelled their business on a significant level and it has turned out to be a significant revenue source, serving ov er 50 million subscribers. For a fixed price of subscription that is $7.99 every month, customers have an access to unlimited streaming online alongside renting DVDs (Schwarz, Anja and Lars Eckstein). With the achievement of huge success that was obtained by Netflix, the organization started producing and distributing its own original entertainment content. Stakeholders in distribution via internet: Just similar to the owners of properties of films that are being distributed by using the web are being profited financially is also considered to be a boon to consider by the European film studios and producers. In Germany, it is a usual practice for producers for transferring the rights for utilization of product to station of television that is collaborating with the project Earnshaw, Cunningham and Excell 2015). On the other hand, in the US, for instance, licenses are issued for utilization regarding the works themselves. The issue of screenwriters and directors not having to share the digital exploitation regarding the works was lamented very much by the European Union of Films regarding the media distribution in the EU (Franklin et al. 2013). In the current scenario, wherever the network of broadband is being extended and improved, the necessity for VoD is propelling. In the UK in 2012, it was up by 45% and in Germany; it was up by 70% (Marchand et al. 2016). As a result, it can be implied that the future regarding the distribution of media content, regardless of film or TV industry. The innovations made in technology have revolutionized the television and film distribution, which has been made possible because of commercialization and easy access of the internet. The behaviour of consumers and the ever changing nature of technology have resulted in rapid modifications in methods of distribution from year to year. This has made this topic to be intriguing enough to be researched within the sectors of business, economy, legislation and media (Smith et al. 2017). A legal lens is being utilized to evaluate how the oligopoly of current distribution of markets, threatened by emerging trends of consumers, supporting distributio n online might require the intervention from government to keep the conglomerates of media from utilizing restrictive measures that hamper the emergence of new organizations. The innovations in technology have been a detrimental factor that can result in the potential disruption in competition and the quo of status related to the structure of the industry. New technology has been removing barriers related to entry into the oligopoly market and the challenges to the market are controlled over bottlenecks which results in gate-keeping power (Lee et al. 2016). With the power of internet, borders are being erased and paradigms are being shifted regarding television distribution which was monopolized by major distribution organizations. The modern day industry of motion pictures is in cross-roads with digital technology and emergence of highly equipped technical gadgets such as Net-Generations or iPod (Jenkins 2013). Due to the large number of customers being equipped with high speed int ernet and gadgets that link to the web, organizations such as Hulu or Netflix did not have to invest in such costs of high entry, labour and services of streaming. In addition to this, the business operations of these companies relied upon the access of Internet for functioning, avoiding the purchasing necessity, manufacturing and installation of satellite dishes or cable boxes. With minimal barrier to enter the competition, more viable options are presented to the upcoming distributors. However, it is also predicted that barriers would continue to exist even with the emergence of digital technology (Fok 2015). Newer organizations such as the aforementioned ones have developed the models of the company in such a way that results in quicker adaptation to rapid modifications being made in the field of technology. This forced the established organizations to keep up with the competition instead of being complacent with age-old technology for distribution. Influence on consumers A vital role is played by consumers in the altering market of distribution. While there was a change in the audience regarding film and television, it was agreed upon that a significant contribution was made by technology in the distribution of media content. Two different types of consumers are emerging who poses a threat to traditional model for distribution. The digitalization of distribution of entertainment has been linked with the rapid growth of ecosystem of Apple. More than 3 million movies were commercially distributed by Apple along with more than 100 million episodes related to television since October, 2015 (Srensen, Inge 2014). The innovations have shifted the dynamics of interaction of consumers with technology. As the web is feasible to customers along with smart devices being common items of household, these latest users that are driven by technology communicate with entertainment in a more impactful manner. The experts of marketing have deduced that this current gene ration of users is numerically reaching the critical mass, and the practices of consumers are vastly different than those utilized in earlier generations. Conclusion As a result, it can be concluded that there has been a huge shift in paradigm related to the implementation of internet on distribution of entertainment. The uprising of several premiums and free streaming services such as Netflix and YouTube have resulted in the extent of utilizing digital medium for distribution. Although, the traditional distributive methods are still in use, they are being extensively implemented as the distributive costs are reduced significantly, thus allowing new distributors to enter into the market of distribution and production. There are also several disadvantages for online distribution of content of entertainment. 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