"Distribution Causing Changes In The Film Industry."

873 words - 3 pages

"Video Killed the Radio Star, Simultaneous Distribution Killed American Theaters"Comcast found itself in the corner fighting for an idea that could further a billion dollar industry. This idea of allowing cable providers to charge $29.95 to $49.95 to watch an opening-day movie at home was quickly rejected by exhibitors who consider the shrinking theatrical window of exclusivity one of the biggest threats to their health. (Friedman, 2007) Although Comcast tried to show the benefits of this simultaneous distribution, I do not agree with the release of movies in the home on the same day of the release in theaters. We will discuss these new methods of distribution and how they may affect the product but also the market. I will show the cause-and-effect with this conceptual idea and finally discuss alternative methods for cable providers and satellite providers.With Comcast now allowing release of movies to Theater, DVD and on Demand Cable, the distribution methods have increased exponentially but so has the ability to pirate a movie. The overall design is to reduce costs and deter pirates, but I feel this could only increase pirating quality as they will be receiving digitally produced copies of the film directly into homes and their digitally capturing equipment. Another problem they seem to be overlooking is the loss of money to the major movie theater chains and the 250,000 employees. Although the companies may reduce the cost in producing and distributing film they have also formed a new problem, theaters having to close due to the lack of customers.Family owned Theaters who provided excellent entertainment to families were closing all over America when the majority of families stayed at home with the introduction to television. Recently Odessa, a small town in Texas, suffered the affects of changes in distribution. All of the second run movie theaters endured due to the introduction of earlier released DVDs to companies like Blockbuster, Netflix and cable provider's On Demand programming. The initial effect forced the cost of the dollar theater to be raised to $1.99, although this was nothing drastic, many families began to feel that renting the DVD and watching it the comfort of their home was worth giving up the Theater environment. The theater had to be closed and soon after a few other family owned theaters and drive-ins followed.The film industry market in 2006 had a total Box Office Gross of $9,277,289,097, with1,416,380,029 tickets sold at an average ticket price of $6.55. The major movie theater chains in America, Landmark, Regal Entertainment and AMC, take in an average of $2.5 billion annually. During the 2001-2002 recession, AMC was the only chain out of the 12 largest on the continent that did not...

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