Wednesday, February 04, 2009

Hollywood: Failing to innovate and fighting a futile battle

I am not a proponent of piracy.  However, I am no fan of media firms trying to fight a war against piracy which they will eventually loose.  The music industry has brought upon itself a downfall that started with its strategy of selling CDs with one single hit and junk music.  they failed to recognize that the rise of napster was a direct consequence of such short-sighted policies.  Eventually, time caught up as Apple innovated first launched the killer ipod-itunes combination. The battle for the music listening customer was won by a elecronics manufacturer and not a music industry incumbent.

Hollywood needs to learn from the music industry's mistakes.  If they continue to pursue piarcy instead of trying to figure out alterantive models of entertainemnet consumption, they will soon go the way of the many failed music firms. As broadband gets faster and more consumers get it, the easier will it be to download entire films or watch them online. The only thing that saves Hollywood is the cinematic experience that comes from visiting the theatres.True, it is a big advanatge and surely it will not go away soon. However, the trend clearly shows that increasingly households are becoming the centers for consumption of entertainemnt as a whole - the rise of netflix, PS3, Xbox Live and Wii re early indicators of a big convergence occuring across multiple product categories.  The sonner film houses realize this and adapt to the change the better.

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