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<link>http://tags.library.upenn.edu/makerecord/url/35805</link>
<title>SSRN-Internet-Based Distribution of Digital Videos: The Economic Impacts of Digitization on the Motion Picture Industry by Kevin Zhu</title>
<description>&lt;p&gt;The movie industry has very little choice but to adapt its current business model due to the invent of new technologies. The video rental sector has experienced significant remodeling due to digitization. In reference to video-on-demand the author states, "not since the introduction of the videocassette recorder has a disruptive technology so threatened the very heart of Hollywood." Blockbuster and Hollywood see these innovations as a threat to their rental revenues. The article focuses on how the Internet will affect the value chain of the motion picture industry. The author cites broadband Internet connection, digital file compression, streaming media, and encryption as the new technologies that have made these new online and VOD capabilities possible. He continues first by explaining how digital cable network and VOD systems work and then breaks down the logistics of the movie industry's production and distribution models.&lt;/p&gt;
&lt;p&gt;The article goes on to describe how the industry will change from digitization. In production, digitally produced movies will cost less by eliminating the need for expensive film stocks. Computers can be used to edit and assemble digital movies rather than "splicing together the actual film stock." In distribution, digital projection systems will be installed in theater and online streaming videos will become the popular channel for distribution and duplication costs will be nearly obsolete. As for the middlemen, film manufacturers, processors, and duplicators will be reduced and distributors and video rental stores may be eliminated. Movie theaters will also be affected because VOD systems will entice viewers to stay at home. Theaters will be force to add "valuable social experience" and show only movies they know will be profitable. As of now video rental stores aren't afraid of VOD, but the author suggests down the road they may have to "partner with a firm that owns distribution technologies but lacks customer base.&lt;/p&gt;
&lt;p&gt;These hypotheses have sufficient data to support them and may be realistic adaptions to the industry. Although not in current practice, it is important to think about the future of the industry. My paper will examine how many of these sectors have changed and how they will continue to evolve.&lt;/p&gt;</description>
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<link>http://tags.library.upenn.edu/makerecord/url/35416</link>
<title>ScienceDirect - Technology in Society : Neutralizing the piracy of motion pictures: reengineering the industry's supply chain</title>
<description>&lt;p&gt;This article analyzes the preventative measures the movie industry must take in order to protect their copyrights and stifle piracy. It is made clear that various factors, particularly the invent of broadband Internet, peer-to-peer networks, and improvements in video compression technologies have made such efforts extremely difficult. Thus the industry must exercise legal and technical means to battle competing markets. The entertainment industry is aiming to hold the information industry accountable for all copyright violations. Furthermore, they are urging the information industry to also institute anti-piracy technologies in all software and hardware. By elaborating on the previous legal battles that complicate the debate on whether to hold the user or manufacturer accountable for piracy, the authors device a better solution that assigning blame. The article suggests that the movie industry should adapt their supply chain to provide cheaper, quality, convenient products than any illegal form could offer.&lt;/p&gt;
&lt;p&gt;This new model would force the industry to reconstruct how they distribute, exhibit, and produce films. The second section delineates the current framework of the industry tracing back to the 1970s. The weaknesses are exposed and the industry's long-term "techo-phobia" is identified as a major culprit. The next section brings attention to the legal battles of the MPAA and the RIAA to protect copyrights and further discusses the benefits and setbacks of the DMCA. Two organizations have been assembled to try and deal with these problems; one is the Digital Media Device Association and the other is Project Hudson, which is made up of technology giants such as Samsung, Toshiba, and Nokia. Various solutions are proposed, such as digital watermarking and smart-card technology, but all have flaws. Because neither legal nor technological solutions effectively can eliminate piracy, the most sensible answer is economically based. In terms of distribution, the article suggests creating e-Blockbusters near ISPs, which would enable consumers to rent movies in a cheap and accessible manner. For exhibition, theaters must adapt by adjusting the "window scheme, offering differentiated digital viewing experiences, and developing fast-access storage to reduce portable media." Production will take on a purely digital form, reducing the need for human interaction almost completely.&lt;/p&gt;
&lt;p&gt;There are plenty of viable options available to improve and sustain the movie industry; it is just a matter or time and technology. The aforementioned solutions can improve the industry and successfully eliminate piracy if executed effectively. The article articulates my very thesis and attempts to provide an answer as to how the movie industry can change to this digitally advancing world.&lt;/p&gt;</description>
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