Business Marketing Management ACCT 6003

Business Marketing Management ACCT 6003

E – commerce
Executive Summary
The report explains about different challenges occur due to internet like loss of market share
and high …

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E – commerce
Executive Summary
The report explains about different challenges occur due to internet like loss of market share
and high competition which impact on the distribution . Furthermore, it has been identified
that traditional movie distribution method by Hollywood is in threat as industry as it need to
make changes in the business model as this allow to sustain in the market for long run.
However, internet cannot work with the release window strategy as it become complex, it is
suggested to not adopt this approach as this impact on the distribution. Hollywood needs to
make shift towards internet -based distribution as it assists in sustaining in the market for long
run.
Table of content
Introduction ………………………….. ………………………….. ………………………….. ………………………….. …….. 4
Challenges Internet posed to traditional movie distribution and biggest challenges …………………… 4
Can internet distribution work with release window strategy? ………………………….. ……………………. 5
References ………………………….. ………………………….. ………………………….. ………………………….. ………. 6
Introduction
Internet have changed the way of doing business and also changed Hollywood business as
there are other big tech who are providing online streaming platform to the customers. Due to
advancement in technology, internet impact on the tradition movie distribution and it became
more challen ging due to presence of various platform (Song et al., 2018 ). The report covers
about different aspect lik e how internet is threat to Hollywood movie distribution and detail
discussion is done to understand issue faced by technology. Beside this, internet distribution
and how it can be use as release window strategy as to overcome problems.
Challenges Internet posed to traditional movie distribution and biggest challenges
Before the internet emerged, the revenue model as well as distribution channel were the key
playe rs for screening movie in threaten . As movie are being digitalized the industry structure
has underg o significant transformation. The major players at present like Netflix , Amazon
have eliminated the traditional method of distribution (Fang and Xiong, 2020 ). Hollywood is
facing several problems and moving forward to a world where peo ple prefer to watch online.
Internet have to become fastest gr owing segment of its business and becoming threat for
major distribution channel people. Price is another challenging factor for traditional movie
distribution as internet provided low pricing services as this help them to capture large market
share.
Furthermo re, Hollywood have changed their revenue mode l and shifting towards internet to
sell movie. This is essential to modify business method and make use of technology as this
help to sustain in the market and provide better support to increase desire outcomes. Beside
this, competitor like Google have develop streaming device and Ap ple also have launch their
own streaming platform (Apple TV) as th is bring huge competition in the market (Kearny
and Michael. , 2017 ). Adopting innovation tends to provide better opportunity to sustain in the
market for long run.
M any organizations are entering online streaming platform market. For example, Netflix
ha ve purchased exclusive right of Disney and Pixar as this impact on the traditional
distribution channel. The sale is significantly reduced since past decade due to internet which
posed biggest threat for the traditional method of distribution (Benner and Waldfogel, 2020 ).
Along with this, music streaming services have also entered in the market as it also impacts
on various music label company as sales have decline due to presence of internet and
technology. However, some of the platform provide free subscription as this help in capturing
large market share respectively.
Can internet distribution work with release window strategy?
No, internet distribution cannot be realised through window strategy as it become more
complex and become difficult to conduct business activities. Most likely scenario is that
studio will distribute their film through their own server rather than licensing their film to
third party server. Th is become more complicated as legal permission is require for
distribution as it increase the price for the final consumers (Weinberg et al., 2021 ). Release
window is describing the period of time where the certain type of media is allowed to screen
the film. Traditionally, movies are released in theatre then on DV D however distribution
changes due to window. Release is often associated with the public realising of the content
such as movie and same movie release on another platform like DVD.
Initially internet window will occur after the video and pay Tv window before getting free
window. However, internet is used to use dual server where people can watch same movie on
different device. In addition, it has been identified that, internet window tries to occur shortly
after theatrical release , as this help in providing better support to increase screen time. This is
essential for Hollywood to use single channel instead of using traditional approach as this
help in capturing large market share in the limited time frame.
The dispute will include whether the producer granted the studio Internet right to the
distributors and it depend upon the contract. However, this will create issue since internet
rights as file sharing threatens to the industry as organization are taking effective measure to
overcome problems. For example, setting up firewall for the sever as this allow to prevent
hackers to reduce the risk of getting file hacked. Online p iracy has threated the entire film
industry as managemen t need to work upon data base as this increase desire results.
References
Song, K., Kim, H., Lee, J. and Kim, Y.G., 2018. Dissecting movie performance across
multiple distribution channels: An elastic justification theory perspective. Telematics and
Informatics , 35 (1), pp.159 -167.
Fang, J. and Xiong, W., 2020, March. Impact of digital technology and internet to film
industry. In IOP Conference Series: Materials Science and Engineering (Vol. 768, No. 7, p.
072112). IOP Publishing.
Weinberg, C.B., Otten, C., Orbach, B., McKenzie, J., Gil, R., Chisholm, D.C. and Basuroy,
S., 2021. Technological change and managerial challenges in the movie theater
industry. Journal of Cultural Economics , 45 (2), pp.2 39 -262.
Benner, M.J. and Waldfogel, J., 2020. Changing the channel: Digitization and the rise of
“middle tail” strategies. Strategic Management Journal .
Kearny and Michael. , 2017. “Trusting News Project Report , Reynolds Journalism Institute,
University of Missouri .

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