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Movie Industry

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Movie Industry
1) What competitive forces have challenged the movie industry?
The movie industry is challenged by increased levels of high-speed Internet access, improved PCs with DVD readers and writers, easy-to-carry video devices, and leading-edge file-sharing services. These forces make the video download easier and faster than ever before.

2) What problems have these forces created?
Meanwhile, benefits are not the only things came with these competitive forces, problems came as well. The movie industry has a recession. They cannot make revenue as much as before by releasing movies, people more like to download a free movie or even it is illegal rather than buy tickets or buy a DVD home. At the same time, these free download things also involve copyright infringement. Most of these download sources are from people who have no permission to upload these movies or clips.

3) What changes have these problems caused the movie and television studios to make?
Movie companies have to make some changes to adapt to the market. They cooperate with sites such as CinemaNow and Movielink to sell downloadable movies online with a 24-hour watch time limitation.

Describe the impact of disruptive technology on the companies discussed in this case.
YouTube, a video-sharing website, started their operation up in 2005. Many YouTubers upload movies or movie clips without permission which infringe the right of major studios, including NBC Universal, Time Warner’s Warner Brothers Entertainment, and News Corporation’s Twentieth Century Fox. YouTube cannot deal with this situation well, because hot movie clips are from multiple users and they can be moved as quickly as they were posted. Major studios have a recession on the DVD market, and this infringement behavior leads they lose money in cinemas.

Q3.
1) How have the movie studios responded to YouTube?
The movie studios are seeking $1.25 billion from YouTube. And before 2007, after Google purchased YouTube, the movie studios
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