This article basically talks about how hollywood is in danger because of changing dynamics like streaming and all that jazz. However, I would argue and disagree that while there is truth to these claims, they sound somewhat exageratted. This is because streaming isn't as promising as this article makes it out to be. According to the FCC's "Eighth Broadband Progress Report" (8/12), some 19 million Americans live in areas where no broadband options exist, and another 100 million who live in areas where it does still do not have it or have direct access to it. A third of the country can't quickly stream movies. moreover, the big distribution companies don't have any incentive to invest in expensive copper wires and fiber optics. The current infrastructure can't handle the type of bandwidth this article talks about. Technology may eventually, scratch that, probably will eventually catch up to where this distribution system would be feasible, but not in the near to mid term.
This is such an interesting article, and Mikael, I agree with what you have said. The accessibility to the nation is somewhat limited, so it's not justified to say that it's solely due to streaming and downloads that Hollywood could be in danger. The cinema industry, more than Hollywood, is at risk in my opinion because some studios are contemplating whether to simply let consumers watch movies at home for a higher price rather than come all the way to the cinema. This is will completely change, if not get rid of, this particular industry, and as a consequence, affecting aggregate demand and then the economy in general.
ReplyDeleteI agree that the live streaming of videos and movies does pose a threat to the movie industry, but I do not believe that it is a serious threat until the quality of the live streaming becomes much better. In addition to the quality, the consistency of availability of live streaming videos is another problem that shows signs of hope for the movie industry.
ReplyDeleteI believe that the 19 million Americans who are without broadband are not concerned about what new movies they can stream online. This is an extremely long term issue that will not have a large impact on Hollywood.
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