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I'm sorry but this just describes a list of wants without providing any insights into how Hollywood already works, and then prices things from a consumers persp
by teyc 15y ago
I'm sorry but this just describes a list of wants without providing any insights into how Hollywood already works, and then prices things from a consumers perspective.
Hollywood started off as studios where actors are essentially employees. They own vertically integrated enterprises which included distributorship as well as cinemas. (Read up on the Studio System).
This started to break down as studios gave certain actors a "star" billing and some actors become independently recognizable and started working as free agents. The trend persisted with now entire teams are assembled virtually on a project by project basis.
On the distribution side of things, secondary markets became increasingly vital. Cable, DVD rental, PPV, DVD sales and international distribution have overtaken box office takings.
The free-wheeling internet has proven to be a problem because some people who are watching movies at home are no longer accessing these through the monetizable channels like rentals, but instead are doing this through the free/unauthorized channels. I don't really know the size of this problem, as I personally don't like the idea of being shaken down by the MPAA or RIAA. Besides, I don't have the time.
Therefore to solve this problem for Hollywood, one working theory is that people don't mind paying a certain amount for the convenience of watching movies where they want it, as long as the price is "reasonable". This is Apple's model.
However, in general, the current way of negotiating individual distributor agreements represent a high degree of friction, and that locks out potentially creative ways for studios to earn back their investment.
If movie makers were to securitize its prices, alternate channels will flourish. I envision it more or less like a mechanical license.
One formulae may be based on days since first released and the size of the screen, and whether it is PPV or multiple viewing.
Then it is up to repackagers like DVD-makers, movie theatres, and online channels to reach the viewers. Repackaging may involve adding ads before and after the movie (brings down the cost of viewing), or even during the movie (as in TV).
If such a pricing evolves, I can see devices such as Roku offer a "legal" way to view a movie even if the user has downloaded it from a torrent. For instance, a user may be prompted whether they wish to deduct the price of the movie from their account in exchange for indemnity if they were prosecuted for illegal downloading.
In the big picture of things though, movies are a huge time drain on society. I, for one, would rather see people having to pay to watch movies. My relatives in Asia who regularly buy pirated DVDs from street stalls watch way too much movies and fritter their lives away.