1. Evolution of the Home-Movie
Industry
Team Rock Solid:
Hannah Houshian
Jonathan Kaplan
Tara Kuhner
Daniel Westfall
Michael Yen

2. Preview
 Today we will:
 Address how things were previously done
 Explain how the industry has been affected by
advances in data communication
 Describe the major data communication vendors
and what their products enable
 Define the competitive structure of data
communications in the industry
 Forecast where the industry is headed

3. How Things Were Done
Previously

4. VHS
 Comprised of television pictures and sound
placed onto a magnetic tape
 Linear method of storing information
 First widespread video cassette can be credited
to Sony in 1969
 Inability to store mass amounts of data, video
recordings becoming digital, inconvenient size,
and viewing quality

5. DVD
 Phillips and Sony joined together to develop a
media format that could hold large amounts of
data
 Replaced VHS tapes in the entertainment
industry because they produced high quality
video and audio
 Remain a popular media format

6. Blu-ray
 Shuji Nakamura, a University of California at
Berkley Professor, invented the blu-ray disc
 Came in as a major player in the “format wars”
because of the need to record play and record
HD content
 Use shorter wavelengths, which in return enable
high-density storage
 Analysts expect more than 32 million blu-ray
discs to be sold in the United States in 2011

7. Internet-Streaming
 YouTube leads the way in video streaming
 Convenience, cost, quality, variety, and ease of
use have lead consumers to choose internet
streaming over physical formats.

8. How The Industry Has Been Affected
By Advances In Data Communication

9. Technologies as a Source of
Revenue
 Digital events streaming
 3D movies
 IMAX
 VOD

10. Replacing Previous Technologies
 DVD sales dropping
 Illegal downloading

11. New Ways to Cut Costs
 No more film reels
 Digital files

12. New Costs Associated with
Changing Technologies
 New equipment
 Transition costs
 Hardware
 Software

13. Major Data Communication Vendors
And What Their Products Enable

14. Redbox
 Founded in 2002
 33,000 kiosks
 Low price and
convenience
 DVDs, Blu-ray,
Games
 QR Codes, iPhone
and Droid Apps
 Streaming service
future

15. Netflix
 Founded in 1997
 23 million subscribers;
world’s largest
subscription service
 Wide selection and
convenience
 DVD by mail and
streaming service
 Service realignment
announcement
 Expanding into global
territories

16. Blockbuster
• Began in 1985 selling video rentals
out of physical store location
• Strategies:
• 60-40 revenue sharing model
with movie studios
• No initial waiting period
• Customized store shelves upon
demographics
• Decline:
• $1.6 billion to a mere $300
million in company value
• Netflix, Redbox, Apple TV, On-
demand
• Cheaper, more convenient,
technological advances to fit
customer needs
• Dinosaur of home-movie
industry

17. Apple TV
• Sold in 2007 to enable streamed
media driven from content online to
play on TV
• Access to iTunes, rent/purchase
movies, TV shows, audio files,
MobileME, Flickr, YouTube, and
Netflix
• Strategies:
• Peer to peer digital media
receiver
• Works in similar fashion as an
iPod
• AirPlay allows home-sharing and
streamlines to TV
• Growth:
• 1st to 2nd generation models
• Improved Processor
• Smaller Bo with same storage
• Additional application

18. Video On Demand
• A DSL service over Internet
Protocol networks
• Digital subscription package
from service provider which
uses cable tv or satellite to
broadcast programs
• Spurred out of YouTube
craze
• Strategy:
• Convenience of instant play
on preferred video content
• Enjoyable features such as
pause, play, rewind, jump
• Growth:
• TIVO already implemented
• VOD deliverance through
mobile devices

19. The Future

20. Change in Trends
 Digital distribution rising
 Physical distribution dominant
 Quick change

21. Downloading
 Apple TV
 Increased convenience
 Netflix addition
 Amazon Instant Video
 Prime membership
 All methods

22. Netflix
 Netflix
 Streaming
 Physical disc
 Online/physical combination
 Cross-device service
 Xbox
 PlayStation
 DVD players

23. UltraViolet
 Digital Rights Locker
 Physical
 Digital
 Partners
 Necessary for growth
 Possibly Vudu

24. UltraViolet
 Advantages to Distributor
 Curb piracy
 Efficient distribution
 Effects
 Increased smartphones and tablets
 Potential for over-usage

25. Predictions
 Continued growth
 Apple TV
 Netflix
 UltraViolet
 Legal
 “official”
 Ease of cloud
 Familiarity of physical disc

26. Questions?