Hollywood vs. Internet

1. Hollywood versus the Internet The media and Entertainment Industries In a Digital and Networked Economy By Andrew Currah

2. Oligopoly “a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors” ------Webster online dictionary, 2009

3. Hollywood Studios Disney Fox Paramount Sony Pictures Universal Warner Bros

4. Typical characteristics of oligopolistic industry Collusion Strategic interdependence The maximization of revenues The preservation of industry structure

5. Outline Introduction of peer-to-peer file sharing networks The potential commercial benefits of P2P networks The reasons why P2P is resisted

6. P2P Peer-to-peer (P2P) file sharing is a system of sharing files directly between network users, without the assistance or the interference of a central server (Tech-Faq, 2006).

7. Three Types of P2P Pure P2P Hybrid P2P Mixed P2P

8. New Media: an IntroductionBy Terry Flaw

9. P2P Threaten Copyright Hybrid P2P(e.g.Napster)lost a law suit Mixed P2P(e.g.Kazza) ruled against by Australian court Pure P2P(e.g.Bit Torrent) still “at large”

10. Average number of P2P networks

11. “the economic relationship between P2P file sharing and industry revenues is still extremely unclear” ---- Condry, 2004; Ganley, 2004;Oberholzer and Strumpf, 2004, cited in Currah, 2006).

12. Digital Right Management “encodes computer files into a secure format, with a set of usage rules and a price determined by the copyright owner. The file can then be freely shared over the Internet, or even offline via recordable media, but remains locked until a usage license is purchased” ----Currah, 2006, p447

13. P2P’s Potential Benefits More cost-efficient than traditional centralized server-client structure Cost saving to release any product onto a P2P network, esp. not-so-popular products If rewarding legal file sharing, revenue increases DRM technology can release content in multiple formats and versions across regionally segmented markets

14. Why P2P file sharing networks are not preferred by the Hollywood Studios?

15. Home video (DVD) contribute most of the revenue ----Currah, 2006 P451

16. New generation of high-definition DVD can generate new revenue and more control

17. Current legal and territorial structure of asset ownership can prevent legal internet distribution Clearing distribution rights could be expensive Territory based distribution structure is in trouble

18. Present vested interests holders want to maintain the status quo Home video divisions DVD retailers

19. Summary Peer-to-peer file sharing networks The potential commercial benefits of P2P networks The reasons why P2P is resisted

20. References: Currah, A. (2006), ‘Hollywood versus the Internet: the media and entertainment industries in a digital and networked economy’, Journal of Economic Geography, 6(4), 439-68 Flew, Terry (2008) New Media: an Introduction. (3rd edn.). Oxford: Oxford University Press. pp.21-37 Phillips, William (2002) ‘Music and New Technology: making music in the digital age’ in Kelly, Norman (ed) Rhythm and Business: the Political Economy of Black Music, New York: Akashic Books Pierre-Lou Dominjon (2007) Peer to Peer, retrieved October 20 2008 fromhttp://pilouweb.eu/docs/Epita/anglais/peer_to_peer.pdf Rietjens, Bob (2005) ‘Give and ye shall receive! The copyright implications of BitTorrent’, Scripted vol. 2, 3 September 2005 Tech-Faq, (2006) ‘What is Peer-to-Peer (P2P) File Sharing’, retrieved on October 19 2008, from http://www.tech-faq.com/p2p-peer-to-peer-file-sharing.shtml The Register (2006) ‘Judge gives Kazaa deadline to end pirate file-shares’ retrieved on October 18 2008 from http://www.theregister.co.uk/2005/11/25/judge_sets_kazaa_deadline/ Webster online dictionary, (2009). Oligopoly http://www.websters-online-dictionary.org/definition/oligopoly