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 home-movie industry has been
affected by advances in data communication
 Describe the major motion picture data
communication vendors and what their products
enable
 Define the competitive structure of data
communications in the industry
 Forecast where the home-movie 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. Data Communication
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. Blockbuster
• Founded 1985 physically
selling video rentals
• 60-40 revenue sharing
model with movie studios
• No initial waiting period
• Customized store shelves
upon demographics

15. Blockbuster
• Valued from$1.6 billion
to a mere $300 million
(Bankrupt)
• Dinosaur of home-
movie industry

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

17. 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

18. Apple TV
• Founded in 2007
• 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
• Peer to peer digital media
receiver
• AirPlay home-sharing
• Future AirPlay growth,
increased processor speed,
smaller storage, and

19. Video On Demand
• A DSL service over IP
networks
• Digital subscription package
from service provider
• Cable TV or satellite to
broadcast programs
• Spurred out of YouTube
craze
• Convenience of instant play
• Enjoyable features such as
pause, play, rewind, jump
• TIVO already implemented

20. The Future

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

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

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

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

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

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

27. Questions?