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
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
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