With the development of modern technologies, many spheres of society have gained significant growth. However, this fact cannot be attributed to the traditional cinema industry. It is noted that fewer and fewer people recently visit cinemas and prefer to watch movies online. Because of this, Hollywood suffers significantly from a lack of box office profits. Considering this problem can help to understand better the modern film industry and the formation of ways to solve the profitability of cinema.
The Internet has posed significant challenges to traditional Hollywood movie distribution. The most crucial problem was the appeal of consumers to online cinemas and services that allow enjoying movies without leaving home. Moreover, there is currently a growing demand for old films, the distribution and screening of which has become much easier and less costly. In addition, Hollywood is experiencing difficulties because it does not have complete control over the distribution of films on the Internet. This issue is dealt with by specialized online platforms, which profit from it.
It can be concluded that it is not profitable for streaming services to pursue a “release window” strategy since they are at a low level in the Hollywood chain. Moreover, this industry often does not have enough income to pay for new, newly released films. It is undeniable that Hollywood has a most effective policy to protect the content produced than the music industry (McDonald, 2016). This is due to the growing popularity of subscriptions to services where customers access many files. However, in the case of the film industry, such subscription services cannot provide freshly released films, which has a positive effect on the work of Hollywood. Moreover, the cinema sphere has a preferential position since it receives offers and requests to access high-quality content from Internet distributors.
Therefore, it can be concluded that the film industry is experiencing both difficulties and advantages with the development of online technologies, so it is increasingly losing ground to online movie screenings due to time and higher financial costs. However, the film industry has a significant advantage at the same time, as it provides high-quality movies that cannot be viewed on streaming services. Using this opportunity, Hollywood can regain popularity among customers and increase profits.
Reference
McDonald, P. (2016). Hollywood, the MPAA, and the formation of anti-piracy policy.International Journal of Cultural Policy, 22(5), 686-705. Web.