This morning's TV Week update carries a story and link to a interesting piece on CNET about the changing Hollywood entertainment industry. I keep telling my classes that changing public interest and access to entertainment content will change the media business.
The simple explanation: audiences access so much free content (yes, some is low production value user-generated content--such as YouTube) that they are not as motivated to buy or consume some higher production value content. Mainstream companies are making alternate content available through online distribution. Higher end content, currently free, may become subscription service--if not watched on broadcast or cable television. We talked on Thursday about Chase Carey's expectation that Hulu.com will become a subscription service.
Here's the CNET article:
http://news.cnet.com/8301-31001_3-10378654-261.html
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I agree with the article yes a lot of people are cutting their spending, and trying to save money but I don't think the end of DVD's is near. I think it just depends on what areas people choose to cut back in. When the economy picks back up I think so will DVD's sale along with everything else. I think traditional movie rentals will be coming to end, due to all the things the article says, such as HuLu and Youtube, and Crackle.com. There is also the new red box rentals outside of stores and in Walmart which will be a big hit with people trying to save money. "Hulu may be doing immediate harm to elements of your business, but waiting right behind Hulu in the shadows, are things that do so much more harm," said Eric Garland, Big Champagne CEO. I believe this and it is scary to think of what will be the next step up from HuLu and other file sharing programs.
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