Hollywood Resists Needed Modernization
The first legal TV show downloads put on the Internet last year by Apple and studios experimenting with the new media marked the beginning of the end of media as we know it.
Already sweeping the industry, the old economic models that pushed radio, movie theaters and televisions to the forefront of American society are being swept away in favor of new-school forms of media.
Songs, as was realized by Apple quite a while ago, could be marketed online with a much lower transaction fee than they could be offline by eliminating the middle men, packaging and the ‘excess’ material (all 11 of the other songs on the CD that one did not want to hear).
The result was a medium that made them pennies on the song but, more importantly for Apple, leveraged their iPod over the rest of the industry.
Already, movie theaters are seen by industry insiders as an opportunity to market DVDs, given that $1.78 billion was spent at the box office between January and mid-March of 2004, while $4.8 billion was spent on DVDs and videocassettes during the same period. Theaters themselves make little money off of just showing the movie; most of their profits are made in concessions.
The distribution of TV episodes on the Internet is the realization of the new media reality.
Just as Monday Night Football has ceased broadcasting on broadcast television