Tuesday, September 04, 2007

Movie Industry A Model for Radio?

Now that Labor Day has passed the movie industry can tally up the numbers on a record summer and get ready to announce a record year. Over 4 Billion dollars were earned this year by an industry that has been facing even more challenges than radio or records. Think about it. For Movie theatres we've been able to watch the movies at home for over 25 years on tape, DVD, cable, On-demand and very soon we'll be able to download them. Normally you'd bet that this would KILL the old fashioned theatre. But it clearly hasn't.

The secret - great content. Instead of cutting back on the quality of movies for the most part they have invested a lot more into the quality of the films, the stories, and the performances. Instead of running away from new technology they have tried to embrace it with constant innovations in sound, digital effects, new forms of animation, and now are setting on total digital projection/distribution systems. They have embraced new distribution systems on every level even though it may cost the theatres it doesn't seem to matter. The key is great product.

They still face lots of problems. Piracy is huge and with the internet you can often find copies of films as they open. Theatres have huge competition with bigger TVs, sharper DVDs, and digital delivery is very close which will soon expand that 50 inch plasma's reach. We even have a big trend to setting up home theatres complete with popcorn machines in our homes.

Yet the magic of the movie theatre seems to live on. Just remember the KEY to all this success is CONTENT. While developing in movie product placement, selling DVDs, and protecting the rights has all helped - the investment in the products is what fuels the success.

Check out this You Tube video on the steps Movies have taken to greet the future - http://www.youtube.com/watch?v=_Uqfrp7JPr0

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