Why Movies Are Not Exactly Like Music
Ars digs into the proposition that movies will go the way of the music business, and finds some reasons not to be totally gloomy about Hollywood's immediate future. For one thing, the movie biz managed to introduce a next-generation format to follow the DVD, a trick that eluded the music crowd (anyone remember DVD-Audio? SACD?). Blu-ray isn't making up the gap as DVD sales fall, but it is slowing the revenue decline. Perhaps the most important difference from the music business is that movies aren't amenable to "disaggregation" — unlike CDs, which people stopped buying once they could get the individual songs they really wanted. Ars concludes: "The movie business is facing many of the same challenges that are bedeviling music, but it's not about to go quietly into that good night — and it may not have to."
DVDs sales are going down, but some of that gap is Amazon Unbox, Netflix, iTunes, DVRs, Hulu, etc.
The movie industry gets paid from all of these sources (including DVRs in that movie companies are paid to air movies on cable).
BluRay sales aren't huge because some retailers keep insisting on charging $35 for BluRay movies. We all know the cost of the disc is minimal. Amazon can sell BluRays for $10-$20. I'm not going to pay $35 for a movie, and I'm not alone on that issue.
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On the other hand, it does have one tremendous weakness that doesn't afflict music: consumers often watch films only once.
Really, if anyone should be working on a system to enable on-demand viewing of their intellectual property it should be the movie industry.
My UID is prime!
An obvious difference is that people are interested in seeing a movie exactly once, and as soon as possible.
Music relies on people wanting to hear it multiple times and they are probably more interested in the music well after it exists. And complete knowledge of the contents of the music increases, rather than decreases, their desire to hear it.
Also, one pretty significant difference between the two is the cost of production. Terminator 2 cost about $90 million and is 137 minutes long. That's $647.482 per minute. A typical album might contain an hour of music or so and can (despite what the MPAA wants you to believe) be produced for next-to-nothing*.
Of course, I am not taking into account all the last millennium issues with distribution and publicity. I'm talking about the costs of actually making a movie or album
*By "next-to-nothing" I mean that cost of time in a studio and a good mixer/sound technician is low enough that even unknown, new bands can pool their money and pay to have an album recorded quite easily.
It seems to me that this plan would be reliant on people actually wanting to watch the new releases after having seen the previous ones. You seem to assume that after watching the low-quality VCD, folks would want to watch the DVD... And after watching the DVD, they'd want to see the theatrical release and buy the boxed set.
The problem with this, of course, is that a lot of movies just aren't that good.
I could easily see this working for something like Kill Bill or Ghost Busters...
But I'm not certain that it would work for the majority of movies out there. I mean, I enjoyed The Hangover... But, having watched it on VCD or DVD, I really don't think I'd feel the need to see it in the theater. And I certainly wouldn't buy the boxed set. And that was a pretty fun movie.
Sure, if the popularity for the VCD is low you don't have to make a crapton of DVDs... And if the DVDs don't move you can just skip the theatrical release... But it seems to me that most of the money goes into producing the film itself - not duplicating it in various mediums. The money goes to paying actors, and lighting guys, and directors, and writers, and whoever else... Not to buying blank discs and celluloid.
So I'm really not certain you'd wind up making enough money to break even. I really think that with most of the crap coming out of Hollywood these days, most people would be content with a VCD or DVD. I don't think you'd really see all that many people showing up in the theater or buying the boxed set.
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