The introduction of the television meant a big blow to the movie industry since most people could use the television to watch movies. This meant that the studios were to look for alternative as the move meant a big economic blow. However, in 1970, there was an introduction of pay television and therefore people had to subscribe for movies and pay monthly or pay on demand. This further led to the development of pay on demand and this was meant to satisfy the public with movies whenever they required one. Predictably, broadcast network executive, who advocated successfully until the late 1970’s, mostly made warnings about the demises of the ad-supported TV. This quickly led to the abolishment of pay TV rules and the studios started becoming alive again. By 1980, subscribers were able to pay an average of $ 7.41 per month per network. The woes were not over for the video and filmmakers as the emergence of the fiber transmission meant a more pay cut to the industry.
With the rapid demand for news and notifications, it has become so hard to control the media industry. Most of the productions have gone digital with most movies and music posted in you tube. This costs even much cheaper compared to buying a whole DVD or CD music which is much expensive. For example, a movie on a DVD costs $15 while the some movie in the Youtube is costing only cents of course depending on the type of download service.
The battle on Video on Demand
Practices and methods of creating television have been changing rapidly due to the rampant changes in technology. Methods of production have changed so much that it is difficult for viewers to notice the difference from one production to another. Dick Wolf a producer argues that entering the television and film industry at the moment would result in much losses than the profits expected. His argument is based on the stiff competition the industry is currently facing and the rampant changes in technology that leaves most producers poor. Nicholas Agroponte another producer agrees with Mr. Wolf. Nicholas argues that the difference between digital and analog production differentiated the top earners in the industry however, this cannot happen now since the whole world is already shifting to digital transmission. Digital transmission also faces many challenges while at the same time accommodating other players in the field such as capable operators who earn millions from their transmissions. Apart from technology, most of analyst who are producers attribute to change in television to the rules and regulations that differentiated who could produce a program and who could not. These rules led to monopolies in the industry. The rules popularly known as Fyn-Syn also affected the length of a program, time scheduled for the program and the format in which the program was to be produced. This led to division of labor and specialization therefore accommodating other players in the field. The rules also contributed to the multi-channel transmission. Most analysts regard the rules as the main reason for the success of the industry. The rules created a competitive environment leading to more research and innovation in the television and film industry.
Streaming of television networks straight to our living rooms cost more than the viewer can ever imagine. Companies that offer the streaming companies are regarded as affiliate companies. They demand a portion of money that is usually less in figure but its cumulative amount at the end of the trading period cannot be compared to profits and returns the Google Company is making. As we read articles, the subscriptions are mostly indicated in this manner, $0.25/sub/month. Most of the producers rush to join and hook up with the affiliate companies since they always end up making 100% gross margin by streaming different television programs and films. A good example is Oprah. After studying the field industry for quite some time, she decides to join the affiliate companies that will offer her the per/sub subscription at the need of the month. Oprah takes advantage of her wide popularity and therefore attracts a good share of the subscription. This is how the film industry has changed. Many more producers engage in such practices to ensure that they earn more. As if this is not enough, content owner such as Oprah prefer to be associated with many affiliates with the sole purpose of accumulating the subscription fee. The battle in the film industry with affiliates approaching television networks with their decisive mission of ensuring that the content owner cannot distinguish between programs streamed live in the internet and those provided on the television .
The television and film industry is a sector booming with high rates of interests and profits made from sales from one country to another. Most of the countries that do not have enough resources for production of films and television programs end up paying huge chunks of money for these programs. This kind of dumping is taking place in the film and television industry. However, some countries prevent this act by establishing strict rules and regulations that determine the amount of foreign programs that can be aired in the television in a certain country.
Gurley, Bill. Above the Crowd. 12 April 2010. 2013 <www.abovethecrowd.com>.
Waterman. Hollywood's Roads to Riches. New York: Willey and Sons, 2005.