Movie Theaters and Digital Distribution - Essay Example

Titus Rock Manickam Order No. 207651 23 February 2008 Movie Theaters and Digital Distribution The chance of survival of theatre groups, as against competition from home video, piracy and online distribution, is pretty good. No doubt it has dipped perceptibly by approximately 8 percent on a recent survey carried out in the U.S.A. (The Big Picture). However, the reason for the decline is more because of the theatre's nonchalance to the audience's sensibilities and needs rather than competition from any quarter. The modern day customer is more demanding and aware than her counterpart a few decades ago. Commercial interludes in between movie shows used to be tolerated once upon a time. Now, customers have options to switch over to. After all, the customer will not mind being interrupted by commercials in the comfortable and flexible confines of the home environment. This advantage is missing in the theatre. The technology boom has advantages and challenges. It is up to the industry to get its act together to make best use of the opportunities. It is no use blaming anyone including technology and competition for plunging fortunes. Innovations and internet is making inroads deep inside domains hitherto impenetrable. People, the young generation in particular, are taking advantage. But this need not lead anyone to press the panic button. A good look at causes for decline in business proves that it is not due to technological advances but rather in spite of it. The problem lies elsewhere. It could be any one or more than one of the reasons. It could be technology, piracy, lethargy, obsolescence, or just plain stupidity. Whatever it is, research proves that it is manageable. The opportunities are immense. The younger generation is reaping it. It is not their fault if established markets have failed to appropriate their share. (The Future of Music+Technology, and Online Music). Shape up or face the consequence The rapid growth of entertainment and media technology has clearly rattled the relevant industries of music, movies and information. Suddenly everyone is talking in terms of the Digital Rights Management (DRM) as if it is the panacea to all the ailments. The DRM is helpful in curbing piracy and even competition. But what happens if the content of the music and the movie fails to inspire Will the DRM claim responsibility Can any amount of piracy wreck the bond between Michael Jackson and his fans If Enrique Iglesias makes an appeal not to encourage piracy, it will be interesting to get feedback of how many fans oblige. It is all very well to talk about security, legal protection, strong infrastructure, good network, and so on. Entertainment and media is facing real challenges from the digital revolution. The best way to face these challenges is by using factors both technical as well as emotional. There are many ways to maintain good customer relations and balance sheet. Every customer is not a pirate. (Blake White). Theatre owners are changing over to multiplexes in a big way in order to lure viewers. This is an external factor and a good one! However, it is equally important to adequately update and organize internal factors such as viewer satisfaction, added values such as better seat arrangement, sensibilities, hospitality, comforts, and so on. Movie goers no longer visit theatres to only watch films. They want more value for their money. Pirates or Demons I think the issue of home theatre, piracy and online distribution is being overblown. Going through statistics and observations, one cannot but agree that the problem exists. But not in the proportion it is being made out to be. Where there is a will there is a way. The Southeast Asian nations have proved it. Malaysia saw piracy drop from 95% to 65%. (Kristen Bole). If every country in the world displayed similar resolute purpose, piracy could be curbed to a very great extent. The revolution in communication and media industries has impacted every industry. Those who survived are the ones who reviewed the situation, prepared for the changes and carried them out, and harnessed the latest inventions to their advantage. Others who blamed the new scenario were crushed by the onslaught of the new system. Future of Digital projectors The future for digital films looks promising. The expectations are awe-inspiring and the industry is doing well to think globally and act locally. The industry must focus on key issues like flexibility and localization of good films rather than be overawed by the vulnerabilities of the technique. By this, I do not mean that security and legal protection must be thrown to the winds. Due diligence is necessary to avoid tampering and loss in revenue. One must think about how to make movies more interesting and accessible, and profitable at the same time. The digital technology appears to be versatile and easier to distribute. The business aspect of using digital projectors must be reviewed and standardized to suit modern times. The vulnerability of the digital films in the hands of home viewers and hackers is real but not unmanageable. If proper security measures and legal issues are in place, the problem of piracy could be appreciably curbed. Good marketing and customer satisfaction then play their role to ensure good business. (Surendra Arora). Real D Real D, that is 3D movies are phenomenal enhancement of entertainment technology that has somehow not been used to its capacity. Some of the films made or being made in Real D technique are Conan, The Dark Knight, Harry Potter 6, Jurassic Park 4, etc. Since the technique and accessories to make and view Real D films are complex compared to the routine films, the cost of producing and viewing is bound to be more than the normal films. It is difficult to estimate the actual cost except to surmise it could be twice as much as the making of a normal film. This is because 3D movies need to use multiple projectors that convey different movements and dimensions or use special projectors that have inbuilt accessories to effect multiple projections from a single source. (Cam Shea). Undoubtedly, the era of Real D movies is not far at the rate entertainment and media industry is progressing. Only there are ticklish issues to be addressed such as the number of media that could process 3D movies. For example, 3D movies are shown in theatres after installation of appropriate technology and settings. However, these technology and settings cannot be applied to other medium like DVD and television for these films. Such inadequacies and shortcomings hurt business interests for the producer. (Ryan Kim). Decline in movie theatre revenues Home video, piracy and online distribution have a real hand in the decline in attendance and revenues to the theater owner. However, this is only one reason. The second big reason is the insensitive approach of the theatre owners themselves. Movie goers complain that commercials are indiscriminately inserted during the course of the movie. This takes away the purpose and fun of watching the movie in a theatre. People come to the theatre to see the film not commercials which they already see in the television. They would rather watch the film in the safety and comforts of their home environment. Today, the customers are more demanding as they have more options. (Lisa R. Schoolcraft). Conclusion The metamorphosis of the film industry from silent movies to Technicolor films happened without much fanfare. But the revolution of the entertainment industry with movies and other forms of entertainment reaching viewers in their homes has the film industry tied up in knots. For more than a century the mandarins of the silver screen basked in the belief that they were invincible. The sudden turn of events due to the advent of satellites and networks has caught them napping. The statistics clearly reveal a downturn in the number of people who visit movie theaters. Theatre owners have been slow and erratic in their approach to react and respond positively to the new environment. If technology has favored the viewers, it has enough paraphernalia to favorably update theatre owners too. Multiplex has been one such development. Real D is another. There are more. Digital projection is not a threat if all the parameters in their production, distribution and operation are put in place. It is not possible to eliminate irritants like piracy. But piracy could be curbed to a great extent and cut down to the bare minimum through vigilance and deterrent measures. However, if piracy and other debilitating issues are allowed to continue, it is going to be difficult to seek remedial measures since mistakes prove to be costly and irreparable. Hence, it is better to plan and be prepared on issues like security measures and legal protection. Sources: 1. The Challenges and Opportunities of Online Music, The Future of Music+Technology, and Online Music, http://www.pch.gc.ca/progs/ac-ca/progs/pda-cpb/pubs/online_music/9_e.cfm. 2. Blake White et al, PricewaterhouseCoopers' Entertainment & Media Practice, A New Era for Content Protection, Potential, and Profit in the Digital World, http://www.pwc.com/images/e&m/a%20new%20era%20for%20content%202003.pdf. 3. Kristen Bole, Southeast Asia duels with tech piracy, San Francisco Business Times, Friday, 21 June, 1996, http://www.bizjournals.com/sanfrancisco/stories/1996/06/24/newscolumn3.html. 4. Surendra Arora, Head CSG, South Asia, Intel Group, FICCI-FRAMES, Frames 2008, Asia's Largest Convention on the Business o Entertainment, Digital Content: Challenges for India, http://www.ficci-frames.com/Archive/2006/synopsis/Digital_Content.html. 5. Cam Shea, Real D: The Future of Cinema, http://movies.ign.com/articles/784/784033p1.html. 6. Ryan Kim, Chronicle Staff Writer, San Francisco Chronicle, Dolby, Real D taking on another dimension in movies, Monday, 12 November, 2007, http://www.sfgate.com/cgi-bin/article.cgif=/c/a/2007/11/12/BUBST9J09.DTL&feed=rss.business. 7. We at EON Reality have something new and exciting we would like to share with you, Free 3dx max plug in from EON Reality, http://www.eonreality.com/raptor/. 8. Dick Oakes, 3-D Photography by Dick Oakes, http://www.phantomranch.net/3dphotog/3dphotog.htm. 9. The Big Picture, Why is Movie Theatre Revenue Attendance Declining http://bigpicture.typepad.com/comments/2005/07/declining_movie.html. 10. Lisa R. Schoolcraft, Lights dimming on movie attendance, Atlanta Business Chronicle, Friday, 27 May, 2005, http://www.bizjournals.com/atlanta/stories/2005/05/30/story5.html. 11. Adam Blair, It's the Theatres, Stupid, Grin without a Cat, http://www.adamblairviews.com/archive015.htm. Read More