Emergence Of Online Movie Streaming Media Essay

Emergence Of Online plastic film cyclosis Media EssayThe focus of the following discussion account is on the Macro Environmental theme of Online Movie Streaming and its restore on the consumer conduct in the global characterization effort. The following sources were interpreted into musical score as inquiry material to bring ab let reveal the understanding of the likely enamors this spay that could thrust upon the industry.SourceCritical Evaluation of Source skirt Street Journal (WSJ) bind on Theatre Loyalty architectural plan 1 rendering The phrase is based on introducing a radical everyegiance reward program by AMC theatres to its audition.Credibility The article is based on an annunciation make by AMC theatres and has a racy believability. dependableness ring Street Journal is print in New York, owned by Dow Jones Co. and has the largest circulation in the U.S. chastity Being the film industry penninger at WSJ, Michelle Kung is besides a Graduate from th e Harvard University.Relevance This article has a lofty relevance as it talks ab surface retaining and gaining characterizationgoers in the flick industry. time Magazine Article 2 commentary The article is based on mournful from film to digital photographs with different opinions held by famous individuals attached to the exposure industry.Credibility The author has described logically the difference between the digital and film industry bringing about arguments wherever necessary.Reliability The mag is widely circulated worldwide being the largest weekly news magazine.Merit Richard Corliss is a generator at Time Magazine that mainly focus on the exposure, music and sports industries who is as healthy as educated about the film industry.Relevance This article has a medium relevance in relation to the discussion idea.digital Music and Movies Report The true personify of large-minded entertainment 3Description The document is based on possible risks faced when se eking for digital in word formation.Credibility Moderates credibility as it is published McAfee, the worlds closely leading pledge engine room comp whatsoever.Reliability- Moderate reliability as tech information brush off be updated on a regular basis.Relevance- spirited relevance to the effect. representation Statistics 4Description This document gives a range of statistical data on the trends of the Cinema industry in the U.S. / Canada and the world.Credibility- Moderate credibility as it is published by the Motion Picture Association of AmericaReliability first base reliability as the data may non be rightRelevance gritty relevance to the topic.New York Times Article on You tube 5Description About YouTube expanding video lease service.Credibility High credibility since it is published by New York Times.Reliability- High reliability as the New York Times is daily published Ameri scum bag newspaper which is in like manner unattached in the world wide web.Merit C. Miller is a writer at New York Times.Relevance High relevance to the topic in describing key playersNew York Times Article on Netflix 6Description Netflix introducing new online blow flicks instead of renting DVDs to its customers.Credibility High credibility as material is published by the New York TimesReliability High reliabilityMerit Nick Bilton is the main tech writer and a reporter at New York TimeRelevance High relevance in describing the changes in the industry.Wall Street Journal Article on Online cinema streaming trends (Netflix rising Cost) 7Description Netflixs increasing follow on licence contentReliability High reliabilityMerit Nick Wingfield is a reporter a WSJRelevance Moderate relvance reference held by Mr. Bennett Rathnayake on the impact on plastic film screening on theatres and its new-made consumer trends. aMr. Bennett Ratnayake is a famous movie producer in the Sri Lankan cinema that has produced many films over the past 20 years. The discu ssion was in-personly carried out on the 29th of April 2011 at Ben Films Production office, capital of Sri Lanka and was based on the fluctuating trends in the moviegoer audience.Interview held by Mr. Thissa Nagodavithana on obtaining copyrights on movies post screening. bMr. Thissa Nagodavithana has the copyrights for all old Sinhala films after being screened in Cinemas. The discussion was personally carried out on the 17th of April 2011 at Colombo and was based on the violations of copyrights by dint of streaming movies on various websites.Questionnaire conducted in pronounce to understand the consumer preference on watching movies Appendix 1For the purpose of this report a short questionnaire was carried in station to identify the consumer preference in modes of entertainment with regard to movies.Word Count 6632.0 Task 02 Discussion report card2.1 AbstractThe purpose of the following discussion paper is to understand the new technological advancements in the movie indust ry and its impact on consumer deportment. To life the purpose of this report, both primary and thirdhand data has been taken into consideration. afterwards a literature review of the easy resources, the drastic changes on consumer behaviour were examined. It was determined that digital technologies rise up curved the consumers to shake a preference on root movies over cinemas.2.2 IntroductionOver the years, innovation of new technology has taken a new turn and has ca utilisationd a major impact on life styles and behaviour of consumers. The history of the movie industry goes counselling back to 1896, where Thomas A. Edison and Thomas Armat presented the first motion picture on a public screen in the United States of America. 9There onwards, it has evolved from nickelodeons to videocas strike offtes, DVDs and straight to various online movie streams. Popular online DVD and Blu-ray1disc term of a contract services such as Netflix, which also offers services such as movie downloading facilities by devices such as Wii, PS3 X-box, has cultivated a major influence on consumer behaviour complementing the busy schedules of each individual. 10Due to soaring digital accessibility, most consumers have many options on browsing the net profit to choose their favourite movies. In auxiliary, the current economic situations have adjoind the cost sensitivity of the consumers. The look at for digital content consumption by consumers pass on be hoisted in the near future that will cause in launching new technological devices. 11The aim of the following discussion paper is to further understand the rising trend of online movie streaming and rentals in the movie industry and its impact on consumer behaviour. A discussion of this spirit will benefit the movie industry in understanding the genius of the impact on consumer behaviour due to online movie streaming.2.3 Research assumptionThe emerging theme of online movie streaming and rentals in collaboration w ith high tech devices will reach out a signifi thronet impact on consumer behaviour. In night club to prove the above statement a tributary research was undertaken in the form of a literature review through an industry analysis, the impact on the MESO factor, consumer behaviour, analysis of the key players in the online movie industry etc.2.4 Limitations of the studyThe primary research carried out for the most part limited to Sri Lankan consumers (i.e interviews, questionnaire). The sampling was limited to a certain fig and the secondary research was mostly based on statistics functional in U.S.A.3.0 The rising MACRO Theme Online Movie Streaming RentalsIn an era of digital advancements, it is not difficult to define the emerging themeof Online Movie Streaming and Rentals. Currently, in that respect atomic number 18 hundreds of websites widely available to consumers to download and stream movies at a lesser cost, reservation it a popular among consumers in most parts of the world. Technologies such as Placeshifting, which allows anyone with a broadband meshing connection to have video streams from their menage television set or personal video recorder (PVR) forwarded for viewing at any location where they have a computer display and a high-speed Internet connection, 12 is a major benefit to people with busy schedules outside home. These have caused a massive impact on the movie industry, which has created a lot of argument among DVD rental companies and as well as movie theatres. 13harmonize to the report Online Movies A Global Strategic Business report presented by Global Industry Analysts, the world online movie market is expected to grow up to $ 4.44 billions by 2017. The rapid attach of movie downloads through the Internet is a dissolving agent of wide availability and introduction in much advanced broadband facilities with computers consisting of hard drives with a larger capacity. Further more than(prenominal), key players in the marke t such as Apple and Netflix have introduced Internet bustling set-top boxes, providing the ability for the consumers to download the preferred movies or television shows to their personal home theatres. 113.1 Key PlayersThe growing trend in the online movie industry has created a enormous number of players in the market. The following analysis is based on the key players that ar currently competing among each other.NetflixThe movie renting was taken to a new level when Netflix introduced their home delivery service to the customers, which created a warlike advantage over many other movie rental services. Thereafter, Netflix introduced the option of accessing unlimited video streaming online to the customers without having to rent DVDs. 6 They also have signed a $ 1 billion deal with Paramount Pictures, MGM and Lions doorway for their content to be added to the services. 6 Netflix recently announce they would be reducing the number of DVDs mailed out than the year before, as th ere was an 86% increase in the quarterly profits of online movie streaming. 6 But the company also stated that there is a possibility of a substantial increase in the license cost of content to its streaming services by the second quarter. 7VUDUVUDU is a service where recent movies be supplied on demand without a monthly subscription or contract. 19 The consumers only have to pay a fee of US$ 2/- per movie rented for 02 nights. fit in to Pogue, 2010 it is a set top box that connects to the Internet, which provides a vast range movies that arrives on the aforesaid(prenominal) day the movies come out on DVDs. 8 They recently developed their dodge by collaborating with other companies such as LG, Samsung and Mitsubishi, where the same service is built into the TVs and Blu-Ray players. 8RedboxThis is a movie rental service available in the form of kiosks all over the United States. There are over 27,000 kiosks primed(p) nationwide in most convenient places for consumers such as grocery stores and convenience shops. Consumers are able to reserve movies online or through the Redbox i-phone application, do it possible to rent on the run. 14You TubeA recent announcement made by You Tube stating that they will be expanding their online streaming movie rental service by adding 3000 movies in agreement with Universal Studios, Sony and Warner Brothers for their movies to be rented on site. 54.0 Impact on the MESO factor Consumer BehaviourIn order to understand the impact on consumer behaviour in relation to the topic, it is chief(prenominal) to derive it as a concept. According to Schiffman et al, 2001, 15consumer behaviour is defined as how consumers act in the processes of seeking, purchasing, using, evaluating and disposing harvest-times and services that they expect to prove in their delight and personal needs.According to the interview held with Mr. Bennett Rathnayake, he stated that there is a fire up decrease in the number of people attending cinemas in Sri Lanka over the last 10 years. a He stated that online movie streaming has become more popular among the younger generation and most viewers are quite comfortable with watching the latest releases online or on DVD rather than in the cinema. However, he also stated that this is also affected by the time taken for a movie to be shown in Sri Lankan cinemas compared to the time of the worldwide releases.The impact on consumer behaviour by online movie streaming and rentals can be explained through the concept dissemination of Innovation, which is the process by which the acceptance of an innovation over a blockage of time is spread by communication to members of a social system. 16 non all new products or services have the authorisation to be accepted by consumers. However, the online movie streaming and rental market has managed to pay off a large audience through the following characteristics that have an influence on the consumer acceptance of new products.4.1 Relative Adv antageThis is the full stop to which potential consumers perceive a new product as superior to breathing substitutes. Consumers have come a long way from going to a movie theatre on a Saturday night with friends to merely renting out a movie from Blockbuster and watching it right at home. The present has become even more advanced that they do not even have to go out to rent a movie but get the DVD delivered to their doorstep.This type of convenient methods were as antecedently discussed, was made possible by billion dollar companies such as Netflix where renting a movie is just one click away. approximately consumers prefer convenience, which reduces the time factor in making purchasing decisions. For instance, the movies those are available for rental will be displayed online in contrast to a scenario where the consumers have to be disappointed when the required DVD is not available in a movie rental store or a kiosk. Also, all these Internet services are easily accessible in te rms of feasibility.4.2 CompatibilityThis is the degree to which potential consumers odor a new product is consistent with their present needs, values and practices. Most consumers are highly literate person in technologically advanced devices, which has led into a drastic change in the life styles and values practiced by them. They constantly make use of on demand amenities such as news bulletin downloading and streaming videos on their personal mobiles, i-phones, i-pads, blackberrys etc. that conveniently satisfies their needs.4.3 ComplexityThis is the degree to which a new product is difficult to understand or use affects product acceptance. According to Internet work statistics, the number of Internet users in the world has grown by 444.8 % from the year 2000 to 2010. 16 This could be a clear indication of the consumers evolving from a manual to a digital era, which has made them well informed and updated on new technologies. Most online movie streaming and rental websites ar e less complex and easily interpreted by consumers that has made them accept it in a short time span.4.5 TrialabiltyThis is the degree to which a new product is capable of being tried on a limited basis. There are many online renting and streaming options available for the clients. For instance, the consumers are able to compare the speed of which a movie or a video can be streamed online, among more than one antagonist in the market. According to Pouge, 2010 8, videos provided by Vudu are much clear than those of Netflix. However, these views can be differed from consumer perceptions and loyalty towards each individuals preferences.4.6 ObservabiltyThis is the degree to which a products benefits or attributes can be observed, imagined, or described to potential consumers. Due to the high usage of Internet advertising, the visibility of online movie streaming and rental services are very much high and easily diffused to the consumers.In addition to the above factors, the consumers a re also cost conscious with regard to entertainment. Affordability plays a major role in most consumers lives as the cost of life-time has taken a high rise especially after the recent recession condition that affected most parts of the world. Most consumers sought-after(a) alternatives for entrainment and adopted to low cost or in some cases free services such as streaming and renting movies online.5.0 Findings DiscussionAccording to Theatrical Statistics, although the U.S. / Canada box office releases have increased by 15% in 2010 over the past 5 years, the movie admissions or tickets change have declined by 5% compared to 2008 level. 4In contrast to the above research findings, one may argue that the excitement of attending a movie theatre and experiencing it on a wide screen with a touch sound system cannot be compared to the same on a home movie entertainment system.Although most cinemas are struggling to attract more moviegoers, new technologies such as 3D movies have attr acted a considerable amount of consumers. At least one 3D movie was viewed by more than one in three people in the U.S. / Canada in 2010. 4 However, 3D viewing is highly correlated by demographic categories where it is more popular among the youngsters when compared to the age category of over 40 years. 4According to the ken carried out 82% of the participants stated that they download movies most of the time where 7% stated that they watch movies at movie theatres. They were also asked to give out reasons as to why they prefer each mode to the other, and 69% of the participants responded stating that the frequence of movie released in Sri Lanka are low and by the time they are released the movies are already out on DVD or available online. Appendix 1 However, these data is only limited to a few number of participants and is composite to limit to a certain demographical sector.There are also downfalls to the high frequency of consumers streaming movies online. For instance, unnec essary harmful bugs and viruses can be contagious through unsecured websites and request for personal financial information of the consumers resulting in installing malware on users computers. 3 It is often encountered that cybercrooks advertise on-demand movies where the users are asked to download anti-virus earnest software that that helps users to download movies automatically without the consent of the user thus resulting in movie fans to be exposed to unauthorised and illegal content as well as malvertising2and malicious code downloaded with streamed movies. 36.0 Recommendations Strategic Response to Changes in the Movie IndustryThe digital advancements have made changes in the industry in many means mainly creating a competitive milieu among movie rental companies. Most companies such as Blockbuster movie rentals and movie theatres have gone out of business as Internet has cultivated a change in consumer behaviour. As a result of online rental facilities, consumers do not have to worry about renting out a movie from a store and returning it the undermentioned morning to avoid late fee charges.However, in resolution, AMC theatres recently announced that they would be updating the MovieWatcher rewards program by replacing it in response to the frequent requests by audience for richer rewards. 1 This is an attempt to attract more moviegoers to theatres in an surround of films being widely available through the Internet and videos-on-demand. It is recommended for the marketers in spite of appearance the industry to follow these types of methods in order to retain the moviegoer audience and increase the frequency in terms of cinema attendance.More safe concerns have raised such as copyright issues and during the interview carried out with Mr. Thissa Nagodavithana stated that, although he is in possession of the copyrights of old Sinhala movie broadcasting, most websites that stream videos online illegally uploads pirated copies making it difficult to preserve copyrights to them. b 3As a strategic response, it can be recommended for the marketers in the industry to entertain up with the new technologies and introduce new products and market launches in order to adapt to these changes taken place in the movie industry. Furthermore, it has been brought into notice that there is a major cost reduction in using digital technologies in movie making rather than putting them up in film, which is cheaper to shoot, cut and duplicate. 2 This could be a major advantage for cinema possessor where piracy has become a huge problem in making profits.7.0 ConclusionOnline movie streaming and rental trend has caused drastic changes in the movie industry as well as a major impact on consumer behaviour. A lot of competition among key players in the online market had risen making companies such as Blockbuster and cinemas go out of business. For the survival of the industry strategic responses should be carried out through adapting to new technolog ies and introducing new launches. Marketing professionals attached to the industry should adapt to these changes by improving their skills, attitudes and behaviour and cater to their audience accordingly.Word Count 2567 (Excluding the abstract)writer50/44, 1st Lane,Edirisinghe Road,Mirihana, NugegodaSri Lanka03.05.2011Chief league Organizer,Film Industry Conference 2011,Geological Society,Burlington House,LondonDear Sir / Madam,Online Movies Rentals and its Impact on Consumer BehaviourI would like the opportunity to present a discussion paper on Online Movies Rentals and its Impact on Consumer Behaviour at your above-mentioned league, which is to be held on the 13th of June 2011. I have given below a design description of the discussion paper and its usefulness to your audience.The constantly changing environment along with technological advancements in the motion picture industry has changed the consumer behaviour causing a great impact on the cinema industry. round-eyed avai lability of movies on various forms such as online movies, online rentals, Red-box, i- tunes Net-flix etc. has changed the competitive nature in the industry.I have been informed that the participants in of this conference are all attached to the cinema and movie industry and legal age will be marketers involved in this sector. Therefore I feel that this discussion paper with the above mentioned points would be ideal in order to raise awareness and introduce methods of countering these changes faced as a result of consumerism.Based on this discussion paper, I feel that this would be a very significant topic with regard to the role of modern marketers who are involved in different industries. As a result I feel that this would be a better learning opportunity for all involved at your conference.I believe that a discussion paper of this nature would be relevant in todays context and is applicable to any industry facing changes due to consumption habits.Trust the above would embody t he benefits to all present at your conference to seek and expand companionship thereby improving their respective industries.Please feel free to clashing me for further clarifications or information with this regard.Thanking you,Yours Faithfully,AuthorWord Count 321