Case of Movie Industry

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CHAPTER-03

1. What competitive forces have challenged the movie industry? What problems have these forces created? What changes have these problems caused the movie &televisions studios to make?

Some competitive forces have challenged the movie industry such as – • Treats of new entrants • Substitute Products or services • Increasing bargaining power of customers • Increasing bargaining power of suppliers • Rivalry among existing competitors
Those are the major forces that have challenged these industry and these forces have made it more difficult to stand in the market efficiently.
These forces have created crucial problems that affect the movie industry in a large extent which are discussed
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The movie and televisions studios have to make some changes because of these problems caused-

➢ Major movie studios reached agreements with sites such as cinema Now and Movielink which has since been acquired by Blockbuster, to sell movies online via download. ➢ These distributed promotional video clips of all new films to web sites such as YouTube. ➢ At the first time, the price of movies via download was minimum or small to get the support of customers to maintain low cost leadership.

2. Describe the impact of disruptive technology on the companies discussed in this case.

The impact of disruptive technology has changed the way of doing business of the companies that are discussed in this case.
NBC Universal, Time Warner’s Warner Brothers entertainment and News Corporation’s Twentieth Century Fox have faced a serious problem because of YouTube. Most of their content is submitted to YouTube without the studios’ permission that ranges from 30 to 70 percent. It is claimed that over 15000 unauthorized clips of its copyrighted Television programs had appeared on YouTube that the media faces damages around $1 billion from YouTube.

To avoid these facts, more companies sought some constructive solutions. They entered into negotiations with YouTube to established licensing agreements that would make
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