The Influence of New Technology. Learning Objectives.
Identify the impact of home- entertainment technology on the motion picture industry. Recognize the role the DVD market plays in the economics of moviemaking. Describe the impact of digital cinematography on the film industry. New technologies have a profound impact, not only on the way films are made, but also on the economic structure of the film industry. When VCR technology made on- demand home movie viewing possible for the first time, filmmakers had to adapt to a changing market.
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The recent switch to digital technology also represents a turning point for film. In this section, you will learn how these and other technologies have changed the face of cinema. Effects of Home Entertainment Technology. The first technology for home video recording, Sony’s Betamax cassettes, hit the market in 1. The device, a combined television set and videocassette recorder (VCR), came with the high price tag of $2,4.
American home. Two years later, RCA released the vertical helical scan (VHS) system of recording, which would eventually outsell Betamax, though neither device was yet a popular consumer product. Watch Brotherhood Season 2 Online. Within several years however, the concept of home movie recording and viewing was beginning to catch on.
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In 1. 97. 9, Columbia Pictures released 2. Disney entered the market with the first authorized video rental plan for retail stores.
By 1. 98. 3, VCRs were still relatively uncommon, found in just 1. American homes, but within 2 years the device had found a place in nearly one- third of U. S. households (Entertainment Merchant Association).
At the same time, video rental stores began to spring up across the country. In 1. 98. 5, three major video rental chains—Blockbuster, Hastings, and Movie Gallery—opened their doors.
The video rental market took off between 1. Video sales that year came to $1 billion, for total revenue of more than $4 billion, marking the first time in history that video would eclipse box- office revenues ($3. Entertainment Merchant Association). Video sales and rentals opened a new mass market in the entertainment industry—the home movie viewer—and offered Hollywood an extended source of income from its films. On the other hand, the VCR also introduced the problem of piracy. VCRs Legal, Just Barely.
In an age when Hollywood was already struggling financially because of increased production costs, Sony’s release of home video recording technology became a major source of anxiety for Hollywood studios. If people could watch movies in their own homes, would they stop going to the movies altogether? In the 1. 97. 6 case Sony Corp. America v. Universal City Studios, Universal Studios, and the Walt Disney Company sued Sony in the U. S. District Court for the Central District of California.
The suit argued that because Sony was manufacturing a technology that could potentially be used to break copyright law, the company was therefore liable for any copyright infringement committed by VCR purchasers. The District Court struggled with the case, eventually ruling against Sony. However, Sony appealed to the Supreme Court, where the case was again highly debated. Part of the struggle was the recognition that the case had wider implications: Does a device with recording capabilities conflict with copyright law? Is an individual guilty of copyright infringement if she records a single movie in her own home for her own private use?
Eventually the Supreme Court ruled that Sony and other VCR manufacturers could not be held liable for copyright infringement. This case represented an important milestone for two reasons. It opened up a new market in the entertainment sector, enabling video rental and home movie sales. Additionally, the case set a standard for determining whether a device with copying or recording capability violated copyright law. The court ruled that because nonprofit, noncommercial home recording did not constitute copyright violation, VCR technology did have legitimate legal uses, and Sony and other companies could not be held liable for any misuse of their devices.
Recently, this case has posed interpretive challenges in legal battles and in debates over file sharing through the Internet (Spruill & Adler, 2. The Optical Disc System. In 1. 98. 0, around the time when consumers were just beginning to purchase VCRs for home use, Pioneer Electronics introduced another technology, the Laser. Disc, an optical storage disc that produced higher quality images than did VHS tapes. Nonetheless, because of its large size (1. U. S. market. However, the Laser.
Disc’s successor, the digital versatile disc (DVD) was a different story. Like Laser. Disc, the DVD is an optical storage disc—that is, a device whose encoded information follows a spiral pattern on the disc’s surface and can be read when illuminated by a laser diode. However, unlike the analog- formatted Laser. Disc, the DVD’s information storage is entirely digital, allowing for a smaller, lighter, more compressed medium. The first DVDs were released in stores in 1. VHS tape: sharper- resolution images, compactness, higher durability, interactive special features, and better copy protection.
In only a few years, sales of DVD players and discs surpassed those of VCRs and videos, making the DVD the most rapidly adopted consumer electronics product of all time (Entertainment Merchant Association). In 1. 99. 9, the movie rental market was revolutionized by Netflix. Netflix began in 1. California. In 1. Subscribers would select movies that they wanted to see on Netflix’s website, and the movies would arrive in their mailbox a few days later, along with a prepaid return envelope. This allowed users to select from thousands of movies and television shows in the privacy of their own home. More recently, DVD technology has been surpassed by the Blu- ray Disc format, intended for storing and producing high- definition video.
Released in 2. 00. Blu- ray Disc technology has the same physical dimensions as DVDs, but because they are encoded to be read by lasers with a shorter wavelength, the discs have more than five times the storage capacity of the DVD (Blu Ray). By 2. 00. 9 there were 1. Blu- ray Disc players in U. S. homes (Molbaek, 2. However, the technology has yet to replace the DVD in rental stores and among the majority of U. Happy Valley Download Episode 3 here.
S. consumers. DVD Revenues and Decline. DVD rentals and sales make up a major source of revenue for the movie industry, accounting for nearly half of the returns on feature films. In fact, for some time the industry has been exploiting the profitability of releasing some films directly to DVD without ever premiering them in theaters or of releasing films on DVD simultaneously with their theater releases. According to one estimate, for every movie that appears in theaters, there are three that go straight to DVD (Court, 2. While direct- to- DVD has become synonymous with poor production values and ill- conceived sequels, there are a number of reasons why a studio might bypass the multiplexes. Prequels and sequels of box- office hits, shot on a lower production budget, are often released this way and can generate considerable income from the niche market of hard- core fans. The fourth American Pie film, Bring It On: In It to Win It, and Ace Ventura Pet Detective, Jr.
DVD films. However, in other cases, the costs of theatrical promotion and release may simply be too high for a studio to back. This is especially true among independently produced films that lack the big- studio marketing budgets.