How and why are changes in consumption and production happening in the industry you have studied.

Introduction: Changes in technology and general summary of consumption and production –
Consumption is people paying at the cinema, renting or buying DVD’s, as well as any spin offs/related media products. Production consists of the making of films that are then distributed to UK audiences and institutions.

Paragraph 1: General outline of how it is affecting the film industry – Due to easier access and decrease in general income as people are finding other ways to access/consume films without having to pay for them. Resulting in a loss in revenue for the film industry.

Paragraph 2: Pirate DVD’s – It is claimed that a 10 % increase each year in revenue is lost to illegal distribution. The film industry is the largest institution to be affected by piracy, as they cannot bear the impact with already acquired capital.

Paragraph 3: Internet – American Links. As films are released at a earlier date in America, people can access this on the internet and watch it legally before they are released in the UK.

Paragraph 4: Technological Convergence Significance – The idea of institutions coming together. This is important for institutions as they have to take a risk as to what technology to back for example the Convergence of the I phone and Sky +. It is important for institutions like these to make connections with each other.

Paragraph 5: The significance of proliferation in hardware and content for institutions and audiences. This consists of the means by which films are exhibited. For example travel DVD players, PS3’s compatible for blue ray and PS2’s compatible for DVD’s.

Paragraph 6: The current boom is also affecting the consumption and production –
Investment in the making of films dropped, largely due to the rate of the English pound against the American dollar and the availability of low cost studios in Eastern Europe. A recent example of Hollywood’s dominance is the record-breaking box office performance of Pirates of the Caribbean 2, seen by industry commentators as a victory blanket of marketing. £50 million was made at the UK box office, and 1.5 million copies of the DVD were purchased in the ten days after release. The timing of releases in relation to the Oscars, school holidays, the spring/summer blockbuster period and DVD releases at Christmas is strategic, and any British release attempting to get attention amidst this marketing stealth will be at the mercy of this.

Paragraph 7: Digital Distribution – This will certainly transform the film industry more than any previous technological change. Once it becomes the norm to download film via broadband, the potential for a new form of ‘blanket’ distribution is obvious. Not only do you need multiple prints you can also bypass the cinemas. Digital film has the advantage of offering identical versions of the film to each viewer, and this will without a doubt save billions of pounds at the distribution phase.