You tube case study
Question 1: In order to better define the forces that challenge the movie industry, we started by realizing the following Porter’s analysis. Buyers:based on the reading, we denote a pretty high bargaining of the buyers, due to the various alternatives that provide us with movies (torrent files, YouTube, streaming movies for free)
Suppliers: contrary to the buyers, the suppliers’ bargaining is decreasing because of the illegals downloads on the internet. (e.g Sony pictures, MGM). However, legal procedures to obtain movies by downloading are being developed online.
Competitive Rivalry:Internet stands as the main competitive issue for the whole movie industry. As implied above, movie selling are going down because of the downloading(most of them piracy movies). It is important to mention that streaming websites arecausing a reduction of movies sales.Youtube.com appeared as the biggest and most popular video-sharing website in the world.
Substitutes:The threat from substitute is globally low. The main concern is to watch a movie, therefore watching it legally or not does not matter.
New entrants:There is a relatively low threat of new entrant in this market. The use of YouTube, among other similar websites, could provide amateur movies with a great promotion, as they do not generally have to required funds for classic advertising.
A growing number of people download movies or series illegally, watch movies in streaming. What is important to stress is that movie industry is facing the Internet development, which cause a decrease of the movies sales. The studios have therefore started to create partnerships with organizations like Youtube.com, in order to attempt to solve the problem. As a result, legal procedures to download such movies are established.
Question 2: Describe the impact of disruptive technology on the motion picture industry.
The positive effect of the free trial before you buy (sampling effect)