Why Businesses Can’T Afford To Fall Behind In The Technology Revolution
Technology has dramatically changed the way the entertainment industry works.
With the development of digital photography, companies like Kodak failed to keep up and quickly disappeared from the market.
But not all companies have been affected in such a dramatic way.
Some have either adapted to the changing landscape or been pushed out by tech-savvy newcomers.
For example, in 1997 six major music executives brushed off MP3 file sharing on Napster as “shit,” which ultimately led to their industries downfall as streaming services took over instead.
We can also look at how Netflix’s House of Cards release was so popular that it drew more than half a million viewers for its first season because of its new technology-driven release strategy.
Last but not least, we can see that pirated DVDs disrupted India’s entire movie industry as it created an inexpensive and easy alternative for watching films at home with friends.
These examples show how technology has disrupted the entertainment industry – and teach us why it is important to stay innovative and progressive if you want to play a role in the future of this industry!
The Decline Of Cds, Encyclopedia Britannica And The Rise Of Netflix: How Technology Changed Everything
Technology has drastically changed the power dynamics of the entertainment industry.
Before, companies like Encyclopedia Britannica and major music executives held the majority of power when it came to distributing products.
But now, with the growing popularity of digital streaming platforms like Apple Music, Pandora, Netflix and Spotify, it’s clear that technology has shifted this balance of power in a big way.
Take for instance AT&T’s A2B Music venture in 2003.
Its cofounders pitched their concept to top music execs regarding digital downloads but were met with ridicule as CD sales were creating so much revenue.
The company quickly dissolved but tech companies kept pushing forward and soon enough, CDs became irrelevant and digital music was all the rage – leading to these same executives being forced to adapt or else get left behind.
Netflix is another example of how technology has changed the game in entertainment as they used data analytics to customize the user experience by investing $100 million into House of Cards without even seeing its pilot because their data indicated that it would be a hit with its audience.
Technology has forever changed the da y-to-day operations in industries around us.
How Netflix And Youtube Are Revolutionizing The Creative Arts: Giving Artists Greater Freedom And Access To Production Resources
New technology has opened up a world of opportunities for artists, reducing costs and enabling more creative freedom in content creation.
Take Netflix, for example, who set up risk-free spaces for the creation of House of Cards.
As there were no ads to be concerned about, directors had much greater liberty than ever before.
Beau Willimon was able to create it as a single 13-hour film rather than split into 30- or 60-minute chunks with cliffhangers at each episode’s end.
Furthermore, consumers can now access content when it suits them through binge watching – 670,000 people watched the entire second season of House of Cards!
Similarly on YouTube you can watch whatever you want whenever you prefer – no restrictions.
For those creating content their own equipment doesn’t need to cost a fortune either; The Academy Award Winning Documentary The Lady In Number 6 proves this point as it was shot using an affordable Canon EOS 5D Mark III costing just thousands instead of traditional costly movie cameras most commonly seen in the past.
Finally, companies like YouTube offer facilities such as YouTube Spaces which provide users with over 5,000 subscribers access to equipment and production resources without having to spend expensive fees on third party companies additionally.
These technological advances have revolutionised how creatives create content by offering more flexibility and cost savings!
How Foresight And Quick Adaptation Help Business Leaders Capitalize On Evolving Markets
Companies who are able to recognize new opportunities and act on them quickly stand to capture new markets and reap the rewards.
Such is the case of Emile Berliner, who developed sound recording on discs known as records in 1887.
This proved to be a far more efficient way of producing and storing sound recordings than Thomas Edison’s cylinder inventions, allowing his business to quickly succeed.
The same trend occurred in the 1950s with the emergence of rock n’ roll music.
Big companies saw it as just a fad, or a niche interest for teenagers, but indies recognized its potential.
Alan Freed, a prominent disc jockey of the period, championed rock ‘n’ roll; Influencers like Time magazine and Frank Sinatra also ridiculed it.
Despite all this opposition, independent labels embraced it was wholeheartedly – and by decade’s end, 42 labels had rock ‘n’ roll records in the charts!
How Big Record Labels Used Their Size And Money To Dominate The Entertainment Industry
For a while, big companies had a tight stranglehold over the entertainment industry.
They used their economic size and power to dominate radio during the 1950s, and it wasn’t uncommon for them to bribe radio stations with backstage access, free concert tickets, and other freebies in exchange for airtime for their artists.
In addition, the movie industry was similarly heavily concentrated by six major companies – Disney, Fox, NBC, Paramount, Sony and Warner Brothers – who together controlled 80 percent of the market.
It was much the same in publishing; the book trade was tightly controlled by Penguin, Random House, Macmillan, Harpercollins, Hachette and Simon and Schuster.
The financial strength that these major players possessed allowed them to take risks on numerous artists: one success could cover multiple failures.
This then in turn let them attract top talent thanks to their lucrative contracts; those connected with successful musicians naturally were more likely to draw newcomers into their fold as well.
Finally, with physical stores being fairly restrictive (most carrying only 3-5 thousand albums max) they were able to dominate distribution further through offering priority placement at stores plus advance album copies and interviews with their “star” musicians.
All this ultimately gave large labels an unstoppable confidence in themselves – right up until the internet age dramatically changed all that power dynamics!
How Internet Shopping Transformed Consumption Of Unconventional Titles
With the advent of the internet, consumers have greater access to niche products than ever before.
Online publishing platforms and retailers allow customers to easily find rare and out-of-print titles and records, as demonstrated by the author of Streaming, Sharing, Stealing who was able to locate a 30-year-old pharmaceutical book on Alibris for $20.
Research conducted by Alejandro Zentner and Cuneyd Kaya who studied data from the physical and online stores of a large video rental chain found that 85% of transactions in-store were rentals of the 100 most popular DVDs while only 35% of online transactions were rentals of these top movies.
This suggests that consumers are drawn to unconventional titles when shopping online compared to in store because they can more easily access them online.
This is also seen in what happens when one of the chain’s local stores closes; forcing customers to switch from the limited selection in-store to an extensive range online.
The result is that individuals are then more likely to rent obscure titles over blockbusters due to having greater accessibility through digital platforms.
How Data-Driven Creative Decisions Are Taking The Lead In The Industry
Data-driven processes are revolutionizing the way creative content is produced, and it has become increasingly clear that companies can make better creative decisions when they have access to their customer data.
For example, an app-based company, Shazam, has built a competitive advantage for itself by having access to millions of searches each day, which gives them predictive power when it comes to the music industry.
With this data, Warner Music Group was able to produce an effective new imprint in February 2014.
Furthermore, user data was essential for House of Card’s marketing campaigns; different trailers were created that utilized information collected about viewers’ preferences so they could target more customers effectively.
Visuals were crafted focusing on Kevin Spacey with the goal of attracting those familiar with his work while other trailers highlighted David Fincher’s directorial style.
The same strategy has merited success and recognition for online streaming platforms like Netflix – who not only won eight Golden Globe awards in 2016 (breaking HBO’s 14-year streak) but was also the network with the most nominations that year – and Amazon which won Best Comedy at the 2015 Golden Globes for their show Transparent.
Publishing companies recognize how beneficial and crucial data-driven processes are when producing content or running marketing campaigns.
Fighting Piracy: How To Protect Creators And Consumers From Loss
Piracy has been a major problem for producers and consumers alike in the digital age.
The authors of Streaming, Sharing, Stealing conducted extensive research to unearth the devastating effects of piracy – from significant decreases in sales and quality of content produced to huge financial losses suffered by the Indian film industry.
Thankfully, steps can be taken to prevent piracy.
By showing consumers the risks associated with pirating content, they can be convinced to switch over to legitimate consumption.
Evidence even suggests that laws which put harsher restrictions on pirating could result in a 20-25% increase in sales.
It’s incredibly important that we work together to protect our content creators and discourage piracy so that everyone involved benefits and continues to receive entertainment content fairly!
Wrap Up
In Streaming, Sharing, Stealing, readers learn that the entertainment industry has changed drastically in the age of the internet.
It is now much easier to source and share content across various platforms, meaning that monopolies no longer exist.
To be successful in the modern age, businesses need to focus on taking advantage of user data and preventing piracy.
This book presents an insightful overview of these changes and provides clear guidance for how companies can adapt to them for maximum success.
