'Movie industry loses due to downloads'
Posted on 08/07/08 11:48 by Tim Stork                             
'Movie industry loses due to downloads'

Slowly everyone notices a shift from physical to digital, meaning more and more people rather download a movie than buying it physically. A Lehman Brothers analyst slashed the sometimes positive forecasts and shows the industry what they will lose.

Years ago we already saw that the music industry made a shift to downloadable content, and now the movie industry seems to be next. Besides this being a threat for the companies' current operations, also formats like Blu-ray, will have trouble surviving with downloads being the real next-gen format. Currently we already notice a decrease in income due to downloads, since physical to digital means that the industry misses out on some of its profit.

"Shifts from physical to digital will disrupt the marginal economics of the TV and movie businesses, just as it did for music," analyst Anthony DiClemente said during a conference call.

DiClemente explains the loss of profit with a simple sum showcasing a 12% decrease. The average profit made from DVDs is $10.59, while when sold on Apple's iTunes the profit is $9.29, meaning 12% less.

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By Dr. Who, Tue 8 Jul 2008 15:17
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Dr. WhoA whole $1.30 = 12%? I think not.
By MrMath (guest), Tue 8 Jul 2008 22:18
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your are right its not, its $1.30 = 12.27%
By Chuckwagon, Wed 9 Jul 2008 00:40
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Well, if the idiots in the movie indusrty would start making the product more appealing and spend their time and effort on things that make customers WANT to buy the new products they wouldn't have to worry about downloads, for now.  Downloading a 30GB movie file isn't really feasible for most people.  And if the disc that contains the movie also has features the 30GB download doesn't, then people would have more incentive to buy the disc.  But instead of making higher quality versions of the movies, with more content and features worth buying, these fools would rather sit around and bitch about how everyone is stealing their work.  And of course they forgot the good old days when there were NO home media options, and the only money they made was off the product when it was in the theaters, and if it sucked they couldn't just jazz up a box cover to sucker people into buying it anyway.  Then along came the death of their industry, the dreaded videotape and the home VHS system.  Which of course didn't kill the industry but gave them another way to make even more money.  And next came the death of the industry, the dreaded DVD.  Etc.  And so on.  These idiots just can't see opportunity, they only see danger.
By Zod, Wed 9 Jul 2008 06:50
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ZodI don't buy the download excuse.  CD is dying out because the industry started focusing on singles instead of albums.  The music isn't as good as it used to be.. and what people like are only a few songs off a whole album.  So even they used pay downloads, the studio is only get a few bux for the decent songs, rather that money for the whole album. I think a DVD/Bluray is better bank for your buck.  DVD's are similarly price to cd's, but you get a whole movie, not just audio. CD's are over priced.  They long finished their milking period when the masses repurchased their casette/vinyl collections, and the new music doesn't sell because its mostly crap. The most money these companies make is when people adopt a new format.  CD is pretty decent quality for music, people can make their own mp3's off them.  No real reason to change formats. I think movies will do ok.  They'res usually a handful of decent flicks ever year. Not to mention they have the TV market now, which was virtually impossible on VHS.
By Kane (guest), Wed 9 Jul 2008 09:19
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Dvd's cost $9.99 or so, usually lower than that at WalMart- yet CD's remain $12.99 and up? A movie costs wayyyyyy more to make than a CD, so why is a dvd cheaper? It's because of the greedy record companies. If a new release dvd costs $17.99 maybe, then a cd should cost around $4.99 if you compare the actual entertainment value.
By Vic_M (guest), Wed 9 Jul 2008 15:05
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Yes, I have no sympathy for either the music industry OR Hollywood. As it has been said above... people WILL buy 'good product'. Disney use the same formula in their movies, just with different characters. More money than a movie for an album is just pure GREED, nothing more - same with video games - and that industry tries to sell itself with screenshots, and demos that don't represent the whole experience (serving no more than a simple 'teaser'). The budget for movies is huge, and yet we still get to buy the DVD for £12 ($24). Oh no, they have to reduce their own fleet of personal jets to one or two, I feel so sorry for them... how can they sleep at night ? With huge smiles on their faces, that's how !

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