CHAPTER-03

1. What competitive forces have challenged the movie industry? What problems have these forces created? What changes have these problems caused the movie &televisions studios to make?

Some competitive forces have challenged the movie industry such as – • Treats of new entrants • Substitute Products or services • Increasing bargaining power of customers • Increasing bargaining power of suppliers • Rivalry among existing competitors
Those are the major forces that have challenged these industry and these forces have made it more difficult to stand in the market efficiently.
These forces have created crucial problems that affect the movie industry in a large extent which are discussed
What can the movie studios learn from the music industrys’dealings with online digital music and copyright infrigenment?

When the movie industry finds that the online music industry becomes a leading and profitable industry, it also follows the leads of music industry where the focus shifted from killing off illegal uploads to taking advantage of digital music as a new source of revenue.
The main goal behind the response is to earn revenue. Besides it, promotion of video clips of all its new films to WebSites such as YouTube; taking advantage of digital music; increasing the sale of CD s and DVDs; earning more profit not only from local market but also from outside the markets are the major reasons for responding . Movie studios learn from the music industry’s dealings with online digital music that focusing on taking advantage from the digital and online world which is a new source of revenue.

Form copyright infringement, movie studios learn that only the legal materials should be included in the YouTube. Video ID is the way through which it can track the infringing material and the copyright owners and YouTube will share the revenue legally.

4. Should motion picture companies continue to use YouTube to promote their new films? Why or why not?

Motion picture companies should not continue to use YouTube to promote their new films because of following reasons-

i. A london research firm, Screen Digest, forecasts that 55%of video content