Once you walk down the city streets of New York, you can easily find vendors selling their bootleg DVD copies of new released movies for half the price of a movie ticket. At the moment the quality of the movies aren’t at its best, but with the technological advancements, the quality of these bootleg DVD’s are getting better, which means that movie piracy is actually on the rise. This continues to worry both film studios and copyright activist. Movie companies are the ones suffering the most from this illegal practice. While they continue to produce $100 million movies, their profits continue to fall, when people decide to either pick up a burned copy or download the movie off some illegal Internet site.
The industry needs the audience just as much as the audience needs the movie industry. When people aren't watching movies the industry doesn't make as many movies, less movies are distributed to the television and rental industries, and ticket prices go up to compensate for that. Not watching films just manages to eliminate a form of entertainment, hurting the general public in the long run. Last, you wouldn't be able to use alternate forms of entertainment to download movies from the internet if someone didn't put in the money, time, and effort into making a movie for you to download.
However; more research is needed to get a clear idea of the issues, and their specific effects on the sales of Sony. Secondary Research Stacked heading. -Christopher Thacker 3/20/10 5:15 PM Literature Review While researching Sony Corp, our company noticed there had been a significant decrease in their net sales for the fiscal year ending March 2009. According to Sony’s Annual Report (2009), their sales and operating revenue dropped 12.9 percent from the previous year. This is shown in Datamonitor (2009) as a 956.2 million dollar net loss – certainly a considerable amount of money even for a corporation as large as Sony.
Many people today proclaim that Wal-Mart has just lost sight on the main goal, making money. While trying to attract more upscale shoppers, the retailer effectively turned its back on its blue-collar customers. Apparently, Wal-Mart does not care, and is attempting to deceive their usual, everyday customers by incorporating more upscale and pricy items into the inventory of the store (Duke 426). Wal-Mart’s everyday customers do not want inflation of price to occur due to the infamous “rollback” scheme. At first glance, Wal-Mart's "rollback" pricing scheme seems appealing however, while the strategy drew in some shoppers with lower prices on select items, it was combined with a rise in prices on many other goods.
The Greed of Music Industry Executives and Declining Record Sales The music recording industry is in trouble. For several years now, sales of new and popular music have steadily declined and show no sign of changing. The record companies are quick to blame the growing popularity of the Internet; music is being traded in a digital form online, often anonymously, with the use of file-sharing programs such as Morpheus, KaZaA, and Imesh, to name a few. The RIAA (Recording Industry Association of America) succeeded in disbanding the pioneer Internet file-sharing program, Napster, but is facing confrontation with similar programs that are escaping American copyright laws. While there is an obvious connection between declining popular music sales and increasing file sharing, there is more going on than the RIAA wants to admit.
The market confidence is so low because the property values have been continually diminishing. Falling property values have completely eroded the market confidence of many buyers who could buy homes. Bottom line, the market needs confidence and affordability. With the supply and demand balance so unstable, nobody seems to know what to do. Right now we are having a tug-of-war between the lenders and the sellers.
There is concern form industry experts that consumers whom have just made the switch to HD televisions will not be ready to purchase 3-D TV’s. (Wakabayashi, 2010) Sony has not been able to compete with their competitors on price because of the current market conditions around the world. The yen rose sharply against the Korean won exacerbating uneven price competition between Sony and their main rival Samsung. A strong yen erodes sales from overseas and makes production costs in Japan highly inflated. Japan which is in the midst of a tough recession has forced Sony to shut down three of their Japanese factories(Tabuchi, 2009).
Sony’s improvements in the TV Industry In recent years, the sales of Sony’s televisions have severely decreased, mainly due to their high prices and affordability. Sony needs to lower their prices during this economic downturn while ensuring consumers the same quality products as before. We concluded that individuals with greater income and those who budget their money are more willing to invest in a premium brand television such as Sony. While the price remains one of the underlying factors on which television to purchase, the quality, and reliability of the television outweighs the price when making the final decision Literature Review By looking at Sony’s 2009 Annual Report, we can see the struggles that the electronics industry has faced over the past year. Television sales have declined rapidly compared to its competitors, Samsung, Panasonic, Mitsubishi, and many others (Annual Report 2009).
Over the past ten years money being spent in the music industries has been declining because everyone is not buying as much as they were. Never the less, this problem does not only affect the music industry but also the publishing and movies industries. There is yet to be a solutio... ... middle of paper ... ...tudent'. It doesn't matter what the circumstance, this article made me realize the effect that illegal downloading has. Reading the first sentence of the article " industry revenues have been declining for the past 10 years," was when I realized the negative impact were all creating on movies and music (McArdle, 2010).
The results of the research show that because of its high pricing strategy, fewer consumers are willing to purchase a Sony TV. This concludes that price is certainly an influential factor before considering purchase though consumers appreciate the quality and brand name of Sony Literature review Sony as a global leader in electronics, faces stiff and intense competition from its numerous and diverse competitors such as Matsushita Electric Industrial Co. and Samsung Electronics Co. According to Wall Street Journal, Sony’s Chief Financial Officer, Nobuyuki Oneda said, "The competition is considerably tougher than we thought, referring to the TV-set industry. Prices are coming down at a faster rate than we had expected, particularly in the U.S. (Kane Y., October 26, 2006, Sony Warns of Pricing Pressures for TVs as Profit Plunges 94%)" Sony has begun to realize the extent to which price deter... ... middle of paper ... ...ponse was that Sony TV warranty is effectual because its TVs are planned in such a way that the product lasts longer than the warranty which gives it a lower failure rate. However in the event of a failure past the warranty, a fee is charged for repairs.