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What are the legal issues with napster
What are the legal issues with napster
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On-demand entertainment (OED) enables people to watch, read or listen to nearly anything they want, whenever they choose. Innovators such as Napster, the original file-sharing portal that debuted in 1999 during the height of the dotcom boom, paved the way for the modern OED industry by battling well-funded adversaries over copyright infringement.
In response to consumer demand, Comcast launched its On Demand channel with 740 movies in 2003. By May 2011, customers had accessed 20 billion programs, and were regularly viewing 350 million programs each month. OED is driving viewership because the many positives, including instant access to a huge library of content on the viewer’s schedule, far outweigh the few negatives, such as being dependent upon high-speed Internet. With more than 200 million Americans subscribing to in-home, high-speed Internet services, time-shifted viewing is rapidly becoming a mainstream option.
The OED industry is stirring up disgruntled feelings as sales plummet in the traditional movie, music and gaming sectors. For example, DVD and Blu-ray sales witnessed a loss of $3.3 billion during the past seven years. To combat this problem, on Jan. 10, 2012, Warner Bros. announced it would hold new DVD releases from rental outlets for two months after being released in stores and online. This decision doubles the 28-day delay agreement currently in place with Netflix.
However, studios such as Lions Gate realize they must reach out to the emerging industry if they hope to survive. In November 2011, the Wall Street drama “Margin Call” was simultaneously released in a limited 178 theaters and via online video on demand (VOD). The movie grossed more than $5 million in the theaters, but the $7 per-view online ...
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.... Games can also be embedded in websites.
OToy
Under development since 2006, OToy is a new service that will host high-definition video games and movies as well as computer applications and operating systems on the cloud.
Mashable named cloud gaming one of the hottest social gaming trends to keep an eye on in 2011 because it renders console-quality graphics on slow Internet connections. Additionally, a recent study conducted by The NPD Group noted the current ODE industry is only tapping 5 percent of the 134 million Americans who own VOD-supported devices.
By revolutionizing the way Americans consume media, ODE is not only changing how entertainment is accessed, but it is also drastically altering how advertisers reach consumers. Those who are able to adapt to the changing future of on-demand entertainment will find the most success in the years ahead.
“Stock of the online DVD rental company was up more than 15% in early morning trading Thursday. Netflix increased their forecasts for both revenue and total subscribers today, trying to compete with powerhouses like Blockbuster and Wal-Mart. The increased forecast stems from a slew of new subscribers that have invested in the service after a price decrease from $21.99 to $17.99 last month. Despite the increases in revenue and subscribers however, some analysts feel that the business model is “fatally flawed” and the company may fall by the wayside due to competition from the aforementioned retail and entertainment powerhouses.” Investors Guide reported this.
Determining the right target segment requires an analysis of the customer, company and competition (fig. 2). TiVo's customer is defined by unmet needs in the market. While TV is one of the most ensconced and ritualistic elements of contemporary American life, there are still aspects of television viewing that do not fulfill customer needs. An estimated 68% of Americans complained that they felt "widowed" by their loved one during the Fall television season because their spouses were chained to their televisions during primetime from 8pm to 11pm. Additionally, parents expressed a difficult time getting their children to do homework during key television programming times. In general, this is evidence that consumers want greater control over their television consumption habits. Analysis of the TiVo Corporation reveals their core competencies, which include proprietary software, national distribution through established retail outlets such as Best Buy, Circuit City and Sears and product co-branding with trusted electronics giants Philips and Sony.
...rom broadcast media also heralds an opportunity. In a world of self-service digital, where consumers compare everything according to value, online video is the ultimate table stakes. For mere pennies a day, consumers can get the content they want (that’s key) when they want it on whatever device they are using. They can watch their shows on their time from the mobile phone or a tablet or a computer or a smartTV. And that is the ultimate value for whatever it costs. Perhaps broadcast media can figure it all out in time. Perhaps they can stave off Judgment Day by evolving their business models to provide the kind of value consumers want. Then they become just another online video provider competing for the same eyeballs as everyone else. Changing their business model (away from subscriptions) would require Herculean efforts.
Before the 1990’s, if people want to listen to music, they just visit a music store and pick up a CD and then put it into a stereo equipment. However, the development of MP3 file format gradually changed the way people listen to music. This format lets everyone download music easily and it can be converted to CD as well. But, there is still a problem: searching MP3 files on the internet is maddening and people seldom can find the music they want. Therefore, the birth of Napster solved this problem, creating a virtual music community in which music fans could use the Web as a “swap meet” for music files. More importantly, Napster is easy to use and it’s free, which expands the range of audience in age. Bandwidth also contributed to Napster’s success. The greater the bandwidth, the faster the file can be transferred. So, Napster really changed the way people listen to music, discover music and interact with music.
When Blockbuster finally realized they needed to modernize operations and change with an ever developing industry they were unable to because of their enormous debt and negative cash flow. Senior management failed to see how advances in technology would lead to changes in how consumers rent and purchase movies. During Blockbuster’s prime they squandered their earnings on bonuses and lavish meetings. Their arrogance led them to feel invincible and that no one could ever catch them. Blockbuster management, in the end, failed to see the need to evolve to meet their customer’s needs while other companies rushed to fill this void.
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Direct and indirect competitors, along with outside obstacles, to a greater extent present a financial threat for Netflix. As a result, Netfl...
? Netflix provides a subscription-style e-commerce service. Over 95% of customers pay at least $17.99 a month which includes unlimited rentals with up to three titles at a time. A comparably low monthly fee, allows Netflix to lead market share of online DVD rentals while competing with traditional brick and mortar rental stores. Meanwhile, Netflix might keep the customers who try the service and happy with it continue paying the monthly fee. Therefore, Netflix has fewer problems in predicting revenues.
Since 1999, the situation around music has been changed drastically. In that year, the novel software “Napster” was released. With this software, people became able to get any file they want easily, sometimes illegally. Some musicians and people in the entertainment industry have tried to exterminate that P2P “Peer to Peer” technology. But it looks as if their efforts are in vain. People are going to use P2P technology more and it might as well become the official way to handle music distribution. The music industry should rather take advantage of the technology than keep trying to exterminate it.
Suppliers, being the movie studios, can basically charge whatever they want for the viewing rights to new movies.
The outlook for Netflix has developed a trend of continuous growth with subscribers and providing products with a substantial cost advantage by distributing a wide variety of titles that appeal to different customer groups (Anthony, 2005). The success of Netflix was simply listening to consumer’s feedback regard...
Although Hastings vowed to be divergent from other video retailers, his goal was to use an identical pricing strategy; however, one that would “appeal to customers [. . .] who used online shopping as an alternative to traveling to retail outlets” due to ease of access and more preferences (Shih, Kaufman, & Spinola, 2009, p. 3). Furthermore, Netflix launched its business at a time DVDs had barely hit the marketplace as the firm anticipated the new technology to be a promising venture. Nonetheless, within a year DVD players became so vast...
A movie theater has its advantages and disadvantages. One advantage is that people can see the showing of different movies that have been newly released. The disadvantage is that, that is all there is to it and nothing more. At home, you can control the variety and ways to watch a movie. People buy many movies to watch at home and it can be anything at any time even at any place. The only bad thing about it is that they cannot see any of the newest released movies that recently came out in theaters. There are two types of ways people watch movies at their homes. One way is people already own DVDs or have bought many of them and start watching them in their DVD players. The other ways are streaming a movie through the internet. For this to happen, people would mainly buy the monthly subscriptions such as Netflix, Hulu, or Amazon Prime. Through this subscription people do not only watch movies in their homes but they also watch television shows. The only downside is there is a very limited number of movies added onto these
The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.
1. What is the difference between a. and a. Briefly describe each of the four major challenges that Netflix faces. Which challenge is the easiest to address? Why do you need to be a member? The four challenges faced by Netflix are described below.
“How long you figure before we save up and get the fourth wall torn out and the fourth wall-TV installed?" If I think of the future of media I remember this quotation from Ray Bradbury’s “Fahrenheit 451”. Will television remain an important part of mass media or will the Internet kill it? What role are mobile devices going to play and what about movies in 2020?