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The Social Media Management Chain, How Social Media Influences Traditional Media Read chapter Read first chapter

2013 | OriginalPaper | Chapter

Digital Hollywood: How Internet and Social Media Are Changing the Movie Business

Author : Alejandro Pardo

Published in: Handbook of Social Media Management

Publisher: Springer Berlin Heidelberg

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Abstract

The history of Hollywood runs in tandem with the history of technological development. The inclusion of sound, followed by that of color, along with the need to adapt to new audiovisual media (television and video), are milestones in the history of the largest entertainment factory in the world. Each of these forms of technological development in turn marked a growing pain or turning point at the time of its invention, by which the Hollywood industry was ultimately strengthened.
However, the changes over the last ten years have been both more fast-paced and more far-reaching than anything that came before. The digital revolution and globalization have transformed the film and TV industry in ways which could never have been foreseen. The big Hollywood studios have been forced to respond to the uncertainty—and potential for profit—prompted by the popularity of the Internet and the success of new digital platforms, especially among young people.
This article is an attempt to trace the framework of present and future challenges facing the entertainment industry, as a step forward in relation to previous researches. First, I will examine the defining features of the emerging consumer profile and address the most significant elements of the new digital economy, epitomized by the ‘long tail market’ model. Secondly, I will described the Hollywood reaction to this new digital scenario and discuss on the business models adopted by major American studios in relation to the downloading of films and TV programs. Thirdly, I will approach the substantial changes in the movie value chain. Finally, I will draw some concluding remarks to frame the changing physiognomy of the entertainment industry and the search for the right business strategies.

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previous chapter Keys to Monetize Social Media in the Audiovisual Business
next chapter Distributing Audiovisual Contents in the New Digital Scenario: Multiplatform Strategies of the Main Spanish TV Networks
Footnotes
1
A preliminary and shorter version of this text was published under the title of “Hollywood and the Digital Revolution: New Consumers, New Markets, New Business Models”, in Tribulations numériques du Cinéma et de l’Audiovisuel à l’amorce du 21e siècle, monográfico de Mise Au Point, Cahiers de l’Association Française des Enseignants Chercheurs en Cinéma et Audiovisuel (AFECCAV) [on line], n. 4, 2012. URL: http://​map.​revues.​org/​246
 
2
DECE is made up of more than 75 members, which pretty much covers most major entertainment suppliers and device manufacturers. Founding members include Best Buy, Netflix, Comcast, Cox Communications, BSkyB, Intel, Microsoft, Cisco, Dell, IBM, HP, Toshiba, Samsung, LG, Nokia, Motorola, Dolby, Adobe and Sonic Solutions. While Fox, Warner Bros., Paramount, Lionsgate and NBC Universal are supporters, Disney is focusing on its similar Disney Studio All Access offering. Apple is also holding out from joining the organization, although it’s likely that DECE’s companies will create apps that will play UltraViolet content on devices like the iPod, iPhone and iPad.
 
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Metadata
Title
Digital Hollywood: How Internet and Social Media Are Changing the Movie Business
Author
Alejandro Pardo
Copyright Year
2013
Publisher
Springer Berlin Heidelberg
Book
Handbook of Social Media Management

Print ISBN: 978-3-642-28896-8

Electronic ISBN: 978-3-642-28897-5

Copyright Year: 2013

DOI
https://doi.org/10.1007/978-3-642-28897-5_19