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Hollywood Moves to The Web

Hollywood’s theatrical fortunes continue to decline, as the ever-reliable Brooks Barnes reports in The New York Times, but it seems they have a fix on how to move to the web, and make it pay.

As Barnes reports, “Movie attendance hit a 16-year low in 2011. Star wattage continues to dim. DVD sales keep plunging. Almost none of the films being honored at Sunday’s Academy Awards have struck a mainstream nerve.
Yet Hollywood has a noticeable spring in its step. After all, it’s not the music business.

Instead of Hollywood suffering its own Napster moment — the kind of digital death trap that decimated music labels first through the illegal downloading of files and then by a migration to legal downloads almost solely through iTunes — several deals announced this month have it feeling more in control.

While studios still consider piracy a huge problem and feel stymied by Silicon Valley (and Washington politics), they nevertheless control their content. And now the Web is coming to them.

Google is developing a home entertainment device and several media companies have announced plans for new online streaming services. Taken together, the moves mean no supplier will have a monopoly over the distribution of films and television on the Internet. With more buyers comes leverage, and higher prices for content

‘The mood has shifted from,”Oh, my God, our business models are broken and we’re going to be cannibalized” to something resembling euphoria,’ said Peter Guber, a former chairman of Columbia Pictures who is now chief executive of the Mandalay Entertainment Group, which has interests in movies, TV and sports. ‘Studios see a robust, accelerating online market.’”

It makes sense; with admissions at a 16 year low, the viewers have to be somewhere, and unlike the music business, it seems that Hollywood has figured this out in time for a variety of reasons.

Read the whole piece here; more evidence of the ever changing landscape of cinema.

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About the Author

Wheeler Winston Dixon

Wheeler Winston Dixon, Ryan Professor of Film Studies at the University of Nebraska-Lincoln, is an internationally recognized scholar and writer of film history, theory and criticism. He is the author of numerous books and more than 70 articles on film and appears regularly in national media outlets discussing film and culture trends. Frame by Frame is a collection of his thoughts on a number of those topics. To contact Prof. Dixon for an interview, reach him at 402.472.6064 or wdixon1@unl.edu.

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