1. Evolution of the Home-MovieIndustry Team Rock Solid: Hannah Houshian Jonathan Kaplan Tara KuhnerDaniel Westfall Michael Yen

2. Preview Today we will: Address how things were previously done Explain how the home-movie industry has beenaffected by advances in data communication Describe the major motion picture datacommunication vendors and what their productsenable Define the competitive structure of datacommunications in the industry Forecast where the home-movie industry is headed 3. How Things Were DonePreviously 4. VHS Comprised of television pictures and soundplaced onto a magnetic tape Linear method of storing information First widespread video cassette can be creditedto Sony in 1969 Inability to store mass amounts of data, videorecordings becoming digital, inconvenient size,and viewing quality 5. DVD Phillips and Sony joined together to develop amedia format that could hold large amounts ofdata Replaced VHS tapes in the entertainmentindustry because they produced high qualityvideo and audio Remain a popular media format 6. Blu-ray Shuji Nakamura, a University of California atBerkley Professor, invented the blu-ray disc Came in as a major player in the format warsbecause of the need to record play and recordHD content Use shorter wavelengths, which in return enablehigh-density storage Analysts expect more than 32 million blu-raydiscs to be sold in the United States in 2011 7. Internet-Streaming YouTube leads the way in video streaming Convenience, cost, quality, variety, and ease of use have lead consumers to choose internet streaming over physical formats 8. How The Industry Has Been AffectedBy Advances In Data Communication 9. Data CommunicationTechnologies as a Source ofRevenue Digital events streaming 3D movies IMAX VOD 10. Replacing Previous Technologies DVD sales dropping Illegal downloading 11. New Ways to Cut Costs No more film reels Digital files 12. New Costs Associated withChanging Technologies New equipment Transition costs Hardware Software 13. Major Data Communication VendorsAnd What Their Products Enable 14. Blockbuster Founded 1985 physicallyselling video rentals 60-40 revenue sharingmodel with movie studios No initial waiting period Customized store shelvesupon demographics 15. Blockbuster Valued from$1.6 billionto a mere $300 million(Bankrupt) Dinosaur of home-movie industry 16. Redbox Founded in 2002 33,000 kiosks Low price andconvenience DVDs, Blu-ray,Games QR Codes, iPhoneand Droid Apps Streaming servicefuture 17. Netflix Founded in 1997 23 million subscribers;worlds largestsubscription service Wide selection andconvenience DVD by mail andstreaming service Service realignmentannouncement Expanding into globalterritories 18. Apple TV Founded in 2007Streamed media drivenfrom content online to playon TV Access to iTunes,rent/purchase movies, TVshows, audio files,MobileME, Flickr, YouTube,and Netflix Peer to peer digital mediareceiver AirPlay home-sharing Future AirPlay growth,increased processor speed,smaller storage, and 19. Video On Demand A DSL service over IPnetworks Digital subscription packagefrom service provider Cable TV or satellite tobroadcast programs Spurred out of YouTubecraze Convenience of instant play Enjoyable features such aspause, play, rewind, jump TIVO already implemented 20. The Future 21. Change in Trends Digital distribution rising Physical distribution dominant Quick change 22. Downloading Apple TV Increased convenience Netflix addition Amazon Instant Video Prime membership All methods 23. Netflix Netflix Streaming Physical disc Online/physical combination Cross-device service Xbox PlayStation DVD players 24. UltraViolet Digital Rights Locker Physical Digital Partners Necessary for growth Possibly Vudu 25. UltraViolet Advantages to Distributor Curb piracy Efficient distribution Effects Increased smartphones and tablets Potential for over-usage 26. Predictions Continued growth Apple TV Netflix UltraViolet Legal Official Ease of cloud Familiarity of physical disc 27. Questions?