| One of the key problems that studios are having is overinvestment. When you're investing hundreds of millions in your movies, and tens in your tv shows, the bar is set very high. Now, when the distribution of that content required factories and fleets of trucks, it funneled all the money in the world into a small number of operators, because the cost of entry was so high, so very few people could operate in that space. That allowed very high investments, because the worlds disposable income was being split between a small number of people. Today, the cost of production and distribution has dropped like a stone, and there are more players as a result. However, these companies are still investing like it's the 1970's. Lets be clear here:
Total number of films released in 1970: 1967
http://www.imdb.com/search/title/?release_date=1970&title_ty... Total number of films released in 2014: 7320
http://www.imdb.com/search/title/?release_date=2014&title_ty... It's not a monopoly any more. Small studios can beat big ones. It's not about finding a different way to charge the customer, it's about restructuring your investment strategy. |