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Introduction

Shabnam Danesh IB Economics II December 8th 2002 Commentary 7 Hollywood's Latest Flop (Stewart Alsop, Fortune, December 2002) It is no mystery why CD sales have dropped so significantly in recent years. Through P2P (person to person) networks such as Morpheus, Napster, and Kazaa, there is no reason to buy a CD when one can just download it for free. Movie studio executives fear they are next in this wave of digital sharing. The newest innovation is an Internet-based service called MovieLink. ...read more.

Middle

There is no search button. It can be inferred that most of the five studios that are running MovieLink do not know what they are doing. Also, the movie files are very tedious to download. Movies are almost 1 GB (gigabyte) big, and even with a DSL line or cable line, it still takes an extremely long time to download. Another problem is that the movies expire very quickly. A customer may only have a movie for a day before it expires. ...read more.

Conclusion

In the long run, however, consumers will become discouraged due to the confusing nature of the program. They will turn to more reliable substitute sources, such as In Demand movies on TV, movie rental stores such as Blockbuster, or even the P2P networks. In a world of piracy, MovieLink, for now, is the best form of combat that movie studios can afford. With easier accessibility and speed, it may stand a slim chance of surviving. Eventually, however, movie studios will have no choice but to accept that piracy will always exist and there is nothing they can do to change that. Section 2: Business Economics Word Count: 402 ...read more.

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