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YouTube case study ITM 100

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Ryerson University
Information Technology Management
ITM 100
Deb Fels

YouTube, the Internet, and the Future of Movies Case Study #1 1) The main problem that challenges the movie industry is the use of the internet to illegally download or stream movies. With the increased levels of high speed internet access, powerful computers, DVD players and portable video devices, illegal downloading and streaming of movies is more easily accessible than ever before. An addition to this problem is when YouTube exploded on the internet in 2005 which allowed user to upload and watch videos on their site, including videos that contained copyright material from Hollywood movies. With all of these new ways to download or stream movies illegally, potential revenue that these companies would of made from movie sales have been lost and became an increasing problem for the entire movie industry. To tackle this problem many companies decided the best way was not to fight the problem but instead adapt to it. YouTube and many major move studios established a licensing agreement which allowed companies to distribute promotional video clips of their movies on YouTube’s site which gave exposure to new movies. Alongside with this, many studios are distributing their content digitally on sites like Netflix or Amazon allowing customers to download or stream movies legally and at a cheaper cost. This gives the movie studios the ability to earn a percentage of the revenues instead of nothing. 2) Disruptive technology is essentially a new way of doing business which overturns the conventional methods that were used in the past. Many of the companies in this case are the major Hollywood studios which were impacted by the new way business was being done in their industry. Before these companies use to sell the majority of their products physically, such as
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