Some really great data and insight from the Economist. Essentially, the film industry, which has seen it's ups and downs in the digital age, is facing new challenges. Home entertainment numbers are down, online consumer behavior is changing the way movies are purchased (now rented) and studios can't agree on standards that would, perhaps, de-mystifiy the business for consumers.
Despite confusion (studios & consumers), there are some interesting things happening:
1. More renting - In developed countries, people have switch from buying to borrowing (since 2007 the number of films rented in the US has grown by 10%).
2. New distribution formats (analog) - Redbox, owned by Coinstar, has nearly 30,000 machines installed at big box retailers among others, representing a hugely imporant retail outlet for film discs. While Hollywood and video stores like Blockbuster were focused on piracy and video streaming, they were undercut by a vending machine.
3. New distribution formats (digital) - Warner Brothers is bringing movie rentals to Facebook. For 30 Facebook credits ($3), users can view movies on Warner Brothers' official Fan Page. Users can take up to 48 hours (24 more than iTunes) to watch the movie.
