The paper "How Has the Internet Become a Threat to Movie Industry? " is an excellent example of a research proposal on marketing. The movie industry is traditionally considered a high technology business. On the other hand, the current progress of digital technologies, particularly the internet, has had significant detrimental effects on the industry (Gauer 2013; Norkey 2015). In addition to having the potential to minimize the cost of the movie-making process, internet technology has also had significant implications for structural shifts in the movie industry (Moran 2014). It allows the movie production houses and studios to circumvent traditional distributors and directly deliver the movies to the end-consumers using video-on-demand (VOD) technology.
As a result, therefore, Internet technology restructures the value chain and shifts the bargaining power to the consumers (Pisharody 2013). This is expected to affect how the movie producers deliver their products to their audience. However, the VOD technology is a threat to the heart of movie producers and studios, as it is substantially challenging the profitability of content creators in the movie industry (Lodderhose 2014). 1.2 Justification for the proposed study Earlier studies have only concentrated on the view of the content creators and distributors.
The proposed study targets the perspectives of the movie consumers online (Gauer 2013; Mansell 2011; Zhu 2011). This, therefore, will be a pioneering study that considers movie consumer’ s perspectives on the effects of the internet as a threat to the movie industry. Online piracy has displaced the legitimate sale of movies. A recent survey by Ipsos research firm in 2015 showed that some 30 percent of the population in the United Kingdom were actively engaged in some movie piracy by either purchasing counterfeit DVDs or streaming content online.
It is estimated that such kinds of piracy cost the movie industry nearly £ 500 million annually. The decline in revenue due to online piracy has as well contributed to the movie production houses and studio going for cheap productions (Norkey 2015).
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