The Impact of Technology on Entertainment Media

By 1979, Columbia Pictures had adapted to the introduction of the VCR and VHS and came out with 20 films for at home viewing.

In 1985, three major video rental chains opened their doors and the video rental market took off between 1983 and 1986, reaching $3.37 billion by 1986.

In the 1976 case Sony Corp. of America v. Universal City Studios, the Supreme Court ruled that Sony and other VCR manufacturers couldn’t be held liable for copyright infringement.

This case opened up a new market in the entertainment sector, enabling video rental and home movie sales and the case set a standard for determining whether a device with copying or recording capability violated copyright law.

DVDs came about for sale in 1997, and impressed consumers with all of the advantages it had over the VHS tape. It was the most quickly adopted consumer electronics product ever.

It was in 1999, when Netflix changed the movie rental market completely by offering an online service where customers could have movies delivered to their mailbox.

In 2006, DVDs were surpassed by Blu-Ray Discs, that have the same look as a DVD but are of much higher quality.

DVD rentals and sales make up a huge source of revenue for the movie industry, by accounting for almost half of returns on feature films. Sometimes the industry will release a movie straight to DVD, or at the same time as their theater release. In 2008, direct-to-DVD movies brought in around $1 billion in sales.

With the economic downturn beginning in 2007, the release of Blu-Ray discs, and online downloads, DVD sales have declined among U.S. consumers.

In 2007, Netflix broadened its appeal by offering subscribers live-streaming movies and TV shows.

By late 2007, Redbox, a DVD rental vending machine, came about. The movie industry struggled with their low price of $1 per rental, which has brought on a decline in rental revenue for the industry.

Legal, commercial supported sites, like Hulu.com, offer a way for consumers to watch movies and TV shows for free.

The movie industry has slowly been moving to digitally filmed movies. It can save producers and studios time and money, but the switch costs movie theaters a large amount with little short-term incentives.

Today, 3-D movies have made their reappearance. With technology advances over the years though, they have been greatly improved. The movie industry is able to offer these movies at theaters and attract viewers because they are unable to get this experience at home.