IUB TEL-T 207 - telt207lectures (26 pages)

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telt207lectures



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telt207lectures

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Pages:
26
School:
Indiana University, Bloomington
Course:
Tel-T 207 - Intro to Telecom Indust & Mgmt

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TEL T 207 Final Lectures 12 16 2013 Lecture 13 Early Hollywood Sets the Stage for Modern Video Early video evolved from technology The technology is key to this market Early power was vested in the inventors and manufacturers Film patent trust vs the pirates Pirates o Europeans came over and couldn t enter the industry and there were some Americans that wanted to do their own thing Fled to LA bc it was close to Mexican border Film patent trust dissolved in 1915 o Broke antitrust laws by doing the following No imports Limited lengths No star actors All filming and exhibition must pay a license fee Film supplies and results were price fixed o Claimed they had the right to do it because they had the patent still The Pirates Transform Themselves the studios were born o tried to get risk factors eliminated greatest example of vertical integration o Early o o o brought production distribution and exhibition together bought up everything to minimize risk factors why vertically integrate Gives you more profit in the end Profits from each and every system along the way Don t have to waste time negotiating or pay transaction costs production in the studio system Issue of financing and return on investment Studios and studio heads were the ones in charge of making the movies Believed that people needed to stick to the mold made for you Had to comply with what studios were wanting Multiple films per year for multiple years Supply side leverage Bundling book blocking and theater chains Theaters were forced to book buy a block of movies o Couldn t choose what movies you got o Had to buy crappy movies to get good movies o Couldn t show movies from other studios when they bought certain bundles Entered in exclusivity agreements What roles do the studios now perform Instead of vertical integration they participate in so many different markets and become an economy of scope Gives them leverage in all of those markets Now they have blockbusters and some genre films Spend a lot more



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