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Tuesday, November 03, 2009

End of the World as Hollywood Knows It

Hi everyone,

We recently came across this article, written by Greg Sandoval, Cnet's Media Maverick. It has been addressed to some initeresting parties and clearly outlines the problems faced by the industry. Please have a read as it is quite interesting indeed.

To: Charlize Theron, Hugh Jackman, Seth Rogen, Tina Fey, Steven Spielberg, Michael Mann, every actor, actress, screenwriter, costumer, best boy, cameraman, set designer, makeup artist, and agent--plus anyone else who makes their living in the film industry.

From: Greg Sandoval, CNET media reporter and film fan.

Re: Your livelihood


"Cut your spending. Save your money. Many of the revenue streams that have gushed into your industry for decades, some for nearly a century, are about to dry up. This will likely mean a period of belt tightening like you've never seen before.

The end is coming for DVDs, traditional movie rentals, and yes, much of your cable money will likely disappear.

Over the past five days I've been in Los Angeles talking to entertainment attorneys, studio executives, and some of the tech vendors who do business with the studios. I've been covering the sector three years now and I've never seen people in the film industry so dejected. DVD sales are falling, the number of upcoming film releases is expected to drop. Some big shots have even acknowledged the bleak situation in public. The past weekend, at a conference on the USC campus, Disney CEO Bob Iger said the "business model that formed the motion picture business...is changing profoundly before our eyes."

Iger warned that studios must make profound changes, "or you will no longer have a business."

At Hyper MP, we have known for a while that the film industry is in trouble, and of course its very possible that the recent economic downturn is also a contributing factor to video downloads being on the increase. We are thankful to Greg for insights that validate our previous posts.

As usual, we welcome any indepth discussions the Movie and TV Studio's would like to have on the subject.

The Hyper MP Development Team.