Assessment of the New Technology

As previously referenced, the invention of the VCR has changed how consumers watch movies. From the consumer’s perspective, it has been of huge benefit. It allows the viewer to remain at home and it eliminates travelling to the theatre. It is a less expensive alternative for the consumer. It provides flexibility in the time and place of viewing and the number of times a movie can be viewed. It also allows the viewer to avoid any attached commercials.

More current trends to Internet viewing, and pay-per-view movies have given the consumer even more opportunity to avoid the pitfalls associated with movie going.

The downside to the consumer has been a move to less of an overall movie experience. It is now a more individual experience as opposed to a large group one. It is perhaps, overall, just not as much fun.

This same technology has also been detrimental to the motion picture industry. It has taken away from movie-going revenues and it has reduced the effectiveness of those advertisers who pay to attach their advertisement to a particular film.

 However, technology has also created an even bigger market opportunity. Currently, major motion picture studios are trying to enter into the Internet environment, joining forces with already established internet-based companies to find a new and more profitable way to distribute their product. They are also finding new ways to achieve advertising revenues by adding product placement to their features.

A move to 3D film, presenting an experience that cannot be duplicated in the home and the introduction of IMAX technology have also helped to lure viewers back to the theatre.