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Journal ArticleDOI

E-movie industry and its roles on traditional movie entertainment modes

14 Mar 2008-International Journal of Business Innovation and Research (Inderscience Publishers)-Vol. 2, Iss: 3, pp 223-240
TL;DR: There is an increasing correlation between these electronic initiatives in the various types of movie media and technology used and the decrease in the traditional movie theatre industry as mentioned in this paper, which may spell the end of traditional movie going as a preferred entrainment vehicle.
Abstract: With home movie entertainment sales increasing, mobile electronic devices such as portable DVD players, IPods, smart video phones and inexpensive downloadable web-based options are becoming more popular; customers now have more options than the traditional modes of movie entertainment. Companies like Netflix are offering a large selection of movies at a low price, and the ability to strip DVDs to blank CDs or blank DVDs, the e-movie industry has increased competition forcing movie theatres to lower ticket prices, file for bankruptcy and/or merge with other movie theatres to remain competitive. There is an increasing correlation between these electronic initiatives in the various types of movie media and technology used and the decrease in the traditional movie theatre industry. Furthermore, in general, people increasingly prefer the convenience of watching movies in the comfort of their own homes with state of the art technology (surround sound systems, HDTV, Plasma TV, TiVo, DVD Recorders/Burners, to name a few). There have been many threats to the movie theatre industry, but with technology becoming cheaper and easier to use, it may spell the end of traditional movie going as a preferred entrainment vehicle.
Citations
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Journal ArticleDOI
01 Mar 2010
TL;DR: The financial credit crash of 2007 and 2008, based on various explanations of debt derivatives and housing bubbles that caused many financial institutions to lend money to those who could not repay, has its foundations in agency theory and faulty business strategy.
Abstract: The financial credit crash of 2007 and 2008, based on various explanations of debt derivatives and housing bubbles that caused many financial institutions to lend money to those who could not repay, has its foundations in agency theory and faulty business strategy. Agency theory is the conflict of interest that may arise between the agent (the Chief Executive Officer or CEO or other managers) and the principals (shareholders). This conflict can cause the firm – and ultimately, the shareholders – to lose money. In the eyes of the shareholders, the goal of every CEO should be to maximise shareholder wealth. Agency theory comes into play when the CEO does not act in the best interest of the shareholders. Investment banks are now trying to recoup funds from homeowners, only to find out that they cannot afford the payments; they are then stuck with a foreclosed home and have to try to sell it in an economy where house values have dropped in the last year. Examples from the mortgage, financial and automotive industries are cited to illustrate certain points associated with agency theory-based problems.

8 citations


Cites background from "E-movie industry and its roles on t..."

  • ...Reference to this paper should be made as follows: Smith, A.D. (2010) ‘Agency theory and the financial crisis from a strategic perspective’, Int....

    [...]

  • ...better-quality loans (Smith and Offodile, 2008a; Smith and Offodile, 2008b). One of the suggestions includes focusing on secure funds possibly money markets. Customers will probably be more receptive of investments they believe are more secure given recent events. No matter a bank’s investment decisions it needs to make stakeholders feel safe to minimise the effects of the financial crisis. Gula et al. (2007) suggested that community banks need to take the opportunity to clean up other negative aspects of the business if already having a bad year....

    [...]

  • ...Smith and Smith (2008) and Smith (2009) stressed that basic strategies are needed that focused on internal and external communication to survive difficult and financially challenging situations....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors look at three major companies representing this respective industries with successful and disastrous results and outline strategies and concepts that can be helpful for managers and executives to navigate in today's chaotic marketplace, citing that innovative management is necessary for businesses to survive long-term recessions and depressions.
Abstract: As the discipline of strategic management grows from the lessons to be learned from the current financial crisis, it is important to take strategic perspectives at how industries, represented by specific companies, could be affected by such economic disasters, both in terms of internal and external stakeholders. As companies establish strategies for financially sustainability, this article looks at three major companies representing this respective industries with successful and disastrous results. Outlined are strategies and concepts that can be helpful for managers and executives to navigate in today's chaotic marketplace, citing that innovative management is necessary for businesses to survive long-term recessions and depressions and to prove the framework for long-term financial sustainability. The basic lessons to be learned are for firms not to panic due to corporate fear and greed; stay the course and recommit to their core values and competencies; and selectively cut costs.

7 citations

Journal ArticleDOI
TL;DR: In this article, the authors explore ces questions en discutant, sur le plan conceptuel, du cinema a l'ere des plateformes numeriques and de la "multiecranicite", concept which permet, selon nous, de comprendre certaines evolutions a l’oeuvre.
Abstract: Le champ cinematographique a connu durant les dernieres annees des transformations importantes, notamment sur le plan de la diffusion des films. Ces mutations technologiques doivent etre bien comprises et, surtout, situees dans leurs contextes culturels, sociaux, economiques et politiques precis, tout en evitant toute forme de determinisme technologique. Cet article entend explorer ces questions en discutant, sur le plan conceptuel, du cinema a l’ere des plateformes numeriques et de la « multiecranicite », concept qui permet, selon nous, de comprendre certaines evolutions a l’oeuvre. Des exemples empiriques sont proposes a partir du secteur du cinema au Quebec et de ses relations avec d’autres acteurs nationaux et internationaux.

5 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate the role of poor service, promotion, and higher costs of movie tickets and food in the movie rental market and conclude that the service and operational characteristics of short-term profits seem to be winning over longer-term strategic positioning in movie industry.
Abstract: As the movie studios have seen a significant increase in the sale of DVDs, then falling as the entertainment consumer public are moving towards movie rentals, the surge of mass-popularity with digitally enhanced entertainment has some analysts speculating that poor service, promotion, and higher costs of theatre tickets and food are at least partially to blame as customers seek lower-cost alternatives to the traditional movie experience. Through industrial statistics, business literature review and a pilot study, the service and operational characteristics of short-term profits seem to be winning over longer-term strategic positioning in the movie industry.

4 citations

Journal ArticleDOI
TL;DR: The subprime mortgage crisis and the subsequent credit crunch have raised prices and reduced the availability of credit in markets worldwide as discussed by the authors, leading to a sharp drop in the stock market of the USA.
Abstract: The subprime mortgage crisis and the subsequent credit crunch have raised prices and reduced the availability of credit in markets worldwide. This paper will attempt to define and determine the causes of the subprime crisis, as well as the possible effects that it may have on the horizontal and vertical integration strategies of companies operating in the USA. Although some optimistic analysts believe that credit markets will stabilise by the end of 2008 or 2009, even this group felt that there will not be a return to the liberal spending practices that defined the years leading up to the credit crunch of late 2007. The vast majority of financial analysts reviewed for this research project felt that there is a persistent downturn of the credit marketplace, perhaps implying that a more dramatic change in supply-demand relationships (increasing rates for the demand of oil-based energy sources coupled with a much smaller increase in the supply of such energy) has resulted in the largest shift in pricing of risk and debt in the shortest period of time ever experienced in loan markets, thus indicating a true shift in the financial markets of which there is no return.

3 citations

References
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01 Jan 2000

5,839 citations

Journal ArticleDOI
TL;DR: The cross-sectional problem is logically prior to a consideration of dynamics, and better understood, and three promising streams of research that address the longitudinal problem still fall short of exposing the true origins of competitive success.
Abstract: This paper reviews the progress of the strategy field towards developing a truly dynamic theory of strategy. It separates the theory of strategy into the causes of superior performance at a given period in time (termed the cross-sectional problem) and the dynamic process by which competitive positions are created (termed the longitudinal problem). The cross-sectional problem is logically prior to a consideration of dynamics, and better understood. The paper then reviews three promising streams of research that address the longitudinal problem. These still fall short of exposing the true origins of competitive success. One important category of these origins, the local environment in which a firm is based, is described. Many questions remain unanswered, however, and the paper concludes with challenges for future research.

3,780 citations

Journal ArticleDOI
TL;DR: In this article, the authors used a sample of over 2000 motion pictures and found that box-office revenues are asymptotically Pareto-distributed and have infinite variance.
Abstract: Everyone knows that the movie business is risky. But how risky is it? Do strategies exist that reduce risk? We investigate these questions using a sample of over 2000 motion pictures. We discover that box-office revenues are asymptotically Pareto-distributed and have infinite variance. The mean is dominated by rare blockbuster movies that are located in the far right tail. There is no typical movie because box-office revenue outcomes do not converge to an average: revenues diverge over all scales. The studio model of risk management lacks a foundation in theory or evidence, and revenue forecasts have zero precision. Movies are complex products and the cascade of information among film-goers during the course of a film's run can evolve along so many paths that it is impossible to attribute the success of a movie to individual causal factors. The audience makes a movie a hit and no amount of “star power” or marketing can alter that. The real star is the movie.

501 citations

Journal ArticleDOI
TL;DR: In this article, the authors combine RBV logic, the definition of strategic assets, Hall's studies, and the logic embodied in several streams of management literature to explain why strategic assets are intangible in nature.
Abstract: The Resource‐Based View of the Firm (RBV) has become an important stream of literature in strategic management. RDV's main prescription is that strategic assets are crucial determinants of sustainable competitive advantage and thus firm performance. Unfortunately, little empirical research has been occasioned to substantiate that prescription. Part of the difficulty in empirically testing RBV's main prescription lies in identifying resources capable of being strategic assets. This article combines RBV logic, the definition of strategic assets, Hall's studies, and the logic embodied in several streams of management literature to explain why strategic assets are intangible in nature, to show that not all intangible resources are strategic assets, and to demonstrate that company reputation, product reputation, employee knowhow, and organizational culture possess the characteristics of strategic assets. That is the foundation for the proposed hypotheses and proposed conceptual model presented in this paper for testing RBV's main prescription. We also discuss the practical, theoretical and empirical implications of this paper and make suggestions regarding empirical testing.

241 citations

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There have been many threats to the movie theatre industry, but with technology becoming cheaper and easier to use, it may spell the end of traditional movie going as a preferred entrainment vehicle.