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Recorded music Same wake-up calls Reduced capital costs Marginal cost, and therefore, price
approaching zero Studios’ heads in the sand
Movies Same wake-up calls Much higher capital costs for human capital Large sunk costs still likely Innovative efforts to explore new channels:
Hulu, Netflix
Digital exhibition in movie theaters Internet browsers—fixed and mobile-- as
a TV sets Videogames as platforms for narrative
movies
New opportunities Legal issues
Collaboration through crowd-sourcing and Open Source code
Who owns what?
Serialization to reduce the capital costs
Copyright and trademark protection for characters and long-phase story lines
Getting the money to the table Mitigating transaction costs of offering investment opportunities