2. What is the “movie business?”

4. So what are they afraid of?

5. Becoming the next music biz

6. Don’t follow the money
Revenues are UP
Attendance is DOWN

7. Don’t follow the money
Summer 2010 Revenue:
$4.35 billion
(+$100 million compared to 2009)

8. Don’t follow the money
Summer 2010 Attendance:
552 million
(lowest count since 2005)

9. So what’s the problem?
• $15: LA/NYC ticket prices
• $10: Coke & Popcorn/candy
• $4: Parking
For two people to go to the movies it can
easily cost $50+

10. Netflix: The New Normal
• Accounts for 20% of ALL
downstream internet traffic in
North America during peak
home usage hours.
• Bittorrent only accounts for
8%.
• Only 2% of Netflix subs.
are streaming.

11. It’s not just Netflix

12. Netflix: The New Normal
• Entertainment accounts for 43% of peak period traffic
• 50% of that traffic is used by JUST Netflix!

13. What about the pirates?
• P2P traffic is
falling rapidly.
• By 2009, BT
traffic was
down 25%.

14. Watch now
vs.
download now, watch later

15. The new piracy

16. CONCLUSION
The movie industry is facing the same
challenges as other publishers:
Monetize through distribution innovation