With the Internet rapidly growing and becoming faster, people are able to download movies and items with ease. Hollywood fears that a lot of people would rather download a movie for free through downloading the torrent, rather than going to the cinema or renting the movie from the store. Its hard to prove the fear that Hollywood faces, especially with even more renting opportunities through the Telstra T-Box, Foxtel on Demand (downloading movies directly to your TV) and other similar devices. With my independent movie rental stores closing down, you could blame the illegal act of downloading movies via the web or just the evolution of home movie rental devices.
The Internet threatens Hollywood as they think that consumers will no longer see movies at the cinema but would rather download free, not as good quality movies. Downloading movies illegally for free takes money out of the cast members, crew and the producers. With less people renting movies or going to the cinema, its fair to say that soon, the quality, size and actors salary in movies will drop, as the makers will not have enough money to fund the production.
In the year 2000, Disneys CEO, Michael Eisner made a speech to congress, he warned them of the potential threat that the Internet (very efficient distribution mechanism) and computers (very efficient copying machine) has on Hollywood he said “Just as computers make it possible to create remarkably pristine images, they also make it possible to make remarkably pristine copies (Goodwin M 2002, p.26).”
(http://www.thewrap.com/tv/column-post/disney-vs-celador-iger-testifies-wednesday-eisner-may-be-out-18382)
References
Goodwin, M 2002, Hollywood vs. the internet, Journal from Reason, vol. 34, no. 1, pp. 26, viewed 22 september 2011, via ProQuest Central
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