TAILIEUCHUNG - Hollywood at the Digital Crossroad: New Challenges, New Opportunities

Within the gravitational pull of the studios, independent production has been found at both the upper and lower ends of the business. Low-budget independent outfits such as Republic and Monogram, and many smaller entities, helped to serve the demand of the system for the production of ‘B’ movies, to fill the bottom half of double bills, during the 1930s. 3 At the same time, independent producers such as David Selznick and Sam Goldwyn produced expensive ‘A’ features, borrowing stars and leasing studio space from the majors and supplying prestige films such as Gone with the Wind (1939) and Rebecca (1940) that. | Published in Albarran Alan Paulo Faustino Rogério Santos eds. 2009 The Media as a Driver of the Information Society Economics Management Policies and Technologies Lisbon MediaXXI Formalpress and Universidade Católica Editora Unipessoal Lda pp. 67-97. Hollywood at the Digital Crossroad New Challenges New Opportunities Alejandro Pardo Department of Film TV New Media University of Navarra ABSTRACT The history of Hollywood runs in tandem with the history of technological development. However the changes over the last ten years have been both more fast-paced and more far-reaching than anything that came before. The digital revolution and globalization have transformed the film and TV industry in ways which could never have been foreseen. The big Hollywood studios have been forced to respond to the uncertainty - and potential for profit - prompted by the popularity of the internet and the success of new digital platforms especially among young people. Thus Hollywood would appear to be standing at a new digital and global crossroads charted by two basic movements on one hand the emergence of a new market for the commercialization of audiovisual products internet IPTV digital reproduction devices mobile telephones referred to as the long tail market and on the other the emergence of new type of consumer known collectively as the iPod or net-generation. The two linked questions set out below sum up the challenges facing the major studios in Hollywood What new consumer habits define this emerging viewer audience profile What business model will define the network of relations on the internet with regard to the commercial practices of the film and TV series industry or in other words what are the rules governing this new market These two questions are closely bound up together the response to one conditions any response to the other. This paper is an attempt to trace the framework of present and future challenges facing the entertainment industry. First the defining features

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