I’m wondering about the future of the film industry. In particular, I am wondering if there isn’t an opening developing for conservatives? I don’t mean that Hollywood is about to open its doors to conservatives. What I mean instead is that Hollywood failed to lock the door and its audience is escaping. Maybe conservatives should think about offering them a new home? Consider this.
The entertainment industry has become an oligopoly (though groupthink basically makes it a monopoly). Six companies control 90% of all viewing hours on television: Disney, News Corp, NBC Universal, Time Warner, CBS and Discovery. These companies decide what you get to watch. They also own either in whole or in part, the major studios, who dominate the theater chains. Thus, a handful of companies are responsible for all the films and television you see. Even independent companies like Netflix or Blockbuster rely on these companies to provide them with content.
Ok, so why is that important? Because these companies have fallen into the same trap that all monopoly/oligopoly companies have fallen into before them.
When a company has “market power,” i.e. the power to exclude competitors and dictate to consumers, they get lazy and greedy. Specifically, they realize that it makes no sense for them to innovate or embrace change because their current business model gets them much higher profits than they could otherwise obtain in a free market. Thus, they put their energy into maintaining their monopoly rather than improving their products. This results in: (1) high prices which consumers see as unfair, (2) lack of innovation in the product, (3) an unwillingness to embrace technology, and (4) poor customer service.
The entertainment industry is beset by this. Films are generic so they can be marketed to the broadest possible market. No risks are taken. To make foreign sales, the film companies now strip out anything from films that would harm the films in any region, rather than customizing them by region. Hollywood also forces theaters into a destructive business model. And they fight any technological change which would give consumers greater choice. This is the exact course the music industry charted to its near death.
All of this results in falling box office attendance, falling numbers for cable subscribers, and an increase in pirating.
But here’s the thing. This isn’t 1950. Technology is giving people a way around the entertainment monopoly. The web has made it ridiculously easy to self-publish a book, a record, or even a film. Indeed, you no longer need a distribution network or a chain of theaters to get your film shown. Similarly, modern technology has made it incredibly cheap to shoot movies as you no longer need million dollar cameras and miles of film or a multimillion dollar studio backing you. All you need is a solid digital camera, an eye for using it and editing software.
My point is this. Hollywood is pricing itself out of the market right now at the exact time that technology has opened up avenues for alternatives. Moreover, Hollywood has chosen this moment to start turning out corporate computer-generated crappola for product and is busy stripping out the great dialog (too complex for foreign audiences), the cool humor (too many people might not get it), and the cool patriotic and pro-human themes audiences love (won’t play in China or Berkley).
This creates an opportunity. If conservatives are smart, they can create a new Hollywood, picking up the opportunities Hollywood won’t touch and selling them to audience over the net, either through the creation of a new film site, eHollywood, or in partnerships with the likes of Blockbuster and Netflix. This is an historic opportunity to get ahead of the curve and conservatives should seize it.
Am I right or wrong? What would it take for you to start watching truly independent films?
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The entertainment industry has become an oligopoly (though groupthink basically makes it a monopoly). Six companies control 90% of all viewing hours on television: Disney, News Corp, NBC Universal, Time Warner, CBS and Discovery. These companies decide what you get to watch. They also own either in whole or in part, the major studios, who dominate the theater chains. Thus, a handful of companies are responsible for all the films and television you see. Even independent companies like Netflix or Blockbuster rely on these companies to provide them with content.
Ok, so why is that important? Because these companies have fallen into the same trap that all monopoly/oligopoly companies have fallen into before them.
When a company has “market power,” i.e. the power to exclude competitors and dictate to consumers, they get lazy and greedy. Specifically, they realize that it makes no sense for them to innovate or embrace change because their current business model gets them much higher profits than they could otherwise obtain in a free market. Thus, they put their energy into maintaining their monopoly rather than improving their products. This results in: (1) high prices which consumers see as unfair, (2) lack of innovation in the product, (3) an unwillingness to embrace technology, and (4) poor customer service.
The entertainment industry is beset by this. Films are generic so they can be marketed to the broadest possible market. No risks are taken. To make foreign sales, the film companies now strip out anything from films that would harm the films in any region, rather than customizing them by region. Hollywood also forces theaters into a destructive business model. And they fight any technological change which would give consumers greater choice. This is the exact course the music industry charted to its near death.
All of this results in falling box office attendance, falling numbers for cable subscribers, and an increase in pirating.
But here’s the thing. This isn’t 1950. Technology is giving people a way around the entertainment monopoly. The web has made it ridiculously easy to self-publish a book, a record, or even a film. Indeed, you no longer need a distribution network or a chain of theaters to get your film shown. Similarly, modern technology has made it incredibly cheap to shoot movies as you no longer need million dollar cameras and miles of film or a multimillion dollar studio backing you. All you need is a solid digital camera, an eye for using it and editing software.
My point is this. Hollywood is pricing itself out of the market right now at the exact time that technology has opened up avenues for alternatives. Moreover, Hollywood has chosen this moment to start turning out corporate computer-generated crappola for product and is busy stripping out the great dialog (too complex for foreign audiences), the cool humor (too many people might not get it), and the cool patriotic and pro-human themes audiences love (won’t play in China or Berkley).
This creates an opportunity. If conservatives are smart, they can create a new Hollywood, picking up the opportunities Hollywood won’t touch and selling them to audience over the net, either through the creation of a new film site, eHollywood, or in partnerships with the likes of Blockbuster and Netflix. This is an historic opportunity to get ahead of the curve and conservatives should seize it.
Am I right or wrong? What would it take for you to start watching truly independent films?



























