Digital Movie Theaters
Talk about business model impact, consider the following facts on the movie industry, from production to theaters of the following factoids:
18 BILLION, is the number of videos streamed online in 2005, there were 9 Billion in 2004 and 285 million in 1998.
Visits to YouTube rose 170% form November of 2005 to February 2006.
$585,000 was the cost of a high-definition video camera in 1984 (in 2006 dollars) and the cost today for the equivalent: under $6,000.
4 MILLION is the number of U.S. Households that now use digital video cameras and editing software monthly.
1% is the number of the 36,000 U.S. movie theaters that can show digital movie content.
15% is the utilization of current movie theater seats.
Imagine if a movie theater could show an on-demand mixture of high-definition content. Movies, concerts, NASCAR, sporting events and content acquired from online sites. Would theater utilization go up? Would new markets be served.
I think this is fascinating business model paradigm contortion that is underway?
What do you think? Where do you see the opportunities?
