Digital dawn : a revolution in movie distribution?

How will the digital technology revolution impact the movie business? Hollywood developed a highly successful industrial system that has functioned well for almost a century in the sense that it enabled the Major film studios to largely control and dominate the industry. However, the new digital technology may now be propelling Hollywood toward the biggest technological transition since the creation of the studio system almost a century ago. For example, Major Hollywood studios are already beginning to provide video-on-demand (VOD) digital distribution of movies over the Internet. This article examines what is happening, and why. It sets out the background and the incipient changes already occurring. It makes an argument regarding the fundamental strategic dynamics, that acetate film was the key to the control of the Hollywood system, and speculates about how a shift away from acetate film to digital video may transform that system. The focus is on the impact on how the Major studios release and market their movies, and how new market and marketing opportunities for the low-budget independent filmmaking sector may arise.