Originally published on bub.blicio.us
Ke$ha, a Los Angeles based singer, moved 610,069 downloads of her first single “Tik Tok” in a week placing her at the number 2 spot for one week downloads ever with Flo Rida’s “Right Round” at number one in one week sales (with Ke$ha as an uncredited singer). That number is remarkably similar to the number of times New Moon was illegally downloaded online during it’s first week of release (610,000). That number pales in comparison to the first week illegal downloads for Avatar which came close to one million illegal downloads.
Illegal online downloads during the theater run doesn’t appear to have much of an impact on the box office numbers, the challenge for the movie industry comes when the films are released to DVD/Blu-Ray. With Netflix and other cost effective (or illegal and free) options for watching movies, it’s become harder and harder to sell DVD/Blu-Ray discs. According to the Wall Street Journal, 2009 was the first year since 2002 that ticket sales out did DVD/Blu-Ray sales, challenging the existing business model of the movie industry. The music industry faced a similar challenge with the appearance of digital downloads but they were able to recover from the disaster that Napster could have been after a little resistance. The did lead to the near death of the compact disc.
The movie industry isn’t quite there. With new release digital movie downloads costing up to the monthly membership at Netflix (and I mean the good membership with 3 movies at a time), what is the movie industry to do in 2010 to turn that around? SmartMoney recently released a list of things not to buy in 2010 and along with newspaper subscriptions, new college text books and CDs was DVDs. Perhaps it’s time the industry lower the cost of a digital download and move the home release date closer to the theatrical release date. This will allow for two money making opportunities for the industry and allow for the movie watcher to choose the type of experience they want and trump the massive amount of illegal downloads. Of course, with Avatar passing $1 billion dollars at the box office, the need for change is not as immediate but as the quality and availability of downloads become a bit easier for the non-techie, that may shift quickly.
