Then there are websites such as NetFlix that offer legal movies on rent but the revenue earned by the film producer is less. Te film industry makes profits mainly when patrons visit movie theatres (Jenkins, 2009). Pople tend to stay away from theatres since they can view movies through other legal and illegal channels. Pople will of course flock to the movie theatres to see hit films such as Avatar and the Harry Potter series but older movies see near empty houses. I such a case, amovie-sharing website such YouTube that offers movies free viewing would be highly unwelcome since the website will further reduce the revenue (Lievrouw and Livingstone, 2012).
Te point is that the film industry would stand to suffer monetary loss and not loss of any reputation or identity theft since YouTube would not claim that a particular movie was filmed in-house. Hwever, mdia houses are willing to consider services and offers that help them to obtain additional revenue. Tis issue is examined in the next section. Te business model used by YouTube is advertisement obtained from click through rates by users when they visit pages that host the movies.
Avertisers pay a certain amount to the website to carry the Ads. I differs from the retail model of Netflix and Spotify in that it does not directly charge rentals for movies that are hosted. I is somewhat similar to Napster and Limewire but YouTube does not encourage illegal hosting of movies and it is not possible to download movies easily unless some special downloader’s are used. I any case, te quality of such movies is of low quality (Benevenuto, e al, 2008).
Mny of the Ads placed are integrated in the movies and shown as pre-roll ads of a few seconds length. Tese cannot be avoided by free users and premium users who pay a certain registration fee can skip the Ads. I addition, cick through Ads are also placed. Blling is done as per the click through rates for the Ads (Hunter, e al, 2012). Te implication for the film industries is therefore very clear that YouTube does not allow people download movies, i does not charge people to view movies online and the only revenue it generates is through Ads (Ying, 2007).
T avoid IPR and copyright issues, YuTube has placed a restriction that movies of 15 minutes cannot be uploaded by users. I users want to...
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