Internet could be window of opportunity for Hollywood?

Until recently Hollywood has been satisfied with its traditional production and sales system in 'physical world'. The traditional system means that a new movie is usually put on the screen for several weeks, then it goes to DVD, then to online video-on-demand services, then pay-cable television, and so on. This system has worked so well in terms of maximizing earnings of movie industry.

But as the internet becomes a way of living, Hollywood came to face new challenges like this : First of all, the time lag which exists in releasing new movies for all over the world is a gift to pirates because internet can create immediate global awarenes of movies. Secondly, the DVD market which has been most lucrative revenue source for Hollywood is being shrinked due to online piracy.(DVD sales fell by 3% in 2007)

There are still hurdles for Hollywood to go through in order to take advantage of the internet as an useful tool. For example, low broadband speed, people's viewing habit like preference for wide screen to PC, lack of standardization among websites and devices should be tackled sooner or later. So studios, consumer electronics companies and ISPs(Internet Service Provider) are making an effort to solve this problems together.

In spite of these all hurdles, It's time for Hollywood to take a close look at Internet as a new vehicle to get in rather than a pirate ship to get off. That's because internet is too good a sales and marketing channel to disregard. If this time come to be seen in retrospect, it would turn out a turning point right before Hollywood discover the new world as other entertainment industries like music have already done.