The central message of Life After Television for the film industry is that the new technologies are targeted directly at Hollywood. Today some 70 percent of the costs of a film go to distribution and advertising. In every industry -- from retailing to insurance -- the key impact of the computer-networking revolution is to collapse the costs of distribution and remove the middlemen. In an information industry such as the movie business, distribution costs will predictably plummet.
Anyone with access to the information highway will be able to distribute a film at a tiny fraction of current costs. Moreover, webs of glass and light will free the producer from the burden of creating a product that can attract miscellaneous audiences to theaters. Instead producers will be able to reach equally large but more specialized audiences dispersed around the globe. Rather than making lowest-common-denominator appeals to the masses, film-makers will be able to appeal to the special interests, ambitions, and curiosities of individuals anywhere, anytime.
Just as digital desktop publishing equipment unleashed thousands of new text publishing companies, so the new digital desktop video publishing will unleash thousands of new filmmakers. The video business will increasingly resemble not the current film business, in which output is a hundred or so movies a year, but the book business, in which some 55,000 new hardcover titles are published annually in the U.S. alone. After all, scores of thousands of screenplays are already written every year. In the next decade, thousands of screenwriters will be able to make and distribute their own films. Yep. It should be understood that Hollywood's obstructionism is motivated by a desire to preserve its existing middleman-heavy business model and its cultural gatekeeper power -- "piracy" is an excuse, and arguments based on it can be pretty much dismissed out of hand.