Is Cheap Cloud The Lifeline For Hollywood’s Sinking Profit Margins?

Jan 23,2024 by MOHD MOIZ

Although film studios may be eroding into oblivion, producers seem unperturbed. Producers are neither pessimistic nor dejected because they are open to changing with the changes around them. When they see new media creators profiting from newer avenues, they are willing to convert their conventional studios to try out the new technologies too. Revenues can be generated from other settings and new technologies such as cloud computing are helping to cut down movie production costs dramatically.

Cloud hosting India has evolved as the lifeline for sinking profit margins in Hollywood. The cloud is coming up with apps which are being offered to users without the hassle of going through long-term contracts. These new techniques, even if some of them are found to be disruptive, are establishing a far better connection between movie producers and viewers. Content creators now have the chance to come closer to their target audiences. Since the audience now has the option to use these technologies on a variety of devices, the old and new movie producers are being able to market their content better.

How can the cloud help movie creators?

Businesses typically turn to the cloud to cut down on their operational costs. Maintaining an IT infrastructure drains their finances and hiring IT staff to run this set-up is also very expensive. Without a superior IT team and infrastructure, businesses will make huge losses because of outages and equipment failures. So, a migration to the cloud is actually a wise decision in terms of cost-savings. More importantly, the cloud will allow these businesses to improve their productivity, lessen the infrastructure problems, eliminate downtimes, and reduce overheads.

The times have changes and unlike earlier when DVDs would rope in more than $20 billion every year, the sales have now come down to only $6 billion. The introduction of Blu-Ray discs did nothing to salvage the crisis. But Hollywood has now realized that buyers who have actually stopped buying these discs will be more likely to buy digital copies of films. The new sales patterns are not very encouraging and raise pertinent questions as to whether buyers will indeed spend to own digital films. Since digital sales have not been able to make up for the big losses, number of films being made has also sharply declined. Till now, movies studios were not really encouraging their buyers to buy movies online. Renting movies was more popular amongst the Americans. Today, studios are asking their buyers to purchase the movies digitally so that they can own them.

Hollywood has recently started a project to restore this industry to its cash-rich history. Besides Disney, almost all the big names like Sony Picture, Universal and Warner Brothers are supporting this project. The venture is called Ultraviolet and it is being backed by big retailers like Best Buy, by mobile phone makers like Nokia and IT groups like HP and Intel. The companies backing Ultraviolet stand to make huge profits if it is successful. In that case, the consumer will start to buy movies more and this will be a huge boost for the studios. The movie studios feel that the project will convince viewers to buy movies in digital versions. This will be possible when they can remotely stream the movies from cloud servers. Cloud streaming is found to be more attractive than downloading movies on hard discs. The main reason for this is that video files tend to occupy much space.

With Ultraviolet, buyers will have their own lockers and they can buy movies and stream these from clouds to any device, whether a smartphone or laptop. Studios are confident that this will increase sales. The best part about streaming from the cloud is that you can watch the movies on any device and also at any time. With rentals, you would have had to finish watching a movie within a specific time period like 24 hours or 48 hours. The problem with owning digital films earlier was that it could not be viewed on different devices. Moving films from one device to another was impractical. So, sales were not high at first. But with the cloud, this problem disappears. Buyers are open to buying films if they can watch these from any device. So, people who may have bought electronic copies can now share these with their loved ones many miles away through cloud hosting technologies. Since Hollywood will not be selling its movies in electronic formats, there will be even more profits as there are minimal distribution costs.

Today, Netflix has as many as 25 million subscribers. While most buyers are in the US, it is being launched in other countries too.

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