From Change This: For nearly a century, industry exec­u­tives have relied on the same script: use industry expe­ri­ence and gut feel to pick the right prod­ucts; sell these prod­ucts to customers in a series of stag­gered release windows; and hope to win by creating block­busters. For movies, this meant first selling high-priced tickets for single view­ings of films in the theaters; then selling DVDs three months later that could be watched repeat­edly at home; and then, six months to two years after that, licensing films to cable TV, where they could seem­ingly be watched for free. This method of selling content wasn’t arbi­trary. In an analog world it repre­sented the most prof­itable way of make money from consumers who placed very different values on the movie.

In recent years, however, a perfect storm of tech­no­log­ical change has hit the enter­tain­ment indus­tries. It involves the conver­gence of user-gener­ated content, long-tail markets, and digital piracy, and it has dimin­ished the prof­itability of the indus­tries’ tradi­tional busi­ness model.” · Go to Hollywood’s ‘Money­ball’ moment: Why enter­tain­ment leaders need big data now →