{"id":21989,"date":"2011-06-28T08:00:28","date_gmt":"2011-06-28T12:00:28","guid":{"rendered":"http:\/\/www.investmentu.com\/?p=21816"},"modified":"2011-06-28T08:00:28","modified_gmt":"2011-06-28T12:00:28","slug":"can-apples-icloud-save-hollywood","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/28\/can-apples-icloud-save-hollywood\/","title":{"rendered":"Can Apple\u2019s iCloud Save Hollywood?"},"content":{"rendered":"

Can Apple’s iCloud Save Hollywood?<\/a><\/p>\n

by Tony D’Altorio<\/a>, Investment U<\/em> Research
\nTuesday, June 28, 2011<\/p>\n

In recent years, the bright lights of Hollywood dimmed as its revenue declined, thanks in large part to the advent of new technologies.<\/p>\n

Income streams from sales of CDs and DVDs slowed to a trickle thanks to the streaming of media via the internet and companies like Netflix <\/strong>(Nasdaq: NFLX<\/a>). Netflix is now the largest subscription entertainment company in the United States. It has over 23.6 million subscribers and accounts for 30 percent of all internet downloads in the United States during peak hours.<\/p>\n

The technology Hollywood believed could help them – 3-D films – is a flop: Audiences are put off by the high ticket prices.<\/p>\n

But now, as if from a Hollywood movie, another technology has appears on the horizon – the cloud. And it could be the technology that saves Hollywood…<\/p>\n

The Cloud Creates a New Income Stream for Hollywood<\/strong><\/p>\n

Industry executives believe that cloud computing<\/a> heralds the latest sweeping change to consumers’ behavior.<\/p>\n

They see the cloud as the first technology product that holds the promise of enhancing the industry’s revenue rather than destroying it. It represents an opportunity, instead of a threat.<\/p>\n

One reason for executives’ optimism is the income stream already received. Netflix and Hulu are already writing large checks for Hollywood’s content.<\/p>\n