In the recent world the technological advancement has a great impact on the film industry. Basically, there has been an upgrading in various aspects including the Internet and Computer Technologies that had a profound influence on film making companies such as Hollywood. In addition, technological advancement has made it possible for the film industry to incorporate sounds into movies.
According to Rob and Waldfogel (389), technological advancement through the Internet has affected the film industry by facilitating 2nd technology generation of file sharing. It has mainly been an innovative contribution to the technology which has enabled the film companies to increase bandwidth speeds. However, this technological innovation also has a negative effect on the Recording Industries including the Music Industry where the rate of piracy has promptly increased. Internet has facilitated the development of Digital Technology. Digital technology has made it possible for people to copy information, software, films and other data (Bounie, Bourreau and Waelbroeck 18). Additionally, Digital technology has also made it possible for people to download Hollywood films and other films without copyright holder approval and knowledge. The leakage occurs through the film making distribution channel. Subsequently, the downloaded films are transmitted in different places of the world via the Internet. Consequently, Hollywood film models and producers suffer from it because of channel distribution and sales.
The film makers are more likely to face stiff competition from their own film production accessed by various people without their permission. In the long run, Hollywood might be shut down as a result of expensive production and low sales. In order to avoid this array, the film makers should reinforce effective system of control on various departments including the production department and the distribution channel. This would reduce the leakage of some films to people without the privity.