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The decline of the entertainment industry is all around us. Movie ticket sales have dropped sharply even with inflated numbers from IMAX and 3D movies. Network viewership has declined even more dramatically leaving big three letter networks with numbers that look more like cable. Even the music industry is a ghost of its former self.
The entertainment industry has done its best to disguise this state of affairs with glamor and big numbers. More money is invested in bigger budget projects than ever before, and some of those projects yield incredible sales numbers, but the occasional megahit can’t disguise the overall decay of the basic business model as more and more money has to be spent to draw in a declining base. It now costs more to promote a successful movie, show or performer than it takes to produce the creative content. The hundreds of millions of dollars that used to go into product development go into sales now. And the sales look good until you start taking a close look at the big picture and the bottom line. No matter how big the hits are, overall ticket sales are down, television viewership is down and there is no relief in sight.
The industry has blamed the Internet, and while technology has historically played a role in eclipsing and destabilizing technology linked entertainment business models, which movies, television and the music business certainly are, it’s an insufficient explanation. The Internet is a source of creative chaos, but the source of the entertainment industry’s woes come from inside its own gates.