Tuesday, October 23, 2012

The digital divide still exists in America.


In 2007 Kevin Guidry of Indiana University examined the digital divide in America.
He writes, “Although few of us discuss or focus on it, the digital divide still exists. There are still large numbers of Americans who do not own computers or have Internet access at home. Those who do not have Internet access at home are disproportionately unemployed, less educated, and Black or Hispanic (U.S. Census, 2009b). Even when considering Internet access outside of the home, those same disparities still prevail (Horrigan, 2009; U.S. Census, 2009a)” (Guidry, 2007, pp. 1). With smart phones being so prevalent today, could the digital divide be on its way out the door? Smart phones definitely make the Internet more accessible, but there are some pretty big issues that cell owners face.

In 2012 the Pew Research Center’s Internet & American Life Project conducted a survey that assessed the prevalence of some of the major problems that cell owners might face, especially amongst smart phones.
They found that: "Some 88% of American adults have cell phones, according to this survey, and, of those cell owners: 72% of cell owners experience dropped calls at least occasionally. 68% of cell owners receive unwanted sales or marketing calls at one time or another. Some 79% of cell phone owners say they use text messaging on their cells: 69% of those who are texters say they get unwanted spam or text messages. Some 55% of cell phone owners say they use their phones to go online (to browse the internet, exchange emails, or download apps): 77% of cell internet users say they experience slow download speeds that prevent things from loading as quickly as they would like" (Boyles & Rainie, 2012, pp. 2). As you can see from this data, the majority of American adults have cell phones and a lot of them experience problems. Further, over half of the cell phone owners have smart phones and use them to go online; with over three quarters of them experiencing issues.

The survey that the Pew Research Center’s Internet & American Life Project conducted found that the digital divide still exists.
They claim that: “Non-white cell owners confront all of these problems at somewhat higher rates than do their white counterparts. This might be tied to the fact that African-Americans and Hispanics are more likely than whites to rely on their cell phones as their primary or exclusive phones for calling and for Internet access” (Boyles & Rainie, 2012, pp. 4). Clearly whites still own computers or have Internet access at home at a higher rate than African-Americans and Hispanics. Due to this, African-Americans and Hispanics tend to rely on their smart phones to use the Internet. Because they are using their smart phones’ Internet so much more frequently than white people, African-Americans and Hispanics experience more problems with their smart phones. Even after five years, there is still a digital divide in America.

Having said that, the digital divide could disappear in the future.
Today, using a computer to access the Internet is still superior to using a smart phone. But, I predict that within the next five to ten years (or maybe even less) the Internet on smart phones will be no different than the Internet on computers. And consequently, the digital divide will no longer exist.

Friday, October 12, 2012

India's entertainment industry is one of the country's fastest rising industries.

In the following post I will discuss India’s entertainment industry. I will focus on India’s television and film industries. Today, both follow a primarily commercial business model.

Within the last twenty to thirty years India’s entertainment industry has boomed.

Since the early nineties India’s television industry transformed from just a few government owned channels to broadcasting more than three hundred national and regional channels. And, the Indian film industry, better known as “Bollywood,” produces close to a thousand movies per year in various Indian languages. “Bollywood” almost triples Hollywood in terms of movie production (“Entertainment Industry in India,” n.d.).

The Indian television industry has seen steady growth over the last few decades, and is continuing this trend. 

“With the introduction of digital distribution platforms like direct-to-home and Mobile TV, the Indian television industry has undergone a revolutionary change. As per KPMG and FICCI reports, the Indian television industry is worth over four billion dollars and is estimated to grow by over fourteen percent by 2013” (“Entertainment Industry in India,” n.d.). The direct-to-home industry’s revenue has been doubling almost every year since 2008. Additionally, Doordarshan, the main television broadcaster in India, expects to be completely digitized by 2017. This will lead to TV channels like MTV, Cartoon Network, Disney, Star Plus and Pogo to grow their service market, further increasing revenue (“Entertainment Industry in India,” n.d.). Not to mention, even more of the Indian population being able to watch soap operas and cricket, the two most watched programs on TV in India today.

The Indian film industry, however, has dipped in recent years; but it is now looking like it could be back on the ascent. 

“The billion dollar Indian movie industry that churns out twelve thousand movies a year, employs almost two million people, and has more than fourteen million theater viewers a day, is actually groaning under its own weight” (Jetley, 2011). Approximately only five percent of the movies that are released every year make a significant amount of money. Further, The Indian film industry’s revenue shrunk about five hundred million dollars from 2008 to 2010. One of the major reasons for this was the collapse of the home video industry. The high cost of DVD rights and the high frequency of piracy caused home video revenues to be nearly cut in half (Jetley, 2011). Another reason why the Indian film industry is in this mess is because of growing production costs driven in part by excessive fees paid to its stars. Actor’s salaries in Bollywood have doubled in the last three years, with stars like Shah Rukh Khan, Salman Khan, Saif Ali Khan and Aishwarya Rai commanding three to six million dollars per film. These production fees, which include the money paid to actors, directors and screenwriters, make up roughly forty to fifty percent of a film’s costs (Jetley, 2011). “Industry players are of the opinion that one way of fighting the combined onslaught of piracy, star fees and marketing costs is to consolidate…even though there are 1,200 films made every year you can count the number of large corporate production houses on your fingers, leaving plenty of room for further mergers and acquisitions [especially with large American film studios]” (Jetley, 2011). The Indian film industry really needs a new structure. The hope is that the American film studios influence will lead to more films having success at the box office, especially action-thrillers and comedies both containing aspects of musicals (films that feature song-and-dance numbers) since those two seem to be the most popular film genres in India today.
 
With the American film industry beginning to influence Bollywood, the Indian film industry looks to make a comeback. 

“The Indian film industry over the past few years has been receptive towards foreign investments. This has paved way for many international production firms to make their debut in “Bollywood” along with opening their offices in [India]” (“Entertainment Industry in India,” n.d.). “[India has the] world's largest film industry in terms of production volume and it is undergoing a massive international presence. Reliance ADA Group is signing a production pact with DreamWorks Studios, endorsed by Steven Spielberg to produce movies” (“Entertainment Industry in India,” n.d.). “[Just like the partnership of DreamWorks Studios and Reliance ADA Group], Yash Raj Films has signed a joint partnership with Walt Disney to produce animated films. Other [examples of American culture and its film industry influencing “Bollywood”] include: Sippys film projects being sponsored by Warner Group, Sanjay Leela Bansali Films collaboration with Sony Pictures Entertainment, and TV 18's association with Viacom to form Viacom-18” (“Entertainment Industry in India,” n.d.). These mergers should improve the structure of Bollywood, which in turn should lead to increased revenue. The potential for the Indian film industry to bounce back is high.

Who knows what the future holds, but it sure looks bright.

Over the past few decades India’s entertainment industry has been one of their fastest rising industries. The Indian television industry has seen steady growth and is continuing this trend. The Indian film industry, however, has dipped in recent years. With the American film industry beginning to influence Bollywood, the Indian film industry looks to make a comeback. Who knows what the future holds, but it sure looks bright.

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