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Monday, October 10, 2011

Hollywood Suffers from "Uchimuki"

Japanese companies suffer from - "always looking inward" - in other words they are not innovative and their managers lack creativity because their mindset is inbred.  The Japanese are acutely aware of this inward thinking trait, called "uchimuki", and have tried to overcome what is rooted in very old and traditional social norms without much success.

I'm afraid the Hollywood studios are suffering from uchimuki as well.  They are inward thinking and following a movie exhibition business model that is at least seven decades old and in dire need of a revamp.

The studios had a choice of going digital with cinema exhibition or staying with film and they, unfortunately, chose the former.  The savings derived from the demise of film prints had the studios' bean counters drooling but in the long run will cost them movie distribution control and make them the puppets of the digital domain kings, such as Amazon, Google, and Apple.  The studios are under the delusion that they are "safe" and control premium content but don't realize that they are future takeover targets of the tech kings.  The studios' venerability is apparent - at least to some of us outside Hollywood - but continue to rush headlong with d-cinema conversion.

Comcast, the country's largest cable provider, paved the way with its purchase of Universal from G.E. and other buyouts will follow.  The studios have maneuvered their way into a very bad position because  of their "uchimuki" tendencies.

Best and Happy Movie Going !
Jim Lavorato

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