The Study of the Development and Business Strategy of Digital Cinema


Kuo Chia-Jung


Digital Cinema, Competitive Strategy of Emerging Industry, Digital Economy, Other Digital Stuff


The study is based on the theories of industry strategic analysis and forms a competitive strategy of digital cinema. The study also compares the profit model of traditional movie theaters with digital cinema, trying to provide the probable strategic inflection point that the digital cinema industry will face.

The study shows that the digital cinema industry will face the debate of the cost expense between distributors and exhibitors, the uncertainty of technology and the externality caused by cost effect. On the other hand, there are some potential business trends of digital cinema such as the convergence of the industry value-chain, the co-competence of the variety of the distributors and the more diverse service.