From "The last days of the moguls" , thedeal.com (http://www.thedeal.com/newsweekly/features/the-last-days-of-the-moguls.php)

"Before today's media moguls join the fallen, however, let's understand why. ... It will be you and me and our increasing participation in digital diversions. "It used to be 'Let me entertain you,'" says Blake Warner, a managing director in software, media and telecom investment banking at Thomas Weisel Partners Group Inc. "But now it's 'Let me provide you the tools to customize your entertainment consumption.' "


Hollywood has never been very strategic or adaptive to new technology and new consumer trends. First, they ferociously fought television because they were affraid that it would kill their movie theater business. To the contrary it turned out. The same was true for VHS. But everytime they succeded in maintaining their now 100 year old dominance of the entertainment world because content was king and ultimately whatever new distribution channel or method was used, the content producers were necessary. This time however, Hollywood studios might have a tougher time to prevail. Content takes a new form as user generated, interactive, two way and as wiki. The studios are only one element in this mix, but not THE most important element anymore. And once again, they don't really have a great plan it seems.