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Hollywood’s response to digital disruption looks like a flop

Digital disruption has been felt in Hollywood, and even if it’s not all doom and gloom as some old media skeptics suggest, there’s no doubt that Hollywood firms have been forced to rethink how they create and sell their content.

But some of the latest moves Hollywood players are reportedly considering as they address the changing media landscape beg the question: is Hollywood totally missing the plot?

Coming soon: paid YouTube channels?

When Google purchased YouTube for $1.65bn in late 2006, some wondered whether the acquisition would be the Web 2.0 equivalent of Yahoo’s ill-fated billion-dollar purchase of Broadcast.com during the first .com boom.

It was hard not to be somewhat skeptical: YouTube was an expensive operation to run and was facing the same type of legal assault from Hollywood that basically killed Napster 1.0 years earlier.