Village Share Price Drops Whilst Facing Piracy Issues

falling stacks of coins

Both Foxtel and Village Roadshow Ltd [ASX:VRL] have made requests which urge anti-pirating laws to be further strengthened.

The two organisations have gone out of their way to obtain a federal court injunction which forces major providers such as Telstra and Optus to block their subscribers if they access a large number of pirating sites.

Individuals pirating cinematic releases and other forms of media will no doubt cause a blow to Village Roadshow.

Their shares have dipped slightly today by 0.62%.

Rethinking marketing strategy

With Netflix and other streaming platforms changing the game, Village Roadshow have been forced to think on their feet when it comes to matters in marketing and customer preference.

Village believe they are becoming far less reliant on TV as an advertising platform as many audiences are being lost through subscription services that have zero ads.

Figures have emerged that predict Netflix will be in 90% of households within the next two years.

Adnews.com reported that Village Roadshow’s marketer, Clare Smith, stated:

All of a sudden it’s in 90% of households and you actually can’t get to those people. For businesses like ours it’s really problematic as we need to be in people’s living rooms to excite them about movies that are coming out.

She believes the business has to change. What was Village Roadshow’s key marketing avenue is now something their audiences don’t have much interest in anymore [TV].

Village Roadshow have already kick-started changes as their digital transformation with Adobe is underway.

The business believes they have had enough foresight to start changing their media spend accordingly.

Regards,

Ryan Clarkson-Ledward,
For Markets & Money

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Ryan Clarkson-Ledward

Ryan Clarkson-Ledward

Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers.

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