Showing posts with label film. Show all posts
Showing posts with label film. Show all posts

Tuesday, August 12, 2014

The Distant Past of Video Journalism

From Poynter's This Day in History, some early Edison movies on journalism.
First, war correspondents rushing to file stories at the telegraph office.  Reminds me of early slapstick. (1889)

Second, coverage of Roosevelt's Rough Riders embarking for Cuba during Spanish American War (1898)

Third, a Cuban ambush of a Spanish patrol (looks kind of staged- actually most of the battles filmed look like they were staged re-enactments). (1898)

Monday, September 10, 2012

Fox to offer movies online before stores

Movie studio and distributor 20th Century-Fox has announced that it will offer digital copies of both new releases some three weeks before DVD and Blu-Ray versions are available, and at prices that undercut typical list prices for home videos.  And it will do so on a global basis.
  Called Digital HD, the initiative is slated to launch Sept. 18 with Ridley Scott's Prometheus.  The initiative will also make some 600 older titles from its movie library available at the same time.  Fox chairman and CEO Jim Gianopulos indicated that the initiative was intended to take advantage of the explosion of digital devices, and help redefine digital ownership.  He indicated that the move wasn't likely to affect theatrical release, as availability will occur well outside the theatrical release window, or Blu-Ray sales, as the hard disk versions offered extras and improved resolutions.

  It also shouldn't hurt that Fox will likely make more per sale as the sole player in the distribution net (even at below list prices) than it will off of sales of physical DVDs and Blu0Ray discs.  The physical media not only have production costs that digital versions don't, they also don't have to account for substantial wholesale and retail markups that can account for half (or more) of retail list prices.  The movie industry in the U.S. has been taking small steps in this direction for the last few years (see posts on UltraViolet and Miramax's trial) but this is the first large-scale direct digital sales initiative.  Expect more.

Update: I forgot to discuss another important aspect of the Fox Digital HD initiative - the plans for Digital HD to not only open in the US, but in 49 other countries as well.  It's likely that Fox sees that not only as expanding into those markets directly, but as a move to combat online piracy.  Studies suggest that one of the prime attractions of pirated films outside the U.S. is the fact that US movies typically are not made available in those markets until much later.  Making films available simultaneously across the major international markets - legally, and at reasonable prices - could well blunt the demand for pirated versions.

Source - Fox Shakes Up Home Entertainment Market, Will Offer Movies Early Online for $15Hollywood Reporter.

Tuesday, April 17, 2012

Tipping Point for Home Film Viewing

A recent report from IHS Screen Digest predicts that streaming will surpass DVDs and Blu-Rays as the top distribution system for movies.  By the end of 2012, U.S. consumers will have watched 3.4 billion movies via streaming, compared to 2.4 billion views from physical media sources.  In 2011, the numbers were 2.6 billion views from discs and only 1 billion views from online streaming.
  Dan Cryan, senior analyst at IHS, said,
"U.S. consumers now are making a historic switch to Internet-based consumption, setting the stage for a worldwide migration of consumption from physical to online... But the transition is likely to take time: almost nine years after the launch of the iTunes Store, CDs are still a vital part of the music business."
The report attributed the rapid growth in the use of online movie delivery to subscription services like Netflix, Amazon Prime, and Hulu+.  In fact, viewing movies from online subscription services accounted for 94% of all paid online movie consumption in the U.S.

  The switch is, I think, indicative of more than just a shift in delivery system.  It also reflects (and contributes to) two more fundamental shifts in audience behaviors.
  First, while content has always been king in terms of the value of media consumption, historically the content has been tied to the physical delivery system and that's been how consumers thought about it. They watched TV, listened to radio, read a book or magazine.  With digital networks offering more distribution paths for media, people are increasingly separating the content from the medium, and recognizing that (almost) all of the value lies with the content.  When that happens, consumers increasingly recognize that the value comes not from owning a copy, but from the ability to access the content.  And subscription streaming services offer access to a lot more content.
  Second, online delivery offers consumers more choice and flexibility in viewing options, and consumers are learning the value of that flexibility and having more choice.  The shift here may be even more profound for media and content industries, as it is demonstrating that while content is king, that there are ways to add value to content, and that added-value aspects can drive consumption decisions in a highly competitive market.  While this may initially be a threat to traditional media, the idea of considering how value can be added is also an opportunity for product differentiation that media can take advantage of.

Source - 'The end of movies on disc': Online 'streaming' films will outnumber DVDs and Blu-Rays combined for first time this year,  Daily Mail Online

Thursday, January 12, 2012

One More Reason Hollywood's In Trouble

In an interview with the Reelz network, George Lucas talked about the problems he had with getting Hollywood studios and distributors interested in his forthcoming release, "Red Tails."  One might think that with the Lucas name and track record, an action movie set in the skies above Europe in WWII would be a no-brainer, but in over 20 years of trying, Lucas was unable to get any studio interested in producing the movie, and once he decided to produce it himself, he couldn't get a single major distributor interested in a distribution deal.  So Lucas funded it himself, putting more than $90 million into production and distribution so far.
Did Hollywood's lack of interest have anything to do with the fact that the film's heroes were the African-American pilots coming from the famed Tuskegee training program?
Well, as Lucas quipped,
Well, Will Smith's not in it and it's not a sequel. If we had that, we wouldn't have had the problem.
So as a result, Lucas added,
I financed the movie myself and went to the studios to distribute it and nobody wanted it. They just didn't feel there was enough of an audience out there for it...
So, a Hollywood system that thought they had sure winners in Heaven's Gate ($108 million in losses), Ishtar ($78 million in losses), The Adventures of Pluto Nash ($137 million in losses), Speed Racer ($108 million in losses), and last year's The Nutcracker in 3-D ($75 million in losses so far) and Mars Needs Moms ($136 million in losses to date), thinks a George Lucas action flick starring Cuba Gooding, Jr. is too much of a risk. (Loss figures in 2011 dollars, adjusted for inflation) 
Its what happens when media lose touch with their audience in a competitive environment where audiences get to choose what entertainment content they consume.
I hope Red Tails blows the competition away. Lucas has done it before, self-funding American Graffitti, and using its critical and financial success to launch the Star Wars saga.

Source - George Lucas Talks About Making Red Tails in HollywoodReelz.com
George Lucas: Hollywood Didn't Want to Fund 'Red Tails' Because of Its Black Cast, Huff Post, BlackVoices Pop Culture
List of Biggest Box Office Bombs, Wikipedia

edit log - shifted one sentence around for better flow

Tuesday, September 27, 2011

Fast Fade for DVDs?

"Across Hollywood, a quiet revolution is brewing that's about to transform living rooms around the world."

  So begins an LA Times story on how movie studios are re-envisioning their business models through an embrace of Internet delivery as a way to boost revenues.  The movie industry learned the lesson of adapting to new technology and the disruption of traditional market structures much earlier and quicker than other media.  Faced first with television, and then cable, videotapes, DVD, Blu-Ray, online streaming, etc. the industry first fought innovation, but then as it discovered the revenue potential of entering the new markets created by these innovations, it turned to embrace new media and new distribution systems for its content (movies).  In many cases, the new markets not only increased demand for their products, the revenue potential at times eclipsed those possible from theater ticket sales.  Particularly if you consider the costs of film distribution, and the layers of distributors and theaters taking significant chunks of the revenues generated by ticket sales.
  In fact, revenues from the home entertainment market now generate more than half of all of the movie studio revenues.  In the last few years, however, home entertainment revenues have dropped by as much as 40%, spurring a search for new revenue streams.  There are several factors that arguably may have contributed to a decline in DVD sales.  First is the development and adoption of improved formats - which you can see in the chart in the transition from VHS to DVD to Blu-ray.  Historically, with the introduction of improved storage media, the improved format fails to capture the full value of the previous format.  In the case of DVD vs. Blu-ray, the apparent quality difference between up-converted DVD and Blu-Ray is not significant enough to many users to justify the cost of replacing older DVDs, thus Blu-ray sales come primarily with newer releases.  A related factor is that many people did major purchasing of back catalogs (i.e. favorite earlier movies) during the DVD period, inflating DVD sales numbers in the early to mid stage of the technology.
  The rise of digital distribution forms, though, is arguably a stronger factor in the decline for three reasons.  First, as the industry will repeatedly argue, digital media and networks facilitate piracy, which does impact sales.  The estimates of the relative size of this impact are highly variable, but the fact of piracy and that it does impact home sales is fairly clear.  Second, the development and diffusion of broadband digital networks has facilitated the ability to market DVD and Blu-ray content as digital files, rather than as physical copies.  As online storage costs fall, and users seek the ability to view the movie content on multiple playback devices, digital sales are expected to replace some portion of physical disc sales.  The slow growth of that component can be seen in the chart.  The third factor, and perhaps the one with the greatest potential for long term impact, is the emergence of real-time digital streaming services.  These offer an alternative to the movie fan - instead of purchasing physical discs or digital files for each desired movie, the user can access a video-on-demand rental (fee per movie), or purchase a subscription giving users access to a large catalog of movie or program offerings, again to view on demand.  In those cases, you're tapping a different set of behaviors and related values, and shifting perceptions of how people prefer to access movies for private viewing.  And subscription revenues and rights payments will not show up in traditional models of media sales. While the revenues subscription streaming services pay for the rights to content may well replace the total revenues lost in terms of sales, it is not clear that it comes close. (The good news is that this shift reduces demand for pirated copies). 

  If total revenues for subscription and VOD service rights don't replace the revenues from physical copy sales, then movie studio revenues, and arguably profits, will suffer.
  There are several ways movie studios can react with slumping revenues.  First, they can seek new revenue streams, and some movie companies are realizing good revenues from cross-licensing with videogaming. Second, they can look for places to reduce costs.  Traditional distribution chains for movies are quite expensive - and the significant cost differential between film as a distribution medium and digital distribution is significant, and is already driving the conversion of theaters to high quality digital projection systems, just as it is driving increasing proportions of movie productions to digital.  The savings from conversion to digital can offset revenue losses in other areas, at least for a time.  
  The other major distribution costs are in the home entertainment portion of the business - not so much in the physical reproduction (physical costs for for either DVD or Blu-ray reproduction are not that high, although pure digital distribution is cheaper) - but in the fact that movie studios have to push their product through a chain of distributors and retailers, each of whom extracts a significant chunk of retail value to cover their costs.  And while that chain is fairly necessary for distribution of physical copies of movies, it is less essential for digital distribution.  Already some large retailers and subscription services are dealing directly with studios, rather than acquiring content through distributors.  If movie studios are willing to undertake the costs of digital distribution and processing transactions and the risk of uncertainty in value, they could capture more of the retail value for themselves.
  And the studios are starting to experiment along those lines. Paramount's Rob Moore commented that "what you have now is a lot of people pursuing a lot of different paths to figure out how to reverse the (revenue) trends we've been seeing,"  Sony's David Bishop concurred: "It's now critical that we experiment as much as possible and determine how to build a vibrant market for collecting digital movies."  
  Four studios are experimenting with what they're calling premium video-on-demand, where consumers pay in the neighborhood of $30 for a high quality video-on-demand rental of top movies they can play on their home theaters before its released for retail distribution.  Others are experimenting with offering movie rentals directly through Facebook, YouTube, or other non-retail focused digital outlets.  Another initiative is the UltraViolet program, which will combine purchase of physical discs with access to online digital versions that permit access on multiple devices.  To encourage this concept, studios are even considering offering access to digital copies of previously purchased DVDs (for a nominal fee).Warner Bros. is experimenting with developing apps as a way of exploiting additional content and product tie-ins for blockbuster movies.
  Another advantage that digital distribution allows is the ability to create and exploit a variety of versions, based on factors like recency, quality, accessibility, inclusion of added content/features, etc.  This can allow movie studios to continue to exploit different markets, as is currently done with distribution windows - starting with the high demand/ high value market and working your way down.  Universal's Craig Kornblau put it this way
"I see movies going down a path over time from premium sell-through all the way to the lowest-price rentals, ... If we get digital right, consumers are going to get what they're willing to pay for."
And the more they can do it themselves, the more they can keep whatever amounts that consumers are willing to pay for.

Sources:
Hollywood downloads a post-DVD future, L. A. Times

Tuesday, May 31, 2011

HDTV - What comes next?

Sharp recently demonstrated an 85-inch LCD with a resolution 16 times that of HDTV.  It's one of several advances coming out of collaborations with NHK for what is being called Super-Hi-Vision, which will also include a 3-D 22.2 audio system.  In the U.S., that level of resolution is known more widely as 8K, and is widely used in the film industry for conversion and restoration of older films and digital film-making.  Sharp's new screen is the first consumer-level set to be able to display that level of resolution on a single screen.  Sharp is expected to have an 8-K set on offer in Japan in a couple of years.

Sources: "Sharp develops an LCD with 16x the resolution of HDTV," Broadcast Newsroom

Monday, May 23, 2011

Crowd-funding boosts films at Cannes

Crowd-funding is an emerging media business model that raises cash online from many small investers to support the production and distribution of content.  Proponents of crowd-funding argue that it lets content users buy into a creative project at its inception, tapping into a pool of supporters and fans who have an interest in the project.  It provides an alternative source of funds and investment, particularly in the movie industry, where multi-million dollar production budgets and limited distribution networks have traditionally limited funding to a handful of studios, banks, and big investors.
Crowd-funding has supported two of the Palm d'Or (best picture award) contenders at this year's Cannes Film Festival ("Habemus Papem" & "Polisse"), as French crowd-funding site PeopleforCinema raised the capital to produce and distribute the films.
Crowd-funding is making other inroads as a financial model for media content and distribution.  Two sites have been established in the U.S. to provide crowd-funding opportunities for creative artists and projects.  Both Kickstarter and Rockethub post opportunities to support the production and distribution of creative projects.  And Spot.us has been using a crowd-sourcing model to support independent online journalism.

The older media funding models worked fairly well for "commercial" and general-interest content, and may still be the best model for funding high-cost productions.  Crowd-sourcing offers creators an alternative funding model that bypasses traditional media gatekeepers, particularly those whose focus is on producing content of high commercial value.  It can particularly target minority and non-commercial interests, and tap into a highly supportive fan base for content and artists in more focused areas.  Look for crowd-funding to increase as creative content diversifies, providing a more fertile field for cultivating creative artists and content.

Source: "Buy! Sell! Crowd-funding helps boost Cannes films", Broadcast Newsroom

Monday, May 9, 2011

Warners trials direct rentals on Facebook

(Topic suggested by Samantha Bright)

For any media content producer, an issue has been having to use one or more middlemen (each of whom takes a cut off the top)  to get content into the hands of consumers.  The growth of the net has created opportunities to more directly reach consumers (and reach more of them, and more cheaply).  Over the last few years, innovators in various media (academic research papers and music early, more recently photography and book publishing) have explored ways to minimize the path from producer to consumer.
Warner Bros. Pictures is testing a new pathway, this time through Facebook.  The company is offering "The Dark Knight" for rental on Facebook.  The movie, which has already earned Warners a billion dollars worldwide (split with distributors, theaters, retailers, etc.), is being made available at a cost of 30 Facebook credits (about $3), with Facebook taking 1/3.  Purchasers, after downloading, have a 48-hour window for viewing. 
Warners has indicated that it will continue testing both rental and purchase options through Facebook with other titles over the next few months.

Source: "Facebook to Stream Movies,"  WGMT 411NBC News

Thursday, May 5, 2011

Motion Picture Audio

From David Lewis -

When you watch a motion picture you are experiencing a story almost like you are right there in the action. One way of simulating the experience comes from big help of the audio that was put into the movie. The audio controls much of the mood in the movie and can either make or break the content being shown. Here is a small insight into how technical and how much creativity goes into creating audio for a big Hollywood motion picture.

Example: "'Inception' Sound for Film Profile," Vimeo