Stratagem North - VOD Trends

Who would have thought that there aren't enough movies in Hollywood? According to exhibitors, it's a growing problem. There's not enough content released by major studios to fill theatres. Since the recent announcement that films on vod will be released only 45 days after theatrical release from what used to be 3 months, exhibitors are really starting to feel the pinch.

As theatrical distributors, we are thrilled to support exhibitors, and, in fact, alternative markets by opening the door for independent films, documentaries, and even foreign films in major theatres across North America.

I expect with the onset of 3D, the future success of theatres will be based on the quantity of qualified content, regardless of whether films fall under a major or alternative bracket.

Priti Ramjee, CEO, Stratagem North

More and more fine foreign films are trying to reach US audiences. It's really not that difficult today to reach the US market since 90% of internet users in the US are watching films online.
Therefore, for exposure to the US market, you need online promotions.

Peepli [Live] is the latest upcoming Indian Film being compared with Slumdog Millionaire, and trying to "break into the US market" according to Newstimes.com. Under the Midas touch of Aamir Khan Productions, it can only be a box office success in India. It's not surprising to see a budget of Rs. 100 million (approx. $2.1M) including marketing, and Peepli raking in Rs. 70 million (approx. USD$1.5M) on its opening day.

For the Midas handshake, Peepli needs to promote online to reach its US viewership.

-- Priti Ramjee, CEO

As I was having coffee with friends yesterday, it became clear that the investment avenues of choice after the real estate market tanked, were entertainment and technology. Better yet, entertainment technology combined.

What exactly is that? Broadcast and cable rights of video on demand (VOD). This is the next real estate with increased value upon completion of a film project. That means purchase the rights when the film is not yet completed but is 100% financed to minimize risk. And sell at a higher value when the film is completed.

Even better major studios won't even issue a distribution contract anymore without the inclusion of VOD rights. Think about it. Your choices are either resell the rights, or you license the rights for income in perpetuity. Either way win win.

Oh, and, the shopping is easy. We have a portfolio of a wide variety of films with VOD rights for sale if you are interested. -- Priti Ramjee, CEO

Picture this, you plug in your laptop to your mega screen tv, and friends and family come over for an entertaining evening of 3D sports, news, concerts, movies, television shows, all from the comfort of your home, on your time. There's just one thing wrong with this picture. Those awkward 3D glasses. Personally, a bunch of people roaming around in those glasses, reminds me of something out of a 60's sci-fi movie.

3D is being pushed at the FIFA World Cup games as FIFA and Sony are showing 25 matches in 3D. Despite the prediction that 3D will take off, currently, in order to have the benefit of 3D, we must have a 3D television set, a broadcast carriers, and also those awful 3D glasses.

Content owners see the growth potentiial which will increase the number of carriers. However, until 3D can be viewed without the clumsy glasses, experts believe home viewing will not be so popular. I have to agree.

The 3D effect in our homes is predicted to become popular from 2015 as costs, technology and content continue to progress. Meanwhile, hang on to your glasses. The future generation will have something to smile about. -- Priti Ramjee, CEO

It's not surprising but still fascinating, the growth in VOD.

According to Infonetics Research, in the fourth quarter of 2009, spending on VOD and streaming content servers was up to $113 million worldwide. That was up from $106 million in the third quarter. As a comparison, the 2008 total revenue was $407 million. It was up to $460 million in 2009.

-- Priti Ramjee, CEO

The Independent film business may be facing tough times trying to secure theatrical distribution. But, I see this as giving them an edge over the majors.

Traditionally it was thought that video on demand release could hurt theatrical box office take if released at the same time. True, but, in fact, it reduces the profitability with VOD and DVD instead. Since profits from theatrical and each ancillary avenue belong in part to the producer, a collaboration for all revenue streams to work together would be to the filmmaker's benefit, you would think. But, the problem is when you're not independent, you don't have control. And, a major studio doesn't need to share.

Independent films, on the other hand, are just that -- independent. They have seen first hand the benefit of the Tribeca Film Festival as it set a new standard for video on demand by making it available to people who couldn't make it to the screenings in New York. The collaboration amplified the buzz and filmmakers recognized that they were able to capitalize even more on the screenings from the festival!

I think VOD will be dominated by the independent film market. And, more importantly, independent filmmakers are about to enjoy a new avenue of profitability. Looks like VOD could be the independent filmmakers new BFF. Ka-ching! It's about time!

Well this isn't VOD news but it's so bizarre I had to blog about it.

If you're looking for a house in Long Island, New York, the colonial house from the movie The Amityville Horror from 1979 is up for sale. Asking price is $1.15 million US.

It is depicted as a true story with horrific, supernatural events experienced by the owners who claimed the home was haunted as a result of grisly murders that had occurred there.

This would make a great filming location, but to sleep in.... that's a different matter.