Stratagem North - VOD Trends

Video game adaptations haven't been a big hit in Hollywood. Will "Prince of Persia: The Sands of Time" based on Jordan Mechner's 1989 classic video game franchise change that?

Jake Gyllenhaal, Gemma Arterton (Princess Tamina), Ben Kingsley with director, Mike Newell believe fans of the game will not only be impressed, but that it will will re-invent video game
adaptations. Jake Gyllenhaal stars as Dastan, a street-dwelling rascal who so impresses the local ruler with his skills, adopted as a prince, the heir to the throne. When the world is threatened by an evil Vizier, Dastan teams up with the lovely Princess Tamina (Gemma Arterton) on a quest to recover the Sands of Time and save the kingdom, and the world from the ultimate sandstorm.

Fans will undoubtedly be looking for their favourite video game elements. Fans will recognize elements from "Warrior Within" and "The Two Thrones."

So far, the reviews say that the images and trailers look promising.

If this catches on, 3D will have a whole new genre of content.

The one thing on everyone's minds about VoD is, "What about piracy?". Looking back at how the music industry was affected, there is a concern about how it will affect the economy of the growing digital distribution market.

The good news is that groups are pushing for a public policy agenda. The industry aims to make piracy more inconvenient with finding content and downloading with tighter policies on the risk of getting caught and the punishment. On the other side, more simplicity for consumers in acquiring content legally by paying for content that they download.

It can be done. iTunes sold over one million songs in its first week of operation showing that consumers are willing to pay for content if its easy to find, and reasonably priced.

Some statistics from IPTV News:

"The French video-on-demand market grew by 57.7% last year to generate revenues of an estimated €82.4mn, according to NPA-GfK. In 2009, 64.9% of VOD revenues were generated by films, followed by adult content with 30.4%. In the film category, US films took 58.6%, followed by French films with 30.9%, and others with 10.5%. "

For more in this story see http://www.iptv-news.com/iptv_news/april_2010_2/french_vod_market_up_57_in_2009.

Unlike Online VoD, Cable VoD advertising has hit a hurdle with timeliness because its ads are loaded several weeks in advance. Internet VoD advertising is timely and contemporary with ad insertions that can be more efficiently updated.

As of this year 90% of internet users in the US are watching online video, according to a marketing study by emarketer. Consumers are growing accustomed to the notion that they can watch their favorite shows when they choose, not on the days or times that TV networks have scheduled for them.

Be prepared to see a lot more online advertising, fresh and contemporary, in the near future.

India's got the right idea leveraging VoD effectively with theatrical release and DVD making it a win-win-win scenario for producers, distributors, and viewers.

While VoD continues to climb in the US, many theatrical distributors still won't play in the sandbox with anyone else. They continue to hold VoD rights under their distribution contract while they do not have the platform or associations to generate a profitable VoD revenue stream.

Then, there's the question of 'who's on first'. Theatrical distributors only allow DVD release after their release, and DVD will only allow VoD after their release.

By working together, the rush of each film is hot on each theatrical and ancillary avenue to boost sales and as India has discovered, even towards beating piracy. -- Stratagem North

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Producers still taking a hit as numbers show that US DVD rental revenue fell 14% from one year ago according to first quarter data released by Digital Entertainment Group. DVD sales account for about half of the profits of a movie.The fall is mostly due to the closure of stores such as Blockbuster Inc.

On the bright side, Blue-ray and Digital appear promising. Digital distribution revenue including 'download-to-own' and 'video-on-demand' rentals are up by 27%. -- Stratagem North

FIFA World Cup fans have more than matches to anticipate for in June. Thanks to Sony's professional HD cameras, 25 matches will be shown in 3D.

How successful will this be? Here's the challenge. To properly view in 3D you have to have a 3D tv set, the country's broadcasters with World Cup rights having 3D capability, and special glasses. British broadcasters, for example, are not synonymous with rights. For London most of the audience will be in cinemas. Most people worldwide do not have 3d tv sets. And, glasses without their cohort are not enough.

This is supposed to be Sony's marketing edge to sell its 3D technology. Keeping mind that the industry is still in its infancy, for those that are lucky enough to see the game in 3D, will Sony's technology be able to capture fast moving action without nausea inducing blurry images and move us into the next generation of tv?

We'll soon find out. For some game lovers it could be a match made in heaven.

Home Media Magazine shows statistics in the digital media industry. "First off discs are still king as almost 36 million rented a new release, and 31 million choose to buy 'em. Digital actually did pretty good by making up a third of the pie, but of those 32 million households, only 4 million did it via the internet, while the lion's share went to on demand at 18 million."

Emarketer says that from this year, 90% of internet users in the US are downloading videos. We may see a full 360 on the On Demand vs Packaged Media statistics same time next year.

Some viewers believe that product placement is compromising the art of a film, and feel that they are paying money simply to be sold some products. Well, get used to it. The truth is that for film producers, product placement is becoming more and more of a financing necessity as a result of high costs and scarce access to film funds.

Already we see advertisements before films begin. Where will this lead? Will films be synonymous with television's intermittent commercials?

Some might enjoy taking a popcorn break without missing anything. I take product placement over mid-roll advertising any day, if it means making quality films.