Stratagem North - VOD Trends

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.

We can see how Video On Demand (VOD) is remodeling the television landscape. All it takes is your laptop plugged into your TV and voila! Unlimited domestic programming at your demand.

And what's more, with the FCC ruling, VOD is taking away the theatrical monopoly on first-run films! Let's note forget how VOD is replacing a significant portion of DVD rentals.

VOD has made its statement in the domestic market. It won't be long before we see its global effect. -- Priti Ramjee

Producers today enjoy revenues from domestic and worldwide theatrical revenues as well as ancillary income including domestic online and cable Video On Demand.

Emerging markets such as Brazil, China, India, Chile, Poland, Russia, Mexico and others could soon be adopting online VOD if network technology, content, and competitive advantages can be developed.

This will be a breakthrough for producers to receive yet another revenue stream from films as Worldwide Online Video On Demand. -- Priti Ramjee, CEO

All it takes for VOD to compete with theatres is to have films released on VOD on opening day. And, the time has come!!!

From the New York Times: “[The F.C.C.] approved a request to allow companies that sell movies via video-on-demand services to activate signals that would block the copying or other re-use in home entertainment systems of recent releases.”

This means that movie theatres can release films in a VOD format without having to worry about it being copied hence losing theatrical revenue.

So, now that there are options, on opening day, would you go to a theatre, or would you watch from comfort of your cozy couch? -- Priti Ramjee, CEO

So it doesn't have a major film studio attached to it. Does that make it any less worth watching? I think we give too much credit to the majors.

Today a combination of foreign and domestic theatrical, ancillary, with focus on Video on Demand is what will be the money maker for producers and investors, rather than having major studio attachment. It's true that A-list talent are typically synonymous with major studios, but also with higher costs. In addition, majors will secure all rights including VoD, preventing the additional significant revenue stream from a specialized VoD distributor.

With a theatrical distribution agreement, foreign presales, and a separate Online VoD distribution agreement, a low-budget indy film may be ahead of the game.

Change is imminent and about time.

I came across a great article by Robet Niles of OJR: The Online Journalism Review.
He believes that "video on demand, via the internet, is the future of home video delivery",
surpassing television entirely.

I agree. VoD provides the freedom from broadcast schedules. As soon as it is in VoD inventory it is available. He makes a good point that, "Brand value will shift from the network to individual show". I think it's a true benefit to Producers to get recognition for their own work rather than the strength of the network.

It will only be a matter of time before video news and other entertainment catch on as well, on VoD especially without intermittent advertising.

http://www.ojr.org/ojr/people/robert/201004/1838/

Counter Culture - Independent Filmmakers' Resource made an interesting point in their blog about this year's final season in television.

Aside from the fact that fans will miss Lost and 24 as they end their runs, what's even more profound is that this is the end of "appointment television", and that this is the start of watching tv on your time, on your schedule, at your convenience, online. "...people are currently watching television in a very different way than how they were used to for the past 50-60 years".

In the near future, there may be some questionable looks to the expression, "What time is it on?"

http://countercultureprodco.com/blog/?p=4554&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+CountercultureProductionsBlog+%28CounterCulture+Independent+Filmmakers%27+Resource+Blog%29&utm_content=Google+Feedfetcher