Let me preface by saying I have never understood why the monolithic music and production companies get their panties in a bunch about their trailers or song snippets circling the web. Yes, yes, I am not so stupid as to overlook the copyright and piracy issues where millions of dollars are at stake. I'm talking about folks like Viacom who take down clips from YouTube in the name of copyright protection. As a marketer, I want to hit them over the head with a frying pan, "Don't you know how much this branding and press is worth in the long run? It will help drive viewership, paid downloads, album sales, etc. if you give people a taste and a tease." It is SO frustrating to me. I did ask this question and the panel basically said, "Those that get it, will win. Those that don't will fall behind." OK...I guess. But a young filmmaker in the audience did say that her trailer on YouTube kept up steady DVD sales - until she got into the Tribeca Film Festival who made her take the trailer down for the duration of their festival. Her DVD sales ground to a halt. I'm not saying....I'm just saying.
But I digress. The panel:
- Ted Sarandos, Netflix (in charge of a lot of their subscription service for original content, as well as DVD's)
- Dmitry Shaprio, Veoh.com (a site that offers a one stop shop portal for content. The content is still streamed from Veoh, no matter where it's linked, so viewership can be tracked)
- Dan Glickman, CEO of the Motion Picture Association of America (MPAA)
- Jason Kilar, Hulu.com (another content network; a News Corp and NBC Universal joint venture)
- Mike Volpi, Joost.com
- Erik Flanagan, Digital Media, MTV Networks/Comedy Central/Southpark Studios (he is helping the South Park guys with their digital strategy - they are one of the view content providers in tradition media actually putting thought into giving access and monetizing this new media)
- Phil Lelyveld, Entertainment Technology Strategic Advisor (read: consultant. Also was a big wig at Disney)
If I could sum up the main theme of how Hollywood is embracing the web it would be "trial and error." Studios and traditional media do get that they need to embrace all these new distribution channels, but they are just not sure how to do it responsibly and quite frankly, in the way that makes them the most money. Fair enough. The monetization issue came up in question after question. Some of the panelists see people trying different things in this new Wild West. They all had various opinions about which model will win out: ad supported (the most popular one that they feel Google is making more efficient), premium subscription based (a la Netflix). There was no argument among the panelists that any model needs good, relevant content to succeed no matter what. Nice to see they are keeping their eyes on the ball here.
What are the major challenges with video over the Web today? Answers ranged from "availability of good content" to "finding the right niche" to "protecting intellectual property" (care of the MPAA) to "monetizing the new viewing habits" as mentioned above. The interesting note on this discussion was that much of the uncertainty has been justified in the name of "artist protection" but the panel got to the heart of it and said monetization was more of a real concern that the altruistic positions. That was refreshing.
Many felt access to the good content is the main issue in consumer choice, whether it's through poorly regulated broadband access (a side discussion ensued about how the US lags behind other countries like Japan in universal high-speed Internet from the government vs. what competition has done in this country to slow us down) or finding a single place to aggregate relevant content. Think beyond YouTube, which shows actual short films with videos of Johnny's cat playing poker. That's like having one TV channel and expecting to appeal to the History Channel and G4 audiences all at the same time. How can advertisiers expect to get behind that kind of scattershot ad model? They can't, so until there are niche avenues for content, the advertisers might wait.
The other tangent this took us down was advertising on the web in general. Interestingly enough, these new media are showing actual viewers, length of time viewed, traffic sources - basically data that is not available in traditional media. The old guard has often priced advertising based on algorithmic extrapolations and padded assumptions (for example, the pass along statistics magazines cite to pump up their ad costs) and they were never questioned. Now the Web comes along with trackable metrics and the numbers are appalling in some cases, but usually REAL. So maybe it's not that web advertising doesn't work, but that advertising measurement in general was always flawed and now the curtain has been pulled back. Discuss.
Most talent is not really thinking about their digital distribution strategy, except for the South Park guys. They have created a whole web property where users can take parts of their content and then augment it and virally distribute it. This is a bold move with all the piracy concerns, but as we see from You Tube and social sites like Facebook and MySpace, user-generated and customized content is the name of the game. You have to give a little to get a little and very few artists embrace this philosophy because it requires a lot of trust and connection with your audience.
Everyone generally felt "movie screens would never die out" but the new media has indeed impacted the traditional distribution windows by which the film industry has lived and died. "Windows" are like when a movie is released and only in theatres for a while; then it goes to cable; then to DVD and never the windows shall overlap. Until now. 2929 Entertainment did some experimentation with concurrent windows on some of their films ("Syriana", I believe). And HBO and Netflix did a deal with "Pan's Labrynth" to have the DVD window open the same time as the cable window - as the Netflix guy so aptly stated, "And the sky didn't fall and we all got paid well." So seems those willing to structure win-win deals and take the chance can meet their objectives.
Finally, the other main point was that content producers need to not just see the Web as another distribution channel, where they simply take their content from one media and port it directly to your browser. Thought needs to go up the value chain so that content can be created distinctly for these multiple channels. Anything that succeeds on the web is highly specialized, and soon specific skills for Internet or Cell Phone fimmakers will be in demand from a creative perspective. For example, panoramic shots may work well in a movie theatre or on your 62" Flat Screen but not on small square of video on your laptop or on your iPhone. Also, to the point made earlier, viewers may want to interact with that content in a new way and add self-generated content, recommend to friends and a whole host of other personalization options. One panelist noted, "If there is a free flow of content, piracy goes away because you have eliminated the friction."
Some companies to watch that may help push this digital envelope are Facebook, Google, and ironically some of the folks on this panel.
The panel was great. I was concerned at how they'd balance all the speakers, but they were all to the point and brief, and the conversation was lively. Kara pulls no punches and inserts her own opinions, often challening panelists on their answers to go beyond the PR-approved sound bit. Well done.
The overall relevance for Indie film makers is clear: the distribution opportunities are increasing and this is good news. Especially for short films. For example, in the old world, short films could only aspire to film festivals like Sundance and then there was no mass market for them. Now they can get picked up for distribution on Netflix, iTunes and......wait for it.....XBOX Live. Yes the same evil box that sucks your spouse into Halo 3 has a service to offer short films for download. And bingo, there's a whole new market and channel for the filmmaker's voice.
The next few years should be very exciting on this front. And it also inspired me to maybe produce my short film idea this year after all. But of course, that is always the effect Sundance has on me. Hey, does anyone have stats showing a spike in sales of HD cameras and Final Cut software right after the festival? Hmmmmm.....
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