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Posts Tagged ‘Netflix’

Netflix and Pre-Sale Film Financing

Monday, August 11th, 2014

Schuyler Moore has an interesting piece on the way films are financed in the latest issue of Forbes.

Although the tone of Moore’s article is somewhat apocalyptic, and he seems to think that 4D cinema is the way out (which I don’t), he’s nevertheless absolutely correct when he writes that: “Netflix is working mightily to expand its reach worldwide, so far including Latin America, Canada, and the U.K., with Europe next up at bat. When Netflix is done, people in every part of the world will be its customers, and those customers will be able to toggle what language they want to watch a film in.  This trend corresponds to the shrinking of the piracy window (the time between the theatrical window and the home video window), so by the time Netflix has a worldwide reach, it will also probably be available day and date with the theatrical release.

This trend will have a huge effect on how independent films are financed.  Right now, independent filmmakers raise funds by selling their films through ‘pre-sales’ on a country-by-country basis to local distributors, but a worldwide VOD reach will rip the heart out of these sales, because it will destroy the value of DVD and pay TV rights to the local distributors.  The net result will be that independent films will be financed by pre-sales to Netflix, not the local distributors.  Instead of going to the Cannes Film Festival, filmmakers could be going to Las Vegas for a digital convention in order to pre-sell VOD rights to Netflix.  Indeed, Netflix will likely expand from creating original series to creating its own large budget films, with the initial premiere on-line.  Netflix may be a vibrant, important source of new financing that disrupts the studio system and bypasses standard distribution channels.”

It’s probably true, as Moore says, that “worldwide VOD reach will rip the heart out of these sales, because it will destroy the value of DVD and pay TV rights to the local distributors” but the problem with this of course is that it’s more concentration in the hands of a few — everyone wants the “master switch” as Adolph Zukor put it, and Tim Wu so effectively explored in his book of the same title. So Amazon has destroyed all the bookstores, iTunes and Amazon together have destroyed all the recorded music stores, Netflix and Amazon have destroyed all the local video stores, and what we have left is a handful of worldwide conglomerates that essentially control all the content we read, listen to, or watch. This isn’t good for anyone, but I can’t help but wondering; when will it collapse? This isn’t the end game here, folks, it’s just a step somewhere along the line.

And when Moore argues that “in order to compete against collapsing windows and high-def, surround-sound, home entertainment centers, theaters are going to have to offer a better experience, and a big part of this is going to be 4D seats, which move to match the film (where you feel like you are flying when a jet is onscreen), and 3D sound, which seems to come from different angles at different times around you, like raindrops falling near you. I have experienced both of these, and the results are astounding. Theaters are going to have to get on this bandwagon or be relegated to bowling alley locations,” I just think he’s dead wrong.

This approach may work in the short term, but in the long term, as JK Rowling observed in a different context, it’s content that matters above everything else. This is just bells and whistles stuff, and there’s only so many ways you can be jostled around in a theater seat, or rained on, poked and prodded, and so forth. These tactics were tried in the 1950s by William Castle and others, when TV became a threat, and it worked for a while — even Alfred Hitchcock shot a film, Dial M for Murder, in 3D — but as he said later, 3D was a nine day wonder, “and I came in on the ninth day.”

In the end, it’s the quality of the film that matters – but Netflix will a key the funding source in the future.

Why Can’t You Stop Watching Netflix? – CNN

Tuesday, July 22nd, 2014

Netflix wants you as a viewer – and you’re responding – in droves.

As Todd Leopold writes in today’s CNN.com, “the streaming and DVD service [Netflix] knows what you’ve rented and streamed and how long it took you to watch. It knows what genres you like and what performers you prefer. Who knows? It may even have an idea whether you prefer your popcorn lightly salted or slathered with butter. (Don’t want the rest of the world to know? It’s also testing a privacy mode.)

It has taken this knowledge and managed to produce a few hits of its own — not just with audiences, but also within the industry. Netflix is having a moment. Its series, such as House of Cards and Orange Is the New Black, recently picked up 31 Emmy nominations. Wall Street approves of the strategy, having bid up Netflix’s share price 10-fold in the last five years.

And the audience? Netflix just announced it has cracked 50 million subscribers, more than double the number it had just four years ago. It has taken some old showbiz lessons — trust the creatives, budget them appropriately — and added some new twists: Binge-watching. Deep data mining. Exploiting the catalog as if there were nowhere else to go.

Can it maintain its dominance? It wasn’t so long ago that the place was posting losses and alienating customers. Pop culture doesn’t sit still, and neither does business. Netflix, which helped drive Blockbuster into oblivion, has to watch challenges from distributors such as Amazon and Hulu — not to mention stay friendly with content providers like movie studios.”

What will happen next? Stay tuned – I contributed a few thoughts to this piece.

 

Kevin Spacey on The Future of Televison

Sunday, August 25th, 2013

Kevin Spacey has a few words of wisdom on the future of broadcast television and convergence with the web.

Spacey, who gave the keynote James MacTaggart Memorial Lecture at the Edinburgh Television Festival on August 23rd, as reported in The Guardian — one of my favorite newspapers — told the audience that “clearly the success of the Netflix model – releasing the entire season of House Of Cards at once – has proved one thing: the audience wants control. They want freedom. If they want to binge – as they’ve been doing on House Of Cards – then we should let them binge. [This] demonstrated that we have learned the lesson that the music industry didn’t learn – give people what they want, when they want it, in the form they want it in, at a reasonable price, and they’ll more likely pay for it rather than steal it. If you watch a TV show on your iPad is it no longer a TV show? The device and length are irrelevant. For kids growing up now there’s no difference watching Avatar on an iPad or watching YouTube on a TV and watching Game Of Thrones on their computer. It’s all content. It’s all story.”

You can view video excerpts from the lecture here — about five minutes, condensed — and Spacey makes some very good points.

About the Author

Wheeler Winston Dixon

Wheeler Winston Dixon, Ryan Professor of Film Studies at the University of Nebraska-Lincoln, is an internationally recognized scholar and writer of film history, theory and criticism. He is the author of numerous books and more than 70 articles on film and appears regularly in national media outlets discussing film and culture trends. Frame by Frame is a collection of his thoughts on a number of those topics. To contact Prof. Dixon for an interview, reach him at 402.472.6064 or wdixon1@unl.edu.

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