Will digital distribution be the savior of the independent film market? Steve Zeitchik sets out to explore this question, using indie producer Seth Caplan as a case study.  Caplan has produced numerous award-winning, festival screened features, but his only real financial success barely left the internet. “Flatland – The Movie,” a thirty minute animated featurette sold mainly via web streams, generated more profit than any of his other films due principally to a well-placed Google Ad.

 

With the advent of YouTube, distribution was democratized to the average Joe, but now its success is “trickling up.” Industry professionals, the big fish and the small, are increasingly taking advantage of all-access digital mediums.  But it’s those with limited resources, the indie players, who stand to gain the most. Where else but online could they reach so many people at so little cost?

 

Of course, this supposed Promised Land comes with a catch or two.  Many fear that, like in the digital music space, an “increased dependence on digital will mean similarly small profits and expectations.”  This has been the case so far for most films released digitally. However, theatrical avenues are drying up, and films are coming out of festivals without theatrical distribution, leaving filmmakers little choice but to turn to online.

 

Still, there are promising signs for those that take a strategic approach to digital. Major portals, including Amazon, Hulu, iTunes, and YouTube, now have their own indie businesses. Though the sites have yet to garner much revenue for filmmakers, they can cut out the middle-man, like they did for Seth Caplan. IndiePix president Bob Alexander elaborates:

 

“The problem with streaming is you need millions of views for what’s essentially a niche product…what streaming can do, however, is provide the visibility and platform to lead to transaction-based sales [i.e., dvd’s].”

 

[Disclaimer: Filmmakers Beware! To turn a profit this way, you can’t let your budget get away from you.  It’s more essential than ever to contain costs when margins are so low.]

 

As the way we consume media continues to evolve, streams and other online viewing have the potential to capture greater market share, so early adopters are well-positioned to benefit. But for now, caution is advised.

 

*Source: The Hollywood Reporter, “Clicking and Screaming”, pp 10-11, March 20, 2009, by Steven Zeitchik

To read the entire article, click here. (available only in plain text for non-subscribers)

 

 

 

Television trade publication TVBizWire is reporting the following tidbit about YouTube:

YouTube Ad Revenue Falls Short for Google WSJ

Worldwide revenue from YouTube, which is likely to total about $200 million in 2008, has fallen short of Google’s expectations, the Wall Street Journal reports. Google Chief Executive Officer Eric Schmidt admitted some big advertisers are uncomfortable with the idea of their ads appearing next to amateur videos and said the company hasn’t quite figured out how to best format video advertising on the Web site, the newspaper says.

Admittedly, this comes as a shock to virtually no one. At the time that Google acquired YouTube, there was no clear business model that could justify the hefty price tag for the acquisition.  As the online ad market continues its current deceleration, I am sure this is a topic that Google will be address in future earnings announcements.

For filmmakers, this is probably not a positive note. It may mean that YouTube will have even less interest in providing filmmakers with compensation for popular content that appears on the site.

The International Consumer Electronics Show has a special focus on content this year:

Content

Today’s world is a digital one, where content progressively drives consumer technology sales. Music, movies, games. Text, audio files, pictures. Content is any sound or image delivered to an audience through a CE product. It’s at the heart of consumer technology, and CES is at the heart of it all. Content is everywhere at CES. It spans all consumer technology markets, every product, each part of the show floor. Experience the art of content at CES.

Find out what is happening at this year’s show: http://cesweb.org/attendees/markets/content.asp

The show also features the latest installment of Digital Hollywood, seminars on the latest in digital entertainment.

Digital Hollywood

Revolution. Redefinition. Refocus. Those are the themes of this year’s Digital Hollywood sessions, where we’ll examine how the “three Rs” are affecting content, entertainment, social networking, product innovations, the digital home, consumer perceptions and market forces. These are some of the most popular sessions at CES, because they’re jam-packed with up-to-the-second information, insights and predictions. Sign up now before space is gone! Take advantage of the CES Ultimate Pass for a guaranteed seat at every session.

It is not too late to register: Digital Hollywood details.

If you are interested in Children’s toys & entertainment, this free conference at CES also looks extremely interesting:

The Sandbox Summit: A Playdate with Technology

Had enough of the grownup CES stuff? Jump into the world of digital kids at the Sandbox Summit. Kick off the morning at the complimentary power breakfast, where we start th conversaion. Get a handle on the toys, trends and products that are shaping the way kids play today. Join the PLAYOFFS, where digital natives go head to head; then move on to the Sands’ exhibition to test drive the gear that’s defining the next generation.For more information please visit www.SandboxSummit.org.