Tag Archives: Streaming

Waiting For The Dough

"Commute, N Judah" courtesy of Heather

I decided not to attend the Cannes Film Festival back in May because of the dismal economy and what I expected to be a poor showing there. I learned things were even worse than expected when my colleagues in distribution reported from the near-empty beaches of the Cote d’Azur that the bottom had fallen out of the pre-sales market.

The Toronto Film Festival was supposed to be different. Four months after Cannes, with the banks flush with TARP funds and individual investors reportedly swapping oil and gas investments for classic cars, surely an uptick in motion picture finance had to be right around the corner.

I thought that Toronto would present a sea change in the degrading economics of the business; that the credit markets would thaw; and the cash equity of retired Silicon Valley and Wall Street insiders, the Chinese, the Indians and institutional investors would make the trek up to Canada in droves.

But Toronto felt like a bad dream about a big party that everyone attends but the host forgets to cater. People took meetings, did lunch, partied, went to screenings and generally did the things one does at a film market except buying, selling and investing in films. All of the elements for a successful market were there except cash. The money, it turned out, stayed at home.

Looking back at it now, I was overly optimisitic but hardly alone in my rosey outlook.

Yes, there were well-publicized exceptions to the lack of a market at the market. However, to the rank and file independent producer, the prospects remained bleak. Although the independent film business has been subject to business cycles in the past, many I spoke with in Toronto believe that business won’t bounce back to pre-recession levels.

The Internet is the double edged sword at play in any recovery. On the one hand, the Internet provides new sources of distribution revenues through streaming and digital downloads. On the other hand, the Internet’s ability to stream content is eroding traditional exploitation windows and risks shortening the profitability period for the typical commercial motion picture.

Still, the credit markets continue to thaw, albeit slower than many anticipated. New distribution models are rapidly evolving and with it, new deal points in the licensing of distribution rights.

And . . . the American Film Market is less than two months away. Maybe, just maybe then, producers will finally be able to get the money shot that they’ve been waiting for.

Grass Roots Licensing Of Youtube Fare

My kids turned me on to “Charlie The Unicorn” shortly after it made its debut on youtube several years ago. Like most user generated content, Charlie, a flash animated 2D short, was made on a shoestring and the production values reflect that. Still, the work is smart, funny and quotable in the vein of Caddyshack and The Simpsons.

Charlie has been viewed over 35 million times worldwide and spawned a sequel.

Still, I wasn’t really intrigued until I visited Hot Topic, a teen-oriented store in my local mall, and spotted Charlie merchandise.

Plenty of talented (and not so talented) folks make shorts and distribute them on youtube. Far fewer generate millions of views or eyeballs; and only a handful of those successfully make the jump to ancillary exploitation.

Whether Charlie’s creator is making meaningful revenues isn’t really the point (nor is the aesthetic value of such a work).

Charlie’s transition from youtube short to retail merchandise represents nothing less than a sea change in the ability of a single content creator to leverage the internet and its potential access to millions to build a following and potentially profit from ancillary and derivative exploitation of content without the need or prohibitive expense of traditional distribution channels.

It means that self-distribution is now a meaningful and sustainable distribution alternative and will become even more so as internet based distribution (e.g., faster downloads) matures.

It means that traditional distributors better figure out how to stay relevant (hint: content marketing not content distribution) or get out of the way.

Just ask the people who (used to) work in the music business.

Potential Breakthrough In Writers Guild Strike


The Los Angeles Times and other news outlets reported over the weekend that the broad strokes of a deal between the AMPTP and the WGA could be in the offing as early as next Friday. The parties reportedly closed the gap over how much the studios should pay writers for free streaming of movies and television programs over the Internet. The parties still need to find a mutually agreeable distinction between content exploitation in which residuals would be payable and content promotion which would be residual-free.

The Directors Guild closed their deal over these issues last month but many striking writers (and SAG members) criticized that deal for not going far enough on streaming.

The breakthrough came when Bob Iger and Peter Chernin, the designated studio heads negotiating the deal, included more favorable streaming residuals than those in the DGA deal and separated rights for shows created for the Internet so writers receive extra compensation and credit for television shows based on online programming.

However, Guild leaders issued the following cautionary statement on Sunday morning:

To Our Fellow Members,

While fully mindful of the continuing media blackout, we write you to address the rumors and reports that undoubtedly you have been hearing.

The facts: we are still in talks and do not yet have a contract. When and if a tentative agreement is reached, the first thing we will do is alert our membership with an e-mail message. Until then, please disregard rumors about either the existence of an agreement or its terms.

Until we have reached an agreement with the AMPTP, it is essential that we continue to show our resolve, solidarity, and strength.

Picketing will resume on Monday. Our leverage at the bargaining table is directly affected by your commitment to our cause. Please continue to show your support on the line. We are all in this together.


Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

As I posted earlier, the break in the impasse here was the result of the principals fronting these discussions and negotiators likely ghost writing arguments for and against critical deal points. Sometimes, this approach is the only way to make meaningful progress in deal negotiations. Once Iger, Chernin, Verrone and Winship work out these broad strokes, the Guild’s rank and file still have to approve the deal. That would pave the way to resolving the strike and getting writers back to work in time to save pilot season and part of the fall television schedule (not to mention feature work) even if it takes months for labor negotiators to work out the details.