Wednesday, April 27, 2011

VOD, Facebook, Netflix...What ever happened to going to the movies?



The delicious buttered up smell of popcorn when one enters the doors of a theater. Arguing with friends in the middle of a dark room to decide which row to seat on. Not the last one, she forgot her glasses, what about the first front seats? Someone always gets motion sickness. After standing there blocking everyone´s view, the middle is always chosen as the fair choice for everyone. If you manage to get a good seat and avoid a line of screaming girls behind you or the guy that decides to share his director commentary on the movie with the rest of the audience, you´re safe. Lights go out, trailers start and magic happens. There´s nothing like it.

The days of movie going are not over but more than ever, the movies are coming to us. Tribeca has recently acknowledged the importance of social media and digital platforms.  Some panelists are convinced that watching movies will be soon something ordinary in Twitter. Hollywood will start fishing where the fish are and these social platforms full with potential moviegoers. According to them, digital distribution will take form when: the devices are easy to use and content is available at a reasonable price.  Some of these prerequisites have already been solved but others, such as price, are still trying to find what works. Lets take a look at the recent digital distribution events that have been WOM these past couple of months.

1.  Netflix has become the largest subscription entertainment business in America: 
  
Netflix
Nowadays, six out of ten movies are streamed out of Netflix and 7% of Americans are subscribed. Dethroning Comcast, the red envelope has proven that it´s here to stay. However, competitors have not waited to counterattack. In February Amazon announced it will allow their Amazon Prime clients (who pay 79$ a year) to stream shows and movies free of charge. HBO has launched its HBO GO app this month that will show every episode of every season of their cable channel in mobile devices and TVs, subscription required. 
Netflix, however, has an ace up its sleeve. Earlier this year it announced the launch of its first original and licensed series: House of Cards. 26 episodes directed by the great David Fincher and with Kevin Spacey as the leading role. This one hour drama will debut in late 2012 and will talk about the ruthless world of British politics in the Thatcher era. Netflix takes a risk after recently acquiring successful deals for the rights of: Mad Men ($1M per episode), Glee, Sons of Anarchy, The Wonder Years, Fraiser and Cheers.  


2. Facebook is the first social platform to rent movies
 
Dark Knight on Facebook
Warner Brothers took the lead making the Dark Knight available for 3 dollars or 30 Facebook credits. Type the name of the movie in your search bar and the page of the movie will immediately pop up. You don´t even have to LIKE it, just click on watch, pay, and you´re ready to go. The movie is available for 48 hours, during which Facebook still has full functionality. The interesting part about streaming in a social network is that it makes the experience more interactive for users. Now the audience can post comments, talk with their friends, quote the movie, at the same time they are watching it. For a generation full of digital natives who can´t seem to concentrate and need to be doing three things at once, this seems ideal. WB has recently added the Harry Potter franchise to the list, Inception, Life as we Know it, and Yogi Bear.

Four studios in P-VOD
3.The Premium VOD Controversy
Las Vegas´s Cinemacon was in for a big surprise when it was leaked that the four major studios( Universal, Sony, Fox, WB) planned to shorten the theatrical window 90 days and make their movies available in Premium VOD (for $29.99) just two months after their theatrical release. Exhibitors were outraged and studios defended themselves saying that their movies made most of their money in the first 4-5 weeks anyway. Read this interesting article that explains the 7 Key questions surrounding the controversy.

A list of 23 high recognized directors and producers such as James Cameron, Todd Philipps, and Peter Jackson have already spoken against it in their manifest. You can read the complete version here
Question is, will it work and will it severely affect the movie business? I personally think they will have to reduce the price gradually till the audience at home is willing to pay. For now, $30 seems too much, but what about when it´s $15? We´ll just have to wait and see how this turns out.

The audience is overloaded with options. Where should I see a movie? Facebook so I can talk to my friends? Netflix so I don´t have to drive and find parking in the theater? Premium VOD? People should remember even though more and more platforms will be invented there will never be something quite like an dark room full of strangers laughing and crying at the same thing.


3 comments:

  1. Agree Ms.Ceberio, I believe dark smelly rooms are just awesome for movies. The day I can't have my tasty popcorn, the day I can't sit in front of a huge screen, the day I can't enjoy a super awesome sound system... that day a small part of my childhood will die.

    Sincerily,
    Mr.Del Valle

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  2. Couldn´t agree more Mr del Valle, there´s really nothing like it.

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  3. Yes, sticky floors, freezing rooms and those annoying people behind you that laugh when it's not funny and talk excessively. And how could you ever miss $12.75 for a ticket, $7.50 for popcorn and $5.25 for a drink - that's over $25 total per visit! While I don't think the movie theater will ever die, the users have changed, and therefore the user experience must change.

    I disagree with the directors, these production studios should cut down the time-frame that movies are out. There's more money in video rental/buying and the money made while on the big screen mostly goes to the theater.

    Hopefully this will force the theaters to give more incentive to come to the movies. Let's face it, all theaters really do is provide the screen, sound system and food, and all at a high premium (and with advertising!).

    Why not make going to the movies an experience like it once was, but more advanced? Interactive touch screens with trailers... Objects that you can play and take pics with to share on facebook while promoting the movie...

    There is no excuse for the only change to the movie-going experience since 2000 being the addition of the ads that show before the trailers. Theaters should be held accountable, and this change should help.

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