Archives for June 2011

China Solves Piracy

pizzaI’m willing to bet that the future of film won’t be decided in the US or Europe, even if that’s the framework most of us begin with (us being my readers and me, most of whom are in the West). I think we’ll be learning a lot from China, where the business is booming, like everything else. I was speaking with some people well-versed in the Chinese film business lately, and they told me something interesting.

Piracy is rampant in China, so much so that the majority of their profits come from theatrical, because soon after it opens, the film is on every pirate network so there’s no ancillary business to speak of. This is the opposite of the US, for example, where the box office is largely a loss-leader for the ancillary revenues (its marketing).

This is a big concern to all of the producers here trying to crack the market there, but my friends told me it isn’t such a concern for the producers in China – they’ve come up with a model that uses piracy to their advantage – product placement. As much as 30% of their budget will often now be made up from product placement by brands who just want to have their product seen by consumers. The brands don’t care if the film is seen legally, or via piracy, because they just want eyeballs. Win, win for everyone.

I know a bit about the arguments against branding, consumerism and yadda yadda, but I think this is a business model we should start following more closely.

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On territorial licenses and geo-restricting

RegionsWe do a lot of stupid things in the film business to keep our old business models working, but to my mind lately, the dumbest one is the continuance of territorial licensing and geo-restricting. I know the reasons why these persist, and I also know that right now, we’re in a time where we can’t completely change the system overnight, but…

I recently went to Tel Aviv to be on the DocAviv Jury and give a masterclass. In advance of the workshop, the organizer sent me a stack of Israeli Docs to watch on DVD, ones that he received legally from the rights-holders by asking them if he could get them and send them to me. Ninety (90) percent of them wouldn’t play in my DVD player here in the US. I had recently traded my region-free player for a gifted Blu-Ray and didn’t think to check about the region encoding, but I shouldn’t have to do this. About half of the discs that wouldn’t play in my DVD player, would play in my Mac (oddly, I usually got an error message saying they couldn’t be played, but then they started up five seconds later).

This is insanity. I should be able to buy a DVD anywhere and play it anywhere. The inability to do so drives piracy, of course, because all of the films could be found on pirate networks with no hassle. I could go on and on about the idiocy of this system, but luckily someone else already has – over at his excellent Transmediator blog, David Wilson has summed up the problems nicely. I recommend reading the entire post, especially as to how this is now creeping into digital downloads and streaming (lesson learned???). What is his solution? Pretty simple, but I doubt we’ll see much progress anytime soon. From David:

“Here’s the mantra again: anything, anytime, anywhere.

If you don’t give people what they want, they will find an easier way. And, I’m sorry to say, pirated content is by far the easiest way. It’s easy to find with search. It’s one-click. It’s generally pre-formatted to the widest common denominator. It doesn’t have licensing restrictions. And, it’s free.

I don’t want movies to be free. But, it makes me angry to see them so difficult to get my hands on. Why can’t I simply Google a film that I’m interested in, click ‘rent’ or ‘buy’ and – boom – watch it straight away on any device I own? Why is that beyond comprehension?

I get angry when I think about this – not least of all because of all the time I wasted with region-restricted content – but because of all the money that the industry is losing to piracy when it’s within their control to do something about it. Studios are actually CONTRIBUTING to the problem. Their inability to collect revenue results in a shortfall to filmmakers. That makes me mad. It should make us all very mad, indeed. We are being shortchanged by their shortsightedness.

If we want to stop piracy, we’ve got to make it easy to get, easy to use and offered at an attractive price. Nothing else is going to work.”

Agreed.

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Possible Media Futures…Redux

In moving my blog over to this new site, I looked back at my very first blog post on Springboard Media, way back in January of 2006, and was surprised to see that almost everything I wrote back then could be written today without much having changed. It’s also a pretty long post, it had been written originally as an essay for a Foundation, and it kinda set the tone for all of my future posts – long.

You can read the original in its entirety here, which includes the state of affairs as I saw it then and still see it now. But here, I’m going to cut straight to the solutions I thought we should focus on then, and I still agree with them now:

POTENTIAL SOLUTIONS
This is a pivotal moment in the history of media arts, a time filled with possibility and uncertainty, but most of all, promise. To address these challenges and to have the greatest societal impact, the field needs to think of innovative, transformative ideas.

Research, Policy, Advocacy and Education
There is great need for continued research, mapping, convening and policy work. The field needs the data to show the problems (such as lack of diversity), and the advocacy to ensure good policy decisions. There is also a need to convene around the multiple issues facing the media arts: What can be done collaboratively to broaden the reach of socially important media? «Note: This is largely being done now, one good thing.»In light of new developments, what directions are most central? Who is not being served? What can be learned from other fields? Last, there is still a need for education — of gatekeepers, of artists and of general publics — in the importance of media arts; in the value of media artists’ contributions to society; in the craft, technology and business of media arts; in its distribution and in media literacy. Through such work, the field can encourage broader support for and public understanding of the value of media arts.

Distribution
There are new models for dissemination, including alternative distribution and marketing strategies, new exhibition avenues, direct video sales and ever-increasing home video markets. Systemization of festival screenings, web-based networks and new distribution strategies could get the work to broader audiences than ever before. The field needs knowledge sharing — strategies, stories, case studies and experiments focused on distribution and dissemination. Citizens need assistance in building communal media experiences where individuals and groups can connect, learn from and utilize media for social change or educational purposes. Leaders in the field must think of what the public wants and deserves, and work together to make that happen so that audiences can find and use this important media. As a result, media artists will prosper, by finding new audiences for their work.

New Financing Models
The media arts need innovative funding models that validate artists, help them attract new sources of funding, and help them find and reach the broadest possible audiences. New strategies could be found in novel approaches to the venture capital model, or with open source and social networking advances. For example, an online, audience-driven fund for progressive media arts could enable individuals, foundations and investors alike to support a variety of work «We’re getting there». The Internet provides great potential to encourage individuals to become art patrons rather than mere consumers. Most of all, funders need to support creative experiments, where new knowledge and thinking may help expand the field. Many funders are experimenting with ways to get money, services and advice into the hands of artists. Such funds may come from multiple sources, but collaboration could be encouraged to leverage investments to most benefit artists and society.

Furthermore, boundaries between commercial and noncommercial media are disappearing, and are increasingly irrelevant to creators and consumers of content. Many people theorize that successful future strategies in media arts will come from combining the assets of the for-profit and non-profit sectors to realize both financial and socialprofits. This new space, perhaps called with-profit (as in social goals with profit potential), promises a rich field for exploration. What if with-profit organizations funded socially important work that will receive commercial distribution, thus reaching broader audiences that aren’t commercially attractive to the for-profit community? What if a with-profit developed a rights-licensing system that allowed creators and rights-holders to be compensated based on actual usage while simultaneously increasing public access? Perhaps the greatest potential for increasing the impact of media arts lies in with-profit ideas.

Conclusion
These potential solutions, while not all-inclusive, suggest some of the work that remains to be done. Society will benefit most from a multi-faceted strategy that considers these options alongside methods that are already working. Most of all, the field needs to continue to discuss the “big picture” and imagine possible futures for society. Every new technological advance in the arts has brought us closer to realizing the ideals of a civil society. Each time, there has been a chance to realize dreams —of technology allowing everyone to share and build knowledge, of a more democratic society where everyone could be producers, not just consumers, where multiple viewpoints could be shared and, in general, where the world could be a better place. Each time, such possibilities have been squandered due to a lack of vision about the future, the forces of greed, the power of the few over the many and the simple fact that technology never quite realizes its potential. Once again, society has been given a set of tools, none perfect, that can help realize our dreams, if we are willing to imagine the possibilities and act soon to ensure their success. All that we need is in front of us. Will we act upon it, or let this chance slip away once again?

A brand new website, a brand new blog

Yessirree, I’ve finally gotten around to updating my online life a little bit. Just under two years ago, I left my day-job for more independent pastures and launched my new company sub-genre media. But, I had many years worth of blog posts over at Springboard Media, which was never a company, just a blog, and I kept blogging there. Every single time I give a lecture or do a consultancy, this leads to confusion. On top of that, I never really liked the Springboard Media name. I had actually just grabbed that name for a project I was working on at the time and it stuck around. But lately, I’m getting tired of the Blogger platform, and figured that when you couple it with the fact that it was confusing…there needed to be a change.

Well, I’ve decided to finally launch the new sub-genre website using tumblr as a backbone. I’m still making improvements, and I’ll be adding a lot more soon, so please hold back on the critiques until I figure out how to make this look prettier. In the meantime, if you’ve ever liked reading my blog, please update your RSS feeds, etc to here. I’ll keep Springboard up as an archive of my past writing, and will refer to it via links here and there, but from now on, all of my writing will be from sub-genre, where you’ll also be able to follow more about my consulting (as I get around to adding it).