Vimeo Announces Open Platform For Creators To Earn Money From Their Videos

Vimeo to offer Creators Two Flexible Payment Options

Vimeo® today announced two new features that enable creators to earn money from their films and videos. Available now, Tip Jar allows viewers to show their appreciation to creators by voluntarily contributing money to support their work.  Over the next several months, Vimeo will also roll out an open pay-to-view service that allows creators to sell their work behind a paywall.

Vimeo’s focus on quality and creativity has allowed it to become one of the Web’s top 10 distributors of video online [1] with more than 75 million monthly unique visitors [2] and one of the world’s largest creative networks with over 13 million registered members. Vimeo’s introduction of Tip Jar and its upcoming pay-to-view service provide a clear path for video creators to build businesses around the films and videos they create.

“Empowering creators to make money from their videos is a logical next step for Vimeo as a service and an opportunity to expand the overall marketplace for video creators and viewers,” said Vimeo CEO Kerry Trainor.  “Established creators and emerging talent alike can connect directly with their audiences without the need to conform to industry standards around video format, price or timing releases.”

Vimeo’s Tip Jar enables video creators to crowdsource funds to support works directly from their viewers. Tip Jar will allow anyone to give tips before, during or after watching a video; Vimeo will pay 85 percent of the gross revenue to the creator. Starting today, Vimeo Plus or Pro members can choose to activate Tip Jar.

Vimeo’s pay-to-view service will be an open platform for video creators to sell access to their films and videos. Expanding on traditional rental and Video On Demand models, Vimeo’s pay-to-view service gives creators customizable options to sell their films and video content directly to their audiences and provide control over pricing, rental duration distribution location and other settings. Vimeo will begin rolling out its pay-to-view service in beta preview this fall with a curated series of films.  Vimeo will make the pay-to-view service available to all Vimeo PRO subscribers in early 2013.

“Creators have asked us for quite some time to help them monetize their work, but we think it needed an approach that put the controls back into the hands of the creators themselves,” said Dae Mellencamp, President of Vimeo. “We designed these tools to allow video creators to be as flexible as possible while providing the ability to financially succeed at various levels of viewership.”

For more information about Vimeo’s new creator monetization tools, please visit https://vimeo.com/blog/post:523 or watch https://vimeo.com/49684456.

About Vimeo

Vimeo® is the home for high-quality videos and the people who love them. Vimeo’s mission is to empower and inspire people around the world to create, share and discover videos. As one of the world’s largest creative networks, Vimeo reaches a global audience of more than 75MM each month. Founded in 2004 and based in New York City, Vimeo, LLC is a subsidiary of IAC (NASDAQ: IACI)

[1] June 2012 Comscore

[2] August 2012 Vimeo Internal via Google Analytics

Diary of a Film Start-Up Part 3: The Producer's Dilemma

Diary of a Film Start-Up Part 3: The Producer's Dilemma
By Roger Jackson
The Producer’s Dilemma You probably know the classic movie making conundrum that indie producers struggle with: talent (or rather their agents) won’t commit to a film project until you prove you have funding, and investors won’t write a check until you prove you have talent attached. The producer’s dilemma. And, of course, all successful producers find creative solutions to that thorny issue. KinoNation has a similar challenge: It’s tough to get filmmakers fully committed without video-on-demand distribution outlets in place, and it’s hard to sign VoD outlets without a slate of films.
Meeting with Hulu
So in an industry (Hollywood) that’s notoriously suspicious -- even hostile -- towards outsiders and upstarts, our first meeting with a VoD distributor was a breath of fresh air. Hulu “got it” immediately. They were informed, candid and provided the type of objective but positive feedback that Klaus and I needed. Yes, you can be a content partner with Hulu, they said. Just show us you can aggregate great independent features and documentaries, and then prove you can deliver them to Hulu in the high quality format we require. Deal! We got to work immediately on the ideas and to-do list that sprang from the meeting -- in a new venture like KinoNation, the positive momentum from this type of informal encouragement is huge.
Acronyms on Demand
Since then we’ve been talking to video-on-demand platforms all over the world.  So now is probably a good time to deal with the soup of video-on-demand acronyms we find ourselves swimming in. SVoD, TVoD, FVoD are among the most common, but the list goes on, it’s confusing, and from now on I’m just going to use the umbrella term VoD -- “Video on Demand.” But, for the record,  SVoD is “subscription“ video-on-demand, where the customer pays a flat monthly fee. Like Netflix, or Hulu Plus. TVoD is “transactional” video-on-demand, where customers pay each time they rent or buy a movie. Like iTunes, or Amazon Instant. And FVoD is “free” video-on-demand.  Like Vimeo, or YouTube. OK, with that out of the way, suffice it to say we’re busy knocking on the doors of dozens of VoD companies, worldwide.
Now We Need Movies
Now the flip side of our producer’s dilemma: we need an initial slate of films -- fifty or so would be ideal. So last week we fired up an Invitation Only page on KinoNation, seeking full-length films (and filmmakers) for what techies call Beta Testing. As we wrote on that page “These films will form the initial slate of films to be run through our automated Upload-Transcode-Distribute process...filmmakers involved will help shape the creation of KinoNation.” The response already has been great -- indie features from the USA, UK and Australia, documentaries from France and South Africa, and amazing enthusiasm from filmmakers who know they can drive an audience to their films, but want help getting them out there!

First Mover Advantage So who are these bold filmmakers, and what are they submitting to KinoNation? And why are they motivated to be “first movers?” Here’s a sampling. Husband and wife filmmakers Lindy and Kris Boustedt are sending us their beautiful existential drama This is Ours. Lindy notes that “We’re confident we can market/find an audience for our film, we just want a simple route to getting our film into paid video on demand.” South African filmmaker James Walsh has submitted his stunning mountain bike documentary An Epic Tale, and writes “Love the simplicity of Kinonation! More than happy to be a guinea pig for this process.”  From Australia we heard from director Sky Crompton, who has submitted his Austral-Asian drama Citizen Jia Li. Veteran LA filmmaker Rich Martini (what a great name!) already has his incredible after-life doc Flipside out on DVD, and writes that “VOD is definitely the smartest way to go with my own particular niche of story telling...once it’s available on demand I can sell the heck out of it...thank you KinoNation for showing up at exactly the right time to enable a new vision of distribution!”

So I invite you to submit your film to our Private Beta. The form takes 2 minutes to complete, the rules are super-simple, there’s no obligation to participate, no cost, no strings attached. And there’s absolutely no danger that your baby will be stolen, or end up on DVD at the night market in Shanghai. Although as filmmaker Lindy Boustedt wrote, “"We'd be oddly thrilled if This is Ours was pirated. Cause that would mean it was popular enough to steal."

 

Next week:  Post #4: Story Arc for Investors or Why I Stopped Worrying and Learned to Love Raising Money.

Roger Jackson is a producer and co-founder of film distribution start-up KinoNation. He was Vice President, Content for digital film pioneer iFilm.com and has produced short films in LA, documentaries in Darfur, Palestine and Bangladesh, a reality series for VH1 and one rather bad movie for FuelTV. He is executive producer at Midnight Swim Productions.

Diary of a Film Start-Up Part 2: Birth of a (Kino)Nation

Diary of a Film Start-Up Part 2: Birth of a (Kino)Nation
By Roger Jackson
KinoNation We were determined the site would be a dot com domain -- not dot biz or dot US or dot-whatever. But available dot coms are rare and we weren’t going to pay thousands of dollars to some shady cyber-squatter. Klaus found KinoNation.com -- it was available, it makes sense, we like it and seems easy to remember. “Kino” is German for cinema. And “Nation” can be defined as a community of persons bound by a shared interest or passion. That seems to work. We’re also excited about the potential for this venture in China, making thousands of Chinese indie films available to the rest of the world. So the name had to sound OK to the Chinese ear (we’re assured it does) and it more or less translates into Mandarin as “Film Kingdom.” But. There’s always a “but.” In this case there’s a site in Russia, kinonation.ru where you can watch Hollywood movies -- in Russian -- for free. Hard to say whether they’re legit or pirated. Either way, we have the dot-com, they have the dot-ru -- there’s no reason we can’t co-exist, right?
The Lean Startup
Klaus and I are fans of The Lean Startup -- the idea that all new ventures are based on big, untested assumptions, and the best way to test them is to get a minimum viable product out there quickly. In weeks rather than months. That way, if you’re going to fail, at least you fail fast! Our big assumptions are that filmmakers and content owners will see value in KinoNation and want to upload their movies. And that digital video-on-demand outlets will want those films enough to work with us.  Are those assumptions true?
First 6 Weeks So now we're 6 weeks into it. What have we accomplished so far? We're filmmakers so we started with a video. We convinced a few successful friends to talk about the problem we’re trying to solve, and Remy Boudet, our talented French director/DP/editor, pulled it all together. We built a website, nothing fancy, we used a WordPress template but I think it looks pretty good. Remy designed an ice cream logo, because apparently in France they still quaff ice cream in movie theaters. We decided to experiment with fund-raising on Indiegogo. We haven’t started a company yet, an actual legal entity. Haven’t printed business cards. Haven’t bought any equipment. It’s too easy to get bogged down in stuff like that and pretend you’re making progress, when it’s really just spending money you don’t have, before you need to. We’re focused on writing code, doing deals, spreading the word to filmmakers.
Response So Far The response from filmmakers and indie producers has been remarkably consistent: “KinoNation is a great idea, but since your success is dependent on the online success of the films uploaded, you’d better help filmmakers reach their audience, because there’s the real challenge.” We can provide online tutorials and tools, of course. Plus lessons on guerilla marketing, case studies of indie films that have grossed a ton of money via VoD – and examples of decent films where the online marketing was a fail. But we need more. I have a strong feeling there’s a more imaginative and even game-changing solution lurking just over the horizon? We’ll see.
Coming Soon The first few weeks were the easy part. Who doesn’t love brainstorming, shooting video, building websites. Now we have to build the technology that will do the uploading and transcoding magic. That will move massive digital movie files around the planet without any loss of quality. We have to do deals with digital distributors like Hulu and Netflix and iTunes and dozens of others. We have to convince filmmakers to trust us with their films. We have to figure out a business model that is fair and reasonable and transparent. Oh, and of course we have to find investors who believe in the vision and the potential to create a global distribution business.
That’ll keep us busy for a few months.
Next week:  Post #3: The Producer’s Dilemma - you know how movie talent won’t commit until you get funding, and film funders won’t commit until you’ve signed talent? KinoNation struggles with the same dilemma with content owners and video-on-demand partners.

Roger Jackson is a producer and co-founder of film distribution start-up KinoNation. He was Vice President, Content for digital film pioneer iFilm.com and has produced short films in LA, documentaries in Darfur, Palestine and Bangladesh, a reality series for VH1 and one rather bad movie for FuelTV. He is executive producer at Midnight Swim Productions.

 

 

Diary of a Film Start-Up Part 1: Every movie ever made...

Diary of a Film Start-Up Part 1: Every movie ever made, in any language, anytime, day or night...
By Roger Jackson
 

I joined the short films website iFilm.com in 1999 and stayed until 2006, after we sold to MTV. By then we’d also sold out our original vision, captured perfectly in this 1999 commercial. Since iFilm I’ve produced war-zone documentaries for the Annenberg Foundation, started a production company, and for the past year run humanitarian projects in Afghanistan and West Africa. But I often thought of that iFilm vision...and now, more than a decade later, I find myself the co-founder (with film composer Klaus Badelt) of a digital film startup with a similar mission. This is the first of a series of weekly guest posts as we bootstrap this new venture -- ideally with a ton of critique and input from you.

The Other 96%
I first met Klaus at Peet’s Coffee in Santa Monica. It’s where most of our work gets done. As we became acquaintances and then friends, we started talking about a shared passion for foreign and independent films -- and our frustration with the distribution eco-system where 50,000 features and documentaries are made (globally) every year -- and only a couple thousand (4%) get released. What happens to the other 48,000?
 
 

The Music Precedent
Klaus is a musician -- and a keen student of the music business and its transformation over the past decade. He convinced me that the film industry will follow a similar trajectory -- radical and disruptive change in the way movies are created, shared and consumed. Meaning, among other things, those 48,000 films could be available to rent or buy, in multiple languages, via the dozens of digital video-on-demand platforms around the world. Just like that Qwest commercial.

 

The Pain Point
So where’s the problem we’re trying to solve? What’s the pain point for those 48,000 films? The reality is that it’s incredibly difficult, expensive and frustrating for filmmakers to get their movies onto these platforms, which lack any real standardization of video format, metadata, payment, etc. Filmmakers typically have to pay to get their film encoded for any digital platform. They’re Fedex’ing hard drives around the world. Then they pay again for another platform. And again. Always with no guarantee they’ll see a dime in revenue. Being available on iTunes, Netflix, Hulu and the rest certainly doesn’t mean people will find and pay for the film. So it’s a lot of upfront cost, hassle and high risk -- with no guarantee of any return -- at a time in the life of a film when filmmakers can least afford it.

 

A Solution?
Klaus’s vision was for a simple web based platform where any filmmaker, anywhere on the planet, could upload his feature film -- with zero upfront cost -- and have it immediately in distribution on iTunes, Netflix, Hulu, Vudu, Amazon, Lovefilm, Snag, Mubi, Fandor...and the hundreds of other paid digital outlets around the world. And available in as many languages as the filmmaker wants to make sub-titles for. Wouldn’t that be amazing?

Commitment
Intrigued and fired up, I agreed to write a business plan, and in early 2011 we shared it with some friends. They had suggestions, but they liked it. But like all ideas, it was worthless without the commitment to make it happen. Klaus was running a busy music studio and writing scores for multiple movies, including the upcoming Astérix and Obélix. I was working for a Los Angeles based non-profit called Spirit of America, launching a new program --  School Partners/Afghanistan -- that connected American and Afghan high school students via video conference. But Klaus and I kept talking and noodling and becoming more and more convinced that we could -- and should -- create something truly disruptive in the film world. And by the summer of 2012 we were convinced that if we didn’t do it soon -- someone else would -- maybe they already were? So I left my non-profit gig and we got down to work.

 

Next week:  Part # 2: Birth of a (Kino) Nation:  figuring out a name, shooting a trailer, endless video edits until it (sort of) makes sense, and questioning the massive  assumptions behind this whole crazy venture.

 

Roger Jackson is a producer and co-founder of film distribution start-up KinoNation. He was Vice President, Content for digital film pioneer iFilm.com and has produced short films in LA, documentaries in Darfur, Palestine and Bangladesh, a reality series for VH1 and one rather bad movie for FuelTV. He is executive producer at Midnight Swim Productions.

How Would You Use All 27 New Platforms Available For Direct (aka DIY/DIWO) Distribution?

UPDATED 8/31 730A (Now 30 Platforms & Services!)Thanks for the recommendations in the comments and elsewhere! UPDATED 9/1 630A (Now 31 Platforms & Services!) UPDATED 9/1 830A, UPDATED 9/8 8A (32!), UPDATED 9/15 6A, 9/23 UPDATED 5/15/2012 (Now 33 Platforms & Services!)

We are awash in wonderful opportunities. Distribution has long been said to be one of the top concerns of Truly Free / Indie filmmakers. Ditto on the marketing side. We've been neglectful to address the equally important social side, but that's changing. Financing is always a challenge, but even there we have new help and hope. The great news is that never before have we had so many opportunities in all these areas.

Now comes the time to develop some best practices. How do we use all of these wonderful opportunities? How do we prepare for them? How do we access them? Here's a list of the 27 platforms & tools I know of; I am sure you know some more to add to the list. Let's get this new model started!

How about everyone pick a platform (ideally one they used) and write up some recommendations on how to use it well, and we run them as posts on this blog?

So...

How do you think we should utilize all of these great tools and platforms? We are not going to figure it out one by one on our own. The truth will only be revealed through collective endeavor (and a little good fortune). I would love to hear some advice from all the budding and experienced PMDs out there... not to mention filmmakers who have utilized or plan on utilizing any of these.

I am having a bit of a hard time coming up with the proper discriptions for the tools and services. This is very much a Work In Progress. If you have a better definition, please let me know. Several services show up in different categories. There are definitely suppliers that I have forgotten or neglected to mention (my apologies, but this is a public service and not my job job).

1. Artist Direct Distribution / Platforms: FilmDIY (promo video), MubiGarage, Ooyala, Viddler,

2. Artist Direct Distribution / Platforms - non-specialized: These are places filmmakers can "sell" their work, but are not filmcentric. Craigslist, Etsy,

3. Artist Direct Distribution / TVOD Players: Distrify, Dynamo Player (Review), EggUp (review), FansOfFIlm.tv (still in Beta) , FlickLaunch, Groupee, OpenFilm,

4. Artist Direct Distribution / Service Facilitators: Sundance's Artist Services,

5. Audience Aggregation, Analytics, & Commerce: FanBridge, TopspinMedia

6. Audience Participation: LiveFanChat, Kickstarter, IndieGoGo, Social Guide, SoKap, Watchitoo

7. CrowdFunding/Audience Participation:      IndieGoGo • 4% fee if you make your goal, 9% otherwise, +3% credit card processing fee      Kickstarter • 5% fee, +3-5% credit card fee (only funded if you make your goal)      RocketHub • 4% fee if you make your goal, 8% otherwise, +3-5% credit card fee      SoKap • 5% fee, 10% fee on product sold via their marketplace, +3% credit card fee      United States Artists • 15% fee + 4% credit card fee      Eppela • 5% fee + PayPal processing fee (~2-4%), (must use PayPal, only funded if you make your goal, Italian)      Kapipal • Currently no fee + PayPal processing fee (~2-4%), (must use PayPal, Italian)      And 10 others listed here

8. Digital Delivery Facilitators: Veedios (article)

9.Digital Distribution Access Providers: Brainstorm, Distribber (analysis), GoDigital, Gravitas, Inception Digital Services, IndieBlitz ,Might Entertainment, New Video, Premiere Digital,

10. Digital Download & Streaming Aggregators: Amazon, AsiaPacificFilms.com, CinemaNow (aka BestBuy), FilmDIY, iTunes, Vudu, XFinityTV (aka Comcast),YouTube

11. Digital Limited Run US Theatrical Exhibition: Cinedigm, FathomEvents, Screenvision

12. Digital Streaming Aggregators FREE (AVOD): Crackle, Snag (Owners of IndieWIre, host of my blog), Vimeo, YouTube

13. E-commerce: E-Junkie (shopping cart)

14. Educational Market: An Overview, Educational Market Streaming

15. Exhibition/Four Wall Services (i.e. self booking): QuadCinemaFourWall

16. Exhibition/New Model: Emerging's Digital Repertory Program, Specticast

17. Free Peer to Peer: VoDo, BitTorrent

18. Fulfillment: Amazon Services, Amplifier, theConneXtion, CreateSpace, FilmBaby, IndieBlitz,Kufala Recordings, Paid, Transit Media, I got a lot more when I did a search but I don't know one from the other.

19. Influencer / Social Media Analytics: Klout, PeerIndex, Topsy, Traackr, Twitalyzer,

20. Markets / Online On Demand For Territorial Licensing (B2B): Cinando, Festival Scope,

21. Mobile Phone & Tablet Film App Builders: Mopix (see demo here) Stonehenge

22. Mobile Video Sharing: Thwapr,

23. Platforms: Facebook, Playstation, Roku, RoxioNow, XBox

24. Search (for SEO): Ask, Bing, Google, Yahoo

25. Social Discovery Platforms ( Online TVOD): PreScreen

26. Social Networks: Facebook, Google+, LinkedIn, Twitter, Weibo

27. Stream To View Transactional VOD (Pay): Constellation, Prescreen (review)

28. Streaming Subscription (SVOD): Amazon, AsiaPacificFilms.com, Fandor, Hulu, LoveFilm, Mubi, Netflix

29. Trailer Distribution / Online Internet Video Archive

30. Video Conferencing / Multi-party (for Fan Engagement & Remote Appearances): Watchitoo

31. VOD Aggregation: itzon.tv,

32. VOD Channels: Multichannel Video Programmers (note: not all offer VOD), FilmBuff

33. Facebook Video Players/Channels:Cinecliq, Milyoni

Guest Post: Orly Ravid: Subtitles in Digital America Part 2

Yesterday, Orly Ravid, co-founder of The Film Collaborative, started another one of her incredibly thorough posts examine the current state of distribution. Her recent focus is on foreign language film distribution in the US, but the outlets she points to are applicable to all of us. You will want to bookmark this one for sure.

Yesterday's posts focused on VOD distribution on the cable platforms. Today we look at...

FOREIGN LANGUAGE CINEMA VIA OTHER DIGITAL PLATFORMS and REVENUE MODELS: DTO (Digital Download to Own (such as Apple’s iTunes which rents and sells films digitally) - this space has been challenging for foreign films in the past, and most services do not have dedicated merchandise sections. Thus, the only promo placement available is on genre pages, so the films need to have compelling art and trailer assets to compete. iTunes and Vudu (now owned by WALMART – see below) are really interested in upping the ante on foreign films over the next 12 months. Special consideration will need to be made for the quality of technical materials, as distributors have encountered numerous problems making subtitled content work on these providers.

SVOD (Subscription VOD such as NETLIX’s WATCH INSTANTLY) - this space is probably the best source of revenue for foreign content because the audience demos skew more sophisticated and also end users are more inclined to experiment with new content niches. Content in this space should have great assets and superior international profile (awards, box office), and overall should evoke a "premium feel" for the right titles, license fees can be comparable to high end American indies. Appetite for foreign titles will increase as the price for domestic studio content continues to accelerate. Genres are a bit broader than VOD/DTO, but thrillers, sci fi and action still will command larger sums ($). Good Festival pedigree (especially Cannes, Berlin, Venice, Sundance, etc.) will also command higher prices. Overall, it’s a great opportunity as long as platforms keep doing exclusive deals. NETFLIX has surpassed 20,000,000 subscribers and a strong stock price and is in a very competitive space and mood again. (See more below). Hulu expects to soon reach 1,000,000 subscribers “to approach” half a billion in total revenues (advertising and subscription combined) in 2011, up from $263 million in 2010. That’s from $108 million in 2009. (see more below)

AVOD (Advertising Supported VOD – such as SNAG and HULU) - Another great space for foreign content (as evidenced by the recent exclusive HULU - Criterion deal – (see below) although that deal is actually for HULU’s subscription service (Hulu Plus). These platforms are more willing to experiment with genres and content types and favor art films and documentaries over genre films. Depending on the film, annual revenues can approach low to mid four (4) figures in rev share. SNAG recently was capitalized to the tune of $10,000,000 but seems to be spending that money on marketing and not on “acquiring” so a film’s revenue is likely to be dependent on performance and rev/share unless one strikes an exclusive deal with SNAG and manages to get an MG. HULU’s revenues are covered above. Films report low 4-figures but sometimes 5 and 6 figure revenues but up until now those higher performing films have been English language and appeal to younger males.

TELEVISION / BROADCAST SALES: For foreign language cinema unless one has an Oscar™ winner or nominee, or an output deal, the prospects of a meaningful license fee are slim. Even worse, if you do secure a deal, it will likely preclude participation in Cable VOD, Netflix and any of the ad-supported VOD platforms such as Hulu and Snag.

KEY SPECIFIC TOP SPECIFIC DIGITAL PLATFORMS / RETAILERS:

AMAZON reportedly is readying a service that would stream 5,000 movies and TV shows to members of its $79-per-year Prime free-shipping membership program. Amazon being corporately tied to extremely popular entertainment information service IMDB and the film festival submission service WITHOUTABOX gives it a potential edge in the market, one that has never been fully harvested but easily could be and seems to be looming. And since its inception, Amazon has let film content providers open up shop on their site directly without a middle-man. Middle man aggregators get slightly better terms. Amazon presently offers 75,000 films and television shows combined and plans to soon exceed 100,000. It should be noted Amazon VOD has been US-focused though recently bought Love Films in the UK.

FOCUS FEATURES’ NEW DIGITAL DISTRIBUTION INITIATIVE: There is not much information out on this yet but FOCUS/UNIVERSAL are launching a new digital distribution initiative that may or may not brand their own channel on iTunes etc., but does seem to be focused on niche cinema to some extent and this may speak to foreign language titles. An option to watch out for.

GOOGLE is working on encroaching into the content delivery market with its launch of GOOGLE TV, which unfortunately has not created quite the fanfare the company planned for. It boasts: The web is now a channel. With Google Chrome and Adobe Flash Player 10.1, Google TV lets you access everything on the web. Watch your favorite web videos, view photos, play games, check fantasy scores, chat with friends, and do everything else you're accustomed to doing online. GOOGLE TV does come with the Netflix App and others. Google partnered with some of the leading premium content providers to bring thousands of movie and TV titles, on-demand, directly to your television. Amazon Video On Demand offers access to over 75,000 titles for rental or purchase, and Netflix will offer the ability to instantly watch unlimited movies and TV shows, anytime, streaming directly to the TV.

HULU: Hulu’s numbers keep growing for certain films, which has to-date not been foreign language but that may change given the Criterion Collection announcement. Hulu is also now a subscription service (HULU PLUS) and announced the Criterion deal is for that. Criterion of course specializes in classic movies from the canon of great directors–Ingmar Bergman, Jean-Luc Godard, Federico Fellini, etc.–and has about 800 titles digitized so far, many of which are also available via Hulu competitor Netflix. It’s understood that this will be an exclusive deal, and that the Criterion titles that Netflix does offer will expire this year. Hulu Plus subscribers will initially get access to 150 Criterion films, including “The 400 Blows,” “Rashomon” and “Breathless.” Hulu says the movies will run without ad interruptions, but may feature ads before the films start; the free Hulu.com service will offer a handful of Criterion titles, which will run with ads. Hulu, owned by Comcast’s NBC, Disney’s ABC and News. Corp.’s Fox introduced the Hulu Plus pay service last year. Hulu CEO Jason Kilar says the $7.99-per-month offering is on track to reach one million subscribers in 2011. Competing for exclusive content seems to be on the rise as platforms compete for household recognition and top market share.

iTunes (APPLE): iTunes dominated consumer spending for movies in 2010 but that may not last long. One can get onto iTunes via one of its chosen aggregators such as New Video, IODA, Tune Core, Quiver… Home Media Magazine reported the findings of an IHS Screen Digest report that showed that Apple was able to hold off challenges from competitors like Microsoft’s Zune Video (via XBOX Kinect), Sony PlayStation Store, Amazon VOD and Walmart’s VUDU. Despite the new competition, the electronic sellthrough and video on demand market rose more than 60% in 2010, Apple iTunes still came out on top, perhaps due in part to the release of the iPad last spring and Apple TV last fall. Research director of digital media for IHS, Arash Amel, said, “The iTunes online store showed remarkable competitive resilience last year in the U.S. EST/VOD movie business, staving off a growing field of tough challengers while keeping pace with a dramatic expansion for the overall market.” However, it’s important to note that although iTunes staved off competition, the overall iTunes consumer spending fell almost 10% in 2010 to 64.5%. It was 74.4% in 2009. Insiders predict it will not hold its market dominance for long.

• Microsoft’s Zune Video was one of Apple’s biggest competitors last year, accounting for 9% of U.S. movie EST/iVOD consumer spending in 2010 but this does not seem a key platform for foreign language cinema.

MUBI: www.Mubi.com having added Sony Playstation to its platforms reach, MUBI now has reportedly 1,200,000 members worldwide and is finally in a better position to generate revenue. Still its own figures estimates amount to 4-figures of revenue and that’s for all its territories. Mubi’s partnership with SONY does not extend into the US.

NETFLIX as reported in Multichannel News “as its subscriber base has swelled, Netflix has become a target for critics complaining that it is disrupting the economics of TV” is now a competitor to Cable and in fact Cable VOD companies won’t take a film if it’s already on NETFLIX’s Watch Instantly service. But Netflix is realizing it erred by losing focus on the independent and is now quietly offering bigger sums that compete with Broadcast offers and that are on par with the 5 and 6 figure revenues generated by Cable VOD for the stronger indie / art house films. Having films exclusively may be the driving force of future monetization in digital, or least in SVOD. Regarding 2011 outlook, Netflix's "business is so dynamic that we will be doing less calendar year guidance than in the past," the execs said. For the first three months of the year, Netflix expects domestic subscribers to increase to between 21.9 million and 22.8 million, with revenue between $684 million and $704 million and operating income between $98 million and $116 million. Internationally -- meaning, for now, Canada -- the company expects 750,000 to 900,000 subscribers with revenue of $10 million to $13 million and an operating loss between $10 million and $14 million.

REDBOX: Redbox, whose brick-red DVD vending machines are scattered across the country, is aiming to have a Netflix-like video streaming subscription service up and running by the end of 2011, company executives told investors mid February. Redbox is a wholly owned subsidiary of Coinstar. The Oakbrook Terrace, Ill.-based company claims to have rented more than 1 billion DVDs to date through vending machines at about 24,900 U.S. locations nationwide, including select McDonald's, Wal-Mart Stores and Walgreens locations. It should be noted though that Redbox is very studio title focused and wide release focused but its streaming service will likely move beyond that.

WAL-MART bought VUDU and is expected to be a major player. Walmart is the world’s largest retailer with $405 billion in sales for the fiscal year ending Jan. 31, 2010. In the U.S., Wal-Mart Stores, Inc. operates more than 4,300 facilities including Walmart supercenters, discount stores, Neighborhood Markets and Sam’s Club warehouses. VUDU, is Walmart’s recently acquired online media source where consumers can rent or buy movies and TV shows for their internet-ready HDTV, Blu-ray Disc players or PlayStation 3 consoles. Like iTunes, there are no monthly fees. Consumers can buy and rent movies when they want, and 2-night rentals are only $2. It will be interesting to see how VUDU will rise as a contender in 2011 and whether iTunes will suffer as a result of their success. Wal-Mart advertises that regarding VUDU: “from Internet-ready HDTVs to WiFi enabled Blu-ray players, you'll find all the VUDU ready electronics you're looking for at Walmart.com. Whether adding a flat panel TV to your dorm room or upgrading your home entertainment center, our selection of VUDU ready HDTVs has you covered. You'll also save money on our VUDU ready products when you select items with free shipping to your home. With VUDU, you'll be able to stream HD movies directly from the Internet to your TV in dynamic surround sound for a great low price. Shop VUDU ready HDTVs and Blu-ray players at Walmart.com — and save. “ And the retail giant makes sure all relevant devices / electronics it carries are VUDU-enabled. 2011 and beyond will be telling. Wal-Mart caters to the average American so it remains to be seen if there is an appetite for foreign language film via VUDU in the months and years to come. In its inception VUDU was catering to early adaptors of new technology and those eager to watch HD but now it seems to be becoming more generic. New Video is a preferred aggregator to VUDU, among others.

VODO (Free / monetized Torrent): www.VODO.net This has not been tried in the US by most distributors if any and not for foreign language cinema but it has worked for several projects such as Pioneer One which generated $60,000 USD by having the content made available for free and then getting donations in return.

• Other emerging retailers entering the digital space: Sears and Kmart are the latest over-the-top threats to pay-TV providers' video-on-demand businesses. Sears launched its online movie download service, Alphaline Entertainment, which will let Sears and Kmart customers rent or purchase movies, including on the same day they are released on DVD and Blu-ray Disc, provided through digital media services firm Sonic Solutions. Titles currently available to rent or buy from Alphaline include studio and successful TV shows. Under Sonic's multiyear agreement with Sears, the companies will provide access to Alphaline services through multiple devices including Blu-ray Disc players, HDTVs, portable media players and mobile phones. Sears and Kmart, said in a statement. "We'll continue to increase the reach and flexibility of the Alphaline Entertainment service by providing consumers on-demand access to the latest entertainment from a range of home and mobile electronics." Sears, which merged with Kmart in 2005, is the fourth largest retailer in the U.S. The company has about 3,900 department stores and specialty retail stores in the U.S. and Canada. It remains to be seen if they take on foreign language cinema. New Video is also an aggregator to them.

That’s all she wrote folks. Until the next time.

Orly Ravid has worked in film acquisitions / sales / direct distribution and festival programming for the last twelve years since moving to Los Angeles from home town Manhattan. In January 2010, Orly founded The Film Collaborative (TFC), the first non-profit devoted to film distribution of independent cinema. Orly runs TFC w/ her business partner, co-exec director Jeffrey Winter.

Top 25 Multichannel Video Programming Distributors

Today, we started looking at digital distribution possibilities here in the USA for foreign language film, courtesy of the FIlm Collaborative's Orly Ravid. Her post explores the possibilities of VOD distribution for foreign language titles. But you can't know the players without a program can you?

Thankfully Orly has sourced us a list of the Top possible VOD distributors for all of our work. Check it out.

Top 25 Multichannel Video Programming Distributors as of Sept. 2010 – Source NCTA (National Cable Television Association)

Rank MSO BasicVideoSubscribers
1 Comcast Corporation 22,937,000
2 DirecTV 18,934,000
3 Dish Network Corporation 14,289,000
4 Time Warner Cable, Inc. 12,551,000
5 Cox Communications, Inc.1 4,968,000
6 Charter Communications, Inc. 4,653,000
7 Verizon Communications, Inc. 3,290,000
8 Cablevision Systems Corporatn 3,043,000
9 AT&T, Inc. 2,739,000
10 Bright House Networks LLC1 2,194,000
11 Suddenlink Communications1 1,228,000
12 Mediacom Communications Corp.1,203,000
13 Insight Communications Co., Inc. 699,000
14 CableOne, Inc. 651,000
15 WideOpenWest Networks, LLC1 391,000
16 RCN Corp. 354,000
17 Bresnan Communications1 297,000
18 Atlantic Broadband Group, LLC 269,000
19 Armstrong Cable Services 245,000
20 Knology Holdings 231,000
21 Service Electric Cable TV Incorporated1 222,000
22 Midcontinent Communications 210,000
23 MetroCast Cablevision 186,000
24 Blue Ridge Communications1 172,000
25 General Communications 148,000

Is The Hell Worth It? Content Licensing for Digital New Media Platforms

Guest post by Wendy Bernfeld, Managing Director, Rights Stuff It’s no surprise for producers and distributors, that revenues from traditional sources such as TV and DVD have generally been declining, along with minimum guarantees for international sales. Despite earlier disappointments, we have seen that the digital marketplace (web, mobile, IPTV/vod, etc) has now become a source of real revenue, although requiring careful attention to suitable platforms, ’windowing’ and deal structuring.

Rights Stuff has spent the last decade dedicated particulary new media platforms , or traditional platforms expanding into new media dealings, as well as filmmakers/distributors/ content owners, helping them in content acquisition/licensing and maximising revenue streams. There are a wealth of opportunities arising from non-traditional/digital platform buyers and funding sources, outside the comfort zone of your usual buyers database . Even beyond known IPTV, web and mobile platforms; there are also gaming/consumer electronics platforms, kiosks, memory card makers and handset manufacturers in the video space. Even as recently as this summer, New tablet devices, OTT (Over-the-top) boxes and web enabled connected TV’s further blur the distinctions and assumptions affecting deal-making and audiences. Opportunities are multiplied when you take the international arena into account, and good target markets for new media deals are often overlooked.

For example, VOD is no longer just ‘one thing’ to hold back or give away; it can span up to a dozen different forms,(Transactional (TVOD),Suscription (SVOD,) free, ad-supported ( AVOD), sell-thru (EST/DTO, etc), and span different platforms (IPTV, web, mobile, handhelds etc) each affecting rights and license potential. Each can now represent a small but cumulative revenue stream in the generally non exclusive new media licensing scheme.

Even if a producer is blocked in his local country due to prior production or broadcaster funding /presales, the opportunities are often wider outside their own local region. Overall, whether electing to focus time maximizing exploitation across all possible avenues, or just focussing on a few key big brand deals, it is already worth the hell!

However, keep in mind that in most European countries, there are still extremely limited, legal alternatives for video viewing, (for example I-tunes video is still NOT available in most of Europe) and pirated free viewing is the real competition.

One of our European clients, indiemoviesonline.com, tackled this challenge by offering high end independent feature films, streamed online, free to consumer, but on a targeted premium rate ad-supported (AVOD) basis. With clever SEO (search engine optimization) and other tech tools, they managed to redirect significant traffic away from these pirate sites. In one case, they achieved 10,000 views in one weekend for an otherwise lesser known film.

For another client, a top European art house film traditional distributor, we helped them select from their back catalogue, important films/key genres to digitize and rights-clear, as well as upgrading acquisition deals, to allow for various forms of new media exploitation. That client achieved literally 10s of thousands of views within a month or two on a simple pay per view basis and for just one film – whereas before, such film would normally have gone straight to pay tv. Even without minimum guarantees they more than recouped and profited from that new window. . Who’s out there? Aside from the biggest web VOD/EST partners such as YouTube, Hulu I-Tunes, Netflix, and the more ‘general interest’ and American sites, content owners can target other regions for international IPTV and web/mobile platforms seeking film, and engage with various smaller but high quality and genre focussed reputable sites, such as indiemoviesonline.com, cinemalink.nl, mubi.com, and thematic channels including via IPTV ‘tv everywhere’ platforms. The mainstream sites and some gaming platforms like Sony PS3 have also finally started to expand their programming, to embrace more niche programming including indie and art house, and to selectively commission online premieres.

As to negotiations, It’s still the same negotiation “ballet” as in traditional media, between the buying in (get wide rights) and licensing out (give narrow rights), so be sure to read the fine print. One can deal direct (more work, but more returns) or go via aggregators or sales agents/distributors, but in the latter case ensure they’re really focussed on, savvy in and committed to the new media exploitation, not just a contractual rights-grab. Remember that new media deals, other than the more familiar TVOD, are not yet “standard,” and again, at least in the short term, remember to watch media, delivery means, devices, windows, and revenue definitions. With careful windowing and deal making, there are finally real new media revenue streams to be made, and it can be worth the hell.

Wendy Bernfeld  MD Rights Stuff  Rights Stuff is an int’l content licensing consultancy specialized in acquisition, distribution, and pragmatic approaches to related rights issues, primarily in the new media and cross platform sector (e.g. film/TV and/or original content for Internet, VOD, mobile, subscription TV, handheld devices, and other digital platforms), including made-for-web and cross-platform /transmedia productions. Rights Stuff also assists producers and distributors seeking to maximize exploitation of their rights across multiple windows and platforms/screens and also assists transmedia productions that contemplate from inception both storytelling and business models across multiple screens. Rights Stuff is also active in new digital channel creation,development and programming, including international adaptations and channel carriage negotiations.

For more info (incl. services, case studies & clients), please refer to www.rights-stuff.com.