NETFLIX vs. Cable VOD & TV – It’s a question of timing
I recently posted on our Facebook page a note about the fact that one has to be mindful about when to initiate a NETFLIX VOD window. Sheri Candler asked to me blog about it. I do everything she says.
We have heard consistently from Cable VOD operators and aggregators and Broadcasters such as Showtime that the Netflix VOD window is considered a cannibalizer of revenue for Cable VOD and TV so know that before licensing rights and resolving windows. When it comes to Netflix they have gotten so successful that they are a more selective platform than Amazon. Amazon wants has recently passed the 80,000 titles mark and is racing to aggregate as many as possible. Netflix has over 100,000 titles on DVD and over 17,000 titles on its streaming service but is now getting more and more selective. Netflix SVOD rights are sold for a flat fee, at least for now. To get onto Netflix, first one has to get on their radar and into their system, and then get that demand up in their queue system to get a good fee offer. One has to then resolve everything else before risking inadvertently killing any chances of a Broadcast sale or Cable VOD distribution. However, depending on the film, you may make more money from Netflix than by selling to let’s say EPIX which will want your Netflix SVOD rights anyway. And you may make more money distributing directly then doing a small Broadcast deal or going with a distributor or aggregator that will take all your digital rights anyway. Though it should be noted most filmmakers cannot get to Netflix directly.
As with anything in film distribution, there is no one rule that applies to all films. This is a case-by-case business. Some films are big enough that one can stagger windows and monetize them all. Some films are better served by being available on all platforms at once or close to it. Some films lend themselves more to rental or ad-supported free-on-demand and others can really generate the transactional (pay per download) business.
The point of this little missive though is just to note the conflation of TV and the Internet is happening. Google TV is here and retailers, Television and device manufacturers, cable operators and telcos are all competing to aggregate and offer as much content as possible. Even print media companies are following suit wanting channels of content on their websites. And soon enough it will be less a discussion of rights and more a discussion of PAYMENT METHODS or MONETIZING METHODS and I think that will always depend on the film and its demographic targets. The options will always be: 1. Ad-Supported / Free on Demand, 2. Subscription 3. Pay Per View 4. Download to Rent, and / or 5. Download to Own. And now instead of focusing on packaged media the focus is is on whether one can play content back on as many devices as one wants and that aspect related to all the various payment methods options. The content providing industries are all racing to aggregate as much content as they can and for it to be playable across as many devices as possible and payment methods vary so far depending on service and distributor choices. Hulu (a platform backed by studios and that was once only ad-supported is now beta testing its Netflix imitation subscription model).
Brands will attract customers just like they always did when video stores were king and just like when you choose which cell phone provider to use or whom to get your Internet connection through, assuming you live in an area with choice.
The other day on a Digital Hollywood Conference panel, I learned a stat from Erik Opeka of New Video: iTunes has 130,000,000 credit cards on file. Some of you are thinking right now, “I’m in the wrong business”.
Orly Ravid October 21st, 2010
Posted In: Amazon VOD & CreateSpace, Digital Distribution, iTunes, Netflix, Uncategorized
Tags: Amazon, Digital Distribution, Digital Hollywood, Epix, Erik Opeka, film distribution, GoogleTV, Hulu, iTunes, Netflix, New Video, Orly Ravid, Sheri Candler, Showtime, SVOD, VOD
TFC Tidbit of the Day 50 Digital Distribution Through an Aggregator
Unfortunately, a great number of key digital platforms must be accessed through the use of an aggregator. Of course there are always exceptions, but the general rule is that to get your films onto Cable VOD, iTunes, Netflix, Hulu, Sony Playstation and other device oriented options and retailer digital platforms , you will have to go through an aggregator or a distributor. We either directly or via partners offer both a commission or a flat fee option (range depends on platforms).
However, you can get onto Amazon directly. Also, you can access DIY oriented ones such as Mubi, Fans of Film and other platforms like them. To the best of our knowledge, more money is made on the key high trafficked platforms, if one can get on them.
Once again we remind you, MARKETING, MARKETING, MARKETING is key to your film’s success no matter what distribution outlet you use.
This concludes our series of tidbits for the time being. As always, if you have questions or need guidance to figure out your film’s distribution path, we would love to hear from you. No rights taken.
Orly Ravid August 27th, 2010
Posted In: Amazon VOD & CreateSpace, Digital Distribution, DIY, Hulu, iTunes, Marketing, Netflix
Tags: aggregator, Digital Distribution, DIY, Fans of Film, Hulu, iTunes, Marketing, Mubi, Netflix, Playstation, VOD
TFC Tidbit of the Day 10- Rental Platforms
Popular rental platforms include iTunes, YouTube, and Virgin Media. Caution: Rental in due time. New Video, for example, notes seeing a clear cannibalization of DTO when Rental is turned on too soon. The number of people who will buy, just have to have it, are stronger if a rental release is delayed. If released at the same time, those that would have bought will rent if they can.
To keep up with all of our latest updates and news relevant to the world of digital distribution, check our Facebook business page.
Orly Ravid July 9th, 2010
Posted In: Digital Distribution, Distribution Platforms, iTunes
Tags: DTO, Facebook, iTunes, New Video, Virgin Media, YouTube
TFC Tidbit of the Day 9-What’s Transactional?
Download-To-Own (DTO) is a transactional platform. iTunes, Playstation, Xbox, Amazon VOD are all DTO sites. iTunes and Xbox account for the majority of the non-cable revenue in the digital space, for now.
Several Hollywood studios have announced that they are doing deals with a new download-to-own store from DivX and the site FreshFilm.com such that their movies will be playable on millions of DivX enabled devices.
To keep up with all of our latest updates and news relevant to the world of digital distribution, check our Facebook business page.
Orly Ravid July 7th, 2010
Posted In: Amazon VOD & CreateSpace, Digital Distribution, Distribution Platforms, iTunes
Tags: Amazon VOD, DivX, download to own, Fresh Film, iTunes, transactional, Xbox
TFC Tidbit of the Day 5-Revenue from Digital Platforms
From a revenue-generating point of view, at present, those who deal in the space will tell you that iTunes is the #1 platform; Hulu is working well for some but not for all; and that Netflix’s “Watch Now” is starting to show promise but one’s film needs to be on DVD with them too and be somewhat in demand. Some platforms are subscription based, some are transactional, and some are ad-tagged revenue-based. And sometimes a hybrid of the two not is only a doable solution but actually an ideal one, especially for smaller special-interest films.
Much of this information can be found within our Digital Distribution Guide, available to our members. For this week, you can gain access to the full Guide by contributing $35 to our IndieGoGo campaign.
Orly Ravid July 1st, 2010
Posted In: Digital Distribution, Distribution Platforms, Hulu, iTunes, Netflix
Tags: digital distribution guide, DVD, Hulu, independent film, iTunes, Netflix, revenue, TFC, The Film Collaborative
TFC Tidbit of the Day 4- Considerations for choosing a platform
Some platforms can be accessed via Self Distribution (e.g. Youreeeka or Maxcast) while others can only be accessed via an aggregator (e.g. Netflix, and iTunes, which at the moment is by far the greatest revenue generating platform in the digital distribution space). Some aggregators are better than others and some distributors and aggregators take lower fees than others. Choosing the best platform/portal for your film must be done with care and must also take into account the type of film it is and its overall release plan.
Much of this information can be found within our Digital Distribution Guide, available to our members. For this week, you can gain access to the full Guide by contributing $35 to our IndieGoGo campaign.
Orly Ravid June 30th, 2010
Posted In: Digital Distribution, Distribution Platforms
Tags: Digital Distribution, digital distribution guide, independent film, indiegogo, iTunes, Maxcast, Netflix, self distribution, TFC, The Film Collaborative, Youreeeka