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Sofia: Inventing the Future of Film

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My recent panel presentation for the Sofia Film Fest Meetings. Not much new here if you've seen my other recent lectures, but many attendees wanted to have access to the slides.

My recent panel presentation for the Sofia Film Fest Meetings. Not much new here if you've seen my other recent lectures, but many attendees wanted to have access to the slides.

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  • For lack of a better title...\nThanks to Liz and Tishna and sponsors\n
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  • First things first, we have to realize that the model is broken - pretty much all the business models for film have changed dramatically if they haven’t broken all together\n
  • the usual model is completely broken\n
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  • point out 75 screens in 17 cities in Bulgaria\n
  • yet still, films were made. Well, the first thing you have to realize is that digital has been a disruptive innovation on the field. it completely transforms everything we do. music biz example, trouble embracing the new so lose out\n
  • It has rolled back the tide on many bad business models and changed them fundamentally. We can now speak to one another more easily and see just how poorly a gallery is paying or a distributor, etc. Also, these behaviors (online) aren’t new - these aren’t new behaviors but what people wanted to do all along; also story of everyone knows future\n
  • we’re in a whole new paradigm and business models are changing overnight in every industry.think about it, newspaper advertising and classifieds were a multi billion dollar industry and craigslist came along and tidied that up into one profitable 100 million company. the changes here will be just as profound\n
  • But we need to step back and look at a 50,000 ft level at what has changed Indeed the very notion of value has changed. \n
  • in the old world, the business was built on scarcity, but today we have ubiquity - true obviously in film and music, but also in all other arts - you are now competing with a worldwide artist base, and the entire history of the arts. And audiences who want cultural entertainment (or enlightenment, or....) can get it from many new places.\n
  • in the old world, the business was built on scarcity, but today we have ubiquity - true obviously in film and music, but also in all other arts - you are now competing with a worldwide artist base, and the entire history of the arts. And audiences who want cultural entertainment (or enlightenment, or....) can get it from many new places.\n
  • in the old world, the business was built on scarcity, but today we have ubiquity - true obviously in film and music, but also in all other arts - you are now competing with a worldwide artist base, and the entire history of the arts. And audiences who want cultural entertainment (or enlightenment, or....) can get it from many new places.\n
  • what matters is my attention\n
  • what matters is my attention\n
  • and engaging me, and keeping me engaged, is ever more valuable\n
  • and engaging me, and keeping me engaged, is ever more valuable\n
  • becoming more participatory, a conversation\n
  • becoming more participatory, a conversation\n
  • here’s an example of a filmmaker using it to their advantage - building community. note how they make it easy for people to take the content to other websites and blogs through widgets, etc. Notice how Vanishing of the Bees has a blog, a petition, twitter, facebook, etc. and a widget to take the content elsewhere.\n
  • the latest twitter stats\n
  • Importance of twitter (today) Fastest growing 1382% increase in one year, 42% over 35.\n
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  • Zoe Keating has used it to amass an audience of over 1 million followers, and she now has a self-sustaining career. Notice here she is replying/thanking a fan who cued her in on how to watch some media. She’s not just working a one way street, she’s communicating with her audience.\n
  • zoe has built a fan base, that’s in constant dialogue with her. Because this should be your ultimate goal - not to think of building an audience for just one project, but for you, your career - people who will continue to follow you, be in dialogue with you and support your career.\n
  • Filmmakers are doing it on their own. Iron Sky example\n
  • Join community in multiple places, now have 28K fans, and the movie isn’t even shot yet\n
  • also have people requesting the film through a Google Map mashup, and have over 19K requests before the movie is shot.\n
  • and now you can too with crowdcontrols\n
  • We’re also seeing people turning the audiences into their funders\n
  • Patronage – radiohead model, give it away but can donate to get more. Jill Sobule got her fans to donate to make her album - 95K\n
  • Here’s a blow-up of what you got for your donation\n
  • here’s a recent example of filmmakers doing this - cosmonaut example - one of the more clever uses of crowd-funding\n
  • cosmonaut example - here’s some of their merchandise, gives a broad range for support\n
  • cosmonaut example - here’s some of their merchandise, gives a broad range for support\n
  • cosmonaut example - here’s some of their merchandise, gives a broad range for support\n
  • Age of Stupid did this as well to much success and made a guide to it that anyone can download\n
  • it has to be convenient, immediate, because when I have things competing for my attention, I will move on. This means, people expect multi-platform\n
  • They want it when they want it, from whatever portal they like and on whatever device they like, and they want it yesterday\nThey want to share it virally with their friends\n
  • and they may even still buy the film on a DVD or other method - but they want access to all of these platforms. Here’s one filmmaker who is using that to his advantage - Cory McAbee with Stingray Sam - offering easy ways to get it in multiple formats and with value added.\n
  • and get it on mobile- one of the biggest trends recently and in coming years, which I’m not devoting enough time to today. \n
  • and they want it free, whether with ad support or through piracy\n
  • Now has morphed into Vodo, to launch soon\n
  • multiple access points, transmedia - \n
  • Cross media allows them to become active participants in multiple parts of the story. It allows them to delve deeper into the experience if they so choose, or access it from their preferred medium. The idea is to expand the story line into multiple media. The Matrix is the most famous recent example\n
  • Definitions of transmedia and examples/things to think about\n
  • More to think about and experts. \n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • unfortunately, we live in reality, in a hybrid space\n
  • mix old and new models\n
  • what does that mean? i call it multi-modal business practices, multi modal optimization \n\n
  • Different platforms\n
  • Different platforms\n
  • Different platforms\n
  • Business models, and each has subsets\n
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  • way of thinking about it\n
  • we know less about audience than any other industry; we ignore what they tell us (not pay per use); we spend less time thinking about them; few people focus on it in plans and it is the only thing that matters\n
  • we know less about audience than any other industry; we ignore what they tell us (not pay per use); we spend less time thinking about them; few people focus on it in plans and it is the only thing that matters\n
  • Keep budgets low 250-500K max; raise enough to distribute and market\n
  • Keep budgets low 250-500K max; raise enough to distribute and market\n
  • There’s an old marketing theory that says people don’t go to store to buy a ¼” drill, but because they want a ¼” hole. don’t go to the store to buy a hammer. They go there because they want to hang a picture, to get something done, and the hammer just helps them do it.\n
  • I love seeing a movie in a theater, but let’s face it – that was a tool for Hollywood to pack as many people into one space and make money off their desire to escape. It was a tool to have a fun night out, but it was only one tool. \n
  • these aren’t new behaviors but what people wanted to do all along\nWe now have new tools, and we can’t fight it, but need to embrace them to our benefit. The audience wants to build something – they can get your hammer for free, or you can give them a reason to buy it. They also want to interact with you in new ways, so use these tools to your advantage. People can collect around your film, watch it and interact with it in new ways now. And we have new ways of reaching them and engaging them. \n\n
  • what’s next? also - can’t predict past, or know present, but future is easy to see on horizon\n
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  • For lack of a better title...\nThanks to Liz and Tishna and sponsors\n

Transcript

  • 1. New Paradigms: Inventing the Future of FilmBrian Newman springboardmedia.blogspot.com @bnewman01
  • 2. The Model is Broken
  • 3. Old World $
  • 4. Old World $• Play festival
  • 5. Old World $• Play festival• Sell to distributor/broadcaster (s)
  • 6. Old World $• Play festival• Sell to distributor/broadcaster (s)• Advance• Percentage of revenues
  • 7. Old World $• Play festival• Sell to distributor/broadcaster (s)• Advance• Percentage of revenues• They sell to audience
  • 8. Old World $• Play festival• Sell to distributor/broadcaster (s)• Advance• Percentage of revenues• They sell to audience• Who pays for the film
  • 9. Old World $• Play festival• Sell to distributor/broadcaster• Advance• Percentage of revenues• They sell to audience• Who pays for the film• $ to distributor• $ to filmmakers• $ to investors
  • 10. Old World $• Play festival• Sell to distributor/broadcaster• Advance• Percentage of revenues• They sell to audience• Who pays for the film• $ to distributor• $ to filmmakers• $ to investors• Everyone is happy....
  • 11. Old World $ H• Play festival T• Sell to distributor/broadcaster• Advance Y• Percentage of revenues M• They sell to audience• Who pays for the film• $ to distributor• $ to filmmakers• $ to investors• Everyone is happy....
  • 12. Old World $Play festival Maybe
  • 13. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhere
  • 14. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhereAdvance $0 - $15,000 avgPercentage of revenues 30% - 60% after expenses
  • 15. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhereAdvance $0 - $15,000 avgPercentage of revenues 30% - 60% after expensesThey sell to audience Hopefully
  • 16. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhereAdvance $0 - $15,000 avgPercentage of revenues 30% - 60% after expensesThey sell to audience HopefullyWho pays for the film If theaters book it or buyers buy
  • 17. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhereAdvance $0 - $15,000 avgPercentage of revenues 30% - 60% after expensesThey sell to audience HopefullyWho pays for the film If theaters book it or buyers buy$ to distributor But, marketing, P&A, staffing, cross- collateralization, fees, delivery
  • 18. Old World $Play festival MaybeSell to distributor/broadcaster(s) Maybe – forever, everywhereAdvance $0 - $15,000 avgPercentage of revenues 30% - 60% after expensesThey sell to audience HopefullyWho pays for the film If theaters book it or buyers buy$ to distributor But, marketing, P&A, staffing, cross- collateralization, fees, delivery$0 to filmakers$0 to investorsNo one is happy...and you don’t even ownyour film anymore
  • 19. Disruptive InnovationDisruptive technology and disruptive innovation areterms used in business and technology literature todescribe innovations that improve a product or service inways that the market does not expect, typically by beinglower priced or designed for a different set of consumers.Clayton Christensen via Wikipedia
  • 20. It’s not until the tide goes out until you seewho’s wearing the swim trunks - Warren Buffett
  • 21. Value has changed.
  • 22. Old World Value:ScarcityNew World Value:Overabundance
  • 23. Attention Economy
  • 24. Engagement
  • 25. Participatory Culture A Conversation
  • 26. Langworthy & Henein Vanishing of the Bees
  • 27. Twitter Stats (via Twitter)• 105,779,710 registered users• 1,500% growth over the last three years• 300,000 new sign-ups per day• 60% of new accounts were from outside the U.S.• 600 million search queries per day• A NY Times story gets tweeted every 4 seconds
  • 28. TwitterUsage by Age Group US Growth
  • 29. Social Media Usage in Bulgaria:• 2 million Bulgarians are on Facebook.• 51% of teens in Bulgaria have a profile in a social network which is a little bit below 57%, the average number for the EU.• 51% from the demographic between 9 and 16 have a profile on Facebook, Myspace and Impulse.bg. Approximately 1/3 of these profiles use a public status. This means that they could be seen and are visible by everyone. 1/10 lists personal information in their profile like an address, telephone number, etc.• The BIG 4 social bookmarking sites are as follows: Svejo.net; Dao.bg; Lubimi.com; Ping.bg.• Honorable Mentions include: Qko.be; 2p2.us; Favi.info; Slamka.com; Twist.bg; vbox7.com; crazythings.net; egg.bg; telegraf.bg; 359bg.net; and internetbulgaria.orgSource: Social Media Delivered, February, 2011 Note: I would value your input on the accuracy of this report.
  • 30. Zoe Keating @ZoeCello 1.38 million followers on Twitter
  • 31. Building Community Friends & Fans
  • 32. www.ironsky.net
  • 33. www.ironsky.net
  • 34. www.ironsky.net
  • 35. crowdcontrols.cc
  • 36. CrowdSourcingTurning Community into Funders
  • 37. Details from Jill’s Next Record website• $10 - Unpolished Rock (but with potential) Level: A free digital download of the album, when its released.• $25 - Polished Rock Level: An advance copy of the CD. Weeks before the masses.• $2,500 - Emerald Level: Mentioned as an executive producer of the album -- whoop- di-doo!• $5,000 - Diamond Level: I will come and do a house concert for you. Invite your friends, serve some drinks, bring me out and I sing. Actually, this level is a smart choice economically. Ive played many house concerts where the host has charged his guests and made his money back. Id go for this if I were you.• $10,000 - Weapons-Grade Plutonium Level: You get to come and sing on my CD. Dont worry if you cant sing - we can fix that on our end. Also, you can always play the cowbell.
  • 38. thecosmonaut.org
  • 39. thecosmonaut.org
  • 40. Urbanized on KickStarter
  • 41. Urbanized on KickStarter
  • 42. TheAgeofStupid.Net
  • 43. Convenience & Immediacy
  • 44. Multi-PlatformAgnostic, Viral & Mobile
  • 45. McAbee: Stingray Sam
  • 46. Sally Potter’s RageFirst Movie Premiering Day/Date at a Festival and on Mobile
  • 47. Free(Plus Fee)
  • 48. Multiple Access Points
  • 49. TransmediaWhat it is: Types/examples:Develop the story across Eventsmultiple entry pointsMulti-platform Games/ARGAudience can become Interactive componentsimmersed in experienceDeep audience engagement Graphic NovelsEncourages participatory Online & viral contentaudiencesEach element a distinctive MobileexperienceStory flows & builds rev Think Outside the norms -streams experiences
  • 50. TransmediaQuick thoughts: Some Experts:Build audience dev. components Christy Denafrom the beginningThink beyond marketing Stephen Dinehart (coined)Extend the experience Jeff GomezThink about impact & social Henry JenkinschangeNot just games.... events, gallery Mike Monelloshows, etc.Some projects may not need to John Threatbe a film...or can become one if Lance WeilersuccessfulTransmedia can be simple Many more...
  • 51. Monetizing It Now
  • 52. Market Conditions +Established Practices/Incumbent Players + Fear = Less Experimentation
  • 53. NEW + OLD
  • 54. Embrace Multi-modality In biz plan
  • 55. Multi-Modal Practices Platforms
  • 56. Multi-Modal Practices PlatformsTheatrical EventsNontheatrical (incl. fests) GamesEducational ARGBroadcast InteractiveDVD ExperiencesVOD/EST AppsOnline + Viral Content MarketingPiracy/Peer to Peer PRTerritories PrintMobile/Portable Devices MerchandiseWindows Other....
  • 57. Multi-Modal Practices Platforms A U D I E N C E
  • 58. Multi-Modal Practices PlatformsTheatrical EventsNontheatrical (incl. fests) GamesEducational ARGBroadcast A Interactive UDVD D Experiences IVOD/EST E Apps NOnline + Viral Content C MarketingPiracy/Peer to Peer E PRTerritories PrintMobile/Portable Devices MerchandiseWindows Other....
  • 59. Multi-Modal Practices Business/Finance Models
  • 60. Multi-Modal Practices Business/Finance ModelsFoundations Co-Op MarketingGovernment LicensingNonprofit/NGO Partnerships GapCorporate/Brands DebtIndividual Donors FreeInvestment SubscriptionTax Incentives/Rebates/Credits AdvertisingSales Affiliate ModelsSales Agents LeaseRelated Sales (merchandise, stock Co-Productionfootage....)Post Other....
  • 61. Each platform will probablyhave multiple business models
  • 62. The biggest problem with mostprojects, and with the industrygenerally, is a total disconnect fromthe audience.We need to put as much creativity andwork into <thinking about, learningabout/from, developing> our audienceas we put into creating our stories.
  • 63. The Rules...Today
  • 64. The Rules...Today Keep Budgets LowRaise Enough to Distribute & Market Your Project
  • 65. The best way to predict the future is to invent it Alan Kay
  • 66. New Paradigms: Inventing the Future of FilmBrian Newman springboardmedia.blogspot.com @bnewman01