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Open Source Cinema



Radically Changing the Economics of Theatrical Distribution with Portable Cinemas

Radically Changing the Economics of Theatrical Distribution with Portable Cinemas



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Open Source Cinema Open Source Cinema Presentation Transcript

  • CineGoGo “ Delivering festival films to a big screen near you” February 17, 2009
  • The Problem: 95% of Festival Films Never Get to Theaters
    • Theater “shelf space” reserved for blockbusters
      • 196 studio films earned 95% of $9.6B revenue in 2007
    • Distribution expensive
      • Average marketing/distribution budget: $35MM
    • Current theatrical distribution unprofitable
      • Lose ($1.13) per ticket, but…
      • Earn $3.07 on concessions
    • Films costing up to $20 / ticket at festivals have minimal market value afterwards
  • Alternative Distribution for $9.6B Theatrical Market
    • Digital delivery of festival films to alternative venues
      • Powering HD theatrical screenings at popular local venues
      • Offering filmmakers revenue and distribution beyond the annual Festival events
      • Allows local hosts to act as franchisees and monetize movie screenings
      • Matching films to “long tail” of segmented audiences
  • Partnering with Freelance Franchisees
    • CineGoGo will partner with franchisees who use the CineGoGo Portable Cinema package
      • 3200 Lumens digital projector supporting HD
      • Inflatable 12 foot movie screen
      • Wireless portable amp and speakers
      • HD Laptop
    • Retail cost of package: $1,500
  • The Financial Model
    • Breakeven for a franchisee can happen within the first month in the best-case scenario and about four months in the worst-case scenario.
  • The Team
    • Kal Deutsch – CEO
      • Wells Fargo, Visa, HomeGain (acquired by Classified Ventures), EscapeHomes (acquired by HomeAway), TotalMove (acquired by MostHome Corp), Price Waterhouse
      • Graduate of Haas School of Business at UC Berkeley with emphasis in finance
      • Frustrated filmmaker, produced & directed 2002 Sundance Film Festival short, Behind the Startup:
    • Elliott Kopstein – CFO
      • Wall Street Communications Technology Analyst -- Alex Brown
      • 15 years M&A, Financial Consultant
      • Founder of -- Green Social Networking
      • Frustrated writer/actor -- Co-wrote/acted in Behind the Startup: Official Selection at the 2002 Sundance Film Festival
  • Summary
    • Democratizing theatrical distribution while keeping a cinematic big-screen experience
      • Streamlined, cost-effective model
      • Digital facilitation of formerly-offline processes
      • Unique matching of content to specialized audiences
    • Escapist entertainment booms during economic downturns
      • "Throughout most of the Depression, Americans went assiduously, devotedly, almost compulsively, to the movies…the movies offered a chance to escape the cold, the heat, and loneliness; they brought strangers together, rubbing elbows in the dark of movie palaces and fleapits, sharing in the one social event available to everyone.“
        • --Carlos Stevens, From the Crash to the Fair - The Public Theatre , 1979
    • Feedback & Next steps