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THE PIXEL LAB 2010: Brian Newman - New Business Models & Finance Structures
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  • For lack of a better title...
    Thanks to Liz and Tishna and sponsors
  • 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
  • the usual model is completely broken
















  • hard to make money, make a living
  • hard to make money, make a living
  • 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
  • But more importantly, it has also exposed many a bad business model - let’s face it, film has always been a bad business subsidised by governments or the new clueless investor or family member with money. It has rolled back the tide on many bad business models and changed them fundamentally. also, these behaviors aren’t new - these aren’t new behaviors but what people wanted to do all along
  • we can’t operate in an analogue world anymore - the single biggest problem facing the industry is that so many people want to think that his is a cycle that will pass, that things will go back to normal, that digital is the same as analogue and we can adapt it to our existing models
  • but it’s a fundamental shift and we’re ill-fitted to the task if we try to cram digital economies into our old way of thinking

  • 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
  • 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.
  • in the old world, the business was built on scarcity, but today we have ubiquity
  • in the old world, the business was built on scarcity, but today we have ubiquity
  • in the old world, the business was built on scarcity, but today we have ubiquity
  • what matters is my attention
  • what matters is my attention
  • and engaging me, and keeping me engaged, is ever more valuable
  • and engaging me, and keeping me engaged, is ever more valuable
  • becoming more participatory, a conversation
  • becoming more participatory, a conversation
  • they want an authentic, true engaging experience
  • it has to be convenient, immediate, because when I have things competing for my attention, I will move on
  • importance of localism - huge movement, in terms of locavore, etc, but also tribe - connecting with others is sooo strong
  • I also like being rewarded
  • multiple access points, transmedia -
  • we like to say it’s all about content, but it’s really all about context - it’s about the context built around the content, the experiences I can share, the way it is placed, etc
  • data hugely important, but often not accessible to filmmakers and many aren’t keeping it - it’s the new oil
  • 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.
  • 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.
  • these aren’t new behaviors but what people wanted to do all along
    We 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.

  • people spend money to better their lives not yours. focus on the audience, always. this is also true for your potential business partners....they aren’t doing this because they want to help you. Even foundations and government have other motives
  • so how do we monetize this stuff
  • blow it up/apart, invent new methods - that is the ideal thing to do

  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • unfortunately, we live in reality, in a hybrid space
  • How do we avoid sudden death?
  • mix old and new models
  • what does that mean? i call it multi-modal business practices, multi modal optimization

  • we know about multi-platform, but each platform now might have it’s own finance structures and partners, and some may go across multiple areas
  • Different platforms
  • Different platforms
  • Business models, and each has subsets

  • way of thinking about it
  • 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
  • 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
  • Keep budgets low 250-500K max; raise enough to distribute and market
  • Keep budgets low 250-500K max; raise enough to distribute and market
  • peter dekom - creativity, deal making and marketing
  • peter dekom - creativity, deal making and marketing
  • peter dekom - creativity, deal making and marketing
  • i have to re-emphasize this one
  • what’s next?
  • how to contact me

Transcript

  • 1. Re:nventing Business Models/ Financing Brian 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 Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere
  • 14. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses
  • 15. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully
  • 16. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who pays for the film If theaters book it or buyers buy
  • 17. Old World $ Play festival Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who 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 Maybe Sell to distributor/broadcaster(s) Maybe – forever, everywhere Advance $0 - $15,000 avg Percentage of revenues 30% - 60% after expenses They sell to audience Hopefully Who 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 investors No one is happy...and you don’t even own your film anymore
  • 19. $
  • 20. $
  • 21. Disruptive Innovation Disruptive technology and disruptive innovation are terms used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers. Clayton Christensen via Wikipedia
  • 22. It’s not until the tide goes out until you see who’s wearing the swim trunks - Warren Buffett
  • 23. Value has changed.
  • 24. Old Media World Value: Scarcity New Media World Value: Overabundance
  • 25. Attention Economy
  • 26. Engagement
  • 27. Participatory Culture A Conversation
  • 28. Authenticity
  • 29. Convenience & Immediacy
  • 30. Localism
  • 31. Reward
  • 32. Multiple Access Points
  • 33. Creating context is more important than creating content. The greatest creative and business opportunities are everything around the content Taylor Davidson
  • 34. Data
  • 35. People spend their money, time and passion to better their lives, not to better yours. Accept it. Remind yourself of this mantra every time you create, market and deliver a product or service, and it will make you focus on exactly why someone should spend their money, time and passion on you. Taylor Davidson
  • 36. Monetizing It Ideal
  • 37. Monetizing It Now
  • 38. Market Conditions + Established Practices/Incumbent Players + Fear = Less Experimentation
  • 39. Photo Credit: FFFFound
  • 40. NEW + OLD
  • 41. Embrace Multi-modality In biz plan
  • 42. Multi-Modal Practices Platforms
  • 43. Multi-Modal Practices Platforms Theatrical Events Nontheatrical (incl. fests) Games Educational ARG Broadcast Interactive DVD Experiences VOD/EST Apps Online + Viral Content Marketing Piracy/Peer to Peer PR Territories Print Mobile/Portable Devices Merchandise Windows Other....
  • 44. Multi-Modal Practices Platforms Theatrical Events Nontheatrical (incl. fests) Games Educational ARG A Broadcast U Interactive D DVD I Experiences E VOD/EST N Apps C Online + Viral Content Marketing E Piracy/Peer to Peer PR Territories Print Mobile/Portable Devices Merchandise Windows Other....
  • 45. Multi-Modal Practices Platforms Theatrical Events Nontheatrical (incl. fests) Games Educational ARG A Broadcast U Interactive D DVD I Experiences E VOD/EST N Apps C Online + Viral Content Marketing E Piracy/Peer to Peer PR Territories Print Mobile/Portable Devices Merchandise Windows Other....
  • 46. Multi-Modal Practices Business/Finance Models
  • 47. Multi-Modal Practices Business/Finance Models Foundations Co-Op Marketing Government Licensing Nonprofit/NGO Partnerships Gap Corporate/Brands Debt Individual Donors Free Investment Subscription Tax Incentives/Rebates/Credits Advertising Sales Affiliate Models Sales Agents Lease Related Sales (merchandise, stock footage....) Co-Production Post Other....
  • 48. Each platform will probably have multiple business models
  • 49. The biggest problem with most projects, and with the industry generally, is a total disconnect from the audience. We need to put as much creativity and work into <thinking about, learning about/from, developing> our audience as we put into creating our stories.
  • 50. The Rules...Today
  • 51. The Rules...Today Keep Budgets Low Raise Enough to Distribute & Market Your Project
  • 52. Only Three Things Matter: Peter Dekom
  • 53. Only Three Things Matter: Creativity Deal-Making Marketing Peter Dekom
  • 54. ....Or Maybe Just One
  • 55. ....Or Maybe Just One Data
  • 56. The best way to predict the future is to invent it Alan Kay
  • 57. Blog: www.springboardmedia.blogspot.com Email:bnewman001@gmail.com Twitter: @Bnewman01