1. Ideas of the Cinema/Home Video business
February 26th 2010
foxerus.com

2. Here We Go
First of all, thereʼs no single solution, there are many. A
classical postmodern collage illustrates this perfectly. Today
the consumer mixing old with new, cheap with expensive
etc.
The growing trend for consumers looking for cheaper ways
to maintain the good life they have become accustomed to
have led to a new term being coined "homedulgence". THE
FUTURE LABORATORY defines it as:
”Consumers around the globe are looking at new ways to maintain the good life
theyʼve come to treasure, without the expense of going out all the time. This is not
quite the indulgent,cocooning trend of a few years ago, but a savvy and convivial way
to style - out the credit crunch.”
The Homedulgence and localism “trends” or lifestyle can be tracked back to the
shocking 9/11. Before everyone looked forward, travelled all over and where
everywhere. After many retreated back “home”, to the familiar space, to local society,
to the neighbourhood. Safety and security was the new mantra and all and everyone
(at least in Sweden) started to build and/or restore their homes. A couple of years
later, when finished inside, they continued outside with their garden. Now the “safe
area” is expanded; the local and small-scaled produced products and services are in
focus concerning food etc.
But to maintain this Homedulgence and ”my home is my
Castle” spirit, music and film are vital ingredients. The
question is how to get them? Download or buy in a shop
or what?
I will say that this ”trend” is a very good picture of many
Swedes and their homes. Today everyone have an own
”Home-Cinema”, a broadband connection and have of
course an iPhone.
In order to find out and get some information, I have asked different people of their
thought of today and the future in the cinema/home video field. I will say that the only
way to ”find out” is to ”get out there” and ask, and combine that with desk research.
The question was:
”Give examples of trends, cool products/services and existing as well as forth-coming
business possibilities for the Cinema/Home Video business?”

3. Idea 1 and information from a Ericsson employee in New Delhi, India
”Watching Avatar with real active 3D glasses in a gold class cinema here in Delhi was
really great. Maybe there is a market for 1st class cinemas in Europe as well?”
Business opportunity
This is a very good Idea I will say. Today we have democratizied all and everything in
Sweden and also in other Nordic countries in some ways.
Then we see this democratisation fade slowly: the educated/richer/xx get more
educated/richer/xx and the poorer going even poorer. Individuals want to separate
from others, and some want to show it, and having a luxury Cinema salon must be a
good and cool thing to ”show off” in. And, at least, in Stockholm it must be a success.
Idea 2 and information from a film maker in Sweden/Denmark
” Iʼm only watching movies at Vimeo. Who isnʼt out there at a torrent? But donʼt ask
me which one :D
A really interesting thing to solve is who do advertise when downloading from torrents
etc. I canʼt understand why this hasnʼt been solved yet??? I mean:
1: We donʼt want to pay
2: We donʼt want to be fooled by others (big corporations)
3: Welcome into my head!!!!!
I donʼt watch TV. The cable-network has a bad technique and bad/old
programmes....”
Business opportunity
Solve the technical issue with advertising on bittorents. It must be a way. Start/Find a
new category - donʼt be another ”record company” desperate holding on to the
past....
Idea 3 and information from a former head of telecom infra structure at Nokia,
that have lived abroad over 10 years in Saudi Arabia, Bulgaria, Belgium,
Ukraine and many more countries.
”As I see it, physical media is dying. I havenʼt bought a DVD, CD etc since 2002.
Today, but not in Sweden yet, you can rent a movie in iTunes. All cable-TV
companies serve you with video-on-demand. Voddler stream it for free...
If you want to download it via bittorrent there are ”lots” of media servers that you can
connect with your TV - popcornhour (www.popcornhour.com ) is one. ”
Business opportunity
Strategical law and order. Just solve the iTunes dilemma with music and film in
Sweden!

4. Idea 4 and information from a computer technician and musician
”First of all: ”The content is all.”
And the only way is digital. But if they only can make it easy to download....
Ex. Voddler had an own system that didnʼt work, so now they develop for a web
application!
The distributers must do it easy and simple, so that average person easy can
download. Learn from iPhone. iPhone is today the ”Svensson” or ”mr Smith” phone in
Sweden, and think of that behaviour the user learn. And then iPhone is a perfect
pedagogical artefact for iPad. When the user is known to iPhone, why not an iPad
with possibilities to read a book or magazine in the same artefact!
The problem today is that the distribution system online doesnʼt work (perfect). To
may different systems... Then there are legal aspects that must be solved as
geographical rights etc. This obstacles must be solved, and it must be crystal clear
and distinct licence rules. If that comes, everyone can have an own shop and be
specialised in XY.
One funny thing is that today all video game had their own ”system”, but today they
got a standard: DVD.
The content is all - so find a smart way of distribution that WORK!
Business opportunity
Develop a ”Bonnier social interaction tool” and start a new category!
Donʼt forget the human impact. We are still mammals with a long way to learn and
act. The way is digital, but with a ”social” agenda. Despite all technique we human
need the social interaction. http://www.fhm.com/reviews/gadgets/the-future-of-video-
streaming-explained-20100224
Idea 5 and information from a sales assistant in a Video/DVD Shop
”The sales have increased this year both for rentals and sale of DVD etc. And the
total market as increased for the first time in eight year.
One thing is the legislation, many are afraid to download today. But I will say that the
main reason is that folks want to go out, leave the couch, take a walk, go to the shop
and in the shop look, feel and get info with the product in their hand. They are not
satisfied to choose from a list at their computer. ”
Business opportunity
Service rules. More than ever I will say. Develop much deeper going service to end-
customer for a better and more complete experience. In Sweden we not that good at
this at all.

5. Idea 6 and information from a sales assistant in a Video Game Shop
”We havenʼt noticed any decrease or increase in sales, bur maybe our customers are
special. The ”kids” and students are price sensitive, others not.
Our game often have a book were rules and characters are described. This book
often downloads illegal, but after a while the buy this book. They canʼt have several
PDFʼs to read from and play at the same time, they want the book ... So the social
pattern is to download and check it out, and if itʼs ok they buy it.
Another thing is the question of free or not free. Video game had always cost
something, direct or in-direct. But many ”kids” have been used to download music
and film for free. In their world Internet, and what you find there is free. Trying to
charge for this services afterwards make no sense to them - just a question: Why!!
I know many friends that downloaded before and donʼt now. Many of them have
better economy and buy, but mostly they don´t have the time and interest anymore to
download illegal.
Today we donʼt compete with downloading, itʼs Supermarket chains thatʼs our worst
competitors. They sell everything, and had been much better in their knowledge in
film, books, video games etc.”
WALMART enter movie distribution
http://money.cnn.com/2010/02/23/technology/walmart_acquires_vudu/index.htm?
source=cnn_bin&hpt=Sbin
STATOIL sells more music (SE)
http://www.dagenshandel.se/dh/DagensH.nsf/0/
F1DEA1D8723F805FC12576D50033A3EF?open
Business opportunity
Other distribution channels for the old stuff. Supermarkets selling more films...
Idea 7 and information from a consumer
”I want to go to the video store and choose there. I donʼt want to sit in front of the
computer and choose. Maybe Iʼm old-fashion, but I want ”it” in my hand before I rent/
buy.”
Business opportunity
Once again, service and hands-on rules. According to the
consumer the ”physical” movement is vital. See what the
Sales assistant in a Video store above mention. Act harder
and deeper in the distribution, despite all the new technique
the consumer want it in its hand before buying/rental. Old
fashion psychology!

6. Bonnier should own the video/DVD shops, and thereby have full control = have the
whole product-chain, from A to Z. To let other sell the products - you let go of the
”control”
Idea 8
According to Danish Film Industry their effort in new Danish Film had given a rise in
viewers. http://www.dfi.dk/English/FILM-Magazine/Artikler-fra-tidsskriftet-FILM/
Archive/Risk-and-Renewal-in-Danish-Cinema.aspx
Business opportunity
So here is one thing for Bonnier to do. They own SF and other end-businesses, and
in order to supply the whole chain, feed them that make the ”start products”! Or, donʼt
cut of the arm that feed you, so to say.
Idea 9
The nano-technique and other inventions offer new possibilities. Soon a screen will
be soft and flexible and maybe ”glued” to your arm, or built-in in your glasses, for
example. This together with faster mobile connections
http://www.dagensps.se/artiklar/2010/02/23/28679091/index.xml?referred_from=/
nyhetsbrev/ps-morgon-kvall/2010/02/23/62747723/index.xml (SE) will give us new
ways to see films. But as always with new inventions, the pre-early technical
adopters will be first.
Business opportunity
What does Bonnier do here? Again, develop new ways to looking at films. Bonniers
need to take the lead in R&D, just donʼt sit and ”own” the rights of films etc.
Windup
I will say that the there are to ways to act in the Cinema/home video business in the
future: the digital and the traditional. And both will work!
The digital must get it work easy; otherwise it will not be adopted of the mass. The
traditional ways will remain, we are still that old biological creature, and our genes
have not developed that much the last couple of thousand years.
Just compare with the explosion of Internet and all said that Newspaper and books
soon will only be digital. This was only 15 years ago. What happened was that we got
more newspapers and magazines!
The main point is to have the holistic approach, and a collage strategy: both in digital
and in traditional artefacts. And in order to hold control over the whole chain, product
portfolio, Bonniers (may) need to go into new areas such as digital development. As
one respondent said: ”The content is all”, but to serve the ”right” content you may
need to go outside your core business.

7. Some Facts & info
Some shops in USA etc
http://www.videoezy.com.au/
http://dvdrentalcharts.com/
http://www.gamefly.com/ spel mm
Some actors in the rental-post-back-business as Redbox
www.lovefilms.se
http://dvd.easycinema.com
http://www.netflix.com
http://www.tescodvdrental.com/ (LOVEFILMS??)
Some actors in the streaming business
http://web.voddler.com/
http://www.netflix.com
www.headweb.com/sv/
http://www.film2home.se/sv.aspx
Some actors in the download business
www.headweb.com/sv/
http://sfanytime.com/
http://www.cinegratis24h.com/
http://www.ameibo.com/movie
http://www.film2home.se/sv.aspx
Some figures
Runt 42% av Netflix 11,1 miljoner kunder använde sig av deras streamingtjänst (i
minst 15 minuter) under det tredje kvartalet (2009). Det är en ökning med 22% mot
samma kvartal förra året. (www.bloggywood.se)
Some thoughts of the Homedulgence trend
Social (changed attitudes and social patterns)
• More easy-to-use technical products
• Internet and buying behaviour: my girlfriend hates computers! A few months ago
she said: ”I just love internet! I can sit at home and buy whatever I want when I
want…”
• Locked doors – before you didnʼt locked the door when you left home, today we
use two…
• Stress – the stress factor increases every year: Today children at age ten are
stressed due to society fixation to thinness, getting the highest grade to enter
university etc. At age 10!!!!
• Stress – if you got a job today it includes more duties.

8. • Stress - not having a job, unemployment,
• Travelling = new insights. OK, they can do X or Y s well, and they do it in another
and better way. The “finding out” that otherʼs also can…
• Tired of the career: You canʼt do all simultaneously: career, have children, be a
good parent, build a house, ski holiday in the mountains, sailing courses in the
summer…
NO, NO, NO! You have to choose. Some choose career (the common way at least to
men. But today we see younger females (they got higher grades, higher education
etc than males but still lower wages!), especially with not a Swedish background,
“over-achieve” to get a position in the Swedish society. They are lowest in the
hierarchy (female, young, foreign etc) and have to fight hardest - and they do!
• “Modern” life sucks: i.e stress, stress, stress… Itʼs simply not worth it. Not seldom
career dropouts leave cities and move to small villages and start an own web-shop, a
café or whatever (often a combination) despite losing 50-75% of their income. They
simply want quality in life, quality to feel and live the life. Artefacts are not important,
experiences and time are. The possibility to decide your own time is the luxury of
today.
• Today in most developed high-tax societies itʼs possible to “drop out” Before you
couldnʼt afford it – today you can choose to work part-time, sell the car, live in a
smaller flat etc
• Today materialism is less important to younger. Ok, elder still want to compensate
for their poor childhood without items, but…
• The café culture moves home! Be your own barista!
• Tired hanging in bars/restaurants/etc - family establishments
• Technical improvements
• “Undercover” lifestyles can socialites – a bit. (Thereʼs no end to out-coming
lifestyles today :D)
Psychological
• The human race is a herd animal. Canʼt you find your herd in the city - create it
yourself back home! (doers getting more..)
• More egoistic: Itʼs mine! The “MeWe” generation combine egoism with a collective
mindset – interesting combination. Two opposites in a conjunction. Collage!
• Narcissism: A possibility to get the “self” a verification - both your own self and of
your home. In your home you got lots of ”identity carriers” We see more examples of
a social narcissism.
• Safety - a logical action (re-action) to 9/11: Out there is war – back home I safe. I
fix my home, stay there and daydream… with take-away, internet, chatting…
• Safety - Swedish/Volvo vs Italian/ AlfaRomeo etc. Anecdote: “Volvo say they made
cars that you can crash with and survive” - Italian says: “we made cars to avoid
crashes”
• Home, sweet home - Home is best!
• Stress, economical crises, war etc makes you ”hide” in your ”own” world. Lots of
possibilities to hide in a fictive world where you can ”live out” feelings, emotions and
dreams etc. “Second Life” and many more
• Regionalism: We vs. them. All kind of foreign people or objects is “bad”. A raising
pride of own local culture. Why travel when itʼs better home? (but this is mostly them
that have travelled the globe for xx years that come to this conclusion, so I think itʼs
more of a kind of maturing getting new angles in life etc )
• Children. When raising a family a focus is established – caring for the family (in the

9. home/garden)
• Psychologist: “Normally, we react to the problem nearest to us”, animals dying or
airplanes crashing never mind. Itʼs the most local thing that shouts out loudest (with
or with-out PR agencies) that get most attention. But if this “danger” is infiltrating as
the 9/11/Taliban/islam/?? with connections all over the world – this comes to all.
• The localism “trend” or lifestyle can be tracked back to the shocking 9/11. Before
everyone looked forward, travelled all over and where everywhere. After many
retreated back “home”, to the familiar space, to local society, to the neighbourhood.
Safety and security was the new mantra and all and everyone (at least in Sweden)
started to build and/or restore their home. A couple of years later, when finished
inside, they continued outside with their garden. Now the “safe area” is expanded;
the local and small-scaled produced products and services are in focus =
Homedulgence in a nutshell?
Financial
• The economy turns down, but behavioural patterns are established. X donʼt want to
”go down” in the consumption patterns, but canʼt proceed the outgoing city life at bars
and restaurants etc. downtown. What remains is to create it at home!
• Better and cheaper technical products
• The old fashion marketing mix of “4 P” is gone! There are just 2 left - Product and
Promotion (Price and Place is totally gone). In a transparent world there we can
instantly, with help of internet, see the price all over the world, and order something
from home itʼs just 2 P:s left to compete with for the producer/seller.
• Today we have more millionaires and billionaires the world than ever. We CAN buy
a “perfect” home…