Jeff B. Cohen, partner and co-founder of the Beverly Hills-based law firm Cohen Gardner LLP, writes in a guest blog for CNBC about the current direction of movie finance, production, distribution and marketing in a digital era.
Cohen references Ben Silverman, chairman of Electus, who recently spoke at an industry summit in Los Angeles: “Ben noted that 100 years ago in order to make a film you needed 50 acres of land in the San Fernando Valley, an army of various craftsmen, sprawling soundstages, expensive specialized cameras, film labs and more.”
“He went on to say that in order to produce a film today you could likely do it with five dedicated artists, $30,000 worth of equipment and an office in Santa Monica with a green screen,” adds Cohen.
The changes underway in our evolving digital world make Cohen ask the question: “Are motion picture studios becoming irrelevant and what does the future hold for the business of filmed entertainment?”
Cohen cites how Netflix, Amazon and YouTube are financing original content to compete with traditional fare — and notes how crowdfunding is putting pressure on the studios’ role as financier. He also addresses the “democratization of distribution” enabled by Internet technologies and the impact of social media on traditional marketing practices.
“Technology is empowering a new generation of content creators to produce quality projects with little capital and even less permission. It will be fascinating to see how this democratization of financing, production and distribution impacts the art of filmed entertainment,” writes Cohen. “Will these factors fundamentally disrupt the economic and power dynamic of the traditionally studio dominated entertainment industry? It already has.”
“This article echoes what was written 10+ years ago about the music industry, and what became the reality of the music industry much faster than the labels could adapt to,” notes ETCentric staffer Phil Lelyveld.
Boulder, Colorado-based Flixmaster wants to make online video more interactive by providing simple tools for embedding hands-on features.
The company recently announced the availability of its online video platform at Fortune’s Brainstorm Tech conference in Aspen.
“The start-up’s CEO and co-founder, Erika Trautman, says its technology can be used by anyone, from fifth graders to cable companies,” reports Fortune. “The editing software developed by the firm is Web-based, with a drag-and-drop interface that lets users recreate videos by plugging in video segments and more interactive scenes.”
“Flixmaster makes videos participatory, immersive and deeply interactive,” claims Trautman.
The failure of online video is that viewers quit watching after a short duration, suggests the CEO. But when USA Network tapped Flixmaster to create an interactive online series, viewing time increased.
“The show, called ‘Sights Unseen: A Covert Affairs Prequel,’ launched earlier this month. It lets viewers choose what the characters do at key moments in the plot, and then watch the scenes they select (sort of like the video version of the once-popular ‘Choose Your Own Adventure’ book series),” notes the article. “Flixmaster says viewing time for the show was up 400 percent as a result of the embedded interactive features.”
The post includes a 6-minute video of FlixMaster’s presentation in Aspen.
Apple has purchased AuthenTec Inc. for a reported $356 million, in a move that could make iPhones and iPads more secure for mobile payments.
AuthenTec, maker of fingerprint sensors and security solutions, “owns many of the foundational technology patents from the fingerprint biometric industry, and today has a broad IP and patent portfolio consisting of nearly 200 issued and filed U.S. patents, as well as additional foreign patent derivatives,” according to the company.
“Apple is paying $8 a share for the Melbourne, Florida-based company, according to an SEC filing,” reports Forbes. “AuthenTec, founded in 1998, says it has shipped more than 100 million fingerprint sensors for use in PCs and other electronic gadgets, including more than 15 million mobile phones. Apple’s Mac computers currently don’t have a fingerprint pad for security purposes, though other PCs do.”
Analyst Brian White of Topeka Capital Markets suggests we’ll see Apple devices with fingerprint access, as well as “a mobile commerce system built using the Near Field Communications (NFC) technology he predicts will be included in the new iPhone 5,” notes the article.
Apple CEO Tim Cook has already announced that this fall’s release of iOS 6 would include Passbook, a new feature for consolidating tickets, boarding passes and discount cards. “Turning it into a digital wallet seems likely a next step,” suggests Forbes.
“With Passbook, you can scan your iPhone or iPod touch to check in for a flight, get into a movie, and redeem a coupon,” according to Apple. “You can also see when your coupons expire, where your concert seats are, and the balance left on that all-important coffee bar card.”
Social TV analytics company Bluefin Labs provides a breakdown of social interaction amongst viewers during the London Olympics Opening Ceremony.
According to the report, 94.2 percent of all social TV comments during Friday night’s primetime slot were about the festivities. There were 5 million social media comments with 4.86 million on Twitter and 140,000 public Facebook comments.
The Olympics Opening Ceremony is now the #3 special event of all time in social TV, behind the 2012 Grammy Awards (13 million social media comments) and the 2012 BET Awards (8 million comments).
NBC’s primetime coverage of the Opening Ceremony was also a huge success, with a rating of 40.7 million, according to Nielsen, making it the most-watched kickoff in Summer Games history.
The program was the most popular on British television in 14 years. “The average audience was also the highest for any British telecast since 23.8 million viewed the soccer game that saw England fall to Argentina in the 1998 World Cup,” notes Variety.
These high numbers are impressive in a day and age when other, non-traditional viewing options are available. “NBC’s two-day primetime average of 35.6 million viewers is the best start to any Summer Olympics, more than two million more than Atlanta (33.3 million), and more than 6 million more viewers than Beijing (29.5 million),” explains the article.
Time Warner opened its MediaLab facility in New York the beginning of this year. “The MediaLab has a range of biometric monitoring devices and eye-tracking testing equipment that measure a participant’s physiological responses to content,” explains The Hollywood Reporter.
During last week’s TW College Professors Thought Leadership Seminar, the company showcased the MediaLab and began soliciting ideas for its sophisticated devices.
“Time Warner has put out a RFP to academics to describe in 300 words or less what hypothesis they wish to test,” according to THR. Researchers interested in the program have three months to develop ideas.
The MediaLab has been used for studies regarding how consumers interact with media in food purchasing decisions and how social media recommendations influence content engagement.
Time Warner is looking to make best use of its CE devices including tablets, streaming media players, 3D televisions, gaming consoles, even a smart refrigerator.
“Now, Time Warner, which spent an undisclosed sum on an observation room which can spy via eight ceiling-mounted cameras on participants in a faux living room, wishes to figure out the next great research project that will offer insight into the ways people are using and are effected by media,” explains the article.
BBC, NHK and OBS are testing a new 8K broadcast system during select events at the London Olympics, including the opening and closing ceremonies.
As previously reported on ETCentric, Japanese broadcaster NHK is currently developing a Super Hi-Vision 8K TV system, which touts 16 times more picture info than current HDTV and 22.2 channels of surround sound.
“At the Olympics, NHK is teaming with the BBC and host broadcasting organization Olympic Broadcast Services to test this format — which is so precise that one could view a shot inside the Olympic Stadium that appears to be three dimensional and contains stunning detail,” notes Carolyn Giardina for The Hollywood Reporter.
“The images seem to go around corners and curves. Most people say it is more 3D than 3D. With 3D you are aware that your brain has to work. Here you just sit in front of the screen and relax,” suggests Tim Plyming of the BBC. “I think when people see it, they will say this is the next really big format.”
During the Olympics, Super Hi-Vision coverage from four venues will be screened at public viewing sites in the UK and Japan.
“The participants began planning this trial roughly two years ago, and in the coming weeks, they aim to not only dazzle viewers with an early look at Super Hi-Vision, but demonstrate for the first time NHK’s new 8K broadcast camera, as well as the ability to transmit 8K — a staggering amount of picture information — over IP networks,” writes Giardina.
Streaming video tech provider Roku, regarded by some as strong competition for Apple, announced it has raised $45 million to further develop its branding, international expansion and new services.
Saratoga, California-based Roku has sold more than three million of its boxes that connect streaming services to TV sets. The company plans to launch its wireless, dongle-sized Streaming Stick this fall.
News Corp. and UK pay TV giant BSkyB are among Roku’s investors. Jon Miller, chief digital officer at News Corp., will join the Roku board.
“The new relationships include both financial backing and business agreements that demonstrate the industry’s confidence in Roku as the distribution platform to bring streaming entertainment to mainstream consumers,” the company said.
Roku currently streams content from News Corp.’s Fox News, Fox’s “The X Factor,” and “Wall Street Journal Live.” The company is one of BSkyB’s partners in its recently-launched online video service, NowTV.
“We have watched Roku maintain market leadership since the launch of its streaming platform four years ago and we look forward to deepening our relationship, having already worked closely together on the launch of several products,” says Miller. “Roku’s significant technology advantage, coupled with a strong market position, places them in a unique position to be an integral part of the television landscape for years to come.”
Google announced that its new Creator Space studio, part of its Soho offices in London, will provide YouTube partners with the facilities and equipment to make their video content look more professional and sophisticated.
“It is amazing to think that some of the most successful creators on the platform, with millions of views, use little more than their bedrooms, a webcam and any props they can lay their hands on to produce compelling videos and build a global fanbase,” says Sara Mormino, director of YouTube Content Operations and Next Lab.
“But many of our partners are ready to take their channels to the next level by using the latest equipment and editing techniques as well as tapping into the valuable advice from other experts and YouTube stars,” she adds.
The Creator Space will feature two studios (including green screen), audio booths, professional lighting rigs, fully staffed editing suites, a control room and HD cameras. Additionally, the studio plans to offer workshops, training, collaborative programs and more.
“Our partners from all over Europe, Middle East and Africa will be able to book time in the space to create and collaborate with other creators, learn new techniques, as well as gaining access to state-of-the-art audio visual equipment, to help them generate great new content for their channels,” says Mormino.
The YouTube Next Lab team, charged with the development of channels and creators on YouTube, will run the London studio, which is expected to open in the coming weeks.
The post includes a video report on the YouTube Creator Camp. You can also check out the promotional video for the Creator Space studio on YouTube.
While Twitter co-founder Jack Dorsey invested in Instagram before its acquisition by Facebook, his company is now playing hardball with the popular social network.
“Twitter has blocked Instagram from using its API to find new friends to follow on the photo-sharing service,” reports Business Insider. “The news comes after Instagram announced on its blog that it hit 80 million users.”
The move marks the second time Twitter has blocked API access to a social network, after it recently ended its two-and-a-half-year partnership with LinkedIn by no longer allowing users to publish tweets to their LinkedIn profiles.
The “Find Your Friends” feature on Twitter has been removed, a helpful feature that enabled users to follow the same people they follow on Twitter via Instagram. However, the “Tweet Photo” feature is still available.
“We’ve learned that the feature is missing due to API restrictions from Twitter’s end, restrictions that possibly came about over concerns about Instagram’s scale and its strain on data pulls,” notes TechCrunch in a related post. “Many social apps like The Fancy and Foursquare still have access to this part of the Twitter API — it seems very likely that Instagram was the largest developer using the Twitter Friend Graph.”
“Twitter’s agenda here isn’t at all clear, but one possibility is that it wants to control the photos experience on its platform (and preclude Facebook from doing the same),” notes TechCrunch. “Selectively limiting API access by company is definitely strange behavior in an ecosystem that thrives on API symbiosis. Imagine if Google just decided to shut off Google Maps access to apps randomly?”
Apple is reportedly considering a new move into social media with a possible strategic investment in Twitter.
“While Apple has been hugely successful in selling phones and tablets, it has little traction in social networking, which has become a major engine of activity on the Web and on mobile devices,” notes The New York Times.
“Social media are increasingly influencing how people spend their time and money — an important consideration for Apple, which also sells applications, games, music and movies,” notes the article.
According to unnamed sources who claim to be briefed on the matter, “Apple has considered an investment in the hundreds of millions of dollars, one that could value Twitter at more than $10 billion, up from an $8.4 billion valuation last year,” details NYT.
A Twitter partnership could prove valuable for Apple, amidst growing competition with companies such as Google and Facebook, which already have a strong footing in the social sphere.
Strengthening the ties between Apple and Twitter would come during an era of significant uncertainty in the mobile market. “Battle lines that seemed clear just a year ago are rapidly blurring as companies push into new areas of the market and clash with former allies,” explains the article.
“Those guys are a great partner,” said Twitter CEO Dick Costolo of Apple. “We think of them as a company that our company looks up to.”
“Apple doesn’t have to own a social network,” said Apple CEO Tim Cook, at a recent tech conference. “But does Apple need to be social? Yes.”
Apple’s latest version of OS X, Mountain Lion, launched last week with a significant AirPlay Mirroring update.
“Don’t look now, but Apple just created a formidable cord-cutting platform,” suggests Wired. “The new operating system can change the way we watch video in the living room, and might even compel some users to finally cancel their cable and satellite services.”
According to the article, video that’s available online can now easily be watched on an HDTV with a Mac running Mountain Lion and a $100 Apple TV.
The mirroring feature available with Mountain Lion, “uses the same basic tech found in iOS devices: Your computer wirelessly transmits whatever is playing on your Mac desktop to your Apple TV, which then shoots this mirrored content to your HDTV via an HDMI cable,” explains Wired. “Display settings are automatically determined by your Mac, so you don’t have to adjust the resolution over and over again, hoping to find the perfect recipe for optimal TV watching.”
“AirPlay for Mountain Lion is a great method for beaming any desktop content straight to your HDTV, and this includes streaming video from Web pages, computer games, and, yes, even illegal videos collected from BitTorrent,” notes the article. “And if the greater tech industry takes more bold steps toward changing how video is delivered, the future is going to be rough for cable and satellite providers. Something has to give.”
Senator Patrick Leahy (D-Vermont) has proposed an amendment to the Cybersecurity Act of 2012 that would alter the Video Privacy Protection Act (VPPA).
The VPPA was authored in 1988 after a list of video rentals by Supreme Court nominee Robert Bork was published in a newspaper. As currently written, the VPPA requires written consumer consent (or a police warrant) in order for video history information to be shared.
The newly proposed amendment would allow for Netflix video viewing histories to be shared automatically on Facebook.
“Netflix has spent nearly $400,000 lobbying Congress this year,” reports Digital Trends. “Part of that money was spent on changing the VPPA, and the rest went toward Net neutrality and other Web-related issues. Netflix eventually wants to allow users to be able to stream videos through their Facebook accounts.”
Additionally, Senator Al Franken (D-Minnesota) has proposed an amendment to remove Section 701 of CSA2012 that “provides companies with the explicit right to monitor private user communications and engage in countermeasures,” according to the Electronic Frontier Foundation.
The U.S. Senate is scheduled to begin debate on the Cybersecurity Act this week.
New software upgrades to Dish Network’s controversial AutoHop DVR feature may bolster its legality and help position the company against the lawsuit brought on by broadcasters NBC, CBS and Fox.
“Dish has been quietly tweaking the functionality inside its multi-room DVR, dubbed the Hopper, which allows subscribers to skip over commercials in primetime broadcast series one day after being recorded on the device’s hard drive,” reports Variety.
Subscribers can now select which channels to record rather than to have all four major networks recorded automatically. They can now delete recordings at any time. And, most importantly, the default to skip ads is set to “no.”
“While the changes may seem minor, they seem to represent a calculated strategy on Dish’s behalf to shift responsibility to viewers for the recording and ad-skipping rather than let them passively receive these features,” notes the article.
Shifting that responsibility could become a key component in assessing the legality of AutoHop, since a similar 2006 case has been cited as a possible precedent.
When content creators sued Cablevision regarding its remote-storage DVR, “the 2nd Circuit Court of Appeals upheld the legality in a decision that hinged on the degree to which the viewer had control over the technology.”
NBC has released additional details regarding its planned 3,500-plus hours of online summer Olympics coverage.
The Gold Zone video channel will automatically transfer viewers from a final in one sport to a live moment in another, with text commentary for each event.
NBC Olympics will work with Google+, Shazam, Instagram, Tumblr and GetGlue as social media partners. As previously reported, the network has announced deals with Facebook, Twitter, Adobe and YouTube.
NBCOlympics.com “will also include live streams of the Olympic content on four NBCU cable channels, rewinds of all the event coverage, news, highlights and athlete profiles,” reports Broadcasting & Cable.
“It will also feature multiple streams for certain sports, such as gymnastics or track and field that would allow the user to choose a stream dedicated to the long jump or javelin.”
Two apps developed by Adobe will provide digital coverage. The TV Everywhere app NBC Olympics Live Extra will feature live streams of all 32 sports for authenticated subscribers. Another, the NBC Olympics app, is offered to everyone, including those without a multichannel subscription.
“It has much less video content but includes groundbreaking ‘Primetime Companion’ features,” notes the article. “This will offer a variety of social media tools on Facebook and Twitter as well as trivia, polls, slideshows, videos and athlete bios that are synchronized to the live primetime coverage on NBC.”
We should expect to see an unprecedented amount of crossover between online social media and television broadcast coverage when the Olympics begin on Friday.
HBO has clarified that it is “not in discussions” with Netflix regarding a potential partnership.
The denial contradicts a statement from Reed Hastings, who had hinted that the companies may be ready to work together.
“HBO rushed to pour cold water on the possibilities that the Netflix CEO raised in a letter to shareholders, making it clear it had no intentions of making a deal with Hastings, who often singles out HBO as a chief competitor,” reports Reuters.
HBO offers original programming to its subscribers through the on-demand service HBO Go. Earlier this year, the channel opted not to sell DVDs of its shows to Netflix at the wholesale price it offers to retail operations.
“While we compete for content and viewing time with HBO, it is also possible we will find opportunities to work together — just as we do with other networks,” Hastings and CFO David Wells wrote in their letter.
Hastings told analysts the HBO reference was merely meant to highlight that “we’re just another network, and then when you have multiple networks, they often find ways of working together.”
Jeff B. Cohen, partner and co-founder of the Beverly Hills-based law firm Cohen Gardner LLP, writes in a guest blog for CNBC about the current direction of movie finance, production, distribution and marketing in a digital era.
