Hollywood is looking to special effects houses in India to deliver shots for 25-50 percent of what they would spend domestically. PriceWaterhouseCoopers predicts the Indian special effects industry will more than double in size by 2015.
Digital Domain is partnering with Reliance MediaWorks, an affiliate of India’s Reliance ADA conglomerate. Lucasfilm is working with India’s Prime Focus for the 3D conversion of “Star Wars: The Phantom Menace.”
Indian companies like Crest Animation Studios and DQ Entertainment, meanwhile, have announced projects with Lionsgate Entertainment and France Television.
“These days, as much as a third of the budget for major Hollywood films is earmarked for special effects, according to a research report by accounting firm KPMG. The annual amount spent by filmmakers on special effects in the world’s top five markets totals some $1.9 billion,” reports Fortune.
Hollywood studios are starting to use Facebook as a direct-to-consumer platform for streaming films, possibly cutting out services such as Hulu, Netflix and Amazon in the process.
Universal, Lionsgate and Warner Bros. have distributed some 45 films via the Social Cinema app from Milyoni (pronounced million-eye). “What Zynga is to social gaming, Milyoni is to social entertainment,” reads the company’s website.
Miramax and Paramount have used similar apps to offer movies for Facebook credits on fan pages.
Rentals based on credits are running the equivalent of $3-$5. Facebook draws a 30 percent cut of transaction revenues.
Ad Age Digital suggests the studios’ willingness to offer rentals via social network sites “may reflect their desire to foster competition among online distribution platforms,” adding, “Miramax CEO Mike Lang said that digital monopolies were a greater threat to the film industry than piracy and that his studio had been aware of the importance of a competitive marketplace when doing deals with Netflix and Hulu.”
YouTube is reportedly putting up $100 million in advances to well-known personalities and major media companies to produce original content channels on on its video site.
The plans include attracting major advertisers and getting higher ad rates for professional video programming. Insiders suggest that YouTube hopes to launch the channels sometime next year.
The Wall Street Journal reports that agreements are underway with the likes of pro skateboarder Tony Hawk, Warner Bros., News Corp.’s ShineReveille unit, BermanBraun, Fremantle Media (“The X Factor”), “CSI” creator Anthony Zuiker, and others.
According to WSJ: “With its channels initiative, Google — which has been under pressure to turn YouTube into a profit center since buying the site for $1.6 billion in 2006 — is aiming to position the site for the rise of televisions and cable set-top boxes that let people watch online video in their living rooms, said the people familiar with the matter. More people are also watching videos on their smartphones and tablets, pressuring traditional cable and satellite operators to make content available on smaller screens.”
ComScore numbers indicate YouTube had more than 600 million unique visits in September.
Hollywood is moving to convert its previously-released blockbuster hits into 3D. James Cameron is spending a year and $18 million to convert “Titanic” to 3D; “Star Wars” and “Top Gun” are two others in production.
“Like a bunch of aging starlets, some older blockbusters are undergoing major cosmetic enhancement to prepare for their comebacks,” reports Los Angeles Times.
Disney recently spent $10 million on the 17-year-old animated feature “The Lion King,” whose surprising box office success during the last few weeks may lead to additional conversions.
“For studios, it’s easy to see why spending $10 million or so to render a beloved film in three dimensions holds appeal: There’s a built-in fan base,” suggests the article. “But there are risks too: As the number of 3D films in theaters has ballooned, American audiences have become more selective about which ones they deem worth the premium ticket prices.”
Software improvements have made 3D conversions less expensive and, as a result, makes the prospect more difficult for Hollywood to resist.
Yet despite its big-name public champions such as Cameron, George Lucas and Tony Scott, there are still those who remain skeptical. The 3D conversion “undercuts the quality of the film and the verisimilitude of the film,” believes Wheeler Winston Dixon, professor of film studies at the University of Nebraska-Lincoln. “It’s to re-direct it and destroy it. This is a poor idea artistically and a poor idea financially.”
Either way, the movement is underway and we should expect to see more 3D “makeovers” of older films in the near future.
Hollywood studios are responding to the 40 percent drop in home entertainment sales by recognizing that the future may heavily rely upon ramping up Internet delivery businesses.
According to the Los Angeles Times: “Across Hollywood, a quiet revolution is brewing that’s about to transform living rooms around the world… In the next few years, the growing number of consumers with Internet-connected televisions, tablets and smartphones will face a dizzying array of options designed to make digital movie consumption a lot more convenient and to entice users to spend more money.”
“It’s now critical that we experiment as much as possible and determine how to build a vibrant market for collecting digital movies,” says David Bishop, president of Sony Pictures Home Entertainment division.
Studios may be eager to change, but have yet to determine how it can be effectively accomplished with a uniform approach. As a result, the immediate future will most likely see an expanded but confusing selection of options for consumers.
The article looks at some of these potential options including premium VOD, cloud computing, UltraViolet’s “virtual locker,” new offerings from Apple’s iTunes and sharing movies via Facebook.
In 2010 Hollywood studios released what Slate refers to as “a run of record-smashing, premium-priced blockbusters: ‘Avatar,’ ‘Alice in Wonderland,’ ‘How to Train Your Dragon,’ ‘Clash of the Titans,’ ‘Shrek Forever After,’ and ‘Toy Story 3’ — a half-dozen 3D movies that earned more than $2 billion in domestic sales.”
However, while the new generation of 3D cinema showed initial box office promise, the next wave of 3D movies have grossed significantly less than their 2D versions.
Slate takes a compelling look at some of the reasons 3D has recently become less popular with theatergoers and, in the process, provides information that could help revive the format.
Theater chains, for example, raised their prices for 3D screenings by 20 percent or more, while the 3D trend was already showing signs of decline. PricewaterhouseCoopers has suggested that 3D could revive if the chains limited their premium to a couple of dollars.
Some film studios applied 3D “purely for the profit motive,” as James Cameron has been quoted. Films were converted to 3D instead of being produced in 3D from the start, a technology “cheat” that some believe led to viewer disappointment.
Additionally, shrewd consumers may not always feel that the 3D experience is worth the extra price, especially if the 3D is designed to be unobtrusive. Film critic A. O. Scott pointed out this is “one of the pitfalls of that format, which is that if the 3D is unobtrusive enough that you don’t really notice it, you may as well forego the disposable glasses and the surcharge that comes with them.”
And the final theory offered by Slate involves “hack” filmmakers who have applied 3D to a string of bad movies, which may have been the same reason 3D died in the 1950s.
It’s interesting to note that on the heels of the Slate article, a 3D re-release topped the box office this past weekend. An enhanced version of Disney’s “The Lion King” earned $29.3 million (with 92 percent of the gross from 3D screens). This is the third time the 1994 film has been widely screened in theaters, but the first time a 3D version has been available. Was earning more in weekend ticket sales than the other three newcomers combined the result of nostalgia or the first-time availability of a 3D version?
The Consumer Electronics Association (CEA) is developing new standards for 21:9 aspect ratio TV displays.
The standards are meant to support the emerging wider-format movies being released by Hollywood studios.
CEA said it is calling for industry participation “to investigate incorporation of methods for signaling delivery of the presence of 21:9 video into CEA 861, A DTV Profile for Uncompressed High-Speed Digital Interfaces.”
“As video displays with the 21:9 aspect ratio are now appearing in the marketplace, adding this feature to the standard can more efficiently deliver such video to DTV receivers with native 21:9 displays,” CEA said in a statement.
Efforts will be coordinated by CEA’s DTV interface subcommittee’s uncompressed A/V digital interfaces working group.