Tuesday, November 26, 2013

Jobs before dying and Nielsen's report.

Steve Jobs. Days before his death. 

One can only wonder now how trouble maker Stevie Jobs would respond to the growing controversy regarding VOD (VIDEO ON DEMAND) and the potential death threat it poses to the common neighborhood theatrical release experience of a movie. Mainstream exhibitors refuse to carry films that premiere day-and-date, saying that there is a direct hit on theatrical exhibition when movies play day-and-date. As indie and avant-garde film distribution methods lose their stigma, they're becoming standard for many small films. Depending on who you ask, VOD is either the salvation -- or the death -- of independent film.Of course, the Netflix model, where consumers pay a flat rate upfront, is quite different than video on demand, or from renting or buying a film from a digital store such as iTunes, Amazon Instant Video, Fandor, Hulu, or from sites such as Crackle. It's unlikely that Hollywood studios and theater owners will ever agree to having films stream day-and-date on Netflix or on VOD: By all appearances, it would destroy their business model. Mainstream exhibitors refuse to carry films that premiere day-and-date, saying that there is a direct hit on theatrical exhibition when movies play day-and-date.

"...but if audiences can watch a new release at home, why go to the local theater? So expensive, the popcorn and soda combo price is over $11 bucks now," Jane flustered?

"Since the introduction of television, people have been declaring the death of cinema, but so far, nobody has been able to replicate the immersive, communal theater going experience at home. Not every great movie is going to necessarily get to Cleveland," thought Jane, and "there are quite a few consumers (my ugly word) who like to be the first ones to see movies fresh off their festival debut. VOD provides a potential audience of 100 million in North America alone." The fact is that despite fears that day-and-date will kill movie going, there's no data to prove that day-and-date is eating into theater grosses (although theater owners say they can see the evidence in box office receipts over the past eight years or so). 

Set-top boxes with on-demand viewing capabilities are now in about 60% of U.S. households, up from 37% in 2008, according to a recent report from Nielsen. Overall, about 102.7 million homes had pay-TV service from a cable, satellite or telephone company in the second quarter of 2013, according to Nielsen's Viewing on Demand report. Of course, the less of a stigma there is surrounding a VOD or day-and-date release, the more VOD releases we'll see -- especially as fewer small films have a shot at theatrical distribution -- which means there's already a glut of VOD releases vying for attention. 


"So is VOD the future for indies?," asked Steve Jobs plugged into (and power charging from) his unmarked grave. "Only time will tell," shouted Jane. "Now please go back and rest. Go to sleep, you're dead! Haven't you caused enough trouble already? Leave cinema alone! bye."
The END .  Of local theatres. for sure.

p.s. "BTW, I didn't watch your movie JOBS on VOD, Stevie Wonder. I watched a bootleg-blurry DVD copy of it. For free. tee-hee hardy har har. Yeah. I do love the future of Hollywood schlock. Now I own you, too."

The END .  Of this blog entry. for sure.