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A conference organised by the British Screen Advisory Council BSAC FILM CONFERENCE MARCH 2007 FOREWORD The British Screen Advisory Council is an independent advisory body to the government and policy makers at national and European level and to the audiovisual industry. It uniquely brings together the widest possible range of UK interests, experiences and contacts in the screen industries. Members include senior management from television, telecommunications and new media companies, international film producers and distributors, cinema exhibitors, technical experts, business people with media interests, media lawyers, communications consultants, TV producers, trade unionists and the heads of training and trade organisations. BSAC regularly commissions and oversees research on the audiovisual industry and uses its research to underpin is policy documents. In addition to regular monthly meetings, BSAC organises informative events including seminars, conferences and industry briefings, all of which provide valuable networking opportunities. BSAC relies on industry funding for its activities and we are therefore particularly grateful to Time Warner for sponsoring this event. BSAC also wishes to express its gratitude to all the speakers and panellists at the conference for their interesting contributions. The Chair of the conference was John Howkins, Deputy Chairman, BSAC and Director, HandMade plc. Please note that the speakers’ presentations and panel sessions in this report are edited transcripts. Presentation slides are available on request, or on BSAC’s website (www.bsac.uk.com). 1 TIME WARNER Time Warner Inc. is a leading media and entertainment company, whose businesses include filmed entertainment, television channels, interactive services, publishing and cable systems. In Europe, Time Warner’s businesses include Warner Bros. Entertainment, New Line Cinema, Home Box Office, Turner Broadcasting System, Time Inc. and AOL. Warner Bros. Entertainment Warner Bros. Entertainment is a global leader in the creation, distribution, licensing and marketing of theatrical motion pictures, TV programming, animation, video/DVD and related products. In Europe, Warner Bros. is also committed to producing and distributing local productions. Films currently being produced in the UK include: Harry Potter and the Goblet of Fire, Sweeney Todd, Fred Clause and Batman - The Dark Knight. New Line Cinema Celebrating its 40th anniversary year, New Line Cinema is the most successful independent film company in the world. Its mission is to produce innovative, popular and profitable entertainment in the best creative environment. In 2005, New Line partnered with HBO to form Picturehouse, a theatrical distribution company that releases independent films. In 2006 – just a year after the company's inception – Picturehouse released Guillermo del Toro's Pan's Labyrinth, which won three Academy Awards and three BAFTA’s. A pioneer in franchise filmmaking, New Line’s Oscar-winning The Lord of the Rings trilogy is one of the most successful film franchises in history. Upcoming New Line releases include Hairspray, the film adaptation of the Tony Award-winning musical, Rush Hour 3, and Fracture starring Oscar-winner Anthony Hopkins. In addition, New Line will release The Golden Compass, based on the first book in Philip Pullman’s trilogy “His Dark Materials” and starring Nicole Kidman and Daniel Craig, in 2007 and Inkheart, starring Helen Mirren and Brendan Fraser in 2008, both of which were produced in the UK. Turner Broadcasting System Turner Broadcasting System is a major leader in news and entertainment around the world. In Europe Turner delivers cable and satellite television channels and Web sites, including CNN International, Cartoon Network, Turner Classic Movies, Boomerang and Toonami. 2 Home Box Office HBO is America’s most successful premium television network, whether measured by subscribers, profitability, viewers, awards or critical acclaim. HBO sells its original programming such as The Sopranos, Entourage and Sex and the City to broadcasters throughout Europe. HBO’s film division is involved in local productions such as Longford and Tsunami and the distribution of such acclaimed HBO Films as Gus Van Sant’s Palme d’Or winning Elephant and 2007 Sundance winner for Best Director Rocket Science. In 2005, HBO partnered with New Line to form Picturehouse, a theatrical distribution company that releases independent films. In 2006 – just a year after the company's inception – Picturehouse released Guillermo del Toro's Pan's Labyrinth, which won three Academy Awards and three BAFTA Awards. HBO Central European ventures offers basic and pay television channels throughout Central Europe. Time Inc. Time Inc. is the world's leading magazine publisher. Its more than 130 magazines reach total audiences of more than 300 million worldwide. In Europe, Time Inc. offers readers the best in serious journalism, including Time and Fortune, as well as popular consumer magazines. Time’s IPC Media is the UK’s largest consumer magazine publisher, with over 100 titles including Country Life, Loaded and Marie Claire. America Online AOL is a global Web services company that operates some of the most popular Web destinations, offers a comprehensive suite of free software and services and provides a full set of advertising solutions. A majority-owned subsidiary of Time Warner Inc., AOL LLC is based in Dulles, Virginia. AOL and its subsidiaries also have operations in Europe, Canada and Asia. 3 CONTENTS CONFERENCE CHAIRMAN’S WELCOME AND INTRODUCTION 5 John Howkins, Deputy Chairman, BSAC and Director, HandMade plc KEYNOTE ADDRESSES 6 Casey Harwood, Senior VP of Digital Media, Turner Broadcasting System Europe Ltd Patrick Walker, Head of Content Partnerships, Google Video, EMEA FILM INDUSTRY PRESENTATION 10 Ben Keen, Chief Analyst and Director, Screen Digest DIGITAL CINEMA 13 Panel Chair: Patrick von Sychowski, Consultant Anders Geertsen, Head of the Commercial Module, European Digital Cinema Forum and Director, Distribution and Marketing, Danish Film Institute Rob Kenny, Operations Manager, Curzon Cinemas Tom Cotton, VP of Business Development, Technicolor Digital Cinema, Europe Alex Stolz, Distribution and Exhibition Executive, UK Film Council Gerald C. Buckle, Digital Development Manager, Odeon & UCI Cinemas ENTERTAINMENT ON THE MOVE 22 Panel Chair: Ajay Chowdhury, General Partner, Acacia Capital Partners Stuart Collingwood, VP EMEA, Sling Media Peter Walker, VP of Strategy, Bango Dominic Strowbridge, Marketing Director, BT Movio Damian Mulcock, CEO, Mobix Interactive Ltd Graeme Oxby, Marketing Director, 3 Tony Pearce, CEO, Player X PRICING FILMED ENTERTAINMENT AND THE IMPACT ON 34 FINANCING MODELS Panel Chair: Mark Devereux, Senior Partner, Olswang Cameron McCracken, MD, Pathé Distribution UK Ltd Paul Grindey, Head of Commercial Affairs, Film4 Neil Martin, Corporate Development Director, Sky CRYSTAL BALL GAZING: FINAL ROUND UP SESSION WITH LEADING 45 INDUSTRY FIGURES Conference Chair: John Howkins, Deputy Chairman, BSAC and Director of HandMade plc Bob Pisano, President and COO, Motion Picture Association of America Michael Kuhn, Director, Qwerty Films Sophie Balhetchet, Co-founder, Cougar Films Peter Carlton, Senior Commissioning Executive, Channel 4 Jane Wright, Head of Rights and Commercial Affairs, BBC Films Adam Singer, Consultant, Cordelia UK Ltd 4 CHAIRMAN'S INTRODUCTION John Howkins, Deputy Chairman, BSAC and Director, HandMade plc The Chair welcomed guests to the conference, and said that the discussions during the day would explore the effects of new technologies on film companies and their strategies going forward. He said that rather than focusing on the technologies John Howkins themselves, the presentations and panels would focus on how producers, distributors, studios and also consumers are reacting to the changes taking place – and where this was expected to take the film industry over the next few years. Consumer expectations are changing - in terms of how they watch, when they watch, whether they want to watch in a cinema or at home, and whether they want to watch on a TV or a computer. This of course has profound consequences for film companies and their business models. The Chair thanked Time Warner for its ongoing support in sponsoring the event for the fourth year running, enabling BSAC to put together a first-class programme. 5 KEYNOTE ADDRESS MEDIA FRAGMENTATION Casey Harwood, Senior VP of Digital Media, Turner Broadcasting System Europe Ltd Digital Media is a new group within Turner, which has a remit to bring Turner into the digital age, without turning the old business upside down. As we all know, life has changed quite significantly in the last few years. Things used to be simple – Casey Harwood either content was provided free, reliant on advertising sales – or it was provided via pay TV, which relied mainly on licensing fees and perhaps some advertising. Movies and sports were generally regarded as the main drivers of platform growth. But then digital came along, which significantly lowered the barriers to entry. Looking at the number of channels on Sky now – there are 14 news channels, 24 kids channels, 26 movie channels – and 55 Sky Box Office channels. And then just around the corner for TV is the Internet. The Internet really does democratise content, to the extent that the supply chain is collapsing – and this collapse is not unique to media. We’ve got telcos selling TV, the BBC is launching its own satellite platform, I can buy a sandwich
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