Elizabeth Sage
From: Susan Cleary [[email protected]) Sent: Friday, November 20,20098:58 PM To: william [email protected] Cc: Claudia James; Jean Prewitt; Elizabeth Sage Subject: IFTA visit to FCC on November 17, 2009 - follow-up information Attachments: Letter to William Lake Media Bureau November 20, 2009.pdf
Importance: High
Dear Mr. Lake,
It was a pleasure meeting with you and your staff on November 171h and discussing IFTA's position against the grant of the Petition for a Waiver of the SOC rules. Attached please find a cover letter and attachments, which provide inter alia, further information on release patterns for theatrical, VOD and DVD distribution. Thank you again for your time and consideration.
Kindest regards,
Susan Cleary Vice President & General Counsel Independent Film & Television Alliance 10850 Wilshire Blvd. Los Angeles, CA 90024 Direct 310-446-1003, Mobile 310-254-6548 Fax 310-446-1600 [email protected], www.illa-online.org
All or partian(s) ofthis email may contain attorney-client communication or attorney work product and as such is privileged and confidential.
1 Independent _ 10850 Wilshire Boulevard / 9th Floor Los Angeles, CA 90024-4321 310-446-1000 TEL /310-446-1600 FAX Film &Television www.ifta-online.org / [email protected] •• Alliance~
November 20> 2009 Via email to [email protected]
William T. Lake Chief, Media Bureau Federal Communications Commission 445 ] 2th Street> SW Room3-C740 Washington DC 20554
Re: IFTA's November 17,2009 meeting
Dear Mr. Lake,
It was a pleasure meeting with you and your colleagues at the Media Bureau. 1FTA and its Membership ofindependent production and distribution companies appreciates the time you took to better understand our position on the petition for Waiver ofthe SOC rule and on media consolidation's overall impact on the independent film and television industry.
I have attached for your reference the following infonnation that may be helpful to you and your colleagues and to which I had referred during our meetings on November 17th:
1) Examples ofFilms Released through VOD services either prior to or simultaneously with the Theatrical or DVD release. 2) Related Articles cited in the "Examples" List. 3) U.S. Production 2002 - 2008: Independent v. Major 4) IFTA Member Best Picture Oscars 1982-2008
Once again, thank you very much for your time and consideration. Please let me know ifyou have any questions regarding this infonnation or I can be ofany further assistance.
Jean M. Prewitt, Presi Claudia James, Princi...... ,~_ Examples offJlms released through VOD services eitherprior to or simultaneously with the Theatrical or DVD Release
For the past few years, both major studios and independents have utilized simultaneous release offilms on VOD and DVD. Both studios and independents have also used a more accelerated release pattern by releasing films on VOD prior to DVD release. Most recently, independents have been using simultaneous VOD and theatrical release, as well as a "reverse window" in which a film is released on VOD prior to its theatrical release. In this "reverse" release pattern, the VOD release is the first release ofthe film in the marketplace.
Examples ofrelease patterns are provided below as well as related articles on their use in 2 3 the marketplace. I All release dates are approximate U.S. release dates unless otherwise noted.
Simultaneous VOD andDVD Release:
Superman Returns -Warner Bros. released on VOD and DVD on December 3, 2006. Theatrical release was June 26, 2006,
The Astronaut Farmer - Warner Bros. released on VOD and DVD on July 10,2007.4 Theatrical release was February 23,2007.
Michael Clayton - Castlerock -Warner U.S. Distributor was scheduled for release on Comcast's HD video-on-demand service for the same day the movie was released on DVD (February 24, 2008). Other movies added to Comcast's lineup in February of2008 as HD on-demand selections the same day they become available on DVD included Warner Bros.' The Brave One (February 10,2008), Rendition (February 24, 2008) and No Reservations (February 17, 2008).
The Bourne Ultimatum - Universal Pictures American Gangster - Universal Pictures
Both films released on VOD and DVD (February 24, 2008) simultaneously through Cablevision's Popcorn DVDs On Demand service. This service offers simultaneous VOD viewing and DVD purchase with the DVD copy ofthe film shipped to the consumer.5
1 All DVD and Theatrical releases were confirmed at www.imdbpro.com. a subscription database for information regarding the production and distribution of films and television programming. IFTA is a subscriber to www.imdbpro.com. Alternatively, www.imdb.com is accessible to the public at no charge, but does not include the extensive information at www.imdbpro.com. Unfortunately, IMDBpro does not include information on VOD release dates. , All VOD releases were confirmed from Independent news reports and articles describing individual films' release patterns. 'Note that a "premiere" can be considered the theatrical "release date", but note that the wide theatrical release will often occur a week after the "premiere" and thus there may be a slight discrepancy on the exact date of "theatrical release" date. • See attached article entitled "Windows test benefits sell-thru, VOD" at http://www.vldeobusiness.com/articleICA6448S44.html. s See attached article entitled "Cablevlslon offering up new DVD releases through VOD" at http://www.engadgethd.com. State ofPlay - Universal- released on VOD and DVD on September I, 2009. Theatrical release was April 17, 2009.
Away We Go - Universal- released on VOD and DVD on October 4,2009. Theatrical release was June 5, 2009.
VOD Release Prior to DVD Release:
Hancock - Sony streamed the film through Sony Bravia Intemet-connected HDTVs on October th 28,2008 - November 10 , DVD release on November 30, 2008. Theatrical release was July 1, 2008.6
Dark Knight - Warner Brothers released in Korea on VOD on Dec 5. 20087 through IPTV providers Mega TV, owned by Korea Telecom; Broad & TV, owned by SK Telecom; and digital cable TV provider Home Choice. The VOD release ofDark Knight was two weeks prior to the DVD release in Korea.
Ghosts ofGirlfriends Past- New Line Cinema through Warner Bros. & Comcast - VOD release on Sept. 24,2009 & DVD release on Sept. 27,2009 Theatrical release was May 1,2009.
Observe and Report- Warner Bros. & Comcast - VOD release on Sept. 24, 2009 & DVD release on Sept. 27, 20098 Theatrical release was April 10, 2009.
Many films still in their theatrical release window are released via VOD to hotel rooms. For example, on November 16th, the VOD service at the Hyatt Hotel in Washington D.C. was offering "movies that are still in theaters" and listed Universal's Inglorious Basterds, which is still in U.S. theaters and reporting box office gross receipts.
Simultaneous VOD and Theatrical Release
Sleep Dealer - Maya Entertainment - VOD and Theatrical releases were on April 17,20099.
Anti-Christ - Zentropa Entertainments - VOD (through IFC Festival Direct on Demand Service) and theatrical release on October 29, 2009.
• see attached article entitled "Studios Reportedly Eyeing Pre-OVO 'Home Theatrical' Window" at http://www.homemediamagizine.com. 7 See attached article entitled "Warner Bros. to release Dark Knight on VOO before OVO in Korea" at http:Uwww.screendaily.com. and a related attached article entitled "Beyond Day and Date OVO release: Reversing the Release Windows" at http:Uwww.multimediaintelligence.com. • See attached article entitled "Warner Bros. Tests VOO Release of Some New Movies Before OVO" at http:Ufinance.yahoo.com/news. 'See attached article entitled "Sleep Dealer to Hit Theaters, VOO Market Simultaneously" at !J.llil1Ll1aIdeontent.org. 2 Serious Moonlight - Night and Day PictureslMagnolia Pictures. Currently available on VOD and Theatrical release scheduled for December 4, 2009. JO
"Reverse window" - VOD release prior to Theatrical Release
IFC in Theaters - A VOD service which brings critically acclaimed independent movies to viewers at home the same day they premiere in theater. A full listing offilms is found at http://www.ifcfilms.comfin-theaters-on-demand.
The Girlf,.iend Experience - 2929 Productions through Magnolia Pictures. Released on VOD on April 30, 2009. Theatrical release on May 22, 2009. DVD release is October 4, 2009. 11
BriefInterviews with Hideous Men - Salty Features. Released on VOD on Sept. 23, 2009 through /FC Festival Direct on DemandService. Theatrical release on Sept. 25, 2009.
Rob Zombies' The Haunted World ofEISuperbeasto - Film Roman - Released on VOD on Sept. 7,2009 through Starz. Limited theatrical release on Sept. 12,2009. Released on DVD on 12 September 29, 2009. .
Aflerschool - Borderline Films - Released on VOD on Sept. 30, 2009 through IFC Festival Direct on DemandService. Theatrical release on October 2, 2009.
10 See http://seriousmoonlightfilm.com/. 11 See http://www.girlfriendexperiencefilm.com/ 12 See attached article entitled "Starz tests movie via VOO before theaters. DVO" at http://www.afterdawn.comfnewsfarchivef19253.cfm. 3 Windows test benefits sell-through, von - 6/4/2007 - Video Business Page 1 of3
YBMobk Log In I RegI.r Sl:ly Infol mea: Sign Up 101 rREE VB eNewslctters
HOMe MfW.lL£1TE.RI MAIlC:[TDA1A ~r------'I'" iji.:e fi.
Windows test benefits sell.through, VOD
r~6IIaN ![ifR88II IDSlIbIal!*on. 1~~-;;M]ll!ipn.lJII8l 'lI\Qul SyJftJl1wHdlorllY- Vl_8osmoa; fNIZf1Vf 1·800-SERVPRO
JUN! 411lelealng moYies on lIIdeo-on-demand and OVO lie servpro.com .arne day _ aaltts of bcltl1 sliJnlf"",""y but aQ lrdo disc renlal., ~g to ntial hlSul1s from etw1>-mll1cfJt test _n Corn<:aI and .bc tlullos begun last year.
WIth that dat8 In h.,d, WImer Home Video wi. bUild on Ihe tat by beglnnlnv 10 oft'er e few tia cIay-and-dab: on VOO end OVD notlonwide, i1cluding July 10 ~ The AslnlIleutFlJfrtlu. a dtwnIlltlnlng Billy Bob Thornton thai pulled In ffO million In WalMl'~ The AsfrcwIaut Fanner MOST POPULAR PAGES lhutera. win hay. a day_d-dN VOD and DVD~•• TV_ghoHta _lie, bill no .IOY aohdlon On average, VOO buy rates In the Comc.ast test 50% higher were Wllmart._ pre-Black Fddly ..... saturday In the two teat market,lIlan in contral mll!1lels, whne OVO sales we~ up 10% on 1lYer&ge and OVO rentals faU N, llOCOtdlng to Warner Bros., which analyzed data from W..".,otre", DVD lred.~n for dlJC4UIIMd 81U-ft)' Comcastencl Renuak. The studio 10000ed 81 ecflVlly on relee," from all partlclpetlng stud\O$ betWeen Wahzrt lOllS out J_\oilI1eacl 80 playW.1t$18 NOlII!II1ber end AprD. IT~.- 011..,. ucluolYt $t.IrT_._ Moll"oflera N91D ~for IIlack Friday Warner a1d other studios haye extended the lIIIstwtth Comeut, which began rt I.NCl'iember In PiIlIIbu/ltl.,d Denyer. Studio pert1cfpen15lndude Warner Home VIdeo, Paramounl Pictures. The Walt O~ Co., NBC Untveru/. 20th CentI.ty Fox and Uoflt93le. MORE CONTENT
AI. part of iI& .glHment with ComCllst, Wamer ntqulred the cable company promote Is IWN AlIeases as being :available on lJ\ID ancl VOO.
WlInM!r 8ros. digilal dIJttiluljon 'lIP d ClIHIernand /lrrdy Menet said the llIUdio is ~b Wlaly.zng the data for tile OVD rental business. howner, he aclded that OVD Ala In the .tudlo's p/lofty.
"We'd ~ 10 _ Khelp all the tllQl'IlenIs; Melle! said. 'Just IHlng the m~J1llout lIore CIClUId boost the renIaI business as wei, ~ the teJ.lhn>Ugh ponjOn is ~'lI\Ilyi'nportart for u..: THEDa_LOW
MellI! COlJdn'\ aay ""'eIl..- tile gains In VOD fWellUI!l wen! enough 10 make up for the 2% dRlp In OVD _2.2llOI -_._---""nol tobe mo~ ... NotfIlA he the ~ """It w_ rental. bUt noted that IIela beIter marvlns on VOO salO$lh8n on DIID rentals. ondCo_ SoIl Of, Apple Is ohopping 111 lTuJ1e5 TV "Tile Iillin tha VDO busIneSt Is sometlrin; thai'S Jigniflcanllo UI, and from a me~ penopecllYe. n', ~ ..""ce 10 TV pogFlllT1l1left Ihal would gMIllUllae._ 900d for !he company: he ceJd. More
JlfWiously-~ Mellet teld VOD rentals also benefitthe studio by eutlJng out eoma .ales. Renta' » VIEW ALL BLOGa retailers ollen sen dfextra copies Of DllDI alter IIley run their rental course, and Wamer belleYea that those prevlously-"'lIWed sales cui Into new OVO salea, he aald.
VOO buy rates verted by 111m, dependlnll on box-omcc take and genre. HOfTOt and oomedy \Illes uw Ihe blgga1ll'alnt, with veo bUy rat. up 82% and 58%, ....pecI!'itlly.ln the tnt marl Sewml, wtliCh ~""uid faIJs in1D lIa von "-..tapet: ohowed soma of 1hlI blgge$t lIlIlM for Wrmer.1n latt mlll1oeb, veo buy r_1or the ti1Ie wen. up 55%. DVD buy _ were up 3N lWld OVll ren\llll ~ up 30%. Sur-- Retl1ms. lhe!hl release In the test. _ mote modest glint: VOO bUys w_up 16% on ayerage. OVD bUy, were up"" and OlIO rentela_a oIt 4%. MeIel said VOO buy .....in 11161 martas lIIVW as COllIUITlafS became Il10flI aware d llle ci;ly.;md-d8t8 re!ea:lJIllI· http://www.videobusiness.comlarticle/CA6448S44.html 11119/2009 4 Cablevision offering up new DVD releases through VOD Page 1of2 ~~~~J~72""~':"'1~..~r.·;;:~I·~~~1._:~·:~~~~~~~; : r",,-; : ..,.:.1." .~' ~ :"~·)I:. I .'~.~?'~~ .' .- '. - ",1111 01 .".:01.1"'11',1 ..Ihl \ J -J ·· .. ,·_·'·'··I:.:.:...·~ , CablevisiOl1uOffetring:...... ew IWQ releases through VOD 61 IIvDarnnMurph p No soonill' Ihen Corneast InnoIlnced 111111. k wOUld lOon be ""erlnv up MltQI 111115 vfa HO VOO the _ day they IMded ~ on OW, ClIblwlslon """ COllIe along end .u.mpeed 10 S\ JobJeea MOIII Melees $81JHr I.Om~loywd Mom make. $8.613/Monlh Part Tlmel R..dhilt IlOly now. ~ ...... New SpInal SW1lery GeniIoMhroa New8mOlUlIllSS Clge_ Smoke 11).:"11 NllIC~& NoS«ond Hand smolul! Learn MOAlTodIYl ¥IlWW.tIwt...... IIdDdaJ.com I"'...... ReY:ted Articles From ~dg&tHD .."' ..._. _ ... sphar~ HD IlVD'a ~.dCopy __---'>'frao,-&lWIJsM..-.,. 8 days ego ean-t8nlng lip"""" ~I>IU*HD VOD th._nth 11~.ego COlncDthel __V«i2On'. ROSVOD d_ 2Sdayaago Reader Comments (Page 1 of1) Subacrlbetllthesl comments ~ .'1DEEZIIUIZ. Feb 61h 20081 0:57AM N&IIlral l0.C11 " l jThis seems like a waste of 5S. Juet gel up end go buy tle damn disc. i111111__0 aretl61h 200812:0" NeuIraI ~!li1J' . ; ugh.. tt.mn a Clblnioion.. g;.-. me DISCOVERV tID F,IhlllYllmlbllmn ! i au....Feb61h200812:43P.. i.'• : AND Fee AMERICA GOD ~mlllU" http://www.engadgethd.com/2008/02/06/cablevision-offering-up-new-dvd-releases-thrau...11/18/2009 5 Studios Reportedly Eyeing Pre-DVD 'Home Theatrical' Window Ihomemed.iamagazine.c... Page 1 of2 ~~;n~ Me~ia focus on the future "', ..,. I I. n • ~~=-=-===~II ..JI SUBSCRlBE : MAGAZINE JNEWlII..ETTER AdYanced SellCh InausIry Now. I Reole.... I BIogJ I ~ OVO I s.n''''g Room I Shop OlIOs & Blu....y I E""II!. I DilIIlaI £Altio. I< Megazfn. Art!lNes I centacl Ul I RSS I Clasollieds HOlM Med~ Magalne -11860 • Stucllo$ RepOrtedly Ey.~ P,. DYd Home T!leall'",,' Window 16960 Font Size: •A A Emall PrlM fJOO Studios Reportedly EyeIng p~ 'Home Ttteatrlcal' Window focus By ; Sik GruonwMel IPoalkl: 03 S6jl 2009 on the future 8S rvenrro!l!!!e!OalMlel!,O!!!!l Fad"" sluggbh OIID Ales WIll aeurge In [OWM·malJjn diso 1'8I>t~., _ Hollywood Ilucli""... raportedIy con.ktWlng oIllll1ng new mavlee ....lnlemet-enaDled h1gIl-dellrilOll teIe\/lslans prior 10 1M ~rllJD*reloaae. ~ekAug. 3OrepoI1ecIIIllI! Sa"Y EIecInrica '-eppovs:hed IIudias ebou1 derNering -e-lllO\Il..1Il prenNn prius If\a IIIe 'n_1on lis ~8bIed Sony BnMe HOTV. WlII!U IlefOtllIlleir DVo.9lu-ray _ dille. The J...... - COl1SUlIlGf eIedrollics giant, oMlIdI MIlowns 80"1PIcIIft$ end 60nY PJcIlRs Home EnwlallImen~ lItSllld tie ooooepllllSl yearwllh IIIe ..... Strif>.,..."..HMIooek. lliNcb_..encllo llnn\llllWMl$ fIvm Ocl. 2810 New. 10 lotSll.Q9 (Ior2~hovJ$) -11 diIp I>dotQ Ihe 81le's telA&eon OW. Blu-rIIJ BIld~Voo. TlIe publiallion ftPOrtecllNll_1NCllon to l!le HatIoodc elCClIlsM, wNch Included !he BII>nIy eclillon, IOU mbced. Tile llOlY 8tIllbulecl1ha muted retpClftSO Ie the cleer1h of Witb-enebJed BnI\lia HDTV81n U.s. homes at118 _-an amounllhlll has now grown III ll!IOUt 500.000 unIIs. JANlMRY NO, 2010 In lICIdition to nlllbbtm; a new pranlL.m ~ne wlnclow, !hI ...pclI1, cilfng _rt:e5 'amU_willl Ihe conoep~ said SonY also unc!trsc:xnd WVEGAS, NEVADA lhccIeI1Ie1y c:honnol'l! SCH:8IJed 'cklead system' hllp_pl<1lCY. uGlSm lODiW A SOny I'IcIul8lI Home EnlaftaInIIwlI spokesp_ t'efe1red InquiIies III Bony Corp. WWfB.ORG $any Co, d1aIn'ren IIld CEO Howlld $Iring eartier lhis ye." 8l1he Conamer 8ecIn>rjcs ShO'of in La8 Vwg8s ...-..dhisdesire til.. buI!nesa groupsVd1t*Ilhe ~ny work bani \0 CI'OI~rnnl\lng -.d cbIrlbution oppo11\lllities, Indeed, Sony CompulatE!ec:lrllnIoat.s1 yea 1nked(h1tfllUlfon ..... w.... thJnl.1>8tty SIUda 10 aIIowcligilal ~orce_ to lis --- Pf~ 3 and PllIySlalion Por!lI!* uaeI1- -- Ses:8ataly, stuclcls rwpolWdfy evlobbytlg VIe f«leRII Con1nunl<:allon CommissIolIle wallie Its pnl/libilfon on SoI!Iec:IIbIe OIlIpUl caMlIs on MHop __a IllOYeIll8l WClUld .Iowslucliollo release new __1Il ~ III cOle _ prior 10 Ih8 DIIOIIllu- KevIn Tsulhala. preeldanlo! Wwnec Bros. Home Enlertelnmenl Group. whil:I\ Indudes \IIIamer Homo lMao, In:zooe dllcusoecllhe ~a of ~tcrHome ~ ...e.> Indopendenl an8IyIt Rob Enclef1I> seid 8Qlfier IQleSS 10 premlum llOnient could c:ircumvenl plrDoy 1IlII0& atoess ~ytrumps prlce.1lul he Illld Ch~ moch more then ~ slendQldVOD pl\Q'tg WDUld CU1.Q conSUmei' demand. cleUdQ... TecIlTlold Buzz ""I POlL http://www.homemediamagazine.comlsony-pictures/studios-reportedly-eyeing-pre-dvd-h...11118/2009 G Windows test benefi~ sell-through, VOD - 6/4/2007 - Video Business Page 2 of3 TIle ecudlo pllllS 10 ClOnlmue telling dl)'-end-dllte re\ellslng befQre coming to Iny final ooncluslons, Mellr. said. In 8dd1l1on to the Corneast test. the same studios also began a similar leat with Tlme WlWllef ..111.. 11115 year. · - . leat yol, wamer quietly lIebulad Duma and KIss Kiss. Bang on voe nationwide the lame day Bang -' .' - lheY_I8Jeuod on OW. - ' ... - - .• '= If Willlet' and olher IIlUdl ClG declde III do awl)' IMth IIlo ply-per-Ylew Wlncl_. that COUlclellO ben-.'ll mO\lie download Jf!Nlces such as Mavlelnk, Amazon Md wal-MaJt. wtIldl a111d renlll dow~ Rentlll downloads are considered VOO by 8tUdiol and. aICIl ate aarentIy Mllable k\ I!le same PPII ·Cruli,oe V1Ikms Ftnm4II:iaa _ wnlOof that fbi"'- OVD. ·_dill a: die utitill . Asked about the lest resulls k1 rec:enI earnings calls, ex~from Disoeyard V1eccm haYe IlIld OVD iDJpiR ;md A(Il1Ott Hleswere up In test marU~. butthey haven1 dJsc/osed numbels. ettSI1iYe actI'flsb VOO lIlst results.e expected 10 be one oftll8 tIll~ touched on Ily INamer Bros. dlelr ancl CEO BaITy wbii 1ieIieft iii tIie Meyer. Television Group president Bruce Rosenbllrn and Home Entertalnment Group presldenll TALKBACK we ~Id love yotJ' feedback I Pe.l 1 eomlllant leartlJDDI1l • VlI!W AU. TALKBACK THIU:ADS =CltEATtVE =VISlons ~'OUNDATlC»l RELAll:D CONlENT = TOPICS I AUtHOR I S~~1reS I w.m.r IIIMfo up wllh FlllI, Union ldDllc wIndow 08l13/2Ol19 WanMrID clIsll1bulll Osdlloocope f\lIIls on IIOD 08J30I2()00 _ \ftI blnotll5seU-Ullough. von 06/004I2007 W-buI\d$ indie film vondialltbullon 000612009 ISPONSORED UNKS Q4 What's coming, when on what format I"Zt'rn....O!I!cIII Sjlt _T_"""",, 010>0. 0-15,o00'T1le.. t.elm"""'" NEWSLETTERS ....""""",r.am o VB Doily Nswo o VB nile FIlm GlAde o VB weekly Slrnmary o VB Just1-M.-..d o VB lben R8pClll Enl«EJNliI Add,., ~...:.4;'",;,..c,...., sybi~i Noll'! . AboUt Us I Adwrtiainlllnfo I Slle Mep I ConlM:t Us J FREE It",.;ne Subscrlpllon I SlIbscn'be till our ENewslellels I Useful SII.. I RSS http://www.videobusiness.comlarticlelCA6448544.h1ml 11/19/2009 7 Warner Bros to release Dark Knight on VOD before DVD in Korea INews IScreen Page I of I Warner Bros to release Dark Knight on VOD before DVD in Korea J December, 2008 I By Jean Noh Warner ~Digibll Distribution In Korea will put DarkKnlghttNt on vldecHln-elemand (YOD) Dec 5 - two weeks before the DYD relene, making it the first time II major HoIIywaod studio gives a blockbuster a 'pre-DYD W D' reIea..... Datk J With Christian Bale and the late Heath Ledger starring, Dark Kntghttook 4 million admissions In Korea when it opened last August. PrInt http://www,screendaily.comlwarner-bros-to-release-dark-knight-on-vod-before-dvd-in-ko.,. 1111812009 8 Beyond Day and Date DVD Release: Reversing the Release Windows Page 1 of2 Member Login gpt =-..CHECK OUT Hom. Produc:ts Free WhIte Papers WlloVft Are AboutU. ContllctU5 Beyond Day and Date DVe Release: Reversing the Release Windows ~ I3lI 5COlTSOAlE, Ariz., OCtober 8, 2008-WIlmer Bros. Enlettainment recently decided to release movies on-ffn& before releasing them on DVD... at leallt In South Korea. This reverses the long·eslabl!shed Hollywood distribution model and may open the door to a major Increase In movIe downloads. How long untH lhls bealmes lIle nonn In Ncrlh Amel1ca? Film piracy l& rampant i1 South Korea. Arguably, WJmer Bros has IIt1le to Io&e by nIIessing their fllms online fi~t, befOl1l they hft the vicIeo stores. HowB_, theY have much to gain ifthey can find a acenario that 1imi1$ piracy. v.e VifHI wamer Btos edions In SOultl Korea as an experiment. where high bIoeCfband data rales and pllOlllration points represents where the US marllllt will be In 3-5 yea15. FnI, online 11m dlsbtlutJon Is arguably more l;eCUre than OVO. The CSS digital r1gtrts m!In~ (ORM) technology !hal protects consumer OVO Is already c:ompromT$ed. Consumers WDI1dwkle can readlIy obtain free 60ftware ttIiIt strfPS the CSS protection and makeS digital COpies. For Pfl)fe$SiOnal piralB&. thel8 might as well be no ORM at all. Condltlonal lICCeSl'i (eA) and ORM solutloos that protect onh dlslrfbution are more modern and most importantly. I'8lll1'M1ble. This means if !he secul'lty iseompronUed, It can be'renewed' again to rMeCUl'e the con1lent. Se<:ond, new technOlogy, ~ as digital tran&aCllOrlal walennarklng, can enable better tracJ(lng of illegally copied Il1ms. Transactional watermarks, also refenlld to as fo!l!llsic or serialized watermarking, embed InforJlllllion speci1ic to a parlicular transactlon Into a dlgll8l WlrterTTlilrk. Thus, the waterrnarl< i& embedded into !he premium video as It Is deflV9red 10 the consumer. If COllYl'ighted content is 6ub~ illegallY distributed. the t1lInsacllonal wate1'mlIrk enables the Infringing 0DIllen1 to be tracked back to the souree lor proseeutlon. This nol only enables enforcement, but !he pUbJlclty Is O1ten~ed to act liS a detIllTent to copyrlglrllnfrJngement. The system Is JIOt fool.proof, but h does not necessarily need III be. No ORM or CA sysmm is pirate-proof, but at least this scenario slows d\7M'l the pirates. The lOnger a title can be Prot1ldad before 1t becomes wldely 8va1Jal:te (even measured in days or weeks), !he more potel1tIal M'enue 110m !r;lg!timale rental lind sen f1rough. Moving the more secure online system e8l1ler In the release wlndow simply keeps the ·tree· content out 01 the pubBc domaIn thai much longer. CIeal1y, MultiMedia IntelrlgellCe sees 'Namer Bros. initiative in Kgrea as being the start of a trend in implementing Mdy rel_ wlndow content online. Already teleYlsion studios are experimenting wi1h online diWibutiln wincI<7MI that precede TV broadC8ll1a. It is only a ma!Illr of lime before we see other content producers embrace warner Bros. inltiatIW and see the initiative extend to other mar1lels such sa Nol1h America and Europe. The key enabling teehnologie$ af1l nEOd.generatior\ renewable ORM and the ability !Xl encode waleln\8rks Into the coment in real time. [)jgilal Wa1eln\8rkinll and rngerprlntlng lire Important lZlI11ent ldentII'lCatlon technolog!ea that are enabling appllcatials th;rt are posIlloned to pass US$SOO million wor1dwicIe by 20'2. This MufllMedla Intelligence brief is based on OUf market researclt report, 'Beyond Traditional DRM: Moving to Oigltal watermarklng & Fingerprinting In Media Monetlzalbn." The f1lPort provldes research, analysis and foreca!ts for key fingerprlntlng and digital welennarklng applicallon& and technolOglaa, IndUd1ng trlInsaetlonal watermar1 For more information, Vip www.M\llllMedialnteMige\'lQl.com or oon1act Mark Knleln, Pl1lSldent (480) 626-'685 [email protected]! About MultimedIa IntelHgence- MultiMedia Intelligence, a market research and conSllll11ncy (INTI. specializes on the mal!cels and IIlchnoiogies lor dellverlng and monetlzlng digital content and Be!Vices across muttlpIe pIatrorms. We look beyond 1tle classic 'three screens.' which include TVs, mobile handsels, and oompllt8ll. we put mar1(el$lnto the broadef contwct of1he IndUstry lICOSYSterrls that _ Qm_ging and changlog trIIdttlonal busin_ models. MultiMedia Intelligence IPO Box 127271 Scottsdale IAZI 85267 http://www.multimediaintelligence.com/index.php?option=com_content&view=article&i...11118/2009 9 WamcrBros. Tests VOD Release OfSome New Movies Before DVD - Yahoo! Finance Page 1 ofl Wamer Bros. Tests VOD Release Of Some New Movies Before DVD pold('''"'''''I"r~ BrTimNK-. (ln1L1) ,.,.em, T....,..pr.m.fft. 20Ct Wamef" BIOs. nwy betr)'f'lg 10 knpb new OVDretnses.ayrmm RedboK and ·N..... lll"4!t'a had abouta month to ...them In sDft, butthe 'WID Itn't .-vlwtn; cUlIe eub&ctibefaecc:eAtD now reJealn ~ 1M OVD ....n comes oullnanAtlaAlIt-b_ed tMJ wiltl°Comcasr. vv.mer 8ro5.debUUld t-No filTll, 0bMl'I'8 ~d RepOlt and Ghosts 0(GIrlfrlends Past. en VOD a Jew da)'5 befOnt the films ~ reIeaed on OVD. . WIIrf* SiaL has bMn ntI8Utlg fin on DVD and cable voe am.ltanOO\llly mao 2007, butWoo Busi\ess reports iUd IQ. til the tnl time \he a\ldio has flied d1gl&aI.AbvIion before. OVO 1Iunch--e:nd the tntveo bel"0Ie OVO ,....by. ma:or HclIywcocI ftUdio ~ genen¥. It'I:. prKOce that IfTIIIIef ItUdiof Ib lFe hewmeOe~;witt! some.1&e Meya EnteI1ainment, ..... ctloolilg Ie pmnlere tI'Ie1"movies on VOD the Nmedly 1heynit tneete~. To be dew, ~ bOJt oI!"lCe reYenI.M for. slm~VClO"'heater premiere ie not ~ th8l. molt bla a1udlos would even tIink abot.rt-4>ttt Wame'r Bros.' bW of the voe before OVD Nlease Is • eigne! th8t at least one 8Wdio itw1Ing to Me Ytf')fthor gM'lg peopfe dlgl!al ac:cesa to catIIln fhI first. WWJ n~y impKl OVO MI"In til_ tonQ run. WOl1\ notIrta Is "-l. for !he Manta bfal. Warner Bros.' mesuglng ,till foC:Us8CI on drMng .dUlldi5c Alles, wah !hi: tagl'ne: 'Vt'atcfl on w:leo-Ql~ now and buy It TUllday,· IIK*etm8n.llm Noonan !DId V1dlKl Business. The studio 1& abo c:hoo6'ng to push back tho t8b1eVQD ~ dfilrns Ike Harry Potterandthe Hall Blood PItnc:e and Thti Han;cM:f. untIlIfluthe DVDs: hit ltOteS--lhotJOh Noonan ma~ thl.t Warner Broc. II ~aynv I1e digital .....to ~ "dri\Ilt,...." bwer {dj,cj SIlIe.... not out of,.. d t:annbIlzIog !hem. • 'Sleep DoMer' To Hit Thea1era, VOD Maft:;et Simuillneou&ly • RedboX TriM ForTrifedI, Suss warner 61'0&. Too • WIlmer Bfos. Throw& OVD Ret4a1 G.un1II:tOownN. Redbox-AncI NeWx ------._-_._-- ... Quotes Mel" DthI(~on IUP9lIed by In http://finance.yahoo.comfnews/Wamer-Bros-Tests-VOD-Release-paidcontent-132079768...11/18/2009 10 •Sleep Dealer' To Hit Theaters, von Market Simultaneously IpaidContent Page 10fl 'Sleep Dealert To Hit Theaters, VOD Market Simultaneously In a push to gain more exposure (and possibly more nrvenues) for I1ll upcoming Sci-fi II1riller Sleep Des/er, Maya Entertainment has decided to make the film avallable for on-demand the same day ~ lands on the big screen, WhIle Maya Entertainment isn't the first studio to shorten the release window for a film (india dartings like IFC sometimes debut art-house films in theaters and on-demand at the same time), release windows typically keep mainsham films from hitting VOD lor aboutll1ree to six mon1hs. Bulaccording to Doug Sylvester, president and COO ofTYN Entertainment, a VOD provider that is worldng with Maya on Sleep Dealsr. those windows are shrinking: Sylvester told Mulflch.nnel News tho! the wait times would "be eliminated .Itogelher,· partiaJlariy as studios scramble to maximize rBYenues !TOm their oontent. Fear of cannibalizing ticket sales has stopped many studios from simultaneous VOD and theatrical relsases, but Maya Entertainment ce>-chairman JeffValdez told Multichtmnel that the oomp.ny actually expects a box-offlce boost. (He says the buzz from hailing the movie more widely available wm help drtve tlcJ Tameka Kee Apr 13. 2009 4:28 PM ET Posted In: Entertainment. Movies, Media & Publishing, TV, VOD http://paidcontent.orglarticle/419-maya-entertainment-tests-simultaneous-vod-theatrical-r... 11/18/2009 i i Stantests movie via VOD before theaters. DVD Page lof4 Moblle/PIlA About Us AdIIertIse here au-.... 'Nol'~dYel?Rea.rhh. Do IJ>ot)'CU'p'- CWd Profiles Forums s-ft -:=' 'IlandIIy19.11.2lJl9/06.:57 IlK L ~ II !l!!!rd!!mAOm >.!!!!!!!)I mrz te.movie yI. ypd _'Pm tlJMSIrI dyd Starz tests movie via VOO before theaters, DVD 7_2009n:l0b'/-~·_12 --8tarz has Itgmc T!lIII4r BIlnou the VOD reIeas oflhe MP3 A PIQ'" Auc!!o ~ starz Hllunt Wand ofE! SupedJeaslD. tes~ a new method in Which the ~ debuts Subscribe to our newsfeed the fiIrns via on-demand weeks ~1B1S In Get the latest headlines deIiIIeted diedly10 theaters or on mID. your favourie RSS reader or corterrl aggregation 6eIVice by USing the finb belOW. The 111m wi) CXlSI $6.99 US[) hONtNer, if eusklmerS choose to WItch it earier. Q ..~.. =~=~~~ • IW'WtOClJ ~iIiit the new VOD .IH!bI.!l was sImply 8 test, and the compsny was testing the waters for possible future re!easel;. "Its the right timeframe, • De8evoise sa1d, via.k1!. "Irs .. II iDhJJly dfferent pJece afcontent than you He an~else. We felt this was the one to reBltj Latest news ~ifon.· Latest neN6 AlefDawn.com HOITIll' fi~ have, in \he past, perfotmed weU on fram ., - VOD. ~ SIvvr1ighl ~ betllldds Chrome f!.lQW1 PennafIf1k 10 this artic!e [!;d 19Mot.2OMI.1..si5Im!!l!l: .r:::J Next 'flIP' C8!!!C9!dtr wi!I ba'te Wl.fl? ~ 19 Mot. 200~ ~ lEi w!Il bay, bttW JjMl5crk?t « Previous news article Next news lI'tlde ,. ~ P!!fprmance Psystar will !Upport OS X SOIM VIdeo game5 an 19N http://www.afterdawn.com/news/arcbive/19253.cfm 11/19/2009 12 U.S. Production 2002 - 2008: Independentv. Major Independent Indle I MajOr co- MajOr stUdiO Year Productions prod Production Inti Co Production Total 2002 377 14 105 12 508 74% 3% 21% 2% 100% 251 12 104 13 2003 380 66% 3% 27% 3% 100% 2004 434 50 63 16 563 77% 9% 11% 3% 100% 435 33 91 2005 25 584 74% 6'k 16% 4% 100% 2006 393 22 78 11 504 78% 4% 15% 2% 100% 477 103 18 622 2007 24 77% 4% 17% 3% 100% 317 21 77 5 420 2008 75% 5% 18% 1% 100% 363 25 89 14 512 7 Year Average 75% 5% 17% 3% 100% • Source: fFTA amHysis of weekly production listings publishedin the Hollywood Reporterand Dally Variety. ~ 2()09, IFTA. AU rights reservcd. The statistical information contained herein may not be teprodueed in whole orin part without notice ofIfTA's copynOght in ~ malMlI'~ 13 IFTAMEMBER "BEST PICTURE" OSCARS 1982 - 2008" as ofNovember 19, 2009 Year ntle Member Company 1982 Gandhi Goldcrest Films - Producer 1984 Amadeus Orion Pictures US Distributor 1986 Platoon Hemdale Films - Producer Orion Pictures - US Distributor 1987 The Last Emperor Hemdale Films -Inti. Sales 1989 Driving Miss Daisy Majestic Films - Producer & Int1. Sales 1990 Dances with Wolves Majestic Films - Producer Orion Pictures - US Distributor 1991 Silence of the Lambs Orion Pictures - Producer & US Distributor 1995 Braveheart Icon Entertainment Producer 1996 The Eng/ish Paffent Miramax Producer & US Distributor J & M Entertainment- Producer 1998 Shakespeare in Love Miramax - Producer & US Disltibutor 2002 Chicago Miramax Producer & US Distributor 2003 Lord of the Rings: The Retum ofthe Newline Producer & US Disiributor I Kino 2004 Million Dol/arBabY Lakeshore Entertainment Producer & InN. Sales 2005 Crash Yari Film Group· Producer Lions Gate - US Disltibutor , 2006 The Departed Initial Entertainment Group Producer Media Asia - Financier 2007 No Country for Old Men Paramount Vantage Producer Mlremax - Producer &US Distributor 2008 Siumdofl MHOonaire Pathe International -lnU. Salas 27 years 17 Best Picture Awards (63% of awards 9iven) • The year for Which the award was won. Not the year in which the awards ceremony took place. 14