130911 iwi copeland vod speech
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VideoonDemandisafast-growingdistributionsectorforfilms.Butunliketheatricalboxofficereporting,cable
companiesandothervideoviewingplatformsdon'treportviewershipinauniformandtransparentway,leaving
filmmakersandtheindustrywithoutanybenchmarksforwhereaudiencesareengagingwiththeircontent.Liesl
Copland,ofWME'sGlobalFinanceandDistributionandDigitalMediagroupsdiscussedthefutureofBigData
andtheneedtochangethesysteminarousingspeechattheTIFFDocConferencethisafternoon.She
emphasizedtheneedfortransparencyintheVODindustryandcalleduponfilmmakerstodemandit.Readher
fullspeechbelow:
YoumayhaveseenaNewYorkTimesarticleacoupleofSundaysagothatprofiledoneofthelargestconsumerinformationgatheringcompaniesintheworldof"BigData"-theAcxiomCorporation.Acxiom,foundedbyaformerMicrosoftexecutiveScottHowe,wasdoingsomethingnovelandperhapsevencounter-intuitive.TheycreatedawebsitecalledAboutthedata.comthatallowsyouandItoviewourconsumerprofiles-allofthatinformationthatissecretlygatheredeverytimewemakeapurchase,andthatadvertisersareeagerto
knowsothattheycanspecificallytargettheirproducts.Nowonthissiteyounotonlycanviewyourprofile-butyoucanengagewiththatdata-editingittobetterreflectyourconsumerbehavior,andevenchoosingtooptoutofthesystemcompletely.Inanindustryknownforitslackoftransparency,thisisatrulydisruptivemoveonAcxiom'spart.Bycrowd-sourcingconsumerbehavior,Acxiomhopestobreedefficienciesthatadvertisershavedreamedofandthatwillmakeusasconsumerslessannoyedbythosetargetedads.Idecidedtocheckitoutformyself.WhenIlookedupmyownprofile,Irealizedthatthesystemisn'tflawless.Forinstance,Acxiompeggedmeasa"high-volume/low-endretailpurchaser"--whichIwastrulyhurtby,havingspentaconsiderableportionofmydisposableincomestockingmyclosetwellbeyondmymeanswithupscaleretailitems.
ButIdecidedtotakecontrolofmydatanonetheless.Afterfillingoutacoupleofquestionsandmakingsomechangestomypersonalinformation,Isuddenlyrealizedthatitwasnotonlykindoffun,butrevolutionaryinthatIwasplayingaroleincraftingmyconsumeridentity.Thistwo-wayandparticipatorynatureofwhereconsumerismisgoingwassoldtomeinaninstant.Andwhileourpersonaldataiscertainlyahotbuttonissuethesedays,IhavetogiveAcxiomcreditforbringingtheconsumerunderthetentwhenitcomestotheirdatagatheringgoals.Andhey,ifitmeansthatI'llbereceivingfewercreditcardoffersandmorenoticesaboutsalesonupscalekids'clothes,I'mallforit.Allofthismademethinkaboutourownindustry,andwhatcouldbepossibleiftherewasmoretransparencyaboutourdata.Ithinkalotabouthowdatarelatestoourbusiness.Aswe'realltooaware,itcanbecurrencyforhowourprojectsultimatelygetofftheground.Igotthisbug,asImentionedthelasttimeIgaveatalkherein2009
whenIworkedforNetflix.Seeingfilmloversputmoviesintheirqueuewhenfestivalawardswereannouncedhalf-wayaroundtheworldsparkedbothmyinnerdatageekandopenedmyeyestowheremovieconsumption-particularlydocumentaryviewing-wasgoing.Thebig,opaqueworldof"digitalmedia."So,thatgreatunknownisclearlyheretostay.
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Andhere'swhatit'stellingus:theviewershipfordocumentariesisincreasinglyhappeningon"home"entertainmentplatforms:Netflix,iTunes,tosomedegreeHuluandAmazon.Inadditionalotofnew
platformshavecroppedup-afewinthatstrangeandnew"crowdsourcing"categoryImentioned(a-hem)andmanyontheconsumptionsidelikeVHXandChill.Theatricalhasevenbecomedigitally"enabled"and"ondemand"withplatformslikeGathrandTugg,andhenceyouhaveheardoftitleslikeIndieGame,SoundCity,GirlRisingand#Regeneration.Alongthepathofinnovation,the"new"undoubtedlyfavorsthedocumentary,whoseaudiencesarepassionate,leaningin,eagertoeventizeandhighly"gatherable,"andincreasinglyinterestedinseeingallthegreatstoriesthatyoufilmmakersarecompelledtotell.Thedigitalworldisrichwithdataanddocumentariesareoverindexinginthedigitallyenabledpresent,sosufficeittosay,Ifoundthe"noveltacticofopenness"mentionedintheAcxiomarticlereassuring.Butnotallplatformsareequalregardingthedatatheyoffer,andhencethetitleofthistalktoday--"DigitalonDemand:
ShowUstheNumbers."Mygoalhereistogiveyouasnapshotofdatatrackinginthedigitalspacenow,someinputonwhatweremissing,andafewsolutionstogetusclosertothatnovelideaof"openness."Ofcourse,themotionpicturebusinessisnostrangertodata.WeusealotofconsumerresearchinourindustryMPGtheatertestscreenings,Rentrakhomevideonumbers,Nielsenratings,onlinetracking,exitpolling,focusgroupsthereseemstobeameasurementsystemateverypointofafilm'slifespan.Studiosandagencieslikeminepickourpoisonandtrytogetaheadofthecurveandtheworldgoesround.Buttherearesomeanalytic"blackholes"thatwe-thebuyers,sellers,andcontentcreators-can'tseeinto.ForstartersNetflix,iTunes,Amazon,andHulu.Andwearereceivingdatabutthereisnouniformreportingorclarityalongthechainthatwouldallowustoreallydosomethingwiththatinformation.
A"viralvideo"fromthelastweekortwoisalsorelevanttothisdiscussionaboutdataandcontent.YoumayhavecaughtthisspeechfromOscar-winning,Emmy-nominatedactorKevinSpaceyattheEdinburghTelevisionConference.Inithediscussedhisexperiencegetting"HouseofCards"offtheground,andhowNetflixandsimilarplatformsareaffectingthetraditionaltelevisiondevelopmentmodel.Spaceysortofembodiesthebridgebetweenoldmediaandnew;heistheArtisticDirectoroftheOldVicTheatreCompanyinLondonandtheco-founderofTriggerStreetProductionsandLabswithdigitalpioneerandsocialmediamavenDanaBrunetti.Ifyouhaven'tseenSpacey'stalkyet(whichsomeofyouprobablyhavesinceit'salreadyhadmorethan1Mhits),Iencourageyoutowatchit.Oneofthemostinterestingthingshesaidwasthatwhenhe,BeauWillimonandDavidFinchermetwithall
thenetworksinpitchingtheseries"HouseofCards,"somethinguniquehappenedatNetflix.Theysaid,andIquote:"welookedinsideourdataandknowoursubscriberswillenjoyyourseries--'webelieveinyou.;"(HealsomadeapointthatshouldbeverycompellingtocontentcreatorsintheroomaboutthedifferencebetweenthetraditionalTVpilotmodelandthe"straighttoseries"/"HouseofCards"model.Heimpliedthattherewouldnaturallybeadifferentproductattheendofthesetwoprocessesbytheveryfactofhowtheyoperateandstriveforsuccess.Netflixgreenlightsapproximately13episodesatonce,releasingthematthesametime,trustingthattheaudienceisgoingtoallowthestorytoplayout.Inthetraditionalmodel,networksorderabout100pilotsa
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season,airaboutathirdofthem,anddecidewhattheywillsendtoseriesbasedonthereactiontomoreorlessoneblockof22or44minutes.
Thefullseasonapproachallowsforandrecognizesthatitcanbeaffordedmorepatiencefromtheaudience.Meanwhileinthenetworkmodel,makersofTVpilotshavetodescribeeverythingthat'satstake,defineallofthecharactersandtheirmotivations,andwowandcliffhangertheirwaytoapositiveresponsefromexecsandfocusgroupsinlessthananhour.Spaceytalksabouthowfocusgroupsalmosttanked"HouseofBlues"forallthewonderfulcharacteristicsthatmadeitsouniqueandspecial,anddrawsourattentiontohowboth"TheSopranos"and"Seinfeld"developedaudiencesover4or5seasonsbeforereachingtheirpeak.Sometimescontentneedstimetoconnectwithitscoreaudience.AndsometimesthatmightnotevenhappenitafilmorTVseries'primarywindow.Attherecentseasonpremiereofseason5.2of"BreakingBad,"theaccumulatedaudiencefromtheseriespickingupspeedonotherplatforms-ringinginthehighestratingstodate-wascalled"TheNetflixEffect.
Peoplearewatchingthingsoutoftime,ondemand,andthatveryfactisalsogivingthecontentmoreofachance.Mostoftheplatformsshowingcontentoutoftimearecreatingoriginalseries,butthepointisthedatasetishelpingthemdoitinpotentiallymoreeffectiveways,andalsohelpingaudiencesconnectwiththem,payingdividendsbacktothecreativeprocess.OfcourseweknowthatbothNetflixandthenetworkshavedata.Butthetypesofdatatheyhaveareverydifferent.OverthepastdecadeNetflixhasdevelopedamuchmorecomplexdatasetforfilmandtelevisioncontentviewing.TheyknoweverythingyouandIhaveorderedsincethedaywebecamesubscribers.Theyknowifyouconsistentlyratecontentfromdifferentgenres,ifyou'rewatching"Breasts:ADocumentary"inthemiddleoftheafternoontheyevenknowifyouarecheatingonyourspouse-Haveyouseenthoseads?
Icanseetheengineerwhowaspuzzledatthebehaviorofallofthesehouseholdswatchingepisodestwice.Probablyrightatthebeginningofabinge,andintuitingthatitmeantsomeoneinthehouseholdcouldn'twaittogetfurtheraheadintotheirfavoriteseriessotheycommittedNetflixAdultery.Networksdon'thavedataatsuchasophisticatedlevel.Theydon'thavetheabilitytoseealloftheseriesthatyou'rewatching,theycan'tfollowwhatyourewatchingonyourofficecomputer,andtheydefinitelydon'thaveinsightintowhatseriesyouarepassionateabout,evidencedbyaweekendofbingewatching,willingnesstositthroughanepisodetwicetokeepyourmarriagealive,orwhetheryougiveaseriesoffilma2ora5starviewerrating.Theideahereisthataccesstodataisnotenough.Moreso,it'sthecomplexityofthatdataandtheabilityto
relateittodataaboutothercontentthatwillultimatelyallowcreativeslikemanyofyouinthisroomtheopportunitytomakebettercontent.Andrelateitacrossplatforms.Soifthisisameanstorichercontentandmoreengagedaudiences,wherearewewithgainingaccessandanalysisofthisdata?Whilewehaveinsightintosomeofthedata,thereportinghasn'tevolvedwiththerapidlyincreasingviewershippatterns.Thereisstillnouniformreportingsystemthataggregatesalldataon,say,afilmordocumentaryacrossalloftheplatforms.
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Here'sabriefprimeronhowhomeviewinghasbeentraditionallymeasured:Attheoutsetofhomeviewing,
theadsupportedmodeltookholdanditwaspartoftheinstitutionalizedNielsensystemwhatweallknowasthebarometerbywhichadsaresoldandseriesarejudged.AstheVHSandDVDcametobear,viewershiptrackingadaptedtoincludeDVDrentalandsales.WithaRentraksubscriptionyoucanpullupmostofthemarketonaDVD(asidefromWal-Martinsomecases),butoverallthesystemisanaccuratemeasurementtool.Butasweallknow,homeviewinghasshiftedfromanadsupportedmodeltooneofdigitaltransactionsandsubscriptionviewing.Thereisnoratingsequivalentinthisspace,notitle-specifictrackingsystemavailabletoalldatasubscribersabout"ondemand."CableVODviewershipistrackedandIhavesomenumberstoshareonthatinaminute.Butforthemomentthisspaceisequivalenttoalandfillinanearthquake-allthepatternsgohaywire.We-asthesubscriberstothedata-can'ttrackperformanceacrossmediaatevenatitlelevelwhenitcomestothecableVODplatform.
Weareabletogetdataonourtitlesifwearethenetworkordistributioncompany,butthedataisnottransparentlikeNielsenorRentraksdataacrosstheindustry.Wehaveexperiencedtheday-and-dateboom(startingin2007)andbusttoindependentfilmandstillwehavenosystemofreporting.Ifyou'reluckyenoughtobeontheothersideofamovie'srelease,youmayhavesomeadditionaldata--theaccountingstatementcanbeaheftytoolintothisfuzzyworld.Butinmanyways,informationactuallygetsevenmoreconfusingandfrustratingbecausethedata-whattherevenuesarefromvariousplatformsandwindowsduringwhichyourfilmhasbeenexploited-arelumpedimperceptiblytogetherintoafewseeminglysimplecategoriesthataren'ttellingusenough.Wedon'tknowifmorepeopleboughtafilmat$2.99vs.$12.99,wedon'tknowiftheyloveditsomuchthathadtoownadigitalcopyoriftheyjustwerehappytostreamit.Andwedon'tknowifitover-indexedon
iTuneslike"ConanO'BrienCan'tStop"and"Marley";orfoundmoreofanaudienceoncableVODlikemaybe"JoanRivers";orwhetheritranamoreorlessconsistentaudience,evergreenonHululike,say,"SuperSizeMe."Iamnotcitingactualperformancesheremaybemakingeducatedguessesbutthatsexactlyit.Icanstillonlyguess.Ifwecouldmakeeventhesimplestofconnections,wecouldlearnthings.Butofcourse,theplatformsarelearning,andthescariestpartofallisthattheyarelearninghowmuchtopayforourcontent.Ithinkoneofthereasonswhythislackofreportinggetslittleattentionisbecauseifyoulookatthedigitalspaceingeneral--andbythatI'mprimarilyreferringtotheweb--themetricsbusinessispresumablythriving.
DozensofinformationsystemslikecomScore,MassRelevance,Googleanalytics,Klout,ContentIDandZEFRhavecroppedupthatliterallymeasureeveryclickofonlineactivity-onlineorfan-andeveryshadeofgrayofrelevanceamongtaste-makers.Butwhencomparingthesetoolstowhatisavailableonthe"ondemand"platformswe'rediscussingtoday,theblackholesarereallyoverwhelming.Let'stakealookatthem:
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VOD:AlmosthalfthecountryiswatchingVODviacable.8.9Btransactionsin2012,78%ofwhichwere"Free
OnDemand"(FOD),19%were"SubscriptionOnDemand"(SVOD),and3%were"TransactionalOnDemand"(TOD).*Notsurprisingly,amongFODcontent,the"TVEntertainment"categoryistheleaderwithover2.3Btransactionsand1.3Bhoursofviewingin2012.Theavailabilityofmorelong-formcontentisdrivingthecategoriesgrowth.*ExtendingtheIP'svalueviaFOD...The"TVEntertainment"categoryreaches30%ofcumetransactionsbyDay3,50%byDay7,and72%byDay15.Inotherwords,asignificantamountofviewingishappeningbeyond7days,whichmeansthereisanopportunitytomonetizecontentwellbeyondthe"7-daywindow."
AmongthethreeSVODPROVIDERS,weseealotofactivityonamonthlypaymodel.*NETFLIXhas37.6MGlobalstreamingsubs,*HULUPLUS-4.0Msubscribers,availableonmorethan350Mmobile/connecteddevices.*AMAZONPRIME,10.0Msubscribers,andsoon.In2012,PRIMEmembersaccountedforroughly4%ofAMAZON's182Mactivecustomerbase,buttheyaccountedfornearly10%ofpurchasesandtheyspendtwiceasmuchasnon-primecustomersontheplatform,$1,224vs.$505peryear.iTunesisalittledifferent,it'saTRANSACTIONALplatformbutpracticallyubiquitous,andsomeofthoseVODnumbersonyouraccountingstatementsarecomingfromrentalontheplatform.Apple'siTunesmusicstoreisnowhometo577Musers,addingnearlyhalf-millionnewaccountseveryday.
Atitscurrentrate,Applewilladdanother100MiTunesaccountsbytheendof2013,andhaveservedupover15BILLIONmediadownloads.ButyouandIdon'tknowanythingaboutthembeyondwhattheanalyststellusinaggregateorwhatAppleorAmazonchoosestoreveal.AndthatisaLOTofvaluableinformationthatwearemissingouton.Consumerbehaviorvariesgreatlyacrosstheseplatformsandismeasurableagainstentirelydifferentthings.Atthemoment,cableVODhasvirtuallynouserexperience,noalgorithmofferingmoremoviessimilartothoseyouhavewatchedorpaidfor,nometadata-itis,aspeoplelament,analphabeticallistoftitles"foldered"intoagrowingnumberofcategories.Toputitmildly,discoverabilityisabitch.Now,ofcoursethecablecompaniesareworkingonthisbecause
theytoowouldlovetobeabletoserveupmoretransactionsbytitlethan3%oftheoverallusageontheplatform.Andbelieveme,businesswillgrowwhendiscoverabilitygetsbetter.Bycomparison,Netflixallowsyouandyourhouseholdtocurateyourowncontentlibrary,Amazoncancorrelatefilmrecommendationstothingsyoupurchaseandread.Oh,anditcontrolstheInternetMovieDatabasewhichisasleepinggiantofafilmnetwork.AndiTuneshasatonofinformationonpricesensitivityaroundcontent.Thefactthatthisdataexistsandwestillcan'tseeitorcross-referenceitacrossdifferentfilmsistrulyan
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oversightwhosetimehascometobear.
Wecan'thaveanyleverageinamarketifwedon'thaveaccesstothisinformation.Simplystated,theplayerthatcontrolstheinformationhastheupperhandinadeal.We'remissingoutonopportunitieshere.Transparencybreedsefficiency-itshowswhat'sworking,whatisn't.Whatprograms,genres,nights,talent,themesaregeneratingaudienceinterest.Whereaudiencesare,goaftertheywatch,towhomtheytweetandpostandshare.Consumersshouldwantthisbecauserightnowthestudiosareonlyrelyingontheirowndata,makingforpoorlyresearchedgreenlightdecisions.Studiosshouldwantthisbecausetheywillbeabletoaccesstheircompetitors'dataaswellastheirown.Andthedatacompaniesshouldwantthisbecauseitwillmaintaintheirrelevanceandhenceincreasetheirrevenueinthisnewcontentecosystem.Thetechnologyexists,butperhapsthewilldoesnot.Rightnowhugedealsarebeingstructuredbetween
theseplatformsandthestudios.Librariesofcontentarebeingturnedover,andsofartomyknowledge,nodealhasincludedtherightstoseedetailedconsumptionandviewershipdataonamassreportinglevelthatcanbecross-referenced.Idon'tthinkanyonewantstodiminishthehugeexpenditure,bothfinanciallyandintellectually,thattheseplatformshavespenttocreatetheirproductsandalgorithms,andgatherallthisconsumerinformationthathelpsthemgrowtheirbusinesses.Butitseemsunfairthatthepeoplewhoarecreatingthiscontentareboxedoutoflearningabouttheirownaudiences.Andforfilmmakerslikeyouthiscanbemaddening,consideringthateveryfestivalpanelfeaturesexecslikemetellingyouto"knowyouraudience."Youhavethepowertotrackaudiencesthroughsocialmedia,askfortheiremails,encouragethemtotelltheir
friendsaboutyourprojectandultimatelytapintotheirnetworks.Now,thiswhereIenvisiontheutopianfuturethatIhavetobelievewilleventuallybecomeareality.Imaginewewillonedaytrackafilm'saudiencefromtheveryfirstpointofdiscovery-sayhereatTIFF.Wewillfollowitthroughtheaters,gainingaudiences,andemails-pickupwhowatchedthetraileronvariouswebsites.Whoboughtaticket,thenvoted5starsonsomeappthatknowstheyleftthetheaterandthentweetedaboutit,causinganadditional25peopletoseethefilmthenextday.Followthispatternthroughexhibition,VOD,alltheotherplatformsanddistributionwindows...orreachbackperhapstothefilm'scrowd-fundingcampaignanddiscernwhothefilm'smostinfluentialevangelistswere.Andthenusethisdatatocross-referenceitagainstotherfilmswitheithersimilarorentirelydifferentcharacteristicstouncoverwhataudiencesarerespondingto.
Idon'tthinkmyutopianfutureisveryfaroff.Andfordocs,verymuchthebeneficiaryofthesenewtechnologies,thepresentisbright.ThatsameweektheAcxiomandSpaceynewshit,TheEconomistpublishedthisarticleabouttheriseofdocumentaryfilmsintheUK.OnepointyouwillfindparticularlyinterestingandthatmanyofyouIamsurehaveread,isthatNetflixisnowproducingdocumentariesasitmovesfurtherintooriginalcontent.
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ButthearticlemoreoverisaboutthenewhealthinthedocumentaryspaceinthiscaseintheUK.Thegenrehasbeenmakingbettercontenta"newbreedoftheatrically-minded,morecommerciallyviable
documentariesandthenumbers,atleastintheUK,aregrowing.SoIwonderedaboutthenumbersinNorthAmerica,andsoIdidalittledigging.Thenumbersaregrowingyearoveryearhereaswell.Onetheoryisthatday-and-datereleasesarebringingalargenumberofdocsandfilmsingeneralintoasmallnumberoftheatersforabrieftimetocreateawarenessforamulti-platformrelease.Butnonetheless,weareontheriseandsinceweknowdocsdosowellonalltheseplatforms,nowallweneedisthedataandwehaveaperfectsystem.SohowcouldweengenderthisUtopiaevenmore?BookshaveISBNnumbers,everysingleproductwepurchasehasaUPCcodeorsomesortoftrackingsystemassociatedwithit.Sowhythebleephasn'tthemoviebusinessbeenabletocomeupwithsomesortof
equivalent?Whyisn'ttheresomesortofuniversalcodeorcontentwatermarkthatfollowstheshelflifeofafilmandprovidesuswithvaluableinformationalongtheway?Wellthatwouldmeanthateverymovieevermadewouldhavetobecataloged.AHerculeantasktosaytheleast,muchlikemappingtheentirehumangenomeoreverystreetcornerontheplanet(hint:Google),orcatalogingeverybookeverputintoprintor...somethingascompletelyinsurmountableasthat...Sowhatcanwedountiltheimpossiblebecomespossible?CROWDFUND:onsiteslikeKickstarterandIndieGogo,youcanengagedirectlywithsuperpassionateearlyadoptersor"alphaaudiences,gettheiremailaddresses,bringthemonasevangelists.KEEPTHEMENGAGEDandwatchyoursocialfootprintgrow.
USENEWPLATFORMS.HELPIMPROVEUSERINTERFACE.Cablepromisestoimprovebeyondthealphabeticallist,butlookatVHXandChillandseewhatthefutureshouldbe.CONTROLYOURMETADATA,INPUTITSOMEWHERE.EVERYWHERE.SHAREINFORMATION.CreateaWikipediaofreportinguntilsuchtimewehaveauniformreportingandmetricssystem.AndsomeoneinventtheUniversalcontentSKUplease.Ifyouareamemberofaguild,thinklongandhardaboutthenegotiationscomingupin2014.Manyofthebig
platformsthatcontrolalotofyouraudiencearenotatthetableanddon'thaveauniformcontractwiththestudios.Thisnear-futuretransparencycouldhaveawatershedmomentinthosenegotiationswheremonetizationofnewmediaislikelytorearitsheadagainasahot-buttonissue.Youcanstarthavinganimpactonthemetadatarightnow,hereatthefilmfestival.AskyourfestivalcoordinatorwhatyoucanlearnfromthebehavioroftheaudiencehereandontheTIFFwebsite.Findouthowmanytrailerviewsyouhaveandshareshareshare.Allofthisinformationshouldbepartoftheconversation.
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Hollywoodiswoefullybehindbutwithalittleingenuityandpassionfromallofyou,wecancatchupandeventuallysurpassthepresentreality.Iamveryoptimisticanddeeplybelieveinthepossibilityofaclear,
transparentreportingmodelthatgivesusvisibilityintoeverything.Onethatmakesusallsmarterandbetteratmakingmovies,freesuptheartist,andcreatesmoreengagedmoviegoerswhoareeagertosupportfreshvoices.Iamhappytohavealittle,buthopeIdonthavetohavetoomuchpatience.COMMENTS
RUTHSAUNDERS|SEPTEMBER13,20132:11AMREPLYISAN(InternationalStandardAudiovisualNumber)isavoluntarynumberingsystemandmetadataschemafortheuniqueandpersistentidentificationofanyaudiovisualworksandversionsthereofincludingfilms,shorts,documentaries,televisionprograms,sportsevents,advertising,etc.
DANMIRVISH|SEPTEMBER11,20133:26PMREPLY
Verynicepiece,Liesl,andyouraiseexcellentpoints.Butlackoftransparencyisonlyproblematicifthere'sanexpectationofmakingmoney.Ifyouassumefromthestartthatyouwon'tmakeanymoney,thenitdoesn'tmatter.AnOscar-nominateddirectorfriendaskedmeyesterday:Wouldn'titmakemoresenseforaninvestortojustgivetoatax-deductibleentitythaninvestinthecharadethatthey'llmaketheirmoneyback?ThisspeaksdirectlytomypieceinIndiewireandHuffPostafewmonthsagothatcrowd-fundingisfundamentallychangingtheparadigmofhowwegetandcontributetofilms:froman"investment"paradigm(thatwe'vehadforthelast100years)toa"donation"one.Ifyouthinkoffilmasanartform(likeopera,symphony,publicradio,oranythingelsewithtotebagsandmugsasperks),thenyoucanquitworryingaboutcraplikevolumetrics,datacurrencyandanalyticblackholes.Embracethefactthatyou'regoingtogetscrewedonthebackend.Foryearswe'vetreatedfilmsas"don'tprofits";nowweneedstartthinkingofthemas"non-profits".
TEDHOPE|SEPTEMBER12,201311:48AMDan,therecanbemanyfinancemodels,andtherecertainlyisaplacefornot-for-profitfilmfinance.Andfranklynotjustaplace,butarealneed.AsAmericaiscurrentlyvirtuallyfullyamarket-basedentertainmenteconomy,weneedneednonprofitfundingtodiversethecreatorbaseaswellasthestyleandcontent.Thatsaid,itispreciselythemarketfocusthathasmadetheUSthemostdiversifiedfilmculturethereis.Tomethepoint,wenowhavetheopportunitytodiversifythefundingmodelssignificantlyandwiththatweallwillbenefit--audiences,creators,andentrepreneurs.