Talk 'Cinema on Demand' at Lucania Film Festival 2017

Mar 20, 20180 likes142 views

A talk by Alessandro Masi, Film & TV Business Strategist at FlexyMovies --- Digital distribution is a growing opportunity for independent filmmakers and is not threatening theatrical exhibition. Cinema consumption is evolving together with technological and sociological changes. Home entertainment is growing but is not replacing the value of theatrical exhibition, with worldwide box office growing steadily. New models such as Premium VOD to access content at home while still in theaters will be enlarging the options for cinema audiences, alongside with SVOD and TVOD in particular, while major studios are pushing for EST and shortening of distribution windows.

Talk ‘Cinema on Demand’
with Alessandro Masi
Founder & Film Business Strategist
1

The road to VOD
1895
Late ‘40s
1976
1995
1993
2007
2010
2006
2016
2017
...
1925
2

The ‘long tail’
1) Make everything available
2) Cut the price in half. Now lower it.
3) Help me find it.
"Forget squeezing
millions from a few
megahits at the top of
the charts. The future
of entertainment is in
the millions of niche
markets at the shallow
end of the bitstream.“
Chris Anderson (2004)
3

FlexyMovies is...
• Innovation, Smart Moviegoing™
– Pioneered day-and-date releases, digital VOD,
theatrical on demand
– Implemented variable movie ticket pricing system
• Market access
– International sales with presence at major film
markets and festivals
• Film Business Strategy
– Financing, marketing, distribution
4

Global VOD market size
Steady decline
of physical
home video...
Constant increase
of digital home
video, particularly
SVOD...
9

Italy: how are we doing?
Year 2016 Italy Spain France
Films Produced 224 254 283
Box Office (€, mln) 688.5 (+3.6%)* 602.4 (+4.7%) 1,387.7 (+4.2%)
Admissions Per Capita 1.9 2.2 3.2
National Share 29.1% 18.5% 35.8%
Home Entertainment: € 381.5 mln (+4%)
• Physical: € 299 mln (-10%)
• Digital: € 82.5 mln (+137%)
*No film in the top 20 of years 2008-2017 has been released between mid March and
end of September.
11

Who VODs?
The Digital film
passionate is equally
M and F, mostly 35-
44 and 45-54.
Among the under
14, M is more digital
than F.
The frequency of cinemagoing
decreases with age.
12

VOD types
• Platform: Digital (PC/SmartTV/Mobile) - Cable
/ Satellite / DTT - Game Console
• Business Model:
– PVOD: Premium VOD
– TVOD: Transactional VOD
– EST: Electronic Sell-Through
– SVOD: Subscription VOD
– FVOD / AVOD: Free / Ad-Supported VOD
– TOD: Theatrical On Demand
14

How to VOD
• Sales Agents
• National Distributors
• Aggregators (UTMW, Gravitas, Quiver, …)
• DIY Platforms (Amazon Video Direct,
CreateSpace, Distrify, IndieReign, MoPix,
PUMit, Pivotshare, QUADflix, Reelhouse, VHX,
Vimeo On Demand, ...)
15

What to VOD
Only 23% of titles
on TVOD services
(19% on SVOD) in
Europe are
European
Only 14% of titles are
released on TVOD with no
theatrical release
17

Digital Single Market
• “The Digital Single Market strategy aims to open up digital
opportunities for people and business and enhance Europe's
position as a world leader in the digital economy.”
• But in the film business everything (e.g. international co-
productions, financing, licensing) is based on territoriality...
20

Thank you!
www.flexymovies.com
E-mail: info@flexymovies.com
21

The film industry involves three main components: production, distribution, and consumption. Production is the making of films, distribution is promoting and releasing films in cinemas and home media, and consumption is audiences paying to view films. The US film industry has significant advantages over other countries due to its large domestic market and capital resources, dominating the global distribution of films. However, increased digital technologies have benefits for independent and low-budget filmmakers by enabling new forms of distribution outside the traditional system.

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Talk 'Cinema on Demand' at Lucania Film Festival 2017

1. Talk ‘Cinema on Demand’ with Alessandro Masi Founder & Film Business Strategist 1

2. The road to VOD 1895 Late ‘40s 1976 1995 1993 2007 2010 2006 2016 2017 ... 1925 2

3. The ‘long tail’ 1) Make everything available 2) Cut the price in half. Now lower it. 3) Help me find it. "Forget squeezing millions from a few megahits at the top of the charts. The future of entertainment is in the millions of niche markets at the shallow end of the bitstream.“ Chris Anderson (2004) 3

4. FlexyMovies is... • Innovation, Smart Moviegoing™ – Pioneered day-and-date releases, digital VOD, theatrical on demand – Implemented variable movie ticket pricing system • Market access – International sales with presence at major film markets and festivals • Film Business Strategy – Financing, marketing, distribution 4

5. Some of our current projects 5

6. Some other past projects... 6

7. ‘Manchester by the Sea’ 7

8. Typical film release windows 8

9. Global VOD market size Steady decline of physical home video... Constant increase of digital home video, particularly SVOD... 9

10. Netflix and festivals... 10

11. Italy: how are we doing? Year 2016 Italy Spain France Films Produced 224 254 283 Box Office (€, mln) 688.5 (+3.6%)* 602.4 (+4.7%) 1,387.7 (+4.2%) Admissions Per Capita 1.9 2.2 3.2 National Share 29.1% 18.5% 35.8% Home Entertainment: € 381.5 mln (+4%) • Physical: € 299 mln (-10%) • Digital: € 82.5 mln (+137%) *No film in the top 20 of years 2008-2017 has been released between mid March and end of September. 11

12. Who VODs? The Digital film passionate is equally M and F, mostly 35- 44 and 45-54. Among the under 14, M is more digital than F. The frequency of cinemagoing decreases with age. 12

13. VOD and markets in Europe 13

14. VOD types • Platform: Digital (PC/SmartTV/Mobile) - Cable / Satellite / DTT - Game Console • Business Model: – PVOD: Premium VOD – TVOD: Transactional VOD – EST: Electronic Sell-Through – SVOD: Subscription VOD – FVOD / AVOD: Free / Ad-Supported VOD – TOD: Theatrical On Demand 14

15. How to VOD • Sales Agents • National Distributors • Aggregators (UTMW, Gravitas, Quiver, …) • DIY Platforms (Amazon Video Direct, CreateSpace, Distrify, IndieReign, MoPix, PUMit, Pivotshare, QUADflix, Reelhouse, VHX, Vimeo On Demand, ...) 15

16. Role of Aggregators 16

17. What to VOD Only 23% of titles on TVOD services (19% on SVOD) in Europe are European Only 14% of titles are released on TVOD with no theatrical release 17

18. Scorsese’s ‘The Irishman’ 18

19. Vision Distribution: Gomorra 19

20. Digital Single Market • “The Digital Single Market strategy aims to open up digital opportunities for people and business and enhance Europe's position as a world leader in the digital economy.” • But in the film business everything (e.g. international co- productions, financing, licensing) is based on territoriality... 20

21. Thank you! www.flexymovies.com E-mail: info@flexymovies.com 21

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Talk 'Cinema on Demand' at Lucania Film Festival 2017

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