I am for any experiments that might point to the future business model for the entertainment industry. The movie and music industries are shifting there can be no doubt about it. Cnet reports an experiment that I think could have some real lessons for the future of movie marketing:

At the center of the Convex Group's plan is a low budget Christmas movie called "Noel," directed by Chazz Palminteri, that will debut in up to 10 U.S. cities on Nov. 12. On the same day, the disposable DVD can be bought for $4.99 through online retailer Amazon.com.

A little over two weeks later, the movie will air once on cable television network TNT, which Convex hopes will only spur greater ticket sales and higher revenues from the DVDs, which become unplayable 48 hours after their air-tight package is opened.

Convex is playing with the existing linear business model that wrings as much profit out of each phase of the channel from theatre to TV as possible. They are betting that by simultaneously releasing the film in multiple channels they will simply increase the available revenue pool. This is interesting and may be successful on a small scale without competing product but at scale I don't think it's integrated enough.

The DVDs should also be available on the way out of the theaters showing the film. Those who have just seen the film are the most likely customers to purchase the DVD. Goodies, extras and even alternate endings/beginnings should be added to the DVDs to further motivate sales. Even a cliff hanger resolved on the DVD could build buzz and huge sales. The bonus opportunity is the ability to load the DVD with sponsored messages and promos/trailers for upcoming releases.

The planned one time airing on cable TV could also encourage buyers to purchase the DVD from Amazon to see the ending and the extras.

The movie and music industries are scrambling to adapt from a controlled scarcity model to an uncontrolled digital world of abundance. It is the power of good stories well told that hold the answers. Studios are learning the power of story extensions like video game tie ins that put the viewer inside the story. They're slowly learning the lessons of extra features that motivate DVD sales. Some flirt with direct to video sequels.

Movie producers need to understand that they are telling a story across multiple formats and distribution channels. The real money is not in the theatrical release but in the DVD sales, Toys, Video games and the set up for future stories. The focus will shift from theatrical release as the premiere event to the theatrical release as a skillful marketing event for the additional formats channels and formats for the same story. The theatrical release will be tailored and designed to promote the purchase (or download) of the DVD and or the video game. Admittedly it's a fine line. To much a commercial and the audience will be turned off. Done skillfully the potential upside is huge.

I'm reminded of the serials of the 30s and 40s that motivated theater goers to see each weekly installment of the story.

Enough for now. I think I'll go watch my DVDs of Alias. I'm totally hooked on the story.

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Comments

[Brian]

Interesting ideas. I certainly agree the entertainment biz is ripe for new thinking. Witness Blockbuster's financial woes for the latest example of "They Just Don't Get It."

I think the 48-hour DVD might require some tweaking, though. Great idea to give it to people as they exit the theater -- it becomes a pass-along ("you've got to see this movie we saw last night!").

And FWIW, the real money is in (a) catalog -- the titles studios continue to sell day in and day out -- and (b) the "repurposed" teevee on DVD like Alias that took them all by surprise. They'll ride that wave for all it's worth.

[Crawford and Dienst]

Is there a record for sharing for how all the setup for this process was initiated and is occurring? Have a project going and this process seems credible.