Sticking with festivals and Video on Demand (see yesterdays post) some query the wisdom of festivals pursuing a distribution platform that has been around for some time and appears to some not to have fulfilled its promise. Exactly a decade ago analysts were predicting that ‘enhanced TV’ would be worth $20bn by 2004 (See The Hollywood Reporter April 28 2000). Well ten years on Screen Digest estimates global VOD revenues in 2009 to have been a more modest $2.9bn (about a fifth the size of the DVD market) and to reach $5.3bn by 2012.
However according to Screen International VOD may be on the edge of a breakthrough as DVD sales fall, the multiplication of ways in which to access VOD content – game consoles, TVs with built in web connection – and more sophisticated pricing strategies secure its place in the domestic living room. The rub here, though, is that contrary to what fans of the Long Tail might expect, ‘speciality’ films appear not to be benefiting from this democratisation of distribution channels. Why? because VOD reproduces the ‘aggregator’ role that distributors/video stores/online DVD rental outlets like LoveFilm etc. play in selecting, curating and promoting titles.
This is where Festivals could find a niche – with the potential to leverage their programming skills and ‘brand value’ in creating a VOD ‘label’ (and assuming they can do a deal with a carrier) a festival like Edinburgh could make like a ‘Metrodome/Soda/Optimum’ . (I would have included Tartan Films but sadly they went bust in 2008).
Why bother with Cable/Satellite VOD when you could do the whole thing online? Well there are a variety of reasons including anti-piracy, security of payment, the ‘installed base’ of things like hotel Pay-TV but also marketing and ‘perceived value’ advantages. In any event go-ahead festivals like Tribeca and others are trying to test out where and how they can use their market knowledge to create additional revenue streams that get the movies they love to show seen more widely.
Not content with getting a slice of the distribution action, not a few festivals – such as Adelaide and Melbourne – have also set themselves up as financier/producers. That some of their investments result in films that then premiere at their festival neatly closes the loop from production to distribution. Following that model the EIFF could become a rival to (or perhaps more accurately complement) Scottish Screen/Creative Scotland and the existing production companies…