London 4th September 2007: The latest report from Screen Digest (www.screendigest.com) released today examines how the individual Hollywood Studios are adapting their businesses to online movie distribution. Notably, the report finds that a viable business will emerge in the US and W Europe for movie downloading, but warns that the Studios are following a fragmented path to digital distribution, with each major following a different strategy. This is likely to hamper the development of movie downloads and ultimately confuse and fragment the consumer market. The research provides detailed analysis and forecasts of the movie distribution business in the US and W Europe, and reveals that the overall winners in this market will not only be the Studios who own the content, but major device manufacturers such as Microsoft, Apple and Sony. Unique to the report entitled 'Online Movie Strategies: Competitive Review and Market Outlook' are trade level revenues and forecasts of the market for movie downloads, both rental and retail. Screen Digest predicts the market will be worth $1.3bn in 2011 in the US and W Europe combined. Of this, $720m will be generated in the US and $572m in W Europe. The majority of the revenue in 2011 will be taken by the Studios and content owners, at $530m in the US and $405m in W Europe, leaving service and solutions providers to scramble for the remaining share.
For some hardware manufacturers, selling digital movies will be used as a marketing tool to sell devices. In this highly competitive climate, the Studios are able to cash in and command high margins: Screen Digest's analysis reveals that the Studio wholesale price on movie downloads to service providers ranges from 70% to 105% of consumer price on the latest new film releases. As such, for service providers, movie downloads will become a low-margin and potentially loss-making endeavour, and only those service providers who have a strong hardware proposition and are able to absorb the cost, such as Apple, Microsoft or Sony, are likely to succeed.
According to Screen Digest, the online digital movies segment will constitute 3 per cent of all movie home entertainment revenues in the US and W Europe by 2011. This may be smaller than some observers were expecting, but is still a significant market and will bring much needed incremental revenue to the movie business as DVD growth falls away. Arash Amel, Senior Analyst and author of the report says "At Screen Digest we have re-evaluated our 2006 forecasts of the digital movie market value in response to consumer reaction to existing services. It is becoming increasingly apparent that people want to watch films they've downloaded on their large screen TVs and home entertainment systems. To do that, they need a new device, such as an Apple TV, an Xbox, a PS3 or a plain old media extender, which can link their broadband connection to the TV set. At present, there simply isn't adequate penetration of these devices – and the idea that people will en masse watch a two or three-hour movie on the PC just isn't realistic. It will take time to reach a wider market penetration with these new devices, and we believe that this will start to become more main stream beyond 2011.
In the competitive analysis section of the report, the different strategies and tactics employed by the Studios for exploiting digital movie content are compared. Unlike the introduction of the DVD, where the Studios agreed a single format and approximate business model, digital is being handled very differently. Every Studio has its own view and approach to this new era, resulting in the development of a fragmented market, which will undoubtedly hinder the future development of digital.For example, some Studios are likely to adopt a 'day and date' strategy for film release, making content available across all platforms on the same day, from the physical DVD to online downloads. Others will continue with different release dates depending on the delivery medium. As Amel concludes "How the Studios react is crucial. It's a delicate balancing act between maintaining their relationships with their highly important DVD customer base – the powerful retailers like Walmart and Tesco – whilst meeting growing consumer demand for immediate online downloads."
For more information please contact:
Screen Digest:
Fay Hamilton
PR Manager
Tel: +44 (0) 20 7424 2847
fay.hamilton@screendigest.com
Media enquiries:
Lucy Green
Tel: +44 (0) 7817 698366
lgreen@greenfieldscommunications.com
About this research
The data in this press release is taken from Screen Digest's latest report 'Online Movie Strategies: Competitive Review and Market Outlook'. The report focuses on the online distribution of digital movies in W Europe and the US, and contains detailed analysis of the strategies of the major Hollywood Studios. Comprehensive data includes consumer spending on movie downloading, as well as trade level revenues generated by content owners, together with the value of the total movie home entertainment market. The report also details the penetration of technology: including broadband connectivity, portable video device data and in-home broadband-enabled entertainment device forecast. The company profiles section of the report presents key details on eight Hollywood Studios, including the size of libraries prepared for digital distribution and a comprehensive benchmarking of service deals struck in the US and W Europe.
About Screen Digest - Global media intelligence
Screen Digest is the pre-eminent firm of industry analysts covering the global media markets. We employ a team of 30 specialist analysts covering television, broadband, mobile, home entertainment, cinema and gaming. Our online services and reports provide the information and analysis that hundreds of media companies worldwide base their decisions on.
To find out more, please contact Screen Digest sales/sales@screendigest.com
Tel: +44 (0) 20 7424 2820. www.screendigest.com
http://www.screendigest.com/reports/07onlinemoviestrat/press_releases_04_09_2007/view.html
Thursday, September 6, 2007
Article: Cartoon Network New Media Invites Kids to Rule After School with Master Control
Starting Sept. 24 kids can join interactive teams at CartoonNetwork.com where they will vote for their favorite shows; winners gain domination over the network’s after-school airwaves
Just in time to take some of the sting out of back-to-school season, Cartoon Network New Media launches the 15-week first season of Master Control on Sept. 24. Master Control is an unprecedented multiplatform initiative that gives kids control over the after-school time block on Cartoon Network and builds an engaging fan network online at CartoonNetwork.com.
As Master Control kicks off, fans can visit CartoonNetwork.com and join one of three Master Control teams. Team members can vote online for which Cartoon Network show they’d like to see air Monday through Thursday in the 5:30 p.m. program slot. The team that casts the most votes each Friday decides the entire 4:00 p.m. to 6:00 p.m. programming block for that day (all times are ET, PT).
“We are committed to delivering multiplatform activities that will spark engagement and empowerment for the Cartoon Network audience,” said Paul Condolora, senior vice president and general manager of Cartoon Network New Media. “Master Control does that and offers a Cartoon Network twist to online voting for television programming.”
Master Control teams will have home pages that serve as virtual clubhouses with themed logos in addition to branding that will carry through to network promotions and on-air bumpers.
At launch, kids can choose to join one of three Master Control teams, switching allegiances as they like throughout the season. In the spirit of fun and over-the-top adventure, the teams are:
Shadowmark: Stealthy and mysterious, Shadowmark achieves its goals by any means necessary.
Vikinators: Fiercely competitive warriors, the Vikinators never back down.
Blastadons: Elite warlocks by birthright, Blastadons wield powerful and ancient magic.
“The team home pages will serve as a rallying point for members,” said Art Roche, Cartoon Network New Media creative director. “We think kids will love the interactive element of competing against other teams. Fans really will control the destiny of everything, working together to beat their opponents from week to week.”
As the Master Control season progresses, Cartoon Network will roll out more team-themed activities and extras, culminating in a tournament-play round, the winner of which gains even more days of control over the network lineup.
About Cartoon Network New Media
Cartoon Network New Media is responsible for the production of Cartoon Network’s popular Web sites, which include CartoonNetwork.com, ToonamiJetstream.com, Awesomehouseparty.com and CartoonNetworkYa.com (the Spanish-language site for kids). These sites are some of the most popular entertainment sites in the world for kids, currently attracting an average of more than 6 million unique users each month in the U.S. (Nielsen//NetRatings). The top attraction is their roster of games, which drew more than 2 billion game plays in 2006. In addition, Cartoon Network New Media is the creative force behind Cartoon Network’s video-on-demand offerings, interactive TV and mobile offerings, which include partnerships with such major carriers as Sprint, Cingular and Verizon.
About Cartoon Network
Cartoon Network (CartoonNetwork.com), currently seen in more than 91 million U.S. homes and 160 countries around the world, is Turner Broadcasting System, Inc.’s ad-supported cable service offering the best in original, acquired and classic animated entertainment for kids and families. Overnight from 11 p.m. to 6 a.m. Monday through Saturday and 10 p.m. to 6 a.m. Sunday (ET, PT), Cartoon Network shares its channel space with Adult Swim, a late-night destination showcasing original and acquired animation for young adults 18-34.
Turner Broadcasting System, Inc., a Time Warner company, is a major producer of news and entertainment product around the world and the leading provider of programming for the basic cable industry.
CONTACTS:
Jessica Wolf MPRM Public Relations (323) 933-3399 JWolf@mprm.com
Tim DeClaire Cartoon Network (404) 575-9283 tim.declaire@turner.com
http://www.turnerinfo.com/newsitem.aspx?P=CARTOON&CID01=61c020bb-e491-44c3-838c-31f94231020f
Just in time to take some of the sting out of back-to-school season, Cartoon Network New Media launches the 15-week first season of Master Control on Sept. 24. Master Control is an unprecedented multiplatform initiative that gives kids control over the after-school time block on Cartoon Network and builds an engaging fan network online at CartoonNetwork.com.
As Master Control kicks off, fans can visit CartoonNetwork.com and join one of three Master Control teams. Team members can vote online for which Cartoon Network show they’d like to see air Monday through Thursday in the 5:30 p.m. program slot. The team that casts the most votes each Friday decides the entire 4:00 p.m. to 6:00 p.m. programming block for that day (all times are ET, PT).
“We are committed to delivering multiplatform activities that will spark engagement and empowerment for the Cartoon Network audience,” said Paul Condolora, senior vice president and general manager of Cartoon Network New Media. “Master Control does that and offers a Cartoon Network twist to online voting for television programming.”
Master Control teams will have home pages that serve as virtual clubhouses with themed logos in addition to branding that will carry through to network promotions and on-air bumpers.
At launch, kids can choose to join one of three Master Control teams, switching allegiances as they like throughout the season. In the spirit of fun and over-the-top adventure, the teams are:
Shadowmark: Stealthy and mysterious, Shadowmark achieves its goals by any means necessary.
Vikinators: Fiercely competitive warriors, the Vikinators never back down.
Blastadons: Elite warlocks by birthright, Blastadons wield powerful and ancient magic.
“The team home pages will serve as a rallying point for members,” said Art Roche, Cartoon Network New Media creative director. “We think kids will love the interactive element of competing against other teams. Fans really will control the destiny of everything, working together to beat their opponents from week to week.”
As the Master Control season progresses, Cartoon Network will roll out more team-themed activities and extras, culminating in a tournament-play round, the winner of which gains even more days of control over the network lineup.
About Cartoon Network New Media
Cartoon Network New Media is responsible for the production of Cartoon Network’s popular Web sites, which include CartoonNetwork.com, ToonamiJetstream.com, Awesomehouseparty.com and CartoonNetworkYa.com (the Spanish-language site for kids). These sites are some of the most popular entertainment sites in the world for kids, currently attracting an average of more than 6 million unique users each month in the U.S. (Nielsen//NetRatings). The top attraction is their roster of games, which drew more than 2 billion game plays in 2006. In addition, Cartoon Network New Media is the creative force behind Cartoon Network’s video-on-demand offerings, interactive TV and mobile offerings, which include partnerships with such major carriers as Sprint, Cingular and Verizon.
About Cartoon Network
Cartoon Network (CartoonNetwork.com), currently seen in more than 91 million U.S. homes and 160 countries around the world, is Turner Broadcasting System, Inc.’s ad-supported cable service offering the best in original, acquired and classic animated entertainment for kids and families. Overnight from 11 p.m. to 6 a.m. Monday through Saturday and 10 p.m. to 6 a.m. Sunday (ET, PT), Cartoon Network shares its channel space with Adult Swim, a late-night destination showcasing original and acquired animation for young adults 18-34.
Turner Broadcasting System, Inc., a Time Warner company, is a major producer of news and entertainment product around the world and the leading provider of programming for the basic cable industry.
CONTACTS:
Jessica Wolf MPRM Public Relations (323) 933-3399 JWolf@mprm.com
Tim DeClaire Cartoon Network (404) 575-9283 tim.declaire@turner.com
http://www.turnerinfo.com/newsitem.aspx?P=CARTOON&CID01=61c020bb-e491-44c3-838c-31f94231020f
Article: Is Vudu the iPod of for-Pay Internet Video?
The Internet video download market has had a rough go of it lately. With Google (GOOG) bailing on its efforts to sell shows on Google Video, Blockbuster (BBI) buying Movielink for pocket change, and even Apple’s (AAPL) video business still accounting for only a smidgen of music sales two years after its launch, it’s a wonder that some pundits aren’t saying the future of Internet video is one that is going to be entirely ad-supported.
Oh wait, they are.
Call me crazy, but I think for-pay video on the Internet has a future as well. Sure, the majority of TV shows, user-generated content and all sorts of other video will mainly be paid for using ads, but there are some types of content for which consumers will pull out their credit cards. And I’m not just talking porn and Major League Baseball.
Where I think the pay market has a particularly bright future is the movie business. After all, we all love movies, and we love watching them in our homes — regardless of how they’re delivered. And movies that get released to home video aren’t about to show up on any ad-supported streaming sites anytime soon, at least not legally.
So what will it take for the for-pay Internet video market to take off? Simply put, when it gets its iPod.
The Internet video market today is much like the digital music market pre-iPod, with lots of solutions, services, and software, none of which work particularly well together where it matters most – the delivery device. What the Internet video market needs, then, is a device that looks at home next to the TV, outputs at DVD- and eventually HD-quality, and works without headache.
Maybe it will be Apple TV. But it won’t be with this version, because for all of the advances it has brought to the connected entertainment market, this product currently has some key shortcomings, most notably the absence of both direct download and an option to rent.
So who will bring the for-pay Internet market its iPod moment? So far the most eligible product I’ve seen comes from Vudu. (Our original post on Vudu.) The box, which the Santa Clara, Calif.-based company loaned me to tinker with over the past week, does most of what I consider necessary to bring Internet video to TV in an almost entirely pain-free fashion:
* Instant, or nearly instant, streaming of movies
* A wide catalog of movies across all major studios, with enough of a back catalog to make things interesting
* The ability to rent or own
* Easy network and video connection setups
* Intuitive and engaging user interface
I started using the Xbox 360 Video Marketplace when it came out, but stopped using it after I’d downloaded the only three or four movies in the service’s small library in which I had any interest. I also found I would get bored waiting for the movie to download, something Vudu avoids by nearly instant streaming.
It’s this instant-watch capability that had me most intrigued. The folks at Vudu told me that their technology to enable streaming is based on P2P, and while I have yet to connect with their CTO to talk about the specifics, I was and still am a little skeptical about the ability to do instant streaming using P2P. But, whatever they are using, be it a CDN, P2P or pop cans and string, I found that over the course of the last week I’ve been able to select and watch shows nearly instantaneously. At times I was told my Comcast connection wasn’t fast enough (the user guide told me I needed a consistent 1.7 Mbps connection), but then within ten minutes or so it would say it was ready to watch the show. Other times it has allowed me to watch the show instantly, and the quality has been DVD quality (they say they will be rolling out HD in the future).
Vudu has yet to roll out their box at retail, and I’ll be watching very closely to see whether — once they’re in wide release — these boxes all work as well as the one I’ve been using this past week. As we all know, new services tend to have performance issues once mass rollouts happen, as we saw with Joost’s entry into wider beta. And even with the smoothness of the service’s performance, I still have problems with pretty much all Internet VOD service limited usage rights – including Vudu’s. (Why, oh why, can we only have 24 hours to watch a movie once we start it – doesn’t anyone in Hollywood fall asleep watching movies?).
For now, I’m sticking with my belief that Internet pay VOD will eventually take off, and with the release of Vudu, that could happen sooner than later.
Mike Wolf is the Director of Digital Home Research for ABI Research (www.abiresearch.com) and writes about Internet Video and other topics. He also blogs occasionally between report deadlines on Internet TV and other topics here.
http://newteevee.com/2007/09/05/is-vudu%e2%80%99s-the-ipod-of-for-pay-internet-video/#more-1996
Oh wait, they are.
Call me crazy, but I think for-pay video on the Internet has a future as well. Sure, the majority of TV shows, user-generated content and all sorts of other video will mainly be paid for using ads, but there are some types of content for which consumers will pull out their credit cards. And I’m not just talking porn and Major League Baseball.
Where I think the pay market has a particularly bright future is the movie business. After all, we all love movies, and we love watching them in our homes — regardless of how they’re delivered. And movies that get released to home video aren’t about to show up on any ad-supported streaming sites anytime soon, at least not legally.
So what will it take for the for-pay Internet video market to take off? Simply put, when it gets its iPod.
The Internet video market today is much like the digital music market pre-iPod, with lots of solutions, services, and software, none of which work particularly well together where it matters most – the delivery device. What the Internet video market needs, then, is a device that looks at home next to the TV, outputs at DVD- and eventually HD-quality, and works without headache.
Maybe it will be Apple TV. But it won’t be with this version, because for all of the advances it has brought to the connected entertainment market, this product currently has some key shortcomings, most notably the absence of both direct download and an option to rent.
So who will bring the for-pay Internet market its iPod moment? So far the most eligible product I’ve seen comes from Vudu. (Our original post on Vudu.) The box, which the Santa Clara, Calif.-based company loaned me to tinker with over the past week, does most of what I consider necessary to bring Internet video to TV in an almost entirely pain-free fashion:
* Instant, or nearly instant, streaming of movies
* A wide catalog of movies across all major studios, with enough of a back catalog to make things interesting
* The ability to rent or own
* Easy network and video connection setups
* Intuitive and engaging user interface
I started using the Xbox 360 Video Marketplace when it came out, but stopped using it after I’d downloaded the only three or four movies in the service’s small library in which I had any interest. I also found I would get bored waiting for the movie to download, something Vudu avoids by nearly instant streaming.
It’s this instant-watch capability that had me most intrigued. The folks at Vudu told me that their technology to enable streaming is based on P2P, and while I have yet to connect with their CTO to talk about the specifics, I was and still am a little skeptical about the ability to do instant streaming using P2P. But, whatever they are using, be it a CDN, P2P or pop cans and string, I found that over the course of the last week I’ve been able to select and watch shows nearly instantaneously. At times I was told my Comcast connection wasn’t fast enough (the user guide told me I needed a consistent 1.7 Mbps connection), but then within ten minutes or so it would say it was ready to watch the show. Other times it has allowed me to watch the show instantly, and the quality has been DVD quality (they say they will be rolling out HD in the future).
Vudu has yet to roll out their box at retail, and I’ll be watching very closely to see whether — once they’re in wide release — these boxes all work as well as the one I’ve been using this past week. As we all know, new services tend to have performance issues once mass rollouts happen, as we saw with Joost’s entry into wider beta. And even with the smoothness of the service’s performance, I still have problems with pretty much all Internet VOD service limited usage rights – including Vudu’s. (Why, oh why, can we only have 24 hours to watch a movie once we start it – doesn’t anyone in Hollywood fall asleep watching movies?).
For now, I’m sticking with my belief that Internet pay VOD will eventually take off, and with the release of Vudu, that could happen sooner than later.
Mike Wolf is the Director of Digital Home Research for ABI Research (www.abiresearch.com) and writes about Internet Video and other topics. He also blogs occasionally between report deadlines on Internet TV and other topics here.
http://newteevee.com/2007/09/05/is-vudu%e2%80%99s-the-ipod-of-for-pay-internet-video/#more-1996
Article: French toon export sales down
As several hundred delegates today prepared to depart TV France International's annual sales market Le Rendez-Vous in picturesque Biarritz, the organization released industry stats for 2006. They paint a less-than-rosy picture for France's largest programming export - animation. The genre's international sales were down 6.1% last year to US$58.3 million.
French animation distributors experienced significant sales drops in the UK (down 32.6%) and North America (37.6%), in particular. Latin America proved to be a bright light, with animation exports to the region shooting up by 21.6% last year. In general, TV France's year-end report cites stiff competition in the global sector as the chief reason for the downturn.
French co-productions didn't fare much better. The value of French-initiated animation co-pros dropped by 18.8%, while foreign investment in French animation was down 48.6%. However, French-majority co-pros were up by 30.4%, boosted by new financing options including regional subsidies and tax credits. In all, animation co-pros accounted for 423 hours of programming last year, bringing in US$20 million in foreign capital.
http://www.kidscreen.com/articles/daily/20070906/french.html
French animation distributors experienced significant sales drops in the UK (down 32.6%) and North America (37.6%), in particular. Latin America proved to be a bright light, with animation exports to the region shooting up by 21.6% last year. In general, TV France's year-end report cites stiff competition in the global sector as the chief reason for the downturn.
French co-productions didn't fare much better. The value of French-initiated animation co-pros dropped by 18.8%, while foreign investment in French animation was down 48.6%. However, French-majority co-pros were up by 30.4%, boosted by new financing options including regional subsidies and tax credits. In all, animation co-pros accounted for 423 hours of programming last year, bringing in US$20 million in foreign capital.
http://www.kidscreen.com/articles/daily/20070906/french.html
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