Anything Goes : Will the internet over take major production companies? by Richard Marks

Now this is an interesting topic.

Over the years the majors have lost a lot of clout and the networks are buying up every cable channels they can, just to stay in control. With faster and faster bandwidth, standard cable and satellite will continue to lose ground. Digital means no film or developing, not to mention you can edit your movie on your desk at home. The cost of really low budget has been cut by more then 50% along with control of the products that enter the market.

I believe we will eventually see the big production companies do more projects that will use the internet better. For example same day releases on the internet as in the theatre's (like some companies sometimes do currently). I don't think the internet will overtake the "majors" any other way because some people don't really give internet only shows/films a chance. But as I said above I think the "majors" will slowly use the internet as a better distribution tool then they currently do, albeit at a snails pace.

We pretty much have that now with the PPV's that run the same day or even a week before a picture is released. Right now the webisodes are doing nice business with the younger groups. My point is that in the next few years small productions will be made by small groups of talent without much money and without the usual big distribution brokers being involved. For years at ICG board meetings, I was saying we need to help our members do there own productions, so we wouldnt need to depend of the producers to feed our families. Dont get me wrong, major money will always control a segment of the industry, but as costs lessen and small groups of talented writers, actors and techs get together and be willing to work for little money and a lot of sweat equity, we the people will be able to control more of the production and our lives.

Richard I also agree with your contention.

I have watched a few things that were released the same day as in theatre's. Red State and Tucker & Dale vs Evil are the two that spring to mind though I have seen a couple others that way. But it is the bigger studios/distributors that do that. The ones I have watched have been from Magnolia or Lionsgate (though it can be argued Lionsgate is a major player). I still don't think the internet will overtake the major companies, but do believe the majors will eventually come to the internet. The main reason I don't think creators will overtake the majors via the internet is because of the inability to monetize it in a way to be able to keep making and distributing content. Their are services that help with this such a Vudu and some people do make money to keep their content coming... but that is uncommon. The internet is great for promotion, getting your content out fast to everyone at once but beyond that not so much. Unless someone can perfect a formula to get people what they want while making the studio/creators make money/allow them to break even. I hope someone figures out a way to do this because I personally, enjoy several internet only shows and short films I have only found distributed on the internet. We (G33k L1f3) are trying to figure out how to do it correctly here as we slowly get into more distribution with creator owned properties.

Agreed, the cost of a camera is coming down and what used to be 25k for an edit bay can be had for 5000. The challenge is not the overhead. As people will always want their name brand stars on the most part....The challenge is the piracy. If a small guy puts his or her stuff on the net it is passed around, embeded, etc. So even the ad sense is dwindled. The VOD's and players like Silverlite are only so secure. With a screen recorder, your movie is now been d.loaded, which was not intended to be. Like a Patent, you scrape together 10k for the patent you need 250k to protect it. It is a real challenge to play/compete with the big-boys, or to think that they will even feel the rub of the Indy. If there were a platform to protect the artist, that brings an organized, content safe, quality platform for Indy's then the big studio may feel the rub of not getting to 'cherry-pick' quality scripts for a song. Other then that? Wait and see

If most of your future viewing comes through the internet, how will cable networks differ from internet networks?

Most of you are talking about features, but regular TV is watched daily, so consider your favorite series not being from a major.

Chris, what happens to the standard form of production and even more, what happens to unions and guys like myself who lived under that form of production?

No.

IMHO, if they wanted to get rid of unions they could have done it along time ago. There are reasons the IATSE and Teamsters are still going strong, Question is how will these unions and majors fair when small productions start making big money?

Unions are like discussing religion or politics. SO on that note....To your question about net vs cable. They are as stated by Chris J; "One in the same" You will see small bills passed in the middle of the night, trying to leverage porn and piracy as a 'soap box' for censoring what a ISP will stream. TW will not be able to allow a stream of a show that is contracted with Verizon without consideration. Who suffers? The Creator and the audience. As sure as those incharge care only of money and not your well being. The hackers such as myself will go around the block when applicable, yet the masses will not be privy. Commercials go where the action is.... With the net, the #'s are almost instant. Where there is money you will find action. Those shows do not care who pays them as long as they get paid. Be it net, cable, or network (antenna)

New paradigm: Many cities and areas are moving to open WiFi, if for no other reason, then it brings in business and tax revenue. The ISP's are lobbying like mad to keep it away, but that's only a delaying tactic. What happens when high bandwidth hits most of the major TV markets and everything is open?

without reading all of the comments - my thoughts when the internet is hooked up to television pretty much universally, it won't replace, but enhance, many networks. people will have more TV & movie choices available. a few really good filmmakers may arise from this. but, your TV screen will never replace the big screen. companies that fight change will die. companies that embrace it will thrive. indie filmmakers can be seen on the internet. that only matters if they MAKE GOOD FILMS/content. or, at least make films that an audience will want to see. we need to make movies that people will gladly pay to see and tell their friends about. until that happens, we're not going to replace the studios who put $100 million into a film, make something entertaining, and market the hell out of it. if you want the internet to make a huge difference, make films worth seeing. but, I don't think the big studios are going to die because of the internet. they may die, and the internet may have some small influence. but, it won't be because of the internet. it will be because the big studios fight change. if they embrace it, they'll thrive.

Amazon, yes them, have developed a website for producing films from their selected screenplays.

I think the question needs a little refinement. I’m a small time writer/producer in a modest market well removed from Hollywood’s influence: I produce shorts. The majors are neither my competition – nor I theirs. There will always be a demand for those huge tent pole blockbusters but I produce short films for less than the cost of a grip for a day on one of their productions. They’re safe from me and me from them. Recently, I purchased a copy of the 2013 Oscar winning short for $2.99 over the internet. My old school economics training tells me he’s not making any money at that rate and he can’t deposit his resulting experience and exposure in the bank. Of course the internet will overtake the film viewing market in numbers but whether that results in viable economic support for small time film companies or the eventual disintegration of the majors remains to be seen – it’s in the economics. At this point, we don’t have a viable economic distribution for small time operators. I hope it evolves.

Doug, I always see a place for your productions and I see a big future for the small productions, because eventually there will be an interest for more alternative entertainment. Recently I worked for IDEAS, a state grant out of LA Valley College. The problem was that we only had enough money to do VERY limited things. What I wanted to do was and is create a specific channel, ie:server, to create on going entertainment like, webisodes and other shorts, but engaging entertainment to give students and local talent the opportunities they can afford to do for themselves. The school has a new up to date HD stage, local vendor are willing to provide equipment, facilities and education, because they know future customers would be our participants. Hollywood as we know it is constantly changing, so if we want our local Hollywood to stay ahead of the game, we MUST develop product and talent here. How do we do that? We provide education, facilities and opportunities for our talent to succeed with community support and facilities. Unfortunately, no one who can do anything about it, gets it.

Richard – I get it and I’m trying to do something about it by developing a local production company. I have time (retired), I have some award winning scripts and I have some pocket-change. Finding people who want is easy – ferreting out those few who can/will is the difficulty. I’ve an excellent Director, a top-notch Casting Director, some good Actors and one really good crew guy but no capable DP, Editor, Audio, Lighting… The talent pool out here in smallville is quite shallow but filling rapidly in some larger communities – I keep the faith.

Remember, equipment changes, fundamentals dont. No one does movies by accident. We do this because we want to, so put out your feelers everywhere and talent will simply show up. :)

Chris - In your town maybe but not so much talent in mine. I've seen a number of talented players abandon SoCal for higher ground - a few are even stopping nearby. So I keep the faith.

Great subject. One thing we know from past experience: the Internet and most new technologies disintermediate businesses. The studios will change operation or fall to newer production methods. The entire printing industry went through disintermediation with thousands of jobs lost and technologies replaced. Music has gone through a similar phase and I am betting more will come. Film and TV are starting to see some changes, even the idea of "film and TV" is a misnomer, they are no longer separate. People will consume media on the platform of their choice and the major production companies will have no choice. Simon Faris commented on "going around the block", and he gets it: consumers will do whatever it takes to consume whatever they want. Either big production companies meet their consumers or their consumers will go elsewhere. It's all just a matter of time. What does this mean for all the artists involved? Live performance will become more important precisely because it cannot be replicated and some artists will lose their jobs. Sounds engineers replaced by auto-leveling and editors replaced by auto-editing--these tools already exist in rough form and they will only get better as Moore's Law pushes their capabilities every 18 months. Those who discover and embrace new opportunities will survive, those who don't will have the foundation swept out from under them.

I'm in Phoenix. We're building a 175,000 sq ft. studio. it's a team effort. I always say, anyone can make a movie, but it takes skill to make a great movie. if you're going to spend the time and money to make a movie, you may as well make it great.

I don't think the internet will take over. For better or worse, the net will make creatives like us, more visible. Major production companies will always have the means and skills of using the net to their advantage.

Frankly, I don't care what the majors do. I'm busy in my own little puddle.

By being creative,the internet may rub shoulders with the majors but not overtake them... I don't think so.

Yes - and crush them!

So glad SOMEONE brings this up.. All we have to do is take a look at sagging movie theater returns, redundant TV programming as opposed to multi-platform, immersive entertainment and we can see easily that clinging to the past simply doesn't move us forward! And by the way, I'm seeking collaborators who agree here!

A few more points to add after reading all the comments here. By simply understanding the power of bringing story TO the audience When and WHERE it's easiest, FAR supersedes traditional delivery in EVERY way. Visual media is about ENGAGING, AFFECTING and ENTERTAINING so immersing the viewer INTO story and character can only be done via digital means and multiple platforms.. Anyone that can't see this clings to the past in my opinion.

The first Worldwide App. for Direct Broadcast to Wi-Fi Channel Platform, is about to launch with 100 Channels, each independent, like a Netflix network, ready to take Subscribers money, and Advertiser money. Over 1.8 Billion people reachable on Akamai's Video Broadcast Platform. Only $1M. per FUll Broadcast capable channel(Incl. Built out Broadcast Studio in Southern California. Beta testing is finished, and Meta-Data Rocks this platform system to keep full track of all audiences, Signups, Ads penetrations etc. ...NO NEED FOR ANYONE FROM THE MAJORS ANYMORE, EVEN TODAY!!! ..What production company, Indie etc., cannot raise $1M.??? They ALL can. Get back to me if you want your own Broad cast Channel. Ready to Broadcast Worldwide any Movie, Video, Short, Live Event, cartoon, News Broadcast etc... in 90 days. Amazing no?

WiFi channel platform? Now this is interesting. Not sure what you're seeking but if it's $1 million I doubt you'll find it in this group, LOL. Would love to see more details about this and how we might collaborate.

This is a Company called "The Grid", a friends company, and has One of the Channels up and running a Gaming Centric News Cast. This company already has Agreements to Distribute apps(free to public) in Millions of Phones(Wallmart. Sams club, , Roku etc. ... and Some will offer Overflow Advertising, Deals with Carlos Slim, and Ford etc etc... I can send you a Prezi Presentation that overviews, describing the News Broadcast to start, introduce the layout, reach of the place...p.s. $1M. is nothing these days to put togather for a group of people. But I get what you are saying for here... Robert Wilson, 1(805)317-9699 .

a million is a small amount. sounds like you have a good product. I'd like to know more. I'll message you

Most Internet Broadcast Channels being set up by Networks et al, are having $25-50 M.+ being thrown at them. Waste of money in my judgement. One of the top CERN Programers Owns, and wrote all the Codes for this Platform, and when the Beta Test occurred, they got over 100M. hits, and Sold over $2.5 M. in Merch. of an EA Gaming launch of 2 Top Gamers playing for 8 hours only ! No Glitches to speak of occurred... Yahoo has agreed to partner on the AD SALES END OF IT...! Their Projected Income stream from the Whole 100 Channel Network is quite impressive. I am working on raising about $6.5 M. to Partner with them for a 10-15% Stake in the Whole Company. RobertWilsonDesigns@gmail.com

A year later since most of us made our speculations. In that time, Google or Youtube is now opening studios with brick and mortar locations with access to R3D cams and all the state of the art editing bays and so forth. These are available free (for the time being) as they want better quality content. Not so much the subject per sey. Rather, the Codec, Sound, etc. One only needs a Youtube following of "X" amount of real Subscribers and then you have access to the studio. There is a pay split for ads, which If I recall was the same pay split as the Ad words are. SO... a year later and we now see studios with top drawer gear available. Which I am sure if an A list stars manager was approached correctly could be leveraged into getting them to shoot. Of course within Union parameters... Sorry I do not have the link, but maybe I will find it and post it IF I come across it. EDIT: Here is a studio NOW open. Not the same article I read but is infact a free studio in N.Y. Looking to launch the next Seinfeld? So on that note... can I get some help getting to 5000 subscribers? IT is free for your to sub... Please? Youtube /Netcommercial (shameless conversational spam/plug) http://www.nydailynews.com/new-york/youtube-open-professional-studio-nyc...