Original Content, Here Comes YouTube

Aww shucks.  Just when I thought we had the major online players figured out, here comes internet video behemoth YouTube throwing a curveball.  Friday, YouTube announced they’re launching up to 100 new channels featuring artists and pop culture icons such as Madonna, Ashton Kutcher, Shaquille O’Neal (The Comedy Shaq Network), Lance Armstrong, Jay Z and more.  This will be original content made for YouTube.  They start rolling out in November and will continue to grow/decline based on success.  Robert Kyncl, Global Head of Content Partnerships made the announcement via the YouTube blog on the 28th. A full list of partners can be found here at PaidContent.

Here’s my take – What makes this significant is the fact that you can view YouTube videos on just about every device known to man.  Wider distribution means more eyeballs (theoretically anyway).  And for now, let’s face it – you still can’t watch HBO on a Blackberry.  It remains to be seen if the same people that will watch a stupid kitten do cute things will tune in to watch professionally produced content.  YouTube’s distribution and pockets are deep so I’ll be watching closely how the whole thing pans out.

STUDY: 32% of Netflix Streaming Users are More Likely to Downgrade their Pay TV Services

A follow-up study of Netflix Streaming subscribers by The Diffusion Group shows that 32% of streaming consumers would be willing to downgrade their Pay TV services and just use their Netflix Watch Instantly option as a way to watch TV programming.   The original study that was undertaken in 2010 showed a mere 16% of Netflix “streamers” were willing to make a move.  That’s a 50% increase in just a year.  There is that word again… “Cord-cutting.”

It’s interesting to note that TDG only interviewed Netflix subscribers.  There are other services out there (like Hulu, Amazon Instant Video, etc), so this number may not be indicative of the overall sentiment towards Pay TV services.  Not to mention, many Netflix subscribers do not even use the streaming services for any number of different reasons; whether it be their internet connection itself, poor video display capabilities or just overall lack of tech-savvy consumers.

The study also showed that the current economic situation also played into the willingness to cord-cut.  The $7.99/mo. subscriber fees are night-and-day when compared to the cost of subscribing to Premium channel TV services like HBO, Starz and Showtime.  As a result, expect to see these Premium channels dramatically increase their license fee demands to Netflix and other SVOD platforms.  Some of the cable providers have already made a move toward starting their own SVOD platform (see HBO GO), and maybe soon they’ll take a step back and not sell their content to SVOD platforms like Netflix or Hulu at all.

Regardless of who they surveyed, one glaring fact remains – consumers are starting to realize the benefits of online SVOD for the amount of readily available content.  As more and more TVs and set-top boxes are becoming internet-ready, and the younger tech-savvy generation gets even savvier, expect to see the trend in cord-cutting continue – but don’t expect to see the Cable Providers and Premium Channels standby and watch.

Read the FULL PRESS RELEASE BY TDG 

STREAMING DEAL: Miramax and Hulu

Word was released yesterday that streaming powerhouse Hulu, owned by  News Corp., Comcast and The Walt Disney Co., had signed a deal to stream hundreds of catalog films from Miramax.  The films will appear both on the Free VOD side (on a rotational basis) and their subscription based Hulu Plus service.

The deal itself is not surprising – Miramax recently announced a similar deal agreement Netflix (see that story HERE), and we may start to see more content owners move in the direction of licensing bigger films to platforms that have shown that they can make it very profitable for both parties involved.  Additionally, it has been no secret that Miramax has been trying to turn a profit on their huge catalog of over 700 films – and I would guess this isn’t the last we’ve heard of Miramax signing non-exclusive deals with streaming platforms.

Hulu is currently charging $7.99/mo. for their streaming service which recently became accessible through xBox and many other platforms.

Knowing what they’re up against, cable/internet providers like Comcast and Time Warner are more than likely a short time away from announcing their own platforms to combat the success of Netflix and Hulu and potentially the subsequent cord-cutting by the end consumer.

Better later than never: Comcast announced their plans for “Xcalibur” via their blog last week.  Here is an excerpt in their own words: “…the goal is to take everything we’ve learned from the web and tablets and bring it right back to your TV screen.”

Needless to say, it will be an interesting next couple of months.

Netflix and Miramax Streaming Deal

Subscription Video on Demand powerhouse Netflix has inked a multi-year deal with Miramax.  The deal would cover hundreds of catalog titles from Miramax that would be available to “watch instantly” on their computers, tablets, TV and mobile devices.  Although the financials and exact terms of the agreements have not been revealed, one would have to imagine that Netflix paid a pretty penny to license the catalog of films – titles that include Bad Santa, the Scream franchise, Good Will Hunting, Pulp Fiction, The English Patient, Shakespeare in Love and Kill Bill, among others.  Though unconfirmed, it has been reported that the deal was for at least 5 years and worth more than $100 Million by the Wall Street Journal.

Virgil Films and Morgan Spurlock to Release ‘How to Fold a Flag’

IRAQ AND AFGHANISTAN VETERANS OF AMERICA (IAVA) WILL PARTNER IN RELEASE EFFORTS OF THE FILM ON ALL DIGITAL PLATFORMS UNDER THE “MORGAN SPURLOCK PRESENTS” LABEL IN CONJUNCTION WITH MEMORIAL DAY

MAY 6, 2011   Academy Award® nominated filmmaker Morgan Spurlock once again partners with Virgil Films to release the feature documentary “HOW TO FOLD A FLAG – A film by Petra Epperlein and Michael Tucker” under the “Morgan Spurlock Presents” brand label.  The film, which chronicles the disparate homecomings of four Iraq war veterans, will be distributed on digital platforms simultaneously beginning May 23, just in time for Memorial Day Weekend.

HOW TO FOLD A FLAG will benefit from a first time ever all digital premiere and will be available to watch instantly streaming from Netflix and via Video on Demand (VOD) via iTunes, Hulu.com and the Hulu Plus subscription service, VUDU, CinemaNow, and Amazon Instant Video along with cable VOD providers iNDemand and TVN.  In addition, a DVD release is scheduled for June 14, 2011.

Five years after filming the now classic Iraq War film GUNNER PALACE, directors Michael Tucker and Petra Epperlein turn their focus on America in HOW TO FOLD A FLAG.  They follow the same soldiers home to America, as each struggles to define their wartime experience in a country largely indifferent to their service.

In North Carolina, Javorn Drummond works at a hog processing plant at night while he finishes his college degree on a dwindling GI Bill.  In New York state, Jon Powers returns to his rustbelt hometown and decides to make a run for Congress.  Out in Colorado, Stuart Wilf, the unit’s class clown, tries to resume the life he had before the war, while moving between low-wage jobs and comforting his mother who is preparing to send another son to war.  Down in Texas, Michael Goss, a career soldier who was unjustly discharged from the Army after two tours in Iraq due to PTSD, seeks redemption in the arena as a cage fighter. And In the Pacific Northwest, the Colgan family, whose son Ben was the first Gunner killed in Baghdad, quietly keep the memory of their son alive while the 2008 Presidential Election loudly unfurls.  They went to war as a unit, but came home alone.

“HOW TO FOLD A FLAG is a film that resonated with me from the moment I first saw it,” says Morgan Spurlock.  “For us to be able to release such an important and powerful movie with Virgil Films across all digital platforms is exactly what we’ve wanted to do with this label from the beginning.  Distribution models for indie films and documentaries such as this one are continually changing.  This film is incredibly timely, and our goal is to reach the widest audience possible with this structure.  Partnering with the digital streaming output entities, the On Demand providers, the DVD retailers, and with IAVA to help with marketing will hopefully deliver this film directly to an audience that wouldn’t have seen it or otherwise been aware of it.  Traditional theatrical releases don’t always work for every film, and we are using all avenues that are available to us to distribute this amazing documentary.  No other films have taken this direct all digital release platform before.”

“HOW TO FOLD A FLAG not only pays tribute to our fighting soldiers, but it also is a plea for help to the very same people we pay tribute to,” says Joe Amodei, CEO and Founder of Virgil Films.  “Following on the heels of our successful release of RESTREPO, we wanted to continue to bring to American audiences important stories about our soldiers that need to be told.  We will forever be in their debt and HOW TO FOLD A FLAG is just one more way of paying tribute to them.  When I saw this film at the premiere, I was so moved and had to be part of its release.”

Virgil Films is partnering directly with the war veterans organization Iraq and Afghanistan Veterans of America (IAVA) to help spread the word about the film and the problems our soldiers face when they get home.

“HOW TO FOLD A FLAG is the moving profile of a generation of veterans whose homecoming stories have yet to be told,” said Paul Rieckhoff, Founder and Executive Director of IAVA.  “While Americans increasingly pay less attention to the wars in Iraq and Afghanistan, Tucker and Epperlein remind us that these conflicts are far from over.  Their story shows us that the challenges facing the 2.2 million men and women who have served since 9/11 will continue playing out on the home front for decades to come.  IAVA is proud to participate in the film’s release.”

“Eight years after arriving in Baghdad to film GUNNER PALACE–a time when news from Iraq was daily news–the public’s awareness of the realities of combat and its aftermath are at an all-time low,” says Michael Tucker, co-director.  “We are thrilled to be working with Virgil Films and Morgan Spurlock to help bring the experiences of our veterans back to the forefront of our national dialogue this Memorial Day.  America has asked much of our military; all our veterans ask is that we listen.”

For more information on MORGAN SPURLOCK’S PRESENTS “HOW TO FOLD A FLAG – A FILM BY MICHAEL TUCKER AND PETRA EPPERLEIN visit: www.virgilfilmsent.com.

Other films from the MORGAN SPURLOCK PRESENTS label include “CONFESSIONS OF A SUPER HERO”; “CLASS ACT”; and “CHALK.”