27 Feb
Posted by David Dundas as Big Picture, Distribution, Real Deals, Technology
In 2006 video was internet-ized. People began to watch what they wanted when they wanted online. The networked screens; computer, ipod, cell phone all have become legitimate screens for people to watch shows, movies and videos. This trend is game changing for every party in the media value chain.
A film or new media business will not spontaneously combust in a successful company. However the playing field has been leveled for everyone to have the opportunity. Today we see an emerging formula for success. It is important for media makers to realize the intricacies of the market, and set out a clear plan that capitalizes on the inefficiencies.
Today there are dozens of great sites and platforms that are enabling the delivery of content. Delivery is one small part of the equation. What media makers should realize however, is that there is a difference between delivery, distribution and exposure. Understanding these components will help craft a strategy for leveraging new media to reach your goals.
Delivery is the logistics of delivering a film or video. Previously it was done in reels, then in VHS, then DVDs. Today, the primary technology enabler online are web servers and flash video players. Because of the sheer dizzying number of sites that enable internet video delivery today, it has become a commodity.
Distributors however can be thought of as sellers or resellers of a product. Any distributor relationship that is valuable will do things: provide you with audiences, or ability to reach audiences that you would not have previously achieved, and turn those audiences into revenue. With traditional distribution there is some type of mechanism for earning revenue either pay per view or pay to own, or ad supported. In some cases distributors will either pay up front for your product or pay for the right to distribute the product and split revenues. However, distribution has the fundamental assumption that there is money to be made by the owner or creator, and that is why the owner has chosen certain distribution channels.
What distribution is to revenue, exposure is to awareness. The awareness is typically the inverse view of the value chain. The owner of the content typically pays for advertising to generate awareness. They are willing to pay because they know that they’ll see profits on the distribution side. That awareness should be goal of any marketing plan.
Both play important pieces in the puzzle, it should be noted that they are not the same. The point of exposure is drive consumers back to the product where they will pay to watch, or advertisers will pay to reach those viewers. The point of distribution is to put in place channels where your work will be monetized. Lionsgate my see Youtube as a promotional channel while they sell their product through distribution channels such as iTunes, Walmart, and Netflix.
We are still very early in this new digital media puzzle and the pieces are still falling into place. Right now landscape is exposure heavy. There are many stories about videos being viewed millions of times, but I always ask myself “Who made money?†and “What did the person benefit from that exposure?â€
From ideas we are thinking about at YouAreTV and other companies are experimenting with, we are all hoping that 2007 is the year of true online exposure leads to new media distribution, which leads to successful independent film and media businesses.
Tags: Big Picture, Distribution, guest-blogger, Real Deals, Technology
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