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November 26, 2009

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The Future of Movies on the Internet

MovieFlix, MovieClub, CustomFlix weigh in

Someday We'll All Watch Movies This Way..." So reads the tagline of MovieFlix (www.MovieFlix.com), an emerging Website that streams movies from D.W. Griffith's silent classic Broken Blossoms to the at-home creations of its own subscribers. In fact, this statement seems to sum up the cautious optimism of those closely watching the development of the Internet as a force in the world of film. In the words of MovieFlix COO Rob Moskovits, "For now, watching movies online is in its primordial soup stage."

Like the advent of television and home video, the Internet's arrival in homes around the world seemed to herald a seachange in the way we watch movies. But the Internet's impact on movie watching has—so far— hardly turned out the way many pundits first envisioned. Says John Geyer, VP of Marketing at CustomFlix (www.CustomFlix.com), a Website that marries the Internet's publicity power to more traditional means of indie distribution, "I'd compare [the introduction of the Internet] to when the VCR was introduced. Everyone thought theaters would shortly be out of business. As we all know, the opposite happened—there was a resurgence of interest in the art form and more people flocked to theaters than ever before. Likewise, the Internet has spurred a huge growth in video sales."

The initial vision of the Internet was as a free space of two-way communication. Of course, this also was the initial vision for other media—including television—that have increasingly become one-way distribution channels. The Internet, though still the most viable avenue for an individual to reach the broader world, has reached an age of maturity as a more commercial space. With this maturity, the potential for interaction between movies and Internet technology has grown and changed focus.

Says Moskovits, "In many ways, the Internet is still a great place for low-budget and non-theatrical movies. However, with broadband becoming more ubiquitous, the Internet is also becoming a [great] place for content providers."

CustomFlix's Geyer has also witnessed this change. "I'd say the focus has shifted, and companies are now looking at ways to distribute content which people will pay for, i.e. Hollywood and maybe the top indie films, via streaming. Movielink (www.Movielink.com) is the latest initiative to make streaming pay for itself. Given the players involved, it just might succeed, though some of the basic problems still remain."

With the popularity of DVD-ROMs soaring, some are content to let their computer screen serve as an ersatz television screen. But are mass audiences ready to make this transition? And is the technology even ready? Companies like MovieFlix are offering subscribers plenty of options of what to watch, many selections for free and others for a nominal fee. For less than the cost of the average movie ticket, you have unlimited access to thousands of movies—from the classic to the bizarre. However, for now, watching movies on a computer seems to remain the domain of commuters with laptops and college students with no room for a television and a computer.

"For now, at best, the Internet is only another place for people to consume audio video. Currently, the Internet is not capable of replacing traditional distribution methods. However, with more broadband just around the corner and improvements in technology, that is sure to change," says Moskovits.

"Additionally," adds Geyer, "no one wants to watch movies on their computer that aren't broadcast quality—and no one wants to view them from a chair that just isn't as comfy for hanging out on as the couch! It's hard to beat television at its own game: non-interactive watching of long-form content."

Roger Brooks, President of MovieClub Online (www.movieclubonline.com), a company which offers discounted movie tickets and video rentals through partnerships with major theater and video store chains, is confident that consumers and the technology will eventually be ready for larger-scale online distribution. "Unfortunately, I do not believe that consumers have yet caught up to the technology or distribution methods of the Internet. I do believe they will in years to come," he says.

What we have learned from radio, television, video and DVD is that new media technologies tend not to replace existing modes, but to interact with them. In fact, the Websites that are currently having the greatest impact on how people watch movies function where the new medium meets existing media.

"The greatest change the Internet has brought to film, in my mind, is clearly the sales and marketing of film. From DVD, VHS and movie ticket sales to showtimes, trailers, reviews and more, the Internet has brought an instantaneous wealth of information and product to consumers around the world," notes Brooks. "Jack Valenti said earlier this year that the more that Americans watch movies on DVD and VCRs, the more they go to the movie theater."

“… many thought streaming would be the savior of the independent filmmaker, providing a pipeline from producer
to viewer… but the ideal vision
of a free channel of distribution that will reach a worldwide audience hungry to watch films online has somewhat faded…”

A perfect example of this new-medium-meets-existing-medium model is the growing capability for viewers to purchase movie tickets online through companies like Fandango and MovieClub. This option is currently available only through select theaters, but is likely to become more ubiquitous. The sites entice viewers by offering discounted prices on tickets. "Our goal is to market the sale of film through non-traditional channels and to attract an occasional moviegoer to become a frequent moviegoer," states Brooks.

MovieClub also offers discounts through video rental outlets, and other companies like Netflix (www.netflix.com) are making it possible for viewers to skip the video store altogether, and "rent" movies online. This means no more late fees—and no more wandering around the aisles in a stupor.

The Internet, of course, is also a powerful tool for publicity, allowing moviemakers to target films to their desired audience more efficiently and effectively than traditional advertising. Of couse, one can't speak of Internet publicity without citing the unprecedented success of The Blair Witch Project, whose publicity origins can be traced back specifically to Internet. It remains relatively low-cost, as well, allowing films that would otherwise pass far under the radar to gain worldwide publicity. Comments Brooks: "Consumers now have a vehicle like never before to provide them with choices on how they will participate in the filmgoing experience."

Adds Geyer, "The Internet gives filmmakers a powerful advantage in that its sheer existence gives them a place to tell their story and potentially get a very large audience to view it. South Park, 405 and Troops, the Star Wars parody, are stellar examples of how filmmakers made use of the Internet to get recognition on an unprecedented level. The Internet makes it possible for pretty much everyone to see a clip—even I saw these and there's no way I would have had it not been for the Net."

In fact, CustomFlix is a textbook example of an organization that uses the Net to promote independent film. The Net functions as a showroom for smaller films in a way that other media cannot. The films themselves are then sold in physical copies (VHS and DVD) to interested viewers.

Geyer explains, "We believe in a hybrid model, where we use the Internet to attract people interested in a film, let them watch a short clip of the movie and send them the physical goods which they expect—and are happy—to pay for and can watch on their TV."

Direct distribution over the Internet continues to be the eventual goal for many, and is currently a viable reality for some. Websites like AtomFilms have reorganized their focus, but still continue to distribute independently-produced films online. And there are scores of smaller sites that host thousands of online film databases. In fact, MovieFlix encodes, hosts and streams the cinematic creations of pretty much anyone who is interested in submitting their original work, promising "Exposure to hundreds of millions of eager movie watchers who can't wait to see your movie." However, the ideal vision of a free channel of distribution that will reach a worldwide audience hungry to watch films online has somewhat faded—at least until the technology becomes more widely available.

"In the early days of the Internet, many thought streaming would be the savior of the independent filmmaker and that finally there was essentially a free pipe from producer to viewer. Sites like AtomFilms (www.atomfilms.shockwave.com) and iFilm (www.ifilm.com) are still standing, but they don't/can't cater to all filmmakers," remarks Geyer.

"I'd say the dream of low- or no-cost broadband distribution for all filmmakers with an audience savvy enough to download and watch them in their living room is five, probably more like 10 years off.

But even if streaming full-length movies over the Internet isn't really ready for prime time yet, the Internet does bring to the table a uniquely powerful mechanism for reaching a diverse audience. Filmmakers have excellent new forums to let the world know about their projects. And films with a highly specialized appeal have a powerful new mechanism to reach their niche markets, free of geographic constraints," says Geyer.

Geyer notes that the ability to use the Internet as a marketing tool allows moviemakers to target their promotions more directly toward the desired audience, and that this, in turn, may create a new avenue for films made by individuals who fall outside the standard Hollywood demographic. "Women and minorities in some ways have a leg up [on the Internet]. There are many more sites and groups that readily identify themselves and support these areas of interest. I believe that it makes reaching them, in general, less difficult.

"At the highest level, I'd say it is the Internet's ability to build communities, to build interest and excitement around film that has probably done the most to help the industry as a whole," concludes Geyer.

The impact that the Internet may eventually have on movies and how we see them remains an object on the horizon, but it is clear that companies like MovieFlix, MovieClub, CustomFlix and others have positioned themselves to help viewers and moviemakers optimize the technology that's currently available. MM

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COMMENTS | POST A COMMENT

Comment by Richard hartman on 10/09/08 at 11:01 am

I partly agree with this, but i still think the majority
of films are still downloaded illegally via site torrents and sites like No Subscription Required.net that offers links to free sites, when you see just how many sites are out there, this is the way to go at the moment. Take a look http://www.nosubscriptionrequired.net/

Comment by Garth on 12/14/08 at 9:24 pm

Movies on the web is becoming more widespread and as Richard said there are many sites where you can find and watch movies online.

Comment by liaanalillly on 4/14/09 at 3:22 pm

i want to make independent movie as producer, but i have no money,because iam equal to slum&poor;.i want to earn lots of money immediately$1000,0000000..by movies,so i want to make online movies like multimedia,animation movies for money,i don’t know animation&multimedia;,how can i earn,please HELP ME SOON..bye

Comment by Internet TV software on 10/05/09 at 2:40 pm

Internet movies will become the death of theatrical or movie production. I mean, who would want to spend money on watching one movie once when you can download it for free on the internet and watch it over and over again.

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MovieMaker Magazine

Magazine cover: Winter 2003This story was published in the Winter 2003 MovieMaker Magazine. The headline was:

Is the Internet still the Future of Movie Exhibition? / MovieFlix, MovieClub, CustomFlix weigh in

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