1.
My personal goal for VOD distribution is to gain
viewers.
2.
The three video sharing platforms I researched
are Vimeo On Demand, Netflix Watch Instantly, and Amazon Instant Video. While I
have yet to watch a feature film using Vimeo, I do happen to have memberships
with all of these sites, so I approach this as a consumer as well as a content
creator.
3.
Vimeo On Demand:
a.
Users can view content on Xbox, Roku, iOS
devices (iPhone, iPad), newer Samsung and TVs and Blu-Ray players with Internet
capabilities, Apple TV, and using their personal computers.[i] A
Vimeo membership (free) is required, but users have the option to Rent or Buy
content—anyone can browse the Vimeo On Demand library, but the system will
prompt you to log in and enter payment details once you have selected a title
and viewing option from the library. Users have to option of paying via credit
card or PayPal. Rentals are available for a specified time period of up to 30
days (determined by the filmmaker) and purchases are available for DRM-free
download., meaning that while Internet access is initially required, once a
title has been downloaded, a user can later watch it without Internet access.[ii]
Vimeo On Demand is a relatively new service, debuting last March, and it is
unclear how much of a reach it has outside of the independent filmmaking
community.
b.
Content creators must have a Vimeo PRO account
($199/yearly) and a PayPal account but can set price points (starting at $.99),
availability windows (1 to 30 days for rentals), rent/buy/both option, regions
available (worldwide or specific). [iii]
c.
Viewers sign up for free on the website and
enter payment details when they want to rent or purchase content (pay-per-view
model). Viewers can pay by credit/debit card or PayPal. An email address is
required to create an account. Content
creators sign up for Vimeo PRO account, enter payment details, link PayPal
account, and upload content. As mentioned, content creators must have a PayPal
account. A standard merchant account is free, but PayPal also offers tiered
service ranging from $5-$30/monthly.[iv]
d.
Vimeo On Demand would offer exposure, at least
among the filmmaking community, and the opportunity to have ultimate control
over pricing, availability, etc.
e.
Even though Vimeo On Demand seems like a niche
market, I think that is worth doing for the following reasons: guaranteed
distribution outlet, no middleman required, no ads placed over my work (vs.
YouTube), I would get to keep 90% of revenue after transaction costs (90/10
split), I could make my project available around the world (vs. Netflix and
Amazon’s limited streaming markets), I could use Google Analytics to view user
data, I could set up Promo Codes so certain people could watch my movie for
free, and I could even set up pre-orders before my project is available. Users
would appreciate the option of DRM-free downloads. The main con I see is that I
would have to set up a PayPal account and keep track of revenue for taxation
purposes—other sites, such as Amazon CreateSpace (content creator’s portal to
Amazon Instant Video) , track revenue for you. The other con is limited
viewership—again, Vimeo is a site for and by filmmakers. I will probably make
my film available through Vimeo On Demand, but it will not be the only avenue I
pursue.
f.
Some content creators consider the $199/yearly
membership fee prohibitively expensive, as it cuts into potential profit[v],
but Sheri Candler points out that $199 is very cheap for distribution, and I
would tend to agree with her on this.[vi]
The main issue becomes how to generate traffic, particularly since Vimeo is not
well known outside of the filmmaking community.[vii]
The main thing—other than the 90/10 split---that attracts filmmakers to Vimeo
On Demand is the degree of control which it affords filmmakers.[viii]
4.
Netflix Watch Instantly
a.
Netflix Watch Instantly is a subscription-based
service—a Netflix subscription is required to view content, tiered-service
plans are available, and the cheapest plan is $7.99/monthly (plus tax). Watch
Instantly content is only available via streaming format—users cannot download
movies to watch later, so Internet access and a credit card are required.
Netflix Watch Instantly is not available in all regions, and US subscribers
can’t access the service while travelling internationally.[ix]
However, Netflix offers streaming plans throughout the US, Canada, Latin
America, and Europe.[x] Netflix
Watch Instantly is perhaps the most well known VOD service provider, with over
40 million subscribers in 41 countries.[xi]
Viewers can stream on a variety of TVs, Blu-Ray Players, iOS devices, set-top
boxes, Roku, etc.
b.
Unfortunately, getting a film onto Netflix is a
very involved and esoteric process. A Netflix account is not required, but a
film must meet the following criteria: First, it must appear in Netflix’s
proprietary “database.” Second, it must be in enough members’ “saved” queues
that demand for the title is established. Finally, a distributer or aggregator
(not the content creator) approaches Netflix and arranges a distribution deal[xii]—Netflix
typically buys a 1-2 year license for your film, and how much they are willing
to pay varies by title.[xiii]
c.
Netflix subscribers sign up for an account
online using an email address and providing a credit card. After that, they
have access to everything available in the Watch Instantly library. Content
creators must go through a third-party and there is no guarantee that Netflix
will purchase the film, although it is rumored to help if your film is on IMDB
and Rotten Tomatoes.[xiv]
Distribber is probably the most well known middleman—for a $1295 ($1595 for HD)
initial fee, plus $595 ($795 for HD), they will plead on your behalf for
Netflix to buy your film, and they offer a 50/50 revenue split.
d.
The primary reason to try to get my film onto
Netflix would be exposure.
e.
I think it is worth looking into using Distribber
to try to get my film onto Netflix and other VOD avenues, as Distribber offers
bundling—where they will, at a discount, shop your title around to multiple
venues. Again, since my primary goal is exposure, not compensation, I don’t
really care that Netflix or Distribber might not offer the best terms. My
primary concern is the steep upfront cost—over $2000 with no guarantee that
Netflix will even accept my film. Thus, I will probably only pursue this option
if my film is accepted into any festivals and/or I can get some press generated,
thus increasing the likelihood that my film would be accepted. Otherwise, this
seems like a waste of money, especially since I can upload my film to Amazon
Instant Video for free (guaranteed delivery)!
f.
The most common concerns with Netflix are its
esoteric algorithm for determining which films appear in its database[xv],
the perceived difficulty in getting a film on Netflix in the first place, and
the overall poor compensation for independent filmmakers.[xvi]
5.
Amazon Instant Video
a.
Amazon Instant Video requires an Amazon account
(free), which in turn requires an email address and Internet access. Users have
the option of purchasing an Amazon Prime membership ($79/yearly), which
includes unlimited streaming access to certain titles at no additional cost
(kind of like Netflix Watch Instantly). Most content is pay-per-view, and users
have the option of renting (for up to 30 days) or purchasing titles. Viewers
can stream on iOS devices, Roku, Blu-Ray players, TVs, set-top boxes, Kindle,
etc. Internet access is required for streaming and downloading purchases, but
once purchases are downloaded, they can be viewed on up to two approved devices
without Internet access.[xvii]
b.
Content creators have the option of going
through a middleman such as Distribber ($1295 SD/$1595 HD plus $95), or they
can skip that entirely and set up a CreateSpace account (free), where they can
upload their film. An email address is required and, once the film is uploaded,
a Tax ID is required as well. This would either be the user’s social security
number, or, if operating as an LLC or other financial organization, that number
would be assigned by the state entity in which the LLC is recognized and
operates. Content creators can suggest the list price, but not the rental
price—Amazon determines that.[xviii]
c.
Users browse the Amazon Instant Video library
and select the title they wish to view followed by whether or not they want to
rent or buy the title. If not already logged in, they will be prompted to log
in and enter payment details (pay-per-view model). Users have the option to set
up 1-click ordering, where payment details are saved under preferences, so the
user doesn’t have to reenter that information. Users can also enable 1-click
ordering on approved devices (such as Roku) and make purchases directly from
those devices, entering a pre-determined PIN to authorize the purchase.[xix]
Content creators receive 50% of the pricing royalties (e.g., $7.49 for a $14.99
rental or $1.99 for a $3.99 rental).
d.
As a filmmaker, Amazon Instant Video would offer
exposure and revenue (50% of every rental or purchase). The most recent figures
state that Amazon Prime alone has over 10 million members[xx],
and it is estimated that 78.7 million people use Amazon.com daily.[xxi]
e.
I will probably use Amazon Instant Video
(through the CreateSpace portal) as an outlet because I can submit content
directly, for free, and more people are familiar with Amazon.com and its
related services than they are with Vimeo. The main drawback is that Amazon
Instant Video is only available to US subscribers—thus, this would not be the
only VOD outlet I would pursue.
f.
Content creators favor Amazon Instant Video as a
“guaranteed and instantaneous delivery” option[xxii]
and are impressed with its ease of use and the monthly reports that it
generates, making revenue easier to track for taxation purposes.[xxiii]
Seems like some good ideas, and that you're thinking along a lot of the same lines as I am. Seems like we still need someone to declare our film worth watching for the masses to make much headway, though.
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