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Revamping the Movie Distribution Chain

ianscot writes "Steve Soderberg's latest film will be released in a manner that directly challenges the traditional Hollywood distribution chain. Soderberg's been influenced by Mark Cuban, the dot-com billionaire who owns the NBA's Dallas Mavericks, and Todd Wagner, another dot-commer whose ideas about the movie business are radical departures. Wagner's financing this one. The movie, Bubble, is the first of six that Soderberg will film in HD video; all will be released simultaneously in theaters, as HDNet movies, and on DVDs." From the article: "As independents, Soderbergh and Wagner are willing to talk openly about subjects that are being hotly debated behind closed doors elsewhere in Hollywood. When Disney chief Robert Iger recently brought up the concept of shortening the window between theatrical release and DVD, he was fiercely criticised by the National Association of Theatre Owners."

37 of 165 comments (clear)

  1. Good! by achew22 · · Score: 2, Interesting

    I'm glad that someone is taking a logical look at the distribution system again. From what I understand this article to mean, the movie would be released as a DVD on the internet and simultaneously in theaters. WONDERFULL! I'm sick of paying $7 + $5 for movie popcorn and a drink when I could buy (to own forever) the movie later for $20 (provided I don't get it through another means before then). Two words are all it takes to describe my emotion... THANK YOU!!! I hope that this does well and others follow the example.


    Just so that you don't have to do it, "I for one hail our new movie overlords" (or something to that effect)

    --
    Sincerely,
    Andrew Allen
    1. Re:Good! by kfg · · Score: 3, Insightful

      Has the National Association of Theater Owners considered that they have pissed me off, and that's why I don't go to their theaters anymore?

      If they don't listen to my criticisms, why should I give a damn about theirs?

      KFG

    2. Re:Good! by Saven+Marek · · Score: 3, Interesting

      > WONDERFULL! I'm sick of paying $7 + $5 for movie popcorn and a drink
      > when I could buy (to own forever) the movie later for $20 (provided I don't get it
      > through another means before then).

      And not have to deal with a theater where two people bring kids in who whine in the movie or have to go pee ten times during the movie, a bunch of teenagers bring their cell phones in and text message each other with bright screens flashing around and they're the polite ones who don't leave their phone on and have it ring in the middle of the movie or the people who bring PDAs in yet another distraction.

      I have not been to a theater release movie in the last five years where a cell phone has NOT gone off in the middle of it. Thankfully many people don't answer them but people still do sometimes.

      > "When Disney chief Robert Iger recently brought up the concept of shortening the window between theatrical release and DVD, he was fiercely criticised by the National Association of Theatre Owners."

      No shit. The National Association of Theatre Owners need their own fierce criticism for doing shit-all about making the cinema experience worthwhile. It feels more like a cattlerun where you're forced in then out and must deal with everything that happens inside no matter what.

    3. Re:Good! by aussie_a · · Score: 3, Insightful

      I'm sick of paying $7 + $5 for movie popcorn and a drink

      A much simpler alternative to revamping the movie distribution system is to merely wait a few months for it to be released on DVD. You know people, not getting what you want IMMEDIATELY isn't a bad thing.

    4. Re:Good! by rkcallaghan · · Score: 5, Insightful

      You know people, not getting what you want IMMEDIATELY isn't a bad thing.

      Taken independantly, your sentiment is certainly valid. Taken in the context of the article, on Slashdot, again it's alright -- the slashdot crowd more than most other cliques can tend to wait (or pirate it, and face it, lots of slashdotters do).

      But for most people, movies do need to be seen relatively soon as they come out. It's all about water cooler chitchat, and last years or last seasons movies don't cut it.

      This should really be taken to heart too -- Slashdot is filled with guys that can't socialize (and hence, get dates). To some degree, that is affected by an inability to realize that if someone asks you about the latest movie; they're trying to start a conversation -- not looking to get preached to about the evil movie industry.

      ~Rebecca

    5. Re:Good! by aussie_a · · Score: 2, Informative

      But for most people, movies do need to be seen relatively soon as they come out.

      Or what? They die?

      Slashdot is filled with guys that can't socialize (and hence, get dates). To some degree, that is affected by an inability to realize that if someone asks you about the latest movie; they're trying to start a conversation -- not looking to get preached to about the evil movie industry.

      Oooh, you're sure to get modded up. Criticizing slashdot and/or people who com here (bonus points for mentioning their inability to date). However it's quite likely that the person attempting to start a conversation won't like the same movies you do. I know I have quite different tastes to those I talk to regularly, despite this my ability to have a conversation isn't hampered.

    6. Re:Good! by kentrel · · Score: 2, Insightful

      Who's forcing you to pay $12 for food at the cinema? Eat your dinner at home.

    7. Re:Good! by gmack · · Score: 5, Insightful

      Your falling into the classic "I need to know everything to be interesting" trap.

      Watercooler chitchat does not requre shared experiances as much as you think. It can actually be about sharing experiances as well.

      "Hey did you see the new movie?"

      "no .. how was it?"

      And *blam*, you have a conversation. It's that easy.

  2. Just the first step by moresheth · · Score: 4, Insightful

    In two years, it will read:
    "all will be released simultaneously in theaters, as HDNet movies, on DVDs, and for download on iTunesVideo"

  3. Fast turnaround by AKAImBatman · · Score: 3, Informative

    When Disney chief Robert Iger recently brought up the concept of shortening the window between theatrical release and DVD, he was fiercely criticised by the National Association of Theatre Owners.

    The cycle is WAY shorter than it used to be. I remember back in the Bad Old Days(TM) when you would have to wait until a year after the movie left the theaters to see in on VHS. And that was only if the movie studio felt that the movie would do well resold on tape.

    Now we barely have to wait 3-4 months after its initial release before it appears in stores on DVD! It's so quick anymore, that sometimes it feels like it's on DVD as soon as it's out of the theater. I realize that for some people that may seem slow, but for those of us who remember, that's one hell of a fast turnaround! :-)

    1. Re:Fast turnaround by jetkust · · Score: 5, Funny

      That's nothing. Back in the 1920s, we used to wait a whole 80 years before a movie came out on DVD. And we liked it. And nobody complained. Sure we'd be dead and burried by the time we saw it, but I'll be damned if it wasn't worth the wait. Ah, those were the days.

  4. NATO by AKAImBatman · · Score: 4, Funny

    he was fiercely criticised by the National Association of Theatre Owners.

    You know, he should be really careful about pissing off NATO. Otherwise he may find a nuke landing square on his doorstep! :-P

    (Thank you, thank you! I'll be here all night. Wait, no I won't. I'm going to bed.)

  5. The reason I watch movies in a theater... by zalas · · Score: 4, Interesting

    ... is because generally it's higher resolution than DVDs and their sound system is usually better than what I have at home. Other reasons would be a social gathering or something. It's hardly ever the case that I go to watch movies because I can't wait for the DVDs to come out.

  6. Re:Not a very good idea! by Mancat · · Score: 4, Funny

    Having a home theater at home, the only reason I go to theaters is just so I can brag about seeing it before everyone else

    Oh, so you're that guy.

    --
    hello dear sirs my name is jamesh i are india (bihar) can u guide me install red had linux 9?
  7. Please, get rid of the DVD release zones as well by pimpimpim · · Score: 5, Insightful
    Good to see that some people in the industry (even from disney!?!) are actually trying to think along with the costumers instead of making their movie-watching lives miserable. Are you paying attention here, RIAA?

    This would also be a very good opportunity to get rid of the irritating DVD release zones. I think these zones are ment to align the DVD releases in all countries with the movie releases, which are also shifted around the world (what's actually wrong with one world-wide release date?).
    But what they actually do is just give you lots of trouble when anyone outside the US or Japan wants to order a DVD that's only available there (no matter how long ago it was released!), and then has to find a zone-free DVD-player, or heck their existing one, etc.
    Just stop with this crap, and you'll have a world-wide market for all your DVD's! Doesn't that sound nice?

    --
    molmod.com - computing tips from a molecular modeling
  8. Place your bets! by Perryman · · Score: 2

    What do you think will be the most popular format for purchase? I think either DVD or download by a bit. This is a nice idea and I hope others follow suit.

  9. Slavery? by Anonymous Coward · · Score: 2, Funny

    Mark Cuban, the dot-com billionaire who owns the NBA's Dallas Mavericks, and Todd Wagner

  10. Catching up with reality by Gallandro · · Score: 3, Insightful

    At least people in the movie business are coming to grips with the reality that people have access to the movie via the internet as soon as it hits theaters anyway. At least this way they can make some money off of it.

    The sooner these content producers realize that change in their distribution sceme (and copyright in general) is inevitable and is a Good Thing(R) the sooner we can start seeing more people making more stuff, and more money flowing.

    I'm sure there were a few monks who weren't happy about the advent of the Luther bible, but they adapted and the bible is still a number one best seller. The film industry was terrified of the VCR, but now we see more movies getting made by more people and more money flowing. The Internet and "piracy" are just harbingers of another change in progress. Personally, I'm pretty excited for it to finally get here so I don't have to put up with being called a thief for downloading movies that I could legitimately get through my netflix subscription but don't feel like waiting for.

  11. Wheeee! by ThresholdRPG · · Score: 2, Insightful

    I really hope the movies they make are good ones, and good sellers, or else this little experiment will lengthen the time it takes before this is common practice.

    The reality is that the whole process of seeing a movie in a theater continues to lose its luster. It is too expensive. The food and drinks keep getting more and more outrageous in price. It is too inconvenient. Even in pure performance, the theater is losing out - more and more people have equal or superior sound and visual quality in their home theaters.

    Also, it is better to sell copies of your movie immediately and eliminate one of the biggest reasons people pirate movies over the internet.

    This is a huge boon to people with children. Going to see a movie is a pretty tough task when you have kids (not to mention, the expense is astronomical).

    --

    -Michael
    Threshold RPG
  12. Soderbergh's Experiment by Sundroid · · Score: 4, Informative

    Steven Soderbergh's "3-pronged attack" is being watched closely by Hollywood. This Theater-Cable-DVD simultaneous release of a new movie to the public is actually one of the counter measures against privacy movie people have thought about but never really dared to try. So, give Mr. Soderbergh a chance, and maybe years down the line they might even use words like "pioneer" to describe him.

    "Bubble", shot for $1.6 million, may be a cheapo in Hollywood standard, but Soderbergh was serious enough to use the same high-definition camera George Lucas used for two "Star Wars" movies, as described in a New York Times article (http://www.nytimes.com/2005/09/22/movies/22bubb.h tml).

  13. Why Theatre Owners Hate this Idea by bloodstar · · Score: 5, Insightful

    Primarily because the Theatres only get a tiny fraction of any box office recipts when a movie first opens, then as the weeks pass, their percentage goes up. Sure, they make a ton of money off of popcorn and candy, But when you're paying 7 or 8 bucks to see a movie, 95 - 99 percent of that goes straight to the Movie Companies. So, if the Movie Companies continue to shorten the life of a first run movie, those Theatre owners are going to have to adapt or die.

    So they're fighting to maintain some sort of status quo. It's not right or wrong, it's just why they will fight this so hard.

    I suppose the next question is, At what point will major, non sucky, movies get released straight to DVD (or whatever media is in vogue)? Currently straight to video is a pretty strong indication that a movie is sucky. How much longer before that will not be true?

    --
    "The bass, the rock, the mic, the treble. I like my coffee black, just like my metal" - Mindless Self Indulgence
    1. Re:Why Theatre Owners Hate this Idea by kfg · · Score: 2, Insightful

      when you're paying 7 or 8 bucks to see a movie, 95 - 99 percent of that goes straight to the Movie Companies.

      Which is just another way of saying that the movie companies are, themselves, the problem.

      KFG

    2. Re:Why Theatre Owners Hate this Idea by drsquare · · Score: 2, Interesting

      Great, another 'expert' with no clue about business. You do realise that the cinemas make next to no money from ticket prices? They make their money largely from the food and drink.

      You say that it's too expensive, then you want them to employ more expensive staff? This doesn't add up. Did you skip maths lessons at school? Here's a hint in case anyone reads your post: hiring more projectionists and more skilled workers costs more money. This money will go on your ticket price. Then you'll be whining that the prices have gone up. THINK FIRST, POST LATER.

      How is the business method old? A business method is not obsolete just because it's taken advantage of by criminals. The answer is to stop the crime not to force the businesses to cut revenue streams to cater to the criminals.

  14. Time for open-content! by MikeFM · · Score: 2, Interesting

    What we really need is open content movies (commercial or community projects) that are available with source materials, have no DRM, and can be freely edited, redistributed, etc.

    It'd be a perfect project for theatre students, film students, etc. Write their own script, produce their own movie, and release it online. If small companies and community groups don't have the resources to create the next Hollywood blockbuster then surely they do have the resources to create something of the quality we may have seen from the 80's or before (pre-CGI). Possibly even explore ideas that Hollywood has ignored. This kind of grassroots movie is what independent films should be.

    --
    At what price learning? At what cost wisdom? The price is a man's peace of mind, and the cost is his life.
  15. Good, but ironic by kaan · · Score: 2, Interesting

    I agree, it's about time that we see some changes in the Hollywood world, but I think it's a bit ironic that Steven Soderbergh is the one pushing ahead.

    I think many/most of us would agree that Hollywood movies generally suck, and the experience is even worse when you factor in inflated ticket prices, bad (and expensive) movie food/snacks, noisy kids/cellphones, parking nightmares, etc. So it's interesting to me that it would be Soderbergh would leads the charge for us to leave that all behind. Because it's Soderbergh himself who has produced or directed some really great films, including Pleasantville, Confessions of a Dangerous Mind, Ocean's Eleven (and Twelve), Erin Brokovich, and one of my favorite movies of all time, Traffic.

    The irony is that it's the work of guys like Soderbergh who keep me going to the otherwise shithole movie theaters.

    1. Re:Good, but ironic by Dot.Com.CEO · · Score: 4, Insightful

      Have you ever considered that the problem might not be with Hollywood or movie theatres but with your fellow citizens' basic inability to act in what would be considered a civilised manner?

      --
      Mother is the best bet and don't let Satan draw you too fast.
    2. Re:Good, but ironic by Itchy+Rich · · Score: 2, Informative

      Have you ever considered that the problem might not be with Hollywood or movie theatres but with your fellow citizens' basic inability to act in what would be considered a civilised manner?

      Last time I went to the cinema a couple behind us were whispering to each other in Polish for most of the film.

      The time before that, three girls down at the front were chatting at normal volume, then popped open a bottle of champaigne.

      Going to the cinema is a great experience, but it's by no means necessary to enjoy most films. Most people have 'home cinema' setups these days anyway. Perhaps it's time to stop the protectionism and let cinemas innovate or die out.

  16. Re:That brings up an idea by Anonymous Coward · · Score: 2, Funny

    Who goes to the movies by themselves?

    Most Slashdotters?

  17. Re:Please, get rid of the DVD release zones as wel by bakawally · · Score: 2, Informative

    Make no mistake. This is not about customer's movie watching lives. Its about profits.

  18. DVD's on sale at theatres? by nietsch · · Score: 4, Interesting

    Band routinely sell merchandise and CD's after concerts. You've seen the band and as a souvenir you can buy the album for usually less than retail prices.

    For films something similar could be done: You have seen the movie, and you were -no doubt- very impressed. A very good mindset for the merchant that is offering the DVD right at the exit(at a less then retail price). Instead of complaining, theatre owners should grasp this golden opportunity.

    --
    This space is intentionally staring blankly at you
    1. Re:DVD's on sale at theatres? by pharwell · · Score: 2, Interesting

      Well, I know that I've walked out of a theatre a few times wanting to immediately get a DVD and see the movie again. On occasions such as those, I'd certainly have the desire to buy it right then and there.

      --
      I quote others only in order the better to express myself. -- Michel de Montaigne
  19. Re:The truth about DVD movies by Mr2001 · · Score: 4, Funny

    Every time you breathe out, you're releasing carbon dioxide--a greenhouse gas--into our atmosphere. The more you breathe, the more carbon dioxide you produce, warming the environment and leading to changes in weather patterns, eliminating animal habitats and increasing the deadliness of hurricanes and tropical storms.

    And we all know sex involves heavy breathing.

    So please... for the sake of humanity... don't reproduce. ;)

    --
    Visual IRC: Fast. Powerful. Free.
  20. Advertising over a chunk of time too important by mattso · · Score: 2, Insightful

    While I think some small, niche, indie films would do fine with a big screen, net, and DVD release at the same time, it is not going to be the next big thing. The main reason has to do with the role nationwide movie theater showings have. If you look at it for a minute, by doing a national release you get a level of publicity above and beyond anything you could ever pay for. Every newspaper in the country runs film reviews for new movies that open. Coming Attraction shows promote films. And there are the theater ran ads and plain show listings that customers look at several times a month. This high level of promotion is also over a period of time, which is very effective at driving the interest in something. Even if the consumer doesn't go to the theater when it is released, when that DVD shows up in stores he has already been exposed to it. Add in the paid promotional events and you end up with (ideally) a profitable big screen run, followed by a profitable DVD run -- not to mention pay-per-view, paid cable, cable, and finally broadcast TV. All of these events launch off that wide scale roll out, it provides a vast amount of unpurchasable publicity.

    If you change the model and ship the film just once in several formats, your faced with having to sell the DVD and net versions without all that exposure over the nationwide release. And if the movie theater owners don't keep your movie around (because everyone is just buying the DVD) or they don't buy local newspaper/net ads, you may get less publicity than you might have if you had stuck to the normal schedule. Even if the publicity is identical and no one scales back because it is on DVD too, you still will lose the timed exposure. Like cooking by turning up the heat really high, it may not be as good a meal even if it is cooked the same amount.

    The comic book industry has this same problem. Everyone wants to buy the trade paperbacks and skip the monthly issues. Which is fine, but it means giving up six months of exposure and advertising. Since it is going to take six months to make the six issues of the trade paperback anyway, if the monthly floppies can sell well enough to warrant shipping them, them being on shelves is more than worth having. Skipping right to the trade means giving up a whole lot of promotion.

    For smaller indie films however it may make a lot of sense. They don't get as much out of the big screen roll out (usually because they only hit limited cities and play on screens that don't do much advertising). A combination DVD and big screen release might actually make the film more money, since mail order DVD's can cover the whole country. But once you cross over to the major studio film, I think the total revenue isn't going to be as much.

  21. A Natural progression by sane? · · Score: 2, Insightful
    This is just the next step along a path to the distribution of experience. Originally entertainment required you to be physically present at the performance, in the theatre. Film allowed the replication of the experience countrywide, at the same standard. It also allowed more expansive epics to be produced than would have been the case in the theartre. You couldn't get the same level of experience at home with the TV, and hence there was a reason for the movie theatre. With home theatre approaching the standard that the customer sees in the movie theatre, its only natural that there will be another sea change in the business.

    To survive the movie theatres have to take a leaf out of the book of the stage theatres and make the total experience something that is worthwhile - something that you can't get at home. There are a few approaches they could take:
    - 3D on large immersive screens, to put you in the middle of the action in a way that home cinema can't. We can already see that on the starting blocks.
    - lower cost and closer. Reduce the barriers to attendance by making it easier to attend.
    - improve the total experience. Turn some of the space over to dining, include discussions and explainations, competitions, free DVD copies - making the film part of a larger event that people are more likely to stump up for. This is akin to the way the stage theatre has become an 'event' rather than a norm.

    Whichever direction is taken, its obvious that the status quo has no hope of continuing. Within five years the distribution model will have switched, and with it will go a blurring of the line between TV and movie. Smart theatre owners will be starting to shift now.

    1. Re:A Natural progression by CDS · · Score: 2, Interesting

      Our local theater is doing just that. They are attempting to turn the theater experience into more than just a movie.

      The first thing they did was expand their snackbar. Previously, you could get popcorn, a Coke, and some candy. That was about it. They added a fast-food line (burgers, chicken sandwiches, fries, etc).

      They then started special screenings of movies. "Mommy & Me" movies -- regular movies (not necessarily kids shows) but screened in the afternoons and early evenings, with the lights turned on low so new parents could go to the shows and bring their babies with them. Since EVERYONE there has babies, nobody gets upset if one cries... This was wildly successful.

      Next was the midnight screenings. They pick a classic movie every week (it might be Star Wars or Raiders of the Lost Ark or the Exorcist) and screen it at midnight -- charging $1.00 per ticket. This has also been a huge success.

      After that, they started inviting local bands to play in their lobby before the midnight shows. Now people can go early, catch some good local music (and the bands get exposure!) before their movie.

      The most recent thing they have done are video game competitions. They hook a PS2 or XBOX up to their projector and and have a competition. HALO on a fullsize movie theater screen definately has generated some interest...

      Things like this are keeping that theater open and generating a lot of revenue -- above and beyond anything the mediocre overhyped movie of the day could possibly bring in.

  22. cinema "quality" is better than dvd. by adamgeek · · Score: 2, Interesting

    Unless you have been going to some very "out-of-the-norm" cinema, DVD cannot compare to what you'll see on the 'big screen.' Now, i'm not going to say that sitting on your couch in your underwear isn't more comfy than sitting in a folding chair with gum stuck to it and one of the armrests missing, but at least from a technical standpoint, the bigscreen still trumps the dvdplayer.

    Simply put, when film is scanned for digital manipulation (color correction, digital effects, etc), it's scanned at either "2k" or "4k" depending on what will be done with it. 4k is 4096px wide, and 2k is 2048 px wide. Current estimates put the theoretical [effective] maximum width of 35mm scanning between 6k and 8k. For the sake of argument, let's just assume 4k is the max. Current estimates put the theater release-prints somehwere between 1k and 1.5k, which is an abomination really, if you consider that is around 25% of the original "inherent" film resolution; but nontheless it's still considerably better than DVD (which is equiv to ".6k"). Now, if you're fortunate enough to be watching HD content at home, then you're watching the equivalent of 1.3k*, which is prettymuch onpar with what you'll get in a theater, but not better. And, since you said, "it's not like I spent thousands and thousands on it," one might assume you're just watching DVD's on a standard definition tvset, which i promise you, will be far inferior to your local theater.

    (Disclaimer: a 720p frame is equiv to 1.3k, a 1080i frame is equiv to 2k; however 1080i is interlaced, and thus displayed in half fields, so each half-frame displayed is actually equiv to 1k. Even if you still want to pretend that 1080i frames are "2k," which they aren't (unless you're adding both halfframes together in some sort of weirdo math), you still have to watch an interlaced source, which is inferior to progressive film source a la your local theater.)

  23. Going to the Movies is a Social Experience by midnightthunder · · Score: 2, Insightful

    I realize this may seem odd, but to many of us who are regulars here on slash dot, the 'social experience' is about as foreign as being an alien grey. But, it should not be forgotten that going to the movies is 'an event'. Far far cheaper than going to see a play or attend opera or a concert. Much more easy to schedule on the fly. And the world is full of folks who do not have the paragon of home entertainment systems.

    Sure, we can stay home, watch the DVD and have pizza delivered. But it is not the same as seeing a film after a meal in a nice restaurant, with friends away from the house.

    So, will some theaters fail and close ? Heck, theaters are always failing and closing. AND new ones are always opening up too. The business model will change. Some will live, some will die, and life will go on.

    Meanwhile, the movie industry will short circuit the bootleg business. Why buy a bootleg of uncertain quality, when you can have the real thing now ? Maybe a plea of poverty. Fine, for those who cry poverty there will remain bootleg. For the rest of us, the official release.

    YAY !