Video Business Closes Shop

After 29 years the industry trade VIDEO BUSINESS is ceasing publication.

“I’m extremely proud of the role VB has played in the home entertainment industry, consistently breaking news, while providing important analysis and insight to our readers for almost three decades,” said Marcy Magiera, editor-in-chief and associate publisher. “Every staff member and regular contributor here is a first-class business journalist, and I will miss working with this smart, dedicated and caring group of people.”

The full story here.

How Not to Worry and Make Money with Web Video

That's the big question isn't it?

I know I get asked "How do I make money at a web series (or book, or whatever)?" and I just have to say that being patient is helpful...

Making a great product is helpful...

And keeping an eye on those people who have done it and are experimenting with you is helpful.

From Video Business:

Next month at Comic-Con, Walt Disney Studios Home Entertainment will launch its first original Web series, Time Jumper, a graphic novel series produced with legend Stan Lee. But unlike many other original Web series, which up to now have been streamed with ads online, WDSHE will sell Time Jumper as a download on iTunes and in 2010 on DVD.

The studio is one of a number of companies testing new release strategies for original Web series that don’t rely on falling online advertising revenue as they try to make Web shows profitable.

And of particular note (emphasis mine)

Big Fantastic, producer of 2007 Web hit Prom Queen, has been in the business probably the longest and has tried every type of business model, but Chris Hampel, one of the four guys who run the company, said producers are still trying to figure out the best monetization model.

Big Fantastic made its first two series, Sam Has 7 Friends and Prom Queen, for $50,000 each. They got picked up for distribution by Michael Eisner’s Vuguru, which re-packaged Prom Queen and sold it to foreign markets, helping to finance a second season of the show. The show also got a DVD release, but Hampel said residuals are minimal.

In Japan, the series took off as a mobile series and has even been remade. In the U.S., Prom Queen plays on the Verizon Vcast network, but mobile hasn’t taken off, he said.

Their deal with Eisner has pushed budgets on their latest shows up to the $500,000 to $1 million range, though profits are still small, “nothing that would upgrade our cars and girlfriends,” Hampel said.

and here:

“Fiction is expensive; it’s hard to do well,” Revision3 CEO Jim Louderback said of Revision3’s reality strategy. “You can never make your money back online.”

But you can develop an audience, which is why many bigger companies say they’re moving into the space.

Starz Digital Media is using the Web series as pilots for TV shows.

“There’s reduced risk in developing new content online versus the traditional model,” DeBevoise said.

Now Starz is developing a seven-part action series that could be turned into a TV series and looking to develop and acquire others.

Producers say to be successful online, shows need to involve the audience.

Williams said in the future, T180 might re-release its shows on DVD or package them for foreign distribution. They also could serve as a launch pad for a movie, building an audience before a theatrical release.

There is much to ponder here, but as people bemoan the fact that they "seemingly" can't use ads alone for online content I go to YouTube, click on a video and see pop up advertisements brought to me by Visa. One company is sponsoring ads of another company popping up on a web video.

It's that kind of entrepreneurship that tells me that ad-only on web video is going to continue to morph, but it's going to turn out just fine.

And while large companies can't make money with ad-only web video, that's not to say that some entrepreneurial sort can't do it on his own. With the budget levels some of these guys are working at ($50,000) , you can make an attractive movie serial or series that can be sold overseas.

Barnholtz Launches NAMP

In this era of corporate downsizing and cutbacks, it's refreshing to see a company that switches gears and forges ahead --- on its own. Barnholtz Entertainment is opening North American Motion Pictures, a DVD production and distribution company.

From the Video Business article:

Barry Barnholtz, head of Lionsgate-distributed Barnholtz Entertainment, has launched a new DVD production and distribution company that will self-distribute its films.

Called North American Motion Pictures, the company will release its first DVD, Redemption, a theatrically released western, on Feb. 10 (prebook Jan. 6; $26.99).

NAMP plans to also release its titles in Blu-ray Disc, offering the high-def version for free to retailers who buy three copies of the standard DVD. The program is designed to promote rental profitability. Blu-ray will not be available separately.

The company will offer retailers a commercial for regional placement and will employ Internet marketing, Barnholtz said.

Serving as executive VP of NAMP will be Tom Sykes, who founded New Light Entertainment and previously worked as VP of sales for Showtime Network’s home entertainment product.

Barnholtz said Sykes will eventually have four sales representatives but that the intent is to keep the operation small. “I am a firm believer in keeping overhead low,” said Barnholtz.

Barnholtz Entertainment titles will continue to be released through Lionsgate until January 2010, after which the company's productions will be distributed through NAMP.

Self distribution offers control, profit, and responsibility. By keeping it small they will be able to be more responsive to the customer (their retailers) and the direct purchaser (you and me).