Essay Due Friday 15 th October 2010 Discuss the reasons for and against the use of digital technologies in the film industry. Use case studies to support your points.

Sunday, 9pm, Channel 4

What to include… Consider the impact on: Production Distribution (& marketing) Exhibition

Year 12 Media Studies Institution & Audiences On-demand culture and new technologies: British Cinema in the Digital Age

Some Vital Statistics £4.3 billion Amount UK film industry now contributes (approximately) per year to the UK economy 2008 UK films took 15% of the global box office and 31% of the UK box office £2.3 billion Amount UK film grossed at the worldwide box office last year

Some Vital Statistics UK box-office takings are at record-breaking levels, worth £850 million in the UK in million Number of people who went to the cinema in the UK in 2008 – up 22million (15%) from Number of digital screens in UK - More than any other European country 527 Number of films released in 2008, 34% more than a decade ago

On-Demand Culture

It could easily be said that we live in an ‘on- demand’ society We want to choose what to watch, when to watch it and where to watch it Can you think of any examples of how the media has adapted to these audience demands? What services are now available?

Which of these services have you used over the last week?

Digital Distribution: Online

The way we watch films is changing… The potential for the home computer to act as an entertainment centre is fast becoming a reality Increased processing power Faster broadband connections Connectivity to a variety of displays Increases in the compression/dec ompression of high-end audio and video.

The way we watch films is changing These new capabilities open up an opportunity and a challenge to film distributors: How to target this new digital entertainment gateway with digital movies and video but not lose control of the content in the process.

Growing options for viewing films 500,000 Estimated number of digital movies being exchanged illegally over the web. How can technology help to bridge the gap between what consumers want (find, acquire, playback and share movies online) and what the film industry wants (secure content, business models that work, a great consumer experience)? Advancements in digital media technology are opening up new distribution opportunities for the film industry.

Growing options for viewing films In order to take advantage of these new opportunities the film industry requires the ability to secure valuable assets, deliver them to customers and ensure a high quality playback experience on par with other playback options such as watching a DVD in a home theatre or a pay-per-view movie on digital or satellite TV.

Internet Distribution The advancements in Internet digital media distribution have happened fast First generation of streaming online This experience was audio only and bad quality. But the potential was realised. 2 nd Generation Good audio quality in reasonable file size and acceptable video quality when played back in a small window. Introduction of digital rights management (DRM), the ability to secure content and associate it with licenses that authorized the playback.

3 rd Generation This new technology is attempting to meet the requirements of the film industry in the following areas: Security Quality Improved economics

Security The third generation will include more robust digital rights management solutions to secure the delivery of digital media. Makes it harder for people to pirate

Quality The audience needs to have a high quality experience, similar to what they’re used to getting when watching movies at home on TV both in the video quality and in the quality of the delivery.

Improved Economics With technology providers focusing on creating digital rights management technology to secure the content and building the technology to deliver a high quality consumer experience, the film industry can focus their efforts on creating business models for distributing content online.

Distribution of films over the internet What are the benefits of doing this? Think about the benefits for the filmmakers/producers/distributors Think about the benefits for the audience

Distribution of films over the internet Cheaper Could view film on same day as cinema release No need for staggered distribution Could cut down on piracy Producers could target specific, niche audiences directly Audiences could choose when, where and how they watch the film – fits in with ‘on-demand’ society

Cinema vs. Home entertainment Come up with a list of pros and cons for each option

Cinema vs. Home entertainment Technology is becoming more accessible and more affordable HD TVs – top quality images Surround sound Can pause when you need to Or is the cinema experience more important? Are there certain films, such as Avatar, that have to be viewed at the cinema? What are the different expectations/ gratifications of cinema viewing? Consider levels of activity/ passivity

Digital Distribution and the cinema

The cinema experience: The Problems High Distribution Costs No Security Degradation Issues Limited Programming Flexibility

High Distribution Costs: The cost of sending films out to cinemas across the country, and around the world, is based on the cost of the film prints themselves Anywhere from £800-£1,300 per cinema.

No Security Distributors have little control over a film once it leaves their facilities. They have to hope that it’s delivered safely to the appropriate cinemas and doesn’t fall into the wrong hands or is damaged along the way.

Degradation Issues As a movie is screened it becomes progressively more scratched and dirty, eventually demanding a replacement print.

Limited Programming Flexibility Currently, most cinemas are only set up to receive 35 mm films (Although digital screens are being fitted more frequently). Since the cost of film production is so high there’s little content beyond major independent and studio movies that can afford to take advantage of a cinema screening.

The cinema experience: The Solution Streamlined Distribution Integrated Digital Rights Management Digital Preservation Demographically targeted advertising

Streamlined Distribution The distribution process will no longer involve bulky expensive film reels. Films can be sent digitally over the IP network to targeted cinemas without ever having to duplicate a 35mm reel. This streamlined distribution will pave the way for new programming options including concerts, sporting events, distance learning and more. Cinema owners can programme content quickly and easily, moving content from one screen to many, meeting market demand in a way they are currently unable to.

Integrated Digital Rights Management Digital cinema content will be secured before it ever leaves the content owner’s facility. DRM will enable tracking and license serving so cinemas and content owners know exactly when and where the content is accessed.

Digital Preservation The one thousandth time a digital movie is screened provides the same quality as the first time. There is no breakdown in the digital file as there is with film.

Demographically targeted advertising Digital ads can target specific cinemas based on content being shown in that cinema to a particular demographic.

The benefits of digital distribution to cinemas Cheaper to screen (although installing digital equipment is an expensive outlay at first) A digital copy costs around one tenth of a 35mm print. Cheaper to distribute (this is a benefit for the filmmaker, the production company and the distributor) Wider content variety More specific audience targeting Greater security and longevity of product