I wanted to offer a different side to the one presented in this earlier (and very informative) blog:
http://onewaytv.blogspot.com/2009/07/concept-of-free-movies-gets-no-free.html
-Note: I think their is important, valid points from both sides of the debate.
I see the economics of free being slightly different. I think we could show indie films online, and gain even greater exposure than a small festival run, and create a demand, increasing the value of the products we already sell outside of the online release.This allows all of the online content to remain free and accessible. This is an important element for the exposure of the films and to the culture of online media.
We can adopt the same strategy (and could work along side) as a film fest run. We aren't in the business of making money at festivals, there isn't a viable business model set up for that yet---we are in the business of creating value and demand on a product that we are going to offer. Look at the disposable razor example from this article---he did whatever he could to get the product in the hands of the consumer, creating a demand. Most importantly, influencing a cultural shift in the world of a specific task. He made his product something people wanted to have, and were willing to adjust the way they were used to doing things. I see this as the cultural shift in the way we view media...the web. The statistics show that the consumer/audience is willing to spend more time viewing media online and even when their attention span runs out, they are still willing to spend money on mediums that are suitable for their old ways of doing things. Studies are showing that the consumer, on average, is watching 15 minutes of a film online, then considers purchasing the dvd.
Look at The Really Cool Show for example, no budget, limited marketing and still 8 million views and growing. We did a season three, because there was a demand for season three. Here is where we can learn from the mistakes. The Really Cool Show didn't start with a strategical marketing plan nor a full team to utilize that opportunity. We also didn't have a business model, so now we are forced to work backwards and figure out a way to monetize on our past. The really cool show has made its money from merchandise sales (hats, pins) and producer donations, and a tiny amount from Ad share revenue from blip.tv. Now, with that being said, we've created a process of working that allows the shows production cost to remain low and it's online presentation is totally free to produce and to watch.
If a team of filmmakers conceived a day and date release for their films to go online (maybe even at the same time?!), imagine the kind of buzz it could create. Also---is there any independent company that has releases its entire catalog online, and selling the dvd?! I don't think so. It could make history!
As for the technology, there are no longer any gate keepers! We can present our films, in their entirety in HD or in the case of 24p dv, full quality! Of course, I understand their is a debate about which online video site to use---as a filmmaker, I much prefer Vimeo. It offers full HD html embedding, which means you can post your entire film anywhere you want, including: facebook, myspace, twitter, tumblr and blog spot. It's easy to share. I feel that youtube is crowded with corporate owned content, and home videos. What I've learned, from three seasons of The Really Cool Show is that you can re-direct your audience to see your work anywhere---as long as you consider exclusivity and create demand. It doesn't always happen over night, but with time, it's totally possible.
The most important aspect of the economics of free, is that not only do you present your media free of charge, but the cost to do so is very close to zero and growing closer by the day.
Think of it as a theatrical run, or festival run---except cut the costs to do either of those, and you have the control of the release.
Now of course, if a film has the opportunity to do any of those two things, then by all means, that's the right thing to do. I'm just thinking of ways to increase revenue streams and to create a larger demand and exposure range for the film.
If a distribution company is interested in the film---and they know that the audience has already been 10 million world wide---I can imagine they would want to jump on, and be the ones to put out the dvd with loaded special features. And if they don't, we have the option, as filmmakers, to do a strong self release and maximize our potential to benefit from our hard work and offer the opportunity for your collaborators to do that same.
So we have the culture of media shifting, and the tools to adjust our work to be presented in that growing format---but what about the audience? They watch films on personal dvd players, ipods, and on airplanes but they don't know if they want to watch films on lap tops? They don't mind hours of facebook, twitter, tumblr, myspace, youtube---but we aren't ready to watch feature films online? I just don't think companys like Netflix, Amazon, Itunes, Hulu and media rights pioneers Cinetic, are making a blind gamble. I think the audience is there. I don't think the media is. As a consumer, I would like to see more independent and festival films have online distribution for FREE, PAY-WHAT-YOU-WANT or basic Download Fee (such as what Itunes offers)---this is where media is going, the audience is there but the films aren't.
Now, it's important to note---the fear of NO AUDIENCE is a legitimate one.
An online release of an indie film would need to work strategically with an audience building method, significant buzz and a strong grass roots effort. The internet is wide and their are so many directions to go---the audience needs to know where to go. So we can't guarantee it's going to be an over night success--we can at least give the audience the option to decide.
The economics free in relation to arts, from my angle, is this: Independent art in its creation and presentation is moving closer and closer to free, so why can't its consumption be the same? If we create a media outlet in which art is free to make, and free to experience/watch, then a cultural shift will take place. That cultural shift in the way we view media, will create a demand this creating value--and with value comes the option of monetary return.
At the core of this "business" proposal, is the reliance on the artist to make good, honest work. The audience is waiting.
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