Digital distribution ( The future is coming ) Peter Buckingham@ukfilmcouncil.uk

1. Digital distribution (The future is coming) Peter Buckingham@ukfilmcouncil.org.uk

2. D&E has evolved alongside the wider landscape: 2000-2005 • Web 2.0 • 10% UK homes have access to broadband • 15% UK homes have access to broadband • 31% UK homes have access to broadband Internet Use • iTunes launched • 3G network launch • YouTube launched • First video iPod Accessing Content • BitTorrent invented • Pirate Bay launch • Pirate Bay launch • 4.7m music tracks illegally downloaded • Over 20m music tracks illegally downloaded File Sharing • MySpace launched • Facebook launched at Harvard • Facebook launched in High Schools • 26m MySpace users Social Networking • Wikipedia launch Search & Discovery 2000 2001 2002 2003 2004 2005 UKFC More and more people watching a wider range of films in cinemas

3. D&E has evolved alongside the wider landscape: 2005 to Present • 31% UK homes have access to broadband • 43% UK homes have access to broadband • 56% of UK homes have access to broadband • 61% of UK homes have access to broadband • 50MB broadband launched • 70% of UK homes have access to broadband • 300m homes worldwide have it Internet Use • YouTube launched • First video iPod • Google buy YouTube • 100m videos viewed on YouTube daily • BluRay launched • 6b YouTube videos watched daily • 65m videos uploaded to Facebook daily • Xbox offers VOD • iTunes movie store launch • Sony PS3 offers VOD • BBC iPlayer launch Accessing Content • Over 20m music tracks illegally downloaded • 95m films illegally d/loaded in UK • Loss to UK Film & TV industry estimated at £570m • 150m BitTorrent users worldwide • 38% of UK homes engaged in piracy File Sharing • 30m Facebook users. • 340k Twitter users • 70m MySpace users • 100m Facebook users. • 7m Twitter Users • 110m MySpace users • 300m Facebook users. • 80m Twitter users • 125m MySpace users • Facebook launched in High Schools • 26m MySpace users • Twitter launched • 8m Facebook Users • 47m MySpace Users Social Networking • 100s of millions of search queries each day on Google • 7b Google searches • 3b Yahoo searches • 1b MSN searches Search & Discovery 2005 2006 2007 2008 2009 2010 UKFC More and more people watching and enjoying films across the UK - legitimately

4. Computers 2019? • A computer that is faster than 99% of what most people need will cost under £120 and be the size of an iPod. It will take multiple form factors - like a phone or a ring or watch. • A monitor that unrolls into a larger screen and a biometric security system • with all the data residing in the cloud. • displayed on a variety of surfaces, including tabletops, TVs and mobile phone screens as well as vertical multitouch screens, e-paper or any blank surface for holograms to be projected on • 10TB of memory and online storage - the size of the entire Library of Congress.  • Wireless Battery life

5. Internet speed over the decades 1999 2009 2019 • wireless cards installed • WWW is readily available at eateries, coffee shops, hotels, and airports. • Most homes bundle high speed internet with their cable or satellite TV offerings.  • Download speeds of 5-15 Mb/s are the norm on high speed connections. • Cell phone networks are offering 3G mobile broadband cards • Wireless internet barely existed.  The most common way to access the web was a 56k dial-up connection, with high speed ethernet just starting to become available. • Broadband will be free and limitless for every device in every location. • 90% of UK homes will have access to 32Mb/sec broadband connections in ten years' time • Download speeds will be so fast that we don’t even pay attention. 10MB / Download Times: 24min 8 sec 1 sec

6. Digital and the Film Industry beyond 2010? • Estimated 1.8billion broadband subscribers by 2012 • Speed will increase dramatically • Web 3.0 will herald new ways of communicating, sharing and discovering on the internet Internet Use • Film will become available on an increasing number of platforms and devices • Audiences will continue to expect to access content when, where and how they want to. Accessing Content • Increased broadband speeds will make file sharing quicker and more prolific • Pressure on ISPs to become part of the solution File Sharing • Social networking will continue to integrate with other online tools and devices • New sites, methods and communication tools will emerge Social Networking • With increased online traffic, search and discovery methods will become crucial to film awareness and promotion • User Generated Content (e.g. Wikis) will continue to grow as collaborative contribution gains momentum Search & Discovery UKFC new aim: To help ensure that the UK film sector makes a successful transition to a fully digital age. 2010 2011 2012

7. The answers may be uncertain but the questions are becoming clear The Key Issue: Balancingaccess and valuein shaping any distribution plan and/or company strategy. Almost every distribution decision will have to make these decisions by design or by default (DRM…..Windows)

8. A New Pitch • D:\Circleof8 interactive demo.mp4 • D:\Circleof8 interactive demo.mp4 • How might all this work??

9. Metadata! What is Metadata? Data about Data. Metadata is information about a thing, apart from the thing itself. e.g. Music CDs have artist, title, track listing, ISRC number etc. Clothes have size, washing instructions and manufacturer. Food packages have weight and nutritional information. Film Metadata The following is a non-exhaustive list of some of the types of metadata that humans and computers may want to share about films:

10. Film Metadata Title ISAN number Credits Cast Script Synopsis Distributor running time related media links stills study guide opus ratings certificates versions/formats available production formats time code audience comments audience demographic data licensing budget finance sources subtitles and dubbing platforms where it is available website info contact info awards music info screening/release history, scene-by-scene description time code of each element country of origin call sheet money path categorisation genre chapter points technical specs frame rates codec resolution sound specs camera meta data location and geo-tagging artistic information wardrobe key props parent or project info products breakdown sheet cost of each element The list goes on…….

11. Why is metadata becoming so important? In the analogue age awareness = value In the new digital age, Discovery = Value. The primary use of metadata is to improve discovery Digital can allow data and value to be obtained in unknown ways and unknown forms…..but without the metadata very little can be done.

12. How does this translate practically into film? • Films are turning to new ways to finance production. • One example is sponsorship and product placement, but in order to do this brands must be confident in the ROI that they will receive. In the current economic climate, this is becoming increasingly difficult: • Brands need optimum return and comfort that their investment will translate into increased sales • The ROI for a brand ultimately happens at the audience end, although the deal is struck at the production end. This therefore needs to be managed and exploited. • Future business models or initiatives that aid producers in providing ROI to investors all along a film’s lifecycle would therefore be of enormous value.

13. How could Metadata help on ROI for product placement? • If product placement was captured for each production and in a standardised format, new possibilities and business models could emerge to aid in ROI opportunities. Standards in Metadata are established, including types of data, method of capturing, etc. Data is captured in production (including product placement information) and made available . New or existing businesses can access the data for new ways of ROI for brands, and new ways of value to audience Enhanced offering to potential brand partners in film financing • What could it look like for audiences and film investors?

14. Imagine the possibilities… With exclusive Click-to-Buy fashion and style commentary!

15. A direct click-to-buy ROI proposition for film investors

16. Digital Marketing Today At UKFC a new strand of p&a support – digital distribution support for new ideas • SME companies quite low in knowledge and skills • Digital still seen bit web 1.0 as if its another form of advertising like a poster or an advertisment • Some great ideas though using social media, apps and data. Eg………..

17. One Thought We are used to these three roles in film. • Funding • Distribution • Marketing These roles also correspond to a time line of activity. BUT: They are all (potentially) the same in the digital world! Which means new ways of working with very different ‘silos’ than the old divisions of labour and expertise. And very different timelines. Eg starting with ‘marketing’ might well become the norm for independent film in the near future.

18. Finally Things that matter in the digital world Analogue = Digital PR = Reputation Sales = Consumer behaviour Cash = Owned data Listings = Search Programming = Recommendation Awareness = Discovery Me/you = Us (think Apps/wikis)

19. What next…? Peter.Buckingham@ukfilmcouncil.org.uk