By Geoff De Weaver, CEO + Founder of Touchpoint Entertainment Inc
The Movie and Television industry is just beginning to understand that world of entertainment is evolving and changing faster than ever before. But, this doesn’t mean that Hollywood executives should get on their knees and surrender to Silicon Valley and the upstarts in Silicon Alley (Manhattan).
However, they must be open to the many opportunities afforded by new technologies in production, marketing and distribution. Because the biggest shift in today’s entertainment marketplace is in HOW their products are ‘consumed’. The move is well and truly away from network TV and hard-to-get-to venues and desktops to apps and mobile devices. Filmed entertainment is one of the most popular categories of content on mobile devices PLUS the newest iPhones and iPads have an even higher-resolution than most of the older High Definition TVs.
Breathtaking visuals, combined with a huge selection of content and delivery of a seamless purchasing process, have turned the handheld device into the fastest-growing category in entertainment displays.
The theory of disruptive innovation clearly reveals why and how incumbents such as Hollywood & Television are often trapped by their own success in low innovation cycles. It’s probably more accurate to say that Hollywood is in the simultaneous, repeatable event business, rather than the film business. This has now become a broken business model which has its historic roots in creating artificial scarcity and charging more for the least efficient distribution method.
Hollywood now has an ever-narrowing window of opportunity to embrace the digital revolution. But first it must reinvent and re-invest in its relationships with customers and fans. In today’s digitally disruptive marketplace, leveraging consumer data is key because data drives dollars. Social Media Marketing, Mobile, Email Marketing, Augmented Reality, Apps and Streaming are all critical in the Age of Digital disruption because the create the requisite Big Data, to make it all work!
From a big data standpoint, the movie industry is pretty much blind. What scares Hollywood about Netflix, et all is that movie executives suspect that they may know something they don’t, and thus make their marketing decisions based on empirically analyzed data rather than hope and precedent.
Currently Hollywood Studios still construct demographic profiles of their desired consumers to target marketing campaigns to reach them. They still employ intensive mass marketing to drive rapid demand at film launch, in expectation of fleeting consumer attention.
These Studios create the product and generate demand, but they do not engage in fulfillment or use real-time, social data and statistics. This has allowed emergent digital platforms from Apple to Amazon and Netflix to own their customer relationships. For example, Netflix doesn’t care if you are a 53-year-old man or 16-year-old girl. When it recommends content to you it is based on their customers actual viewing preferences. Netflix operates in real time and is able to be predictive and smart because they know how to mine that Big Data!
Film marketing is still practiced as a series of separately planned and executed silos–theatrical, DVD/Blu-ray, digital/VOD rather than as a holistic lifecycle. It is a highly digital disrupted industry in massive decline. This is because Old School Film Marketers do not know where or how their films are being watched, i.e. in a theatre, via DVD or Blu-ray or digitally via Amazon, iTunes, Netflix, etc.
Here is a classic example of digital disruption in Hollywood that occurred last December, when Sony hackers e.g. North Korea, threatened a 9/11-like attack on movie theaters during December 2014 when Sony Pictures was about to release a huge new movie featuring Seth Rogen and James Franco, called ‘The Interview’. (A North Korean comedy substantially escalating the stakes surrounding the release of the movie.) So Sony Pictures pulled the movie from Cinemas and discovered a new marketing star – STREAMING the movie and not running in all 300 plus scheduled cinemas as originally scheduled.
Despite Sony’s limited theatrical release, which only brought in $5 million, The Interview notched a whopping $31 million with 4.3 million transactions from film rentals and sales between December 24 and January 4 2015. And, hailed the new distribution future for the Industry?
Additionally, I consider it a bittersweet win for the embattled Sony, which spent the frenzied and chaotic Christmas vacation playing catch up, with The Interview’s new and revised distribution strategy and launch plans.
In that 11th hour push, Video –On-Demand (VOD) releases raked in $15 million in its first weekend alone, from Apple’s iTunes, YouTube Movies, Google Play, Microsoft’s Xbox Live network, and Sony’s SeeTheInterview.com at $5.99 per streaming rental.
I sure hope that massive change initiated by North Korea threatening a 9/11-like attack on movie theaters started a new Paradigm Shift in Hollywood.
BUT, I am still waiting for more ‘fresh thinkers’, digital disruptors and innovators in Hollywood to jump on the Northbound Train to join the Paradigm Shift and disrupt their own Industry to survive and thrive in 2016 and beyond.
More About Geoff De Weaver:
Hailing from New York; Geoff De Weaver is the driven, passionate and charismatic entrepreneur, lifestyle guru behind Touchpoint Entertainment Inc. Geoff is a catalyst for change, business coach, digital provocateur, paradigm shifter and a strategist for success.
As a CEO + Founder of Touchpoint Entertainment, Geoff is always on the lookout for the latest business innovation, sporting trends, music trends and for the latest ways to engage with people; from mobile and streaming technologies, to live events, music, sports marketing, entertainment and customer/fan experience.
Geoff has a global 25-year background of representing some of the world’s most iconic worldwide brands including: Coca Cola, IBM, IMG, P&G, Microsoft, Nike, British Airways, Wells Fargo, EA Sports, MasterCard, Shutterfly.com, EA.com, E*Trade, Nestle, Air France, AT&T, VISA, Unilever, EA.com, Ferrari, American Express, P&G, Trend Micro, Acer Computers, BMW, Shutterfly.com, Mars, Pfizer, TiVo, EarthLink Internet, American Express, Telstra and others.
- Top 0.5% Worldwide on Twitter Globally
- Top 1% Influencer on LinkedIn and 32+ million network on LinkedIn worldwide
- Top 1% Most Viewed Profiles on LinkedIn ( 380+ million members)
- Geoff is a Digital Pioneer, Data-Driven, Entrepreneur, Business Coach + Innovator.
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