Cutting The Cable

We are in the early stages of a shift from traditional television delivery to online television delivery.  Yet many like me suffer from an acute case of OCD regarding picture quality that prevents us from “cutting the cable”.  Trading a beautiful HD television picture with a highly compressed online video “HD” picture is not sufficient… for now.

The cable companies that control internet access (Comcast, Time Warner, etc.) know this.  The conflicting interests of web and television have caused U.S. cable providers to restrict bandwidth to prevent the change.  As a result, the United States currently ranks a pathetic 12th in broadband speed.  The fear is that offering broadband at 100Mbps will cannibalize their TV business and erode profits in their lucrative internet access business.  Unfortunately this fear is not only valid, it’s true.  But rather than ignoring change as the music industry did, cable companies should focus their efforts on building a more profitable online business model.

Ultimately, I believe the model will resemble that of the wireless providers.  Customers will pay for access on a usage basis, with unlimited plans available to satisfy the appetite of bandwidth hogs.  This is a fair and proven model.  Think of the parallels that television and internet have with landlines and cell phones.  Many Americans no longer have landlines because they have increased the minutes on their wireless plan, resulting in a net savings.  Though the overall pie will be smaller, this is a win-win scenario.  Cable companies will undergo further consolidation, but they will be able to profitably improve their offering to the consumer.

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See how your connection compares: test your speed here, then read this article.

LA Film Production Nosedives In 2009

During the worst economic recession since the great depression, the film industry is absolutely booming.  In 2008, box office revenues hit an all time high of $9.6 billion.  All signs point to the trend continuing through 2009, with first quarter box office revenues up 12% and theater attendance up 8%.  How then is it possible that in Los Angeles, the movie capital of the world, film location work has plunged 56.3% year over year?  The answer, money.  Feature film productions continue their exodus from Los Angeles in droves seeking greater financial incentives to lower production costs.  In the first quarter of 2009, feature film production in Los Angeles registered its lowest level since tracking began in 1993.  With the City’s largest export falling off a cliff, coupled with California’s massive budget deficit, film production tax credits are a simple answer to reverse the declining trend.  If iPod sales dropped 56.3%, I would bet my life that Apple would come up with a solution… and fast! With entertainment being Los Angeles’ core “product”, we need a solution that puts money in both the filmmakers’ and government’s pocket. Film tax credits are a proven money maker for state and local governments – take a look at the success New York’s film production tax credit.

[Update]  Shortly after I published this post, Variety came out with this piece:  Hiring freeze spreads, Hollywood odd jobs drying up

Innovative Film Marketing Tactics

Weather you are writing a treatment, crafting your pitch, or establishing your print and advertising campaign, David Meerman Scott will improve how your market your content.  While David does not directly target filmmakers in this presentation, his concepts and ideas will change the way you think.