YouTube in talks for new Hollywood movies
YouTube appears poised to enter the movie rental business, offering streams of current Hollywood movies at the going rate.
The Wall Street Journal web site broke the news that Google’s amateur video giant has been in talks with Sony, Warner Bros., MGM and Lionsgate for full-length Hollywood fare.
At least some of the video rentals would be day and date with DVDs and Blu-rays’ arrival at Blockbuster and other traditional outlets, several sources said.
YouTube has been pushing the studios for a free, ad-driven model, but Hollywood seeks rental fees such as those on Amazon’s Video On Demand service and the iTunes Store. The studios apparently remain resistant to closing the online release window to match DVD availability.
YouTube recently created a “Shows” section for professional video, embraced widescreen ratios and is offering what passes for HD on the Internet. The Google property also made first-step deals for clips and trailers from DIsney/ABC and Time Warner.
YouTube said in a statement: “While we don’t comment on rumor and speculation, we hope to expand both on our great relationships with movie studios and on the selection and types of videos we offer our community.”
Google’s video sites (YouTube, basically) streamed 8.9 million files in July, accounting for 42 percent of all videos viewed online, according to comScore.
‘Home’ video debuts on YouTube
The Luc Besson-produced visual feast “Home” opens Friday in theaters across the U.S. and Europe, in celebration of World Environmental Day.
Best to catch this “stunning visual portrayal of Earth” on the biggest screen you can find, but there’s a quick, easy and free way to see the film as June 5 dawns.
YouTube is set for a one-day-only streaming of “Home,” which was directed by French photographer Yann Arthus-Bertrand. (Update: The movie started streaming on schedule. YouTube’s presentation is in widescreen with the viewer option for what it calls HD.)
The production claims the title of first simultaneous online and offline premiere for a major film. The 90-minute feature is narrated by Glenn Close.
The ambitious and well-executed YouTube channel for “Home” includes the making-of extras we’ll probably see on the Blu-ray and DVD, as well as short videos about shooting locations. There’s also a stash of press conference videos. Google France worked with the producers to create five map “layers” with interactive and dynamic content.
The film is available in English, French, German and Spanish. Some international viewers are reporting messages that the stream is not available in their countries.
Director Arthus-Bertrand’s eco-friendly canned quote says, “The message in this film is incredibly important since it underscores the question of survival. It needs powerful and accessible platforms like YouTube and Google Maps to reach the largest audience.” Besson, of course, is known for visually driven movies such as “The Big Blue” and “The Fifth Element.”
“Home” also will screen in outdoor settings around the planet, such as Central Park, and on some TV networks.
Previous filmmakers debuting their works online include Michael Moore (”Sicko” on BlipTV) and Wayne Wang (”The Princess of Nebraska” on YouTube).
Viacom boss: Online audience uncounted
Viacom’s president and CEO agrees with Hulu: Measurements of online video audiences are off. By a lot.
Noting that “you get paid on measurement,” Philippe Dauman charged that streaming-video tracking done by online ratings services are “extremely inaccurate.”
“What we see internally is very different than what the measuring services have,” Dauman said, making the same points as Hulu executives did in their leaked complaint email to Nielsen. Viacom also uses Nielsen for its streaming video properties, such as fare from Paramount, Comedy Central, Nickelodeon and MTV.
Dauman made the comments during his Q&A session Wednesday at the Sanford C. Bernstein Strategic Decisions Conference. The majority of the talk focusing on streaming video, to no one’s surprise.
Dauman, among the most savvy of the old-media chieftains when it comes to online video, is on board when it comes to the multiplatform digital universe, at least in theory:
“We’re agnostic about how people view our content as long as we get paid for it,” he said, envisioning a time when TV and video releases were day-and-date across all platforms.
“Consumers certainly want to have access to content on different devices,” Dauman said. “We have to adapt to that world.
“We on the content side have to work with the distribution community to make that happen (but) it’s not going to happen overnight. … It’s not a lightswitch moment.”
Far from hurting broadcast television, he said, online appears to be strengthening it.
“When we have a hit, our online presence actually builds the show. It draws in fans, it gets them more committed to the show. It increases the intensity of the relationship. And, importantly, we can monetize our video and online presence very well.
“We are getting more viewers than we ever had on our shows. When we get strong ratings … we get a tremendous number of views online. … Our programming skews very highly, both online and VOD.
“As we go forward, we’ll be able to modify that better (with new ad models).”
He said establishing appropriate price points for ads and premium online video fare was especially difficult now because skewing from the sick economy.
Keeping network affiliates happy and in the loop is an important part of online development, Dauman said. “We manage content so it’s not cannibalistic. We’re very conscious of this because of our affiliate relationships. Broadcasters until now have not had to be very conscious of (online).
“We’re very careful how we window our product.” He said a “very robust” premium product for distributors and customers was doing well in beta.
On the seamy side of video downloads, he noted that “peer-to-peer networks are still a problem. The studios have to be vigilant.”
Dauman cited the pirated version of “X-Men Origins: Wolverine” that appeared online before the film’s debut. (And, incredibly, was the source for a gushing review by a Fox TV movie critic, now an ex-Fox TV movie critic.)
Viacom is working closely with online distributors, he said, because the practice of P2P piracy “is a bandwidth hog.”
Overseas, he said, countries with local film industries tended to be good allies in the piracy fight — such as India, France and Sweden. “Piracy has always been an issue in our business.”
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YouTube flirting with Sony Pictures
YouTube’s quest for real Hollywood content continues. Ongoing talks with Sony Pictures could result in full-length streaming movies for the site — a big improvement over the watery content deal reached the other day for short-form content from Disney/ABC/ESPN.
Of course, Sony won’t be giving up its latest boxoffice hits. The studio’s film showcase crackle.com serves up fare such as “Groundhog Day,” “Shakes the Clown” and “St. Elmo’s Fire.” While we wouldn’t mind revisiting “Shakes” or “Neighbors,” there’s little but moldy catalog stuff on the Sony site. That’s what would come to YouTube, probably in limited numbers and perhaps unspooled on a branded Sony player.
Still, this seems reason enough for YouTube to get excited. The user-posted-video site, which spent years alienating Hollywood’s suits, is finding it tough getting anything of value out of would-be premium partners such as Sony. YouTube’s upcoming redesign prominently features movie and TV content.
YouTube hasn’t been able to monetize its endless user-generated content — beloved by the public but considered trash by the ad buyers — and is desperate to do something about its money-losing ways. Credit Suisse analysts just projected an annual YouTube loss of $470 million.
Iger trial-balloons online Mickey Mouse club
Disney chieftain Robert Iger continues to seek a future beyond DVD and Blu-ray, floating the idea of an online video club for Mouse house fare.
The Disney movie and TV service would work on a subscription model.
Iger has become more pessimistic about DVDs in past months, citing the popularity of online video. “We’re trying to find ways to make it work for us and not fight it,” Iger told the Media and Communications Conference in Palm Beach, Fla. “From our perspective, the computer is a very, very important place to entertain people.”
He cited a poll that showed more than 80 percent of viewers between the ages of 13 and 24 consider a computer their primary entertainment source, with TV running second. The erosion of traditional electronic media shows no sign of slowing — Iger gets that.
Another good reason to go with an online service for kids: The new generation of parents are increasingly consuming entertainment from their computers and will be comfortable paying for streaming Disney product.
Disney has been busily hedging its bets in the home video arena. It has been selling titles with both DVD and Blu-ray versions in the box, assuring buyers that their movie won’t become obsolete.
In February, Iger announced that Disney would reduce the number of DVDs and Blu-rays it releases. “When the economy rebounds, the normal we see (in the DVD business) is not necessarily going to be the normal we were used to.”
Also on the conference beat, Netflix CFO Barry McCarthy on Wednesday watered down his recent suggestions that the mail-rental giant was about to offer an online-only subscription option for its Watch Instantly service. He cited lack of market penetration for WI-ready devices such as the Roku box.
