Video-on-Demand
and the Changing Cinema Landscape
The climate of distribution by
studios is evolving and continues to go through interesting changes. The new low budget horror film, It Follows was originally going to
receive a VOD release on March 27th through its distributor
Radius-TWC, a brand of The Weinstein Company. Radius
TWC is a huge supporter of video-on-demand films, but is choosing a slightly
different approach for It Follows. TWC will be delaying its VOD release and the
film will receive a wider release with 40 theatres on March 20 and then around
1,000 theatres in two weeks (Cunningham, 2015). This delay has sparked some
compelling debates about the future of video-on-demand and how streaming is
changing the general distribution model of the film industry.
The direction in which video-on-demand has been
headed in the last few years is one worthy of discussion. While it has been around for a number of
years, it gained more notoriety with 2010’s All
Good Things. It was a model used by
companies such as Magnolia and IFC Entertainment and is still not a huge trend
in many theatre chains. This is
something innate to the specialty film, which differs from mainstream
films. Soon enough, it was seen that VOD
was not as harmful and now nearly 500 theatres are open to showing films that
are also available on VOD platforms. The
release of All Good Things is a
little unusual in that it was available in homes for a month, and then was released
in theatres on December 3, 2010.
Interestingly enough, the film achieved some major success with this
particular release model. From VOD
rentals alone, it made about $4 million, each priced at $10.99, according to
Magnolia. It then played in theatres,
in particular, very established art houses like the Angelika Film Center in New
York and grossed about $19,000 a theatre, which is quite impressive for a
specialty film (Barnes, 2010).
In the case of It Follows, the theatre release is very crucial. It became so after the film performed
spectacularly by having the year’s best debut at the specialty box office
during the March 13th weekend.
The film grossed $160,000 in three days from four art houses theatres –
two in L.A. and two in New York. The
issue here is that “major theatres typically insist on exclusive runs, so to
get the major circuits meant Radius would have to delay the streaming date,
which was never set in stone” (Cunningham, 2015, p.2). This decision has been well received by
National Association of Theaters Owners spokesman Patrick Corcoran, who felt
that The Weinstein Company made a “smart decision” (Cunningham, 2015, p.2). Exclusive runs are a major interest for
theatre owners because they believe that simultaneously releasing a film in
theatres and on VOD will affect their profits.
However, this also provides some conflict for TWC as they have to create
a more comprehensive marketing plan for a costly theatrical release and also have
to work with online platforms and cable companies that were originally going to
distribute It Follows on the March 27th
date (Cunningham, 2015).
In regards to All Good Things, this particular model seemed to work. What video-on-demand is trying to achieve is
becoming almost a “word-of-mouth campaign – early adopters and people
interested in the subject matter will find the film and hopefully tell their
friends it is worth seeing in a theater” (Barnes, 2010, p.2). It is also tough gamble for directors who
feel the big screen is where a film should be seen. For All
Good Things director, Andrew Jarecki, his opinion evolved on the issue of
online streaming. For him, it was about
maximizing the amount of people who could see the movie. As he explains, “It would be nice if there
was an art house accessible to everyone in the country, but there isn’t. So I got a bit past the stigma of V.O.D.
because the power of having your movie seen so widely on it is extraordinary” (Barnes,
2010, p. 2). This raises some unique
questions about what the future holds for VOD, however, no one is arguing for
something of this sort in regards to major wide-release commercial films. But there is no question that new ideas are
on the rise and need to be experimented with.
The film industry is certainly in an
unpredictable position. Filmmakers are
learning to adapt and try out new things.
James Schamus, the CEO of Focus Features has some thoughts on what is happening
with the industry today. He explains, “The
pay TV window, however you call it, is going to remain valuable in whatever
form it takes in the near future and the medium future. That’s very good news, and it resonates for
all of us” (Weinstein, 2010, p. 3). He
also referred to how the deal with Epix and Netflix is a promising sign. The comparisons to the music industry are
certainly obvious, as the film industry seems to be going through similar
changes. Jennifer Dana, a producer
explained how “the movie business is in the same place that the music business
was pre-iTunes, post-Napster” (Weinstein, 2010, p. 3). She
also notes how the film industry is still learning of ways to adjust to the
streaming craze that is working remarkably well for the music industry and how
to make it as profitable for the film industry.
How this specific distribution model
will function in the future and in what capacity is a key question right
now. There is little doubt that it will
be abandoned completely and it is a model here to stay and one that will
continue to evolve. With films like The Interview and Crouching Tiger, Hidden Dragon 2 as major releases opting for the
VOD model, what does this say about major release films? It
Follows will continue expansion (about 40 theaters), but major theatre
chains are notably absent from the list including Regal, Cinemark, AMC and
Carmike. For Radius-TWC, there were VOD successes to be
had with Snowpiercer, but wide
releases and major box office numbers have yet to see the surface. They certainly have seen successes with Twenty Feet From Stardom, which grossed
$4.9 million domestically and Snowpiercer
with $4.5 million and $8 million on VOD.
They also handled distribution for Citizenfour,
the 2014 Best Documentary Academy Award winner (Cunningham, 2014).
While It Follows is a low-budget horror film (it cost under $2 million),
this could mean something massive for the film industry. The motion picture is getting rave reviews
and has been praised for its performances and original storyline, not to
mention it’s genuinely frightening.
Having seen it myself, I can attest to this (despite some reservations I
had). Its reception recalls last year’s The Babadook, another gem of a horror
film that also received a VOD release and received stellar reviews. These are low budget horror films which don’t
have much inherent risk, so it’s an unlikely model for movies such as The Avengers: Age of Ultron or Stars Wars: The Force Awakens obviously. However, this does raise questions about box-office
receipts and budgets, which are in a troubling position. With overblown $200 million plus budgets and
not so substantial domestic box office numbers, major studios will have to make
some readjustments. Also, with a major
summer blockbuster every week, you need to keep feeding the beast, after all
this is what huge 24 plus corporate theatre chains exist for. This is not sustainable and so, new avenues
will have to be explored. For me, seeing
a film on the big screen is an experience like no other, it is one that has an
indelible impact and power, so hopefully studios will find ways to keep that
alive by embracing fresh ideas. With
digital, we have shown that innovation is a fundamental component of the
industry and there is no doubt that more innovations are on the rise. Video-on-demand is its own signature
breakthrough and as stated before, it’s definitely not jumping ship anytime
soon. I would like to be optimistic and
think that VOD and movie theatres can co-exist peacefully, so hopefully that
will continue to live on as more steps are taken to advance other kinds of distribution
formats. The last few years have shown
us promise, so one can expect that the next few will only bring about more.
Works
Cited:
Barnes, Brooks. (2010, December 10). A Hollywood Brawl: How Soon Is Too Soon for
Video on Demand? The New York Times.
Retrieved from http://www.nytimes.com.
Cunningham, Todd. (2015, March 19). ‘It Follows’ Expands as
Radius-TWC Bets on Box Office Over VOD. The Wrap. Retrieved from http://www.thewrap.com/it-follows-expands-as-radius-twc-bets-on-box-office-over-vod/
Weinstein, J. L. (2010,
November 5). Blueprint for Change:
Flexibility is key for indie filmmakers in these new times. Variety. Retreived from http://www.variety.com/article/VR1118026438?refcatid=3284
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