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While Hollywood offers summer flops instead of moneymakers, ie Mission: Impossible 3 and Poseidon, the smart people in the entertainment business seem to be getting closer to changing the way we go to the movies. Bram Cohen, the founder and inventor of the Bit Torrent application, which allows extremely fast downloads of large files such as movies, has been slowly building a relationship with some of the Hollywood studios over the past year; and last week it was announced that he had signed a deal with Warner Brothers studios to use his BitTorrent software to distribute movies and TV shows. Warner will sell movies and TV shows for around $1, below iTunes’ reduced price for similar downloads.
Bit Torrent has been used by the P2P community for years and although it is legal to use the Bit Torrent app, it has been widely used to download pirated movies, TV shows and videos.
Perhaps the true meaning of this agreement with Cohen and Bit Torrent is that it will begin the process of familiarizing more people with the software. Why is this significant? Well, rumor has it that the next step will be the simultaneous release of films in all formats. That would mean simultaneous release on DVD, video on demand via cable or direct TV, and via computer download. Many people say that this is not the future for movies and that downloading from the computer in particular would not allow watching them on your home TV. However, Netflix has just requested permission to make movie downloads available to its customers in the future. So something must be happening somewhere in Hollywood. As for the download aspect, I’m sure there is an easy solution, either through a Tivo type box or through a software application, after all, why do all the big companies like Microsoft, Dell and Gateway focus on on home multimedia PCs?
The press has been mentioning this from time to time, but they seem to think that downloading movies is a long way off. I would disagree. The new King Kong release has gone to DVD even before most major movies before it. Which leads one to wonder why delay the simultaneous release any longer.
The short answer is the cinemas, or should I say multiplexes out there. They still benefit from being first to the audience and are struggling not to lose that revenue advantage. But as Marc Cuban (What Business Are Theaters In?) and Mark Pesce (Is Piracy Good? How Battlestar Galactica Killed Broadcast TV) have written in some recent articles. What business are theaters really in? And will simultaneous casts really hurt them? or simply cause the long overdue evolution of the movie theater business model.
There are two distinct forces at work in the world right now. Both are unstoppable and will eventually change the movie experience as we know it now. The first is the portable media device. The ipod, cell phone, blackberry, and other similar devices that make media portable and accessible anywhere, anytime.
The second is the new culture of choice. What you want, when you want it, and where and how you choose to consume it. This second concept may not be as clear as the first. It means that instead of going to a multiplex in the mall, with cell phones ringing and teenagers texting and gossiping, to catch a movie, you can choose to go to a small, quiet local movie theater. One that fits your neighborhood or your lifestyle. One that offers matinees for housewives who can bring young children. One that maybe has dinner included in a dinner theater setting at night. One that bans cell phones and doesn’t appeal to teens or tweens. Sound unlikely? you’d be surprised Marc Cuban has developed an entirely new model of movie theater not unlike those that are springing up across the country. Here is an example:
In rural Connecticut, this type of theatrical experience is gaining momentum. The small local movie theater is reborn and caters to two profitable demographics, the young family with young children wanting a family night or afternoon with family-oriented movies, and the older baby boomers looking for a night out with dinner included in their neighborhood. . Smart entrepreneurs are developing this little specialized kind of movie experience. The demand is there. This is just the next level of choice offered. You can watch a movie at home, you can watch it at the mall with your 15 year old friends, or you can watch it at a quiet little local theater with dinner or lunch and your young children. You are still consuming movies, the options are more numerous and more diverse.
If you think simultaneous release is still a long way off again, just look at what Dell, Gateway, Microsoft and other manufacturers are focusing on. The home media center computer. One that does it all and integrates with your TV or home theater system. The application for downloading large media files, Bit Torrent, is here and is being exposed to a wider audience. Now the app just has to be easier for the general public to use. I think that would not be too difficult for a room full of engineers.