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Business & Marketing Item of Interest Monetizing The Business of Production

Top 5 Ways to Fail at Crowdfunding

Top 5 Ways to Fail at Crowdfunding http://tinyurl.com/234p3co

Of curse, do the opposite if you want to succeed.  From a documentarian’s perspective, slightly rewritten by Documentary Tech.

The film version:

  1. have an online support network in place before you start
  2. Keep your goal realistic
  3. Know who your audience is – particularly your “first audience”
  4. Keep the crowdfunding campaign tight
  5. Offer imaginative perks for donors.

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Business & Marketing Distribution Item of Interest The Business of Production

‘Ride the Divide’ a case in DYI Distribution

‘Ride the Divide’ a case in DIY http://tinyurl.com/2d3edl7

I love an article about a filmmaker that starts with:

Hunter Weeks went into his work on the feature documentary  “Ride The Divide” with a solid sense of how to get the film out once it was done.

This is so important and yet so overlooked by most filmmakers. It’s a business and you have to think about the Return on Investment right from the start, because you’ll have to be creative about it.

They took on a corporate sponsor and encouraged participants to wear the corporate beanie (but not compulsory). They targeted a limited number of film festivals and when they missed the larger, more public ones, they went straight to distribution.

The film has screened at about 100 times in theaters, in about 70 cities in all, in shows we’ve produced ourselves – sometimes one night, or sometimes three nights in a row in the same place. We also had a licensing fee to screen the film for $295, and we tapped into these hotbed cycling communities – mountain-bike extreme groups all over the country, especially in the mountain region. We had these tremendously successful shows. And that helped sell the DVDs in a pre-release version over the last six months.

One other approach has been to  offer 500 “Living Room Screening Packages” for $99, for which 50 percent of the proceeds go to cyclist Lance Armstrong’s Live Strong Foundation. The kit includes a  DVD or Bluray in  wood laser-engraved box by karvt.com, a limited edition t-shirt byMighty Karma, a SmartWool Beanie, Tony Hsieh’s Best Selling book – Deli

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Business & Marketing

Why isn’t satisfying customers enough?

This week I had an unplanned trip to Boston to fill in at the Boston FCP User Group meeting for Rich Harrington who’d suffered a back problem and wasn’t able to travel. I travelled American Airlines instead of my normal choice, JetBlue.

That led me to thinking about marketing because of the differences between the two airlines. Let me say up front there was nothing wrong with American. The flight was on time, the crew were ok, the inflight entertainment is a decade out of date (technically and from a marketing perspective) but generally they didn’t do anything wrong.

And yet, I found the whole experience lacking compared with JetBlue. Why I asked myself, and what can I learn from it.

American Airlines is an “old” airline with a long history and tradition, and a lot of old aircraft. JetBlue has outfitted most of its aircraft in the last decade or so, to a uniformly high standard. On JetBlue we get leather instead of 70’s design cloth seats.

Does this look like an airline that values its customer experience?
Does this look like an airline that cares about customer experience?

And that’s part of the problem. The cabin was not modern. In fact, it wasn’t well maintaned at all. Seat back pockets were falling off and falling against passengers’ knees. Not one of the six in-cablin screens that I could see were remotely watchable: five of six screens had black levels around IRE 40, one around IRE 20; two had severe magenta shifts and one a blue shift. And so on.

This can’t be a pleasant work environment and, while pleasant enough, there’s a whole different vibe between the cabin crew on American Airlines and the cabin crew on JetBlue. (There was nothing that I felt worth commending anyone on, whereas I’ve had occasion with JetBlue to send in multiple commendations for above-and-beyond service.)

You see, the bottom line is that American only cares about the bottom line. $25 to check the first bag, $35 for the next! Checked baggage makes more available space for in-cabin baggage and you’d think they’d encourage it. (Here’s a tip. Don’t check your bag unless it cannot fit in in-cabin storage. Take it with you. If there’s not enough space, they’ll gate-check it for you for free, and the gate check is ready when you exit the aircraft unlike the long wait for checked baggage. Just from observation on two flights this week.)

JetBlue think about the whole experience. Just take the in-flight entertainment, for example. On a six hour American Airlines flight we got one movie on the small, ceiling mounted in-cabin CRTs with the affor-mentioned problems, and one NBCU “package” with one TV show and a bunch of short excerpts running about 90 minutes. The other three hours there was no visual entertainment. There were a few audio channels. The movie started more than an hour after leaving the gate. On JetBlue you have a choice of 40 channels of JetBlue on your own seat-back screen, which fills a whole lot more of your field of view than a distant 14″ CRT.  Or your choice of interactive games. Or the whole set of XM Satellite Radio stations. In other words, JetBlue cares about keeping the customers occupied during the flight, with personal choice. An occupied customer is more likely to be  a happy customer.

So if American’s focus is their bottom line, JetBlue’s focus seems to be the customer experience and running an efficient modern fleet makes that easier. But beyond that it’s about how every interaction between customer and company forming the marketing.

When I see a badly maintained cabin, I worry about the rest of the maintenance on the aircraft and wonder if it’s safe to fly with that airline. Logically that doesn’t make sense because there are legally mandated safety standards for the aircraft but none for the cabin, that’s just “marketing”. But people are not logical about things like this. Marketing is always to the emotion not logic.

My takeaway is that it’s no longer enough to just satisfy the customer. I was satisfied with my flights this week, but disappointed because I’ve become used to being “delighted”. Satisfying the customer is no longer enough. You must delight them.

That applies equally to every business transaction that we do; every interaction every single person in a company has with their customers. For example, no-one in any company I control, or in my family will ever fly United Airlines again because of one in-cabin personnel’s totally illegal and out-of-proportion response to my complaint that the light did not light anywhere near the actual seat, like it was supposed to. Her response was to tell me be quiet or I’d be arrested on landing. Totally out of proportion and I would say illegal. I didn’t tell United because a simple Internet search showed that they didn’t care about any customer response. I just withdrew my business. That’s going to cost United $15,000 in the next five years as my mother flies the Pacific twice a year to come visit. She now loves VAustralia.

Marketing is every interaction by every person in your company with every customer.

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Business & Marketing Distribution Item of Interest

Five ways to build Unique Value for Paid Digital Content

Five ways to build Unique Value for paid digital content http://bit.ly/aqDLKi

Techdirt.com originated, and I use it in my “Growing and Monetizing a Audience for your Independent Production” half-day seminar, the equation CwF + RtB = profit: Connect with your fans, give them a reason to buy (something) and you’ll profit.

This article specifically points out that you need to offer “unique” value, that isn’t just about content:

  • Unique Content
  • Unique Convenience
  • Unique Usefulness
  • Unique Experience, and
  • Unique Packaging.

You can’t sell abundance – and digital copies are abundant and virtually free – but you can sell something that’s unique. Unique value is at the heart of monetizing and audience in The New Now.

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Business & Marketing Item of Interest

The Technologies & Industries Senators Leahy and Hatch would have Banned.

A Look At The Technologies & Industries Senators Leahy & Hatch Would Have Banned In The Past http://bit.ly/bgHuWS Including Hollywood itself.

Senators Leahy and Hatch are hatching a frightening bill that comes from their masters – the RIAA and MPAA (bought and paid for like most of Congress and Senate). “Combating Online Infringement and Counterfeits Act,” is just bad policy. Look what else would have been banned by reactionaries like Hatch and Leahy if they’d had their way in the past, and consider how misguided their current attempts are.

  • Hollywood itself:
  • The recording industry:
  • Radio:
  • Cable TV:
  • Photocopying machines:
  • The VCR:
  • Cassette tapes:
  • The MP3 player:
  • The DVR:

The reasons for each banning are explained at Techdirt – given that it was most of the post I didn’t want to copy all of it.

These guys have zero idea of what they’re voting on because they don’t have any idea of technology or its long term implications.

Boing Boing is pointing to a partition against this Bill. I urge you to review, research and then (I hope) sign it.

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Business & Marketing Item of Interest Monetizing New Media

How Social Media has Changed Documentary Filmmaking

How Social Media has Changed the Game for Documentary Filmmaking http://bit.ly/94hKV5

Case studies on how Social Media has changed:

  • Outreach
  • National networks
  • Funding
  • Connecting with other filmmakers
  • Festivals.

The article concludes with “new approaches”. To me, Social Media in its many variations is key to building and monetizing audiences.

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Business & Marketing Item of Interest The Business of Production

The Good Enough Revolution:

The Good Enough Revolution: When Cheap and Simple Is Just Fine http://bit.ly/bQmHAc

This is a really good read. Yes, it parallels what I have been saying for years: that once quality becomes “good enough” the vast majority of people don’t care about it. That leads to many “interesting” discussions with industry friends who care a very great deal about quality (and good for them).

“Good enough” was why DV took off so quickly: it’s price/performance was great and the image quality was good enough for most purposes. Likewise HDV. For all its flaws HDV was good enough that it outsold high quality professional cameras around 10:1!

After Effects isn’t Flame, but it’s good enough for a whole lot more people. Motion isn’t as powerful as After Effects but it’s good enough for a video editor tasked with doing some motion graphic design. Soundtrack Pro isn’t Logic, and Soundbooth isn’t Audition, but both are good enough for video editors tasked with a little audio work.

The article discusses the rise of MP3 over higher quality CD audio (convenience wins out).

Read the whole thing, it’s worth it, and think carefully about how this might play out in a plausible future where the disruption (of film and television) happens before new business models are in place. Good enough will indeed rule! Consider Demand Media – a business that’s based on barely “good enough” but is growing.

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Business & Marketing Item of Interest

Are we getting our money’s worth?

Are we getting our money’s worth? http://bit.ly/b7E64c

Not really specific to production but an interesting take on how people perceive value. I know I’ve been guilty of similar illogical perceptions. I would drive out of my way, make a second stop and add 10 minutes to the task to avoid a $1.60 ATM fee at the destination. Even if my time was only $20 an hour, that’s $3.33 of time to save $1.60. Since my hourly rate is way up from that, the perceived value of saving the $1.60 terminal fee was ridiculous.

This is also why, I believe, people “hiccup” when they’re asked to pay for TV. Of course the ridiculous amounts being charged are also at play.

But rarely do we consider the “why.” Why do I need this? Why do I think this is so important to have? Why am I buying this thing, right now? Why not later? Why buy it at all? Why do I think this thing will improve or enhance my life? Why do I want friends to see that I have this? Why am I always thinking about this?

The why is an easy question to ask but sometimes a difficult question to get an answer to. But the more you can honestly dig into your “why,” the closer you’ll get to your real motivations. And at the heart of our filters are our motivations—the things that inspire us to act and do and ultimately to buy.

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Business & Marketing Item of Interest

Digital Video Expo Free Session

Digital Video Expo – my session’s free on Wednesday http://bit.ly/9zGShE

I’m also teaching three sessions in the conference Thursday and doing the first public demo of our latest software  – for paper cuts without the pain – prEdit demo at the LAFCPUG meeting Wednesday night.

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Business & Marketing Distribution Item of Interest

Evidence Shows You Can, In Fact Compete with Free.

Evidence Shows You Can, In Fact, ‘Compete’ With ‘Free’ http://bit.ly/aTRffo

Modplan points us to a recent talk given by professor Michael D. Smith at Google. Smith is fromCarnegie Mellon and is discussing some of his recent papers, such as one on whether or not “piracy” acts as promotion for movies and another one on how digital sales, when set up right, don’t actually cannibalize other sales. That latter one debunks the silly claim from Jeff Zucker and many others that they’re “trading analog dollars for digital pennies.”

If you can’t compete with “free”, you probably can’t compete in a digital era. This article is a pretty thorough debunking of the myth that you can’t compete with free, and highlights the importance of meeting customer needs, rather than your own needs.

One bit of research involved the natural experiment that happened when NBC Universal, due to a contract dispute with Apple, removed its TV shows from iTunes for almost a year before putting them back. So, what happened when the content got pulled? Well, first, piracy rates increased — and not just in absolute numbers. The research compared piracy rates against the other major TV networks, and found that the rates tracked almost exactly prior to the content getting pulled from iTunes… but the second it got pulled, NBC piracy rates were noticeably higher than the other networks. In other words, not offering consumers a way to buy your content legitimately increase unauthorized access. No shock there, but nice to see the data to support that. Specifically, the data found that the “demand” for unauthorized versions increased by 11%.