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Business & Marketing Item of Interest

“Pay what you want” benefits companies, consumers, charities!

“Pay what you want” benefits companies, consumers, charities http://bit.ly/d9yk1l

When pay nothing is an option, there will be a group of people who will pay nothing, but like Radiohead found, the total revenue from pay-what-you-want can be (is always?) higher. This article is interesting because they tried a number of strategies that took average profit per person from 6-7c with the normal fixed price option, up to 20c per person.

According to the authors, the “pay what you want” strategy works because it allows companies to chare social responsibility with consumers. When buyers are able to set prices in a way that directly shows their support for a cause, everybody wins.

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Item of Interest

Meet Milo: Microsoft’s virtual 4 year old boy!

Meet Milo: Microsoft’s virtual four-year-old boy who acts just like a real child http://bit.ly/dloL4V

Another “loose Artificial Intelligence” story, which catches my interest because this type of AI will eventually be intruding on production and post production by automating some editing away from people (who I still think will need to finish the project to give it heart).

The player’s voice commands and physical movements are picked up by an infra-red sensor which works with artificial intelligence to interpret the player’s intonation and meaning, and respond accordingly.

On demonstrations his conversation is utterly believable and he replies to questions just like a real four-year-old.

If you can analyze it, you can reproduce it.

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Item of Interest

$10 is the ‘magic’ digital-media price point

$10 is the ‘magic’ digital-media figure http://bit.ly/ammnd0

Tell you what Hulu Plus, make it $15 and advertising free, and we can talk. While you charge me *and* place advertising, there’s no deal.

In fact that’s inspired me to another post you’ll see tomorrow.

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Item of Interest

Porn Industry Weighs In On Flash vs HTML5 Video

Porn Industry Weighs In On Flash vs. HTML5 Video Debate http://bit.ly/aRIB1i

And of course, by mobile devices not playing Flash well, that would be all but the most recent release of Android. Since there’s a demand for adult content on portable devices (let’s just say iPhone, iPod Touch and iPad have some influence here) the producers have been following the market and:

While the whole Flash vs. HTML5 video debate started making headlines a few months ago, the porn industry had already been a long time HTML5 video user.  Why?  Because they wanted to push their content to mobile devices and Flash caused too many issues.  Or as Ali Joone, founder of Digital Playground (a porn giant) stated “HTML5 is the future”.

Yes, increasingly the future – and for simple video playback we’re good to go as soon as we get some agreement among browsers or browser share changes – but right now there are some areas where Flash shines (streaming and rights management in particular are of interest to video distributors).

The former is under control and real time HTML5 streaming is nearly a reality. The other should be dealt with by changing business models instead of trying to King Canute-like hold back the inevitable tide of change.

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Item of Interest

Publishers Need Popcorn, Not Paywalls.

Publishers Need Popcorn, Not Paywalls http://bit.ly/cYCVkG

Until I read this article I had no idea that popcorn was so important to the cinema business. According to the article I had no idea that popcorn – along with improved movie technology and enhanced movie-going experience (air conditioning) – helped save the motion picture exhibition business.

Think of cinema, the great survivor of 20th century media. What did cinema owners do when the US economy tanked in the 1920s and 30s? As well as innovating the product (introducing sound, then colour), the packaging (offering double bills), and the user experience (introducing air-conditioning), they also found a new revenue stream that ultimately saved their business — popcorn.

We think of the movies as a content-based business but cinemas then as now make their profit from popcorn (which has an operating margin in excess of 90%). It also drives additional revenue streams by making you thirsty. And somehow it’s become an integral part of the content experience. What 21st century media businesses must do now, as they rebuild themselves, is find their popcorn.

The author wonders that, instead of erecting the paywalls around newspaper content online (which are proving spectacularly unsuccessful):

We may speculate as to whether 2%, or 5%, or 10% of Times readers will pay for the paper’s content online in the face of competition from free rivals. We will have to see. But we have plenty of evidence that consumers do spend money online on products and services. Indeed, online news fans are even more likely than the average online user to buy books, tickets, travel, or clothing online. The key is not to monetize the content but to monetize the audience.

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Item of Interest The Business of Production

High Quality Fan Flick Leads To $8 M Funding

High Quality Fan Flick Leads To $8 Million Hybrid Fan/Investor Funded Pro Film http://bit.ly/cARYs3

If you missed Star Wreck a couple of years back, you should take the time to revisit. I was privileged to interview the founders on the Digital Production BuZZ back when I was more actively involved in that show. Made in a 10×12′ room, on green screen, even the main deck is a composite shot if there are more than 2 people in it. The animation work was amazing. It was the work of a core crew of dozens and more than 300 people were involved at some point in the three year creation process.

Well, the success of that film – it’s made a lot of money despite being available for free download and is the most popular Finnish movie ever.

They’ve been working on the sequel for some time and the good news is that it’s been funded with a combination of fan funding and more traditional professional funding in a combination not tried before.

But what’s most interesting to me is how this story progressed. It went from some fans messing around and creating a rather impressive film visually speaking, to a new $8.5 million production. $8.5M is still a small amount from a movie-making perspective, but it’s not nothing. Plenty of excellent indie films have been made for a lot less. And, of course, you never know what happens next, after this film is made as well. And that was really the point. It was never that the model that created Star Wreck was the answer, but that the overall ecosystem is evolving, and its evolving to a world where the fans and the community really area a part of things, rather than looked at as evil people who just want stuff for free. Embracing your community leads to wonderful possibilities.

Seems maybe you don’t need $200m for every blockbuster!

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Item of Interest

Kachingle Hopes ‘Social Payments can help Fund Content

Kachingle Hopes ‘Social Payments’ Can Help Fund Content http://to.pbs.org/dlzEq5 startups to share money you donate btwn sites.

More than just simple donations, social payment systems such as Kachingleand Flattr simplify giving money to sites you visit. Both services set up a monthly payment system, with a set amount each month, and the more sites you like, the more ways your payment is split.

The sites ultimately share about 80% of your donation after PayPal and company fees of about 7%

I’m dubious, but anything that can help fund production is a good thing.

Categories
Item of Interest The Business of Production

David Lynch To Crowd-Fund Next Project

David Lynch To Crowd-Fund Next Project http://bit.ly/9R41mn

Well now Lynch is diving headfirst into the unchartered waters of crowd-sourcing and fan-funding akin to whatTrent Reznor attempted to do with Nine Inch Nails and the digital release of the album Ghosts. For fifty smackers, you can be part of Lynch’s project (tentatively titled Lynch three Project) which is said to be a personal examination of his last major theatrical effort Inland Empire along with chronicling some personal habits of the artist.

 

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Item of Interest

Science enters iPhone 4 Aerial debate!

Science enters iPhone 4 Aerial debate! Turns out Consumer Reports may not have had the most rigorous science in their testing.

On Reception – The iPhone 4 hysteria – The Real Life/Lab Test Conundrum

Yes, the iPhone 4 is broken / No, the iPhone 4 is not broken

Analyst says ‘Consumer Reports’ test of the iPhone 4 is flawed, ‘barely scientific’

But, of course, rational discourse doesn’t boost page views at websites, so we get the wildly irrational comments from those who just want to take Apple down a peg.

Ultimately I think Techcrunch has the last word after pointing out that the big fuss over Facebook Privacy that was going to cause everyone to leave Facebook just two months ago, and yet Facebook has had their best month ever:

The reality of the situations in these massively-hyped controversies is often quite boring. No one is quitting Facebook over privacy concerns because most people are oblivious or simply don’t give a shit (sometimes for good reason, sometimes not). In fact, Facebook is growing just as fast as before. Maybe faster. And millions of people are going to continue to buy the iPhone 4 because it’s the phone they want. If there’s a problem with the reception, they’ll deal with it by moving their hands a few inches or buying a bumper.

But no one wants to read those stories. Hell, I don’t want to write those stories. They’re boring. No service is dying, no users are getting maimed. But often, that’s the way it is.

BTW, I’m placing my iPhone 4 order today.

Categories
Assisted Editing Item of Interest

Letting the Machines Decide

Letting the Machines Decide http://bit.ly/aQwrUW (If you get stymied by the WSJ pay wall, simply go to news.google.com and enter “Letting the Machines Decide” and follow the link to the WSJ around the paywall.)

I know, not my usual stuff, but I have an abiding interest in all forms of artificial intelligence because, ultimately, I believe we’ll be able to apply a lot of the techniques and technologies developed for AI to automating Postproduction. Heresy, I know, but bear with me.

Anything that can be analyzed and systematized can be automated. When we were developing First Cutsour tool for taking long-form documentary log notes and converting them to very fast First Cuts – the most challenging part of the exercise wasn’t teaching the computer to do something, it was analyzing what I did as an editor to make a “good” edit. Just imaging how complex are the rules for placing b-roll!

So, with that background and a belief that a lot of editing is not overtly creative (not you of course dear reader, your work is supremely creative, but those other folk, not so much!). It can be somewhat repetitive with a lot of similarities.

Just like the complexities of stock trading: knowing when to buy, when to hold and when to sell.

The programs are effective, advocates say, because they can crunch huge amounts of data in short periods, “learn” what works, and adjust their strategies on the fly. In contrast, the typical quantitative approach may employ a single strategy or even a combination of strategies at once, but may not move between them or modify them based on what the program determines works best.

What I think is really interesting is that the software tools started to act contrary to what an experienced trader would do, but:

In early 2009, Star started to buy beaten-down stocks such as banks and insurers, which would benefit from a recovery. “He just loaded up on value stocks,” said Mr. Fleiss, referring to the AI program. The fund gained 41% in 2009, more than doubling the Dow’s 19% gain.

The firm’s current portfolio is largely defensive. One of its biggest positions is in gold stocks, according to people familiar with the fund.

The defensive move at first worried Mr. Fleiss, who had grown bullish. But it has proven a smart move so far. “I’ve learned not to question the AI,” he said.

And that’s what we discovered. One night – after a couple of glasses of red wine – we decided to throw a “stupid” combination of story keywords at First Cuts to see what it would do. Well, would you believe in the six minute edit that eventuated, I only wanted to move one clip, and its associated b-roll, one shot early (swapping it) and as far as I was concerned the edit was done.