Hazy windows
Confusion reigns in VOD transition
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Biggest concern: overlap between traditional and Internet-based VOD. Although both refer to the same basic behavior -- watching video at will -- the two types of VOD operate under very different restrictions. Traditional VOD, typically accessed through cable or satellite services, operates under one tight window, while Internet-based VOD falls under either the homevid or later VOD window, depending on whether the transaction is considered a rental or purchase.
Larry Brahms, president of Miami-based MTI homevid, says conflicting definitions make negotiating rights difficult.
"I'm not ready to go too hog wild on anything that will commit me beyond a few days," he says.
Bruce Frigeri, head of LifeSize Entertainment -- a small label that until recently handled its own theatrical and homevideo distribution for titles like "Ryna" and "The Blood of My Brother" -- expects to get into Internet VOD soon through new distribution partner Koch Entertainment. Although he believes VOD eventually will be a boon to indies like LifeSize, he's leery of signing deals that might be subject to interpretation.
"You can't ask an independent film distributor like me to walk away from a licensee," he says.
Even larger independents like Image Entertainment are grappling with the issue. Burgess Wilson, who oversees the company's Egami Media digital distribution arm as VP of business development, considers the rental side of VOD "the same exact business as Blockbuster and Hollywood Video" regardless of whether a title is accessed via cable or the Internet.
Image has been working with Google Video but does not control cable VOD rights for most of its catalog.
Traditional VOD, which has focused on studio hits like its pay-per-view predecessor, also has opened up to indies lately. In late February, IFC and Comcast made indie pics like "I Am a Sex Addict" and "The Trouble With Men and Women" available to subscribers at the same time they debuted in theaters. And Palm Pictures has its own VOD channel, where pics such as "The Housekeeper" and "Demonlover" have proved popular.
At Comcast, where 95% of all VOD transactions are free, 1 million of the 11 million movies viewed monthly at no charge to subscribers are independent films.
Image's Wilson believes the upside for VOD is huge especially for companies like his that focus on long-tail niches rather than big hits. He believes more options will ultimately lead to greater movie consumption.
"We're in minute one of a 24- hour day, if you will," Wilson says. "Right now the industry is trying new things. At some point it's going to get real."
