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Pitch Deck for AFM 2007 Los Angeles
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What we’ve done (so far)
…in Brazil :
• 100% of art house theatres are connected to the Rain Network
• 134 digital screens operating across 20 cities
• 157 films shown digitally
…in the USA :
• 26 theatres operating in 23 cities
• Over 350 digital titles available including:
- Full Frame film festival 2006, 2007 - Latin Beat film festival 2006, 2007 - Global Lens, 2007 - Undiscovered Gems, 2005, 2006, 2007 - The Metropolitan Opera (NYC) in HD, 2007, 2008 - La Scala Opera (Italy) in HD, 2008
DIGITAL ART HOUSESDIGITAL ART HOUSES
How we do itTechnology + Innovation
Operation
Database
Kinocast Player
IP Network
Central Server
Kinocast WebCapture and encoding
Ad Agencies ExhibitorsDistributors Projector
Local Server
VPN VPNMaster HD
Theatre Management System & Kinocast Web
• 24 hour phone and online support• Network operations center
Monitoring
Why we do itThe Market Opportunity
The Market Opportunity
“Our culture and economy are increasingly shifting away from a focus
on a relatively small number of hits (mainstream products and
markets) at the head of the demand curve, and moving toward a
huge number of niches in the tail.”
Chris Anderson
The Long Tail
The Market Opportunity
“Recommendations have all the demand-generation power of advertising, but
at virtually no cost.” Chris Anderson
The Long Tail Facts
75%75% of of MySpaceMySpace members use the site to find musicmembers use the site to find music
60%60% of of NetflixNetflix rentals come from recommendations rentals come from recommendations
WHY WE DO ITWHY WE DO ITWHY WE DO ITWHY WE DO IT
Consumers want more options, access and control – niche products for all tastes
Give them access – Rain’s digital network
Make everything available – provide a robust
film library
Help them find it
A new business model
ESPAÇO DE EXIBIÇÃO
“Theatrical on Demand”
• Digital Theatre Network
• International Film Library
• New cross-media marketing strategies
• Web theatrical management system
• Web 2.0 booking
• Efficient revenue share model
• Agility, Flexibility, Security, Visibility
• Low risk – high return
A new business model
“Theatrical on Demand”
key advantages
• No print or delivery costs
• Secure online delivery via Virtual Private Network (VPN)
• Only one encrypted encode per film worldwide
• Multiple language subtitling
A new business model
ESPAÇO DE EXIBIÇÃO
Cross-Media Marketing Strategies
• Digital pre-show for trailers – programmed and controlled by Rain
• Digital Media Signage – programmed and controlled by Rain
• Digital word of mouth – widgets
• Online social network – YouRain
• Blog reviews
• Programming block / line up – collective advertising on tv and radio
• Publicity
• Guerilla marketing - events and promotions
A new business model
“Theatrical on Demand”
business proposal
• 50% - 50% from the film rental between Rain/Licensor
• $15K P&A, flat fee, retained per new feature
• No P&A retained for classic or catalogue films
• 30% DVD Royalty
• 50% VOD net revenue share
• 80% TV Royalty
A new business model
Theatrical on Demand
Partnering with one of Latin America’s most
important independent distributors…
A new business model
Benefits for ExhibitorsSales AgentsProducers
Benefits for Exhibitors
Rain offers programming independence
+ Access to more movies
+ Online programming
+ Remote access for scheduling sessions
+ Online exhibition control
+ Flexibility in programming - optimizing theatre occupancy
+ New advertising and event revenue
= AGILITY, FLEXIBILITY, QUALITY, & SECURITY
Benefits for Sales Agents
Rain offers lower risk release and provides savings in 35mm and logistics
+ More films on more screens
+ Simple logistics
+ One encoding per film worldwide
+ Multiple subtitles
+ Simultaneous release
+ Efficient revenue share based model
= NEW OPPORTUNITIES, SAVINGS, & LOWER RISKS
Benefits for Producers
Rain increases movie visibility
+ Low investment at release
+ Rights management
+ Multiple subtitles
+ Real time auditing
+ Larger number of screens
+ Delivery and transfer savings
= VISIBILITY + ACCESS + SECURITY + FLEXIBILITY
Case Study
Case Study “9 Songs”• Digital release generated positive cash flow for sales agents
• Digital content reduced the initial risk + costs involved with replication
• Movies being distributed in regions where there was no previous market penetration = new audiences + new theaters
2008 Global rollout of over 300 art house digital screens throughout the US, Europe and Latin America.
The Tools
Online social network connecting moviegoers to an e-box office for screenings on demand
Consumers can:
• Decide which films they want to see, when and where
• Schedule and book community demand based screenings
• Access a huge database from classics, to festival films to small foreign films
• Discover new and old films through the power of social media referrals
• Create and join film clubs
The Tools
The Tools
The Tools
Traveling seasonal film festival showcase for festival fans
Audiences can:
• Watch films from renowned international festivals
• See non-commercially released films
• Enjoy different film styles and genres from around the world
The Tools
E-Marketplace for indie film distribution
Sales Agents can:•Make real time negotiations and deal transactions using a revenue share based model
•Show more films on more screens due to savings in 35mm prints, delivery and subtitling
•Low risk – high return
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