I have recently been a fan of both RedBox (and the iPhone app) and rentals on my Apple TV.  In browsing titles, I found myself wondering just how these new age distribution channels are working with movie studios to control releases.  Mainly, I was curious how some movie are only available for sale, some not in HD, and some seemingly non existent in digital formats, specifically given the news and what seems to be increasing control leveed by the studios.  See the TechCruch post for more on the NetFlix debacle.

In reading up on why I was being denied content in the mediums I have come to know, I came across this post, by Steven Mallas on BloggingStocks that drew an interesting correlation between movie content, and content on the web.  The web has seen it (ad networks), the record industry has seen it (iTunes), and print is seeing it (eReader).  Content everywhere has been forced into a serious reformation on all fronts.  Digital formats and new distribution channels ultimately drive down the price of controlled content, but at the same time increase, and I would argue improve its reach.  I think the comparison of these mediums  probably stretches far beyond my sphere of knowledge and far too much for this post, but I feel the comparison is worth mentioning and tying into my ultimate point.

That point, being the comparison between the content available to rentals and the content available to ad networks.  Its an interesting problem, facing both the ad networks and the movie rental distributors fighting a similar battle in getting this premium content into their low-cost/higher demand channels.  On the web side, the overall growth of a marketplace, and the tools to monetize such marketplace has evolved on both the supply AND the demand side, something that you don’t see within the movie studios.  RedBox and others are taking advantage of demand and coupling it with ease of use and access.  But where is the innovation on the content side?  The movie studios don’t have it.  The record industry didn’t either.  Both are spending time and money fighting battles to control content, but have ignored the demand side and innovation that has gone with it traditionally.  The disturbing thing about the road that WB has taken with their new releases is the fact that it spits in the face of a movement that has been driven by demand.  Look what happened on the web; demand side platforms and networks sprung up, but in response the supply side optimization tools (Rubicon, PubMatic, etc.) did as well.  The same is true for print I’d say with the e-readers.  Publishers embracing that format will save their industries destined for demise in traditional forms.  All the movie studios need to do is take a look at the recording industry (RIAA).  In its effort to squash the demand of digital music formats through policy and lawsuits, they forgoed innovation and missed the opportunity to own a distribution source; an opportunity a company like Apple wouldn’t let pass by; thus becoming the largest music retailer in the US.

ad networks · Apple · Apple TV · digital content · Digital Media · movie studios · Netflix · RedBox · WB