Disney, 'Sleeping Beauty,' and 'Kitt Kittredge': Help Me Understand This

I freely admit that sometimes I am not the brightest bulb in the chandelier, so perhaps you can help me understand this...

While I was on my book tour in October, I kept seeing ads on billboards and bus shelters for Disney's release of 'Sleeping Beauty.' (I also read this review in the New York Times.) Disney refers to this as the first of its "animated classics" to be released on Blu-ray.

There are two options for those who want to buy 'Sleeping Beauty.' For about $24 on Amazon, you can get a package that includes a Blu-ray DVD and standard-definition DVD. (The Blu-ray disc has some interactive BD Live features, too.) Or for $15, you can get a two-disc standard-definition DVD set.

What you cannot do is download 'Sleeping Beauty' on Movielink, CinemaNow, iTunes, Amazon, or any other legal marketplace for digital movies.

I happened to have a chance to talk with two execs, one at Disney and one at Pixar, about the situation.

My point: why spend all that marketing money to remind people about the existence of a 50-year old movie if you're not going to offer it in all the formats people might want to watch it in?

Also, Apple said last year that there were 500 million active iTunes users, and about a million new downloads of the software every day. The most optimistic projections about Blu-ray players envision that there will be about ten million of them in use by the end of this year. (And yes, that includes those built in to Sony's PS3 game console.)

So you're going to spend millions of marketing dollars to sell to a potential audience of 10 million instead of 500+ million? I own some Disney stock, and that don't make sense to me as a shareholder.

I heard a number of rationales for why Disney would re-release a classic on disc, but not make it available to families that wanted a digital download to watch on their laptop, iPhone, or iPod. Among them:

- We'll eventually do a digital release of 'Sleeping Beauty' and we'll do another marketing campaign then.
- 'Sleeping Beauty' is more targeted at Disney-philes and collectors, not actual children
- We want to promote the Blu-ray platform
- We feel people will be confused by our promotion of Blu-ray and BD Live as a high-quality, interactive, high-pixel-count experience...if they are also presented with the option to buy a lower-quality digital version.
- You have to master a movie all over again especially for the download version.
- Movies sold on iTunes just don't look very good. (This ignores the fact that iTunes, Movielink, and CinemaNow all support HD or near-HD content.)

Contrast Disney's approach to the one Warner Bros. took with its release of 'Kitt Kittredge' last week. The movie is available on iTunes, Movielink, or Amazon as a $3.99 rental or $14.99 download. (For some reason, the download on Movielink is a bit more expensive.) The $16 standard-def DVD comes with a digital copy for your PC or Windows portable media player, as does the $27 Blu-ray disc.

(Unfortunately, the Warner Bros. "digital copy" won't play on the iPod or a Mac. That's a problem, and it makes Apple owners feel like they're paying for something extra that they can't enjoy. But at least interested viewers can purchase an iPod/Mac-compatible copy from Apple.)

So would someone explain to me how the Disney strategy makes sense?

Talking Hollywood History with Filmmaker Cass Warner Sperling

At the Paley Center for Media in Beverly Hills earlier this week, I had a chance to sit down with author and filmmaker Cass Warner Sperling.

Her documentary The Brothers Warner premiered on PBS last month as part of the "American Masters" series. Two questions I wanted to ask: how did she get the film onto PBS, and what are her other distribution plans?

But we also talked about Cass' famous ancestors. Her grandfather Harry was one of the four original Warner brothers who founded the great studio. Since my new book deals with the way the Warner brothers helped usher in the sound era (they were also early proponents of Technicolor), I wanted to talk about some of that history. Cass tries to set me straight about whether her grandfather ever really said, "Who the hell wants to hear actors talk?"



The audio is also here in MP3 form.

There's some video from her film here (in non-embeddable form).

Warner Bros. & the Internet

The NY Times has a lengthy article today about the renewed focus on content at Time Warner. (The headline is 'Holy Cash Cow, Batman! Content is Back at Time Warner'.)

What's most interesting about the article is that Warner Bros. executives either aren't talking much about creating original content for the Internet ... the reporter didn't ask ... or the info simply didn't wind up in the story.

Instead, it sounds like Warner Bros. is mainly focused on using the Internet to distribute movies and TV shows. They're also a bit obsessed, like all studios, with stopping digital piracy.

Tim Arango writes:

The future, most agree, is seamless distribution of films to television using Internet technology. But the big question facing Hollywood is, how far off is that future?

That transition will be, and is, wrenching because studio executives must walk a fine line between preserving the traditional business, which still amounts to a vast majority of revenue and profits, and experimenting with new ways of distribution.

What about new ways of creating content? While 'The Dark Knight' is going to be one of the biggest big-budget hits of all time, there must be ways of telling stories for the Web and mobile devices that don't require a $185 million up-front investment (and that's before marketing).

No?

If Warner Bros.' top execs aren't thinking hard about that opportunity, I'd say that leaves a pretty big opening for independent content creators, wouldn't you?

Actually, there is a Warner Bros. venture to create original content for the Web, but it hasn't been making many waves since it started two years ago. It's called Studio 2.0. Here's one example of what they've done. Another project, T Works, was supposed to launch this spring, but is still "coming soon."

Here's an earlier Times article about Warner's original content creation efforts. Perhaps the highest-profile effort so far has been the 10-episode series Viralcom. On YouTube, the ten episodes have about 900,000 views altogether.

D Cinema Finger-Pointing

What's this all about?

Warner Bros. is accusing theater owners of dragging their feet in the deployment of digital cinema equipment. (True - the biggest chains, including Regal and AMC, have yet to get serious about installing digital projectors.)

And the National Association of Theater Owners is accusing Warner Bros. of being slow to commit to the financial terms that will support future digital cinema roll-outs. (Probably also true... studios are notoriously stingy about how much they will pay for a film print, or how much their will pay as a "virtual print fee," which is essentially a toll for sending a digital movie to a digital projector, which helps pay for the cost of the equipment.)

Earlier this year, Jeffrey Katzenberg had also accused theaters of being slow in their shift to digital. DreamWorks, of course, is getting ready to introduce its first 3-D movie in 2009, 'Monsters vs. Aliens.' (Warner Bros. is the distributor for this month's 'Journey to the Center of the Earth.')

The studios, I suspect, are now feeling the complexity of releasing movies in both film and digital formats -- and probably won't start seeing real cost savings until digital distribution hits a certain volume level. That's why they're negotiating so hard on what they'll pay as a virtual print fee for this second wave of d cinema installations.

Five Oscar Wins That Shaped the Movies

Looking back at the history of the Academy Awards, there were five Oscar wins that were central to the evolution of the motion picture industry, changing the way movies are made by directors and experienced by audiences.

Technological innovation, in my opinion, not only created the movies, but insured that the art form would remain an important part of American culture over more than a century.

So, in chronological order.

1. At the very first Academy Awards ceremony, held in 1929, Warner Bros. received a special award for producing 'The Jazz Singer,' "which has revolutionized the industry." 'The Jazz Singer' wasn't the first time anyone tried to add sound to motion pictures (see Phonofilm and the Kinetophone, for instance), and the movie still relied on title cards. But its success convinced Hollywood that audiences wanted to hear actors talk -- and sing.

Al Jolson "Blue Skies" The Jazz Singer 1927

Add to My Profile | More Videos

(Video: Al Jolson singing 'Blue Skies' to his Mammy.)

2. A decade later, in 1939, 'Gone with the Wind' won the Oscars for Best Picture and Best Art Direction. While it wasn't the first movie made in Technicolor (Disney had first used the three-strip Technicolor process for an earlier Oscar winner, the animated short 'Flowers and Trees') it represented the "tipping point," when mainstream Hollywood was finally convinced that shifting to color production made sense.



(Video: Rhett puts the moves on Scarlett.)

3. Movie soundtracks were recorded in mono for most of the 20th century. Walt Disney tried to bring more depth and nuance to the theatrical experience with 'Fantasia' in 1940, using multi-channel sound for the first time in a commercial release. (As many as 54 speakers were installed in some theaters, with the soundtrack recorded optically onto a second strip of film that ran in sync with the picture.) While Disney won an honorary Academy Award certificate for "outstanding contribution to the advancement of the use of sound in motion pictures through the production of Fantasia" in 1942, it was another 35 years before stereo sound at the movies became truly widespread, with the introduction of Dolby Stereo soundtracks in the late 1970s.



(Video: Part of the 'Rite of Spring' dinosaur sequence.)

4. Here's a movie few people remember: 1953's 'The Robe,' starring Richard Burton. It won two minor Oscars, and was nominated for Best Picture and Best Cinematography. 'The Robe' was the first feature released in Fox's CinemaScope widescreen format. While other widescreen movies also won Oscars (like the Cinerama release 'Around the World in Eighty Days', in 1957), it was the CinemaScope format the persuaded most theater owners to leave behind the square old Academy ratio and start showing widescreen releases (in part because CinemaScope was a less-expensive system than others, and in part because of Fox's salesmanship). The transition to majestic widescreen in the 50s and 60s also helped Hollywood remain relevant as Americans were installing televisions in their living rooms.



(Video: A fanfare for Caligula.)

5. 'Star Wars: Episode IV' wasn't the very first movie to incorporate a computer-generated visual effects shot (a wire-frame animation of the Death Star's architecture), but it was the first to win an Oscar: Best Visual Effects, along with five others. The 1977 blockbuster heralded the arrival of digital tools for crafting objects, characters, and environments that look real (but aren't quite.) George Lucas' and Richard Edlund's pioneering use of computers in 'Star Wars' led to not just 'Tron,' 'Titanic,' and 'Lord of the Rings,' but also 'Toy Story' and 'Shrek.'



(Video: Original 'Star Wars' trailer.)

I know I've left out plenty of other significant wins (such as 'Lawrence of Arabia,' which used an innovative, custom-built lens from Panavision; 'The English Patient,' the first movie edited digitally to win the Best Editing Oscar; and dozens of important Science and Technology Oscars), but these are my votes for the milestone Oscars, from a CinemaTech point-of-view.

I'm eager to hear what you think...

The final post about the Blu-ray / HD DVD format war?

The final nails were hammered into HD DVD's coffin this week, with Netflix, Best Buy, and Wal-Mart deciding to stock only Blu-ray discs and players.

Here's an obituary from today's NY Times.

From the Times piece:

Thus far, consumers have purchased about one million Blu-ray players, though there are another three million in the market that are integrated into the PlayStation 3 consoles of Sony, said Richard Doherty, research director of Envisioneering, a technology assessment firm. About one million HD DVD players have been sold.

Evenly matched by Blu-ray through 2007, HD DVD experienced a marked reversal in fortune in early January when Warner Brothers studio, a unit of Time Warner, announced it would manufacture and distribute movies only in Blu-ray. With the Warner decision, the Blu-ray coalition controlled around 75 percent of the high-definition content from the major movie and TV studios. The coalition includes Sharp, Panasonic and Philips as well as Walt Disney and 20th Century Fox studios.

ZDNet covers the Netflix and Best Buy decisions from earlier in the week.

Earlier, people had predicted that Sony's PlayStation 3, which included a Blu-ray player, would help Blu-ray edge ahead. Others thought that the availability of X-rated movies on HD DVD, or that format's cheaper equipment, would help it win. HD DVD was also the first to hit the market, in the spring of 2006.

Right now, though, it looks like Warner Bros. helped break the tie between the two formats in January, by announcing that it'd release movies only in the Blu-ray format; the studio had previously been releasing in both Blu-ray and HD DVD. History, of course, may eventually reveal that some other force was involved (conspiracy theorists imagine a giant payment to Warner Bros. from Blu-ray patent holder Sony Electronics, for instance).

It's interesting to me that it was Warner Bros. that helped make sure the studios coalesced around the original standard-definition DVD format in the 1990s... and that the Warner Bros. executive who led that effort, Warren Lieberfarb, wound up as a consultant for the HD DVD camp this time around.

Blu-ray Triumphant: News Round-up, and What Happens Next

So the rumors were true: Warner Bros., which dominates the home video biz, is going to exclusively release movies in the Blu-ray format as of June 1st.

My take: after trying to introduce a disc that would carry both formats last January (TotalHD, which didn't get traction), Warner Bros. realized it just had to pick a side to get high-def discs adopted. A Variety story had the most revealing WB quote in it: the studio realized that consumers were buying high-def TVs, but because of the confusion between Blu-ray and HD DVD, they weren't getting new DVD players to go with them. From the piece:

"The window of opportunity for high-definition DVD could be missed if format confusion continues to linger," Warner Bros. chairman and CEO Barry Meyer seconded.

Essentially, every day matters now. Digital delivery of high-def movies is becoming a viable option. High-def is starting to show up on some Internet movie sites...and some next-generation set-top boxes like Vudu (iTunes and Apple TV in HD probably aren't far behind). Studios probably don't have a decade to squeeze nice profits out of Blu-ray disc releases, as they enjoyed with the original DVD format.

I expect by this Christmas, consumers will realize that the skirmish between Blu-ray and HD DVD is over, and start buying Blu-ray players in respectable (though probably not overwhelming) numbers. I'd love to hear your comments below...

The headlines:

- DVD format war appears to be over, from the LA Times

- Warner Backs Blu-ray, Tilting DVD Battle, from the NY Times

- Warners sides with Blu-ray in high-def disc battle, from The Hollywood Reporter

- Warner Bros. Backs Blu-ray, from Variety

- Blu-ray Lands a Big Fish: Warner, from the Wall Street Journal

Monday News: Internet Video, High-Def Formats, Hulu Lawsuit, and More

The NY Times has a bunch of Internet video stories today...

- Warner Bros. is creating original Web video series, and hopes to sell advertising around them.

- A profile of the attorney who cut the lucrative new 'South Park' deal

- The self-publishing site Lulu.com is suing Hulu, the new Web video site created by News Corp. and NBC, because its name is too similar.

The LA Times says there's no end in sight to the HD DVD/Blu-ray format war, which some had predicted would be over by Christmas. From the piece:

The brinkmanship is intensifying. Another major studio, Warner Bros., is being courted by both camps and believed to be mulling over a lucrative offer that could bring such popular titles as "Harry Potter and the Order of the Phoenix" into the HD DVD camp, according to Hollywood insiders who requested anonymity because the talks were confidential.

"Any movement by one of the studios tilts the playing field in one direction or the other," said David Sanderson, head of the global media practice at consulting firm Bain & Co. "It's a bit of jump ball right now."

What's more, Wal-Mart Stores Inc., the dominant seller of DVDs, has been contemplating whether to boot stand-alone HD DVD players from its shelves in favor of Blu-ray. Wal-Mart executives would not talk about the company's conversations with suppliers, but said it would continue to carry hardware and software in both formats until consumers indicate a clear preference.

- IFC and a tech start-up called B Side are working together to get home video and online distribution for movies that garner good buzz at film festivals, but don't get distribution deals, according to Variety.

Lotsa Tuesday Links: Mark Cuban + Video...Unbox + TiVo...Technicolor + Satellites...Warner + Total HD...Spielberg + EA...And More

- Mark Cuban has some hypotheses about the value of video. Number 5 is especially interesting, and one thing I've been focusing on in my presentations and panel discussions lately:

5. The greater the number of content alternatives at any given point in time, the more expensive it is for any given piece of content to acquire an incremental viewer. The cost may come in the form of investment into the production of the content, advertising, promotion or placement. It may come in the form of sweat equity from hustling to promote the content.

- TiVo users can now order Amazon Unbox movies directly from their television set, rather than from a Web-connected computer.

- Technicolor Digital Cinema says 'Transformers' is the first movie sent by satellite to theaters in the US and Europe.

- Warner's Total HD discs, which offer a movie in Blu-ray format on one side and HD DVD on the other, have been delayed until 2008. Is that the same thing as dead in the water?

- The Wall Street Journal reports on what Spielberg has been working on in his partnership with videogame developer Electronic Arts.

- A fun story about copyright squabbles on YouTube; in the case of Uri Geller, the site may actually have been too quick in removing a video from its library.

- The schedule for Comic-Con 2007.

Private equity funds keep pouring into Hollywood

From this morning's NY Times: venture capitalist Thomas Tull and his financing entity, Legendary Pictures, will invest $1 billion in a set of Warner Bros. movies. From Brook Barnes' story:

The deal, which the companies plan to announce today, extends a partnership forged in 2005. At the time, Legendary, whose participants include AIG Direct Investments, Banc of America Capital Investors and Falcon Investment Advisors, invested $500 million in a group of Warner films. The deal included some flops but also yielded the surprise hit “300” and the blockbuster “Batman Begins.”

The new five-year agreement, arranged by Dresdner Kleinwort, a London-based investment bank, calls for Warner and Legendary to jointly finance up to 45 films. Included are movies like “Where the Wild Things Are,” an adaptation of the classic children’s book; “The Losers,” based on a gritty comic book; and a remake of “Clash of the Titans.”

Interesting detail in the story -- the relationship was apparently strained last summer, after 'The Lady in the Water' and 'Ant Bully' flopped.