Direct digital distribution is beginning to surface as a major way of providing movies to audiences online. Films that cannot attract a theatrical release can certainly have a presence online. The film industry is following the music industry by using the Internet as a way to expose their content.

Independents are typically readily adaptable to market conditions and are ideally positioned to take advantage of new and existing online distribution opportunities, just as they were able to take advantage of opportunities during the early years of home video. Once you have determined that the digital route is right for your product, here are some key issues to consider:

The Grant of Rights

It is no secret that newer online digital distribution entities are trying to build product libraries as assets by taking expansive rights for long periods of time. Do not be surprised if a newer, less well known online digital distributor hands you an agreement that grants it all rights in all media worldwide, not just digital, online or view-on-demand rights. Do not be quick to give away more rights than you should. Get yourself informed and know the costs and procedures involved in new digital delivery methods and you will be able to negotiate knowledgeably from a position of strength.

Exclusivity

As the online distribution process matures, fewer distributors will ask for exclusive online exploitation, but some may try. Because the online programming market is still developing, and iTunes and Amazon certainly have had a head start, few true leaders with large market shares have yet to emerge, so it is risky to grant exclusivity. A safe philosophy is to grant a nonexclusive online license for a limited term. This will allow the market to continue to mature and you will be able to reassess your position after a relatively short window.

Territory

Online distributors may ask for worldwide rights. Since you may prefer to license international rights or specific territorial rights in a completely different manner, try to get the online distributor to limit the territory to the United States or the specific territory in which it is primarily doing business.

Licensing Period

Your license term for online exploitation will first depend on what other rights, if any, you have previously licensed. If you have no previous exploitation, at least try to limit the license period to 6 to 18 months so that you can reassess the online marketplace in short order. Keep your license periods as short as possible.

License Fee/Payment Terms/Audit

Many online startups will claim poverty because the market is still developing so obtaining an advance against royalties for an online license may be difficult, but not impossible. If an advance is not possible, ask for a large share of the gross revenues for downloads, streaming or other licenses (50-70% is obtainable), and try for a share of advertising revenues associated with viewing your product. In addition to an advance and royalties, consider asking for stock options, and the right to purchase stock at lower than market rates. Specify the minimum rates to be charged for downloads and viewings.

Cross-Links

Make sure you include a provision that requires cross-linking of the online distributor’s site with your official website for your company or product. Try to retain the right to exhibit the product on your official site as well as the right to sell merchandise, videos and DVDs of your product from your own site.

And there’s a lot more! As the computer-using and wireless hand-held segment of the entertainment consuming population continues to increase, as digital cable lines, DSL, wireless, satellite, and other systems continue to converge, and as delivery technology continues to improve, one can expect that delivery of motion pictures online or wirelessly will rapidly expand over the next few years. As the market matures, digital pricing, territorial limitations, development of an appropriate digital exploitation window, the issue of exclusivity and the appropriate license period will begin to stabilize and a set of even more specialized standard terms for online and wireless exploitation will emerge.

Here’s a quote from the label’s chief executive, Edgar Bronfman Jr from BBC News: “Free streaming services are clearly not net positive for the industry and as far as Warner Music is concerned will not be licensed…The ‘get all your music you want for free, and then maybe with a few bells and whistles we can move you to a premium price strategy’, is not the kind of approach to business that we will be supporting in the future.”

It should be interesting to see what moves this triggers in the rest of the music industry…

Bronfman

The film was shot with the help of Danny Perez, who is no stranger to the AC. The project is described by band-member Avery tare as “…kinda like a psychedelic film, it’s not like a narrative film or anything, there are more cohesive moments in it, but then there are some that are a little more abstract.” The offering is sure to please Animal Collective fans and experimental movie buffs alike. Be on the lookout for ODDSAC in the coming months, and also be sure to check out the group’s recently released EP, “Fall Be Kind”.

designed by Carie Ann Wayman

Los Campesinos! will begin their UK tour on December 2nd. More information on the upcoming release as well as UK tour dates can be found on the band’s website.

Popular artists such as The Arcade Fire and The Decemberists have set an example through their use of the squeezebox in their mainstream recordings, but the trend goes much further. A local Bay-Area Ukulele maker, Michael DaSilva, says that he has observed a huge spike in the number his customers who are under thirty years of age since the trend emerged. Regarding the Ukulele, DiSalva says “There’s so much new, independent music being produced on it,” he says. “People under 30 are becoming attracted to it.”

Thanks for the article goes to Laura Casey of the Contra Costa Times. In her full article, found here, she highlights a number of local artists who have begun using the eclectic instruments.

This is a great opportunity for independent musicians everywhere to gain important music contacts and massive exposure. The contest will yield roughly thirteen winners who will perform on some of the various stages set up around the show. The winners will be judged by celebrity Huw Stevens (BBC Radio One) and Paul Rees (Q Magazine editor), as well as concert organizers Michael and Emily Eavis. For more information visit the Glastonbury website.

The Golden Silvers, 2008 contest winners, used the competition to springboard their now-flourishing career

Weakerthans

Track Listing For City Route 85:
01. Heart Of The Continent
02. Grace General
03. Cruise Night

Pirates: legitimate customers or online bandits?

A recent study indicates that about 1 in 10 people admit to pirating music online. This number is quite high, though not surprising when noting the music industry’s recent preventative measures and claims of revenue loss. What is surprising, however, is that those who admitted to pirating music reported and average of $126 of yearly music purchases compared to just $72 for those who do not pirate music. This data prompts questions about the RIAA’s recent string of prosecutions, namely the question of whether or not criminally charging one’s most valuable customers is a smart business decision.

In current times of revenue loss at major music labels, and with illegal file sharing running rampant online, the independent music community has found an opportunity to shine. Purchases of independent music are actually up recently relative to their major-label counterparts, but why? One possibility is that increased access to information is allowing musicians without major label backing an opportunity to reach out to listeners in a whole new way. Blogging, interacting with fans, and releasing free songs online are not uncommon practices by today’s indie musicians, and these tactics seem to be translating into eventual purchases by consumers who like what they hear.

Perhaps the RIAA and the entities it represents are taking the right approach, and the results have simply not yet come to fruition, or perhaps they need to rethink their methods. Prosecuting the portion of the market that makes up one of the largest groups of legitimate music purchasers does not seem conducive to the achievement of sales objectives, but then again neither does allowing the world at large a free pass to take your products without paying for them. Regardless of what they choose to do, major music labels and the RIAA must think very carefully about their next course of action if they wish to reverse the current trend. Until then, independent artists and labels will continue to thrive as they employ tactics more in tune with today’s internet savvy population, and major music labels will continue to scratch their heads while wondering where “the glory days” have gone.