GFT & Filmhouse Player Research report

Exploring audience reach and engagement for cinemas through the use of Video-on-Demand
Dr Niall G MacKenzie, Hunter Centre for Entrepreneurship, University of Strathclyde

Executive Summary
Background
This project was a partnership between Glasgow Film Theatre (GFT) and Edinburgh Filmhouse with their technology partner, Distrify to develop an online digital media player. The player allows users to download or stream films offered by both cinemas from wherever they are, without the need to physically attend the cinema. The player therefore offers the potential for new income streams to the cinemas, in the context of the growing uptake of Video On Demand (VOD) services among viewers. In addition to the new income streams, the player allows users to share their purchase via social media and other platforms, which they can then earn personal revenue from, by sharing the rental and encouraging others to rent the film through the players built-in affiliate marketing capability. The project received 90,000 from the Digital R&D Fund for the Arts in Scotland.

The Project
The aims of the project were to: Explore new business models through the use of digital technology to expand audience reach and engagement through a cinema-curated VOD digital online service. Explore the viability of the day-and-date business model by simultaneously releasing six different films on VOD on the cinemas respective websites and theatrically, in the GFT and Filmhouse cinemas. Trial the affiliate revenue business model, whereby a proportion of the VOD income is returned to the programming cinemas after being shared by customers who also receive affiliate payments. Enable the GFT and Filmhouse to research best practice in broadening their audience figures and assess the impact of windowing strategies on box office takings by trialling a selection of films with non-traditional theatrical and VOD release patterns. Develop the tools of Distrifys VOD service to gather previously unknown user data sets, specifically focusing on identifying the geographic location of audiences, the routes to purchase through various marketing channels and examining the relationship between theatrical and Home Entertainment windows.

The project was developed by Jaki McDougall, the CEO of the GFT and Ken Hay, the CEO of the Filmhouse. Marjolein den Bakker was hired as the Video on Demand Project Co-ordinator liaising

between the two cinemas and the tech company for the duration of the project. Distrifys developments were led by Stephen Green, Andy Green, and Peter Gerard.

Results
In summary, the results of the project were: The commercial development, launch and retention of the players by GFT and Filmhouse; By February 2014, a total of 38 films were available on the player, of which 17 were shared between the cinemas; Evidence that the cinemas physical attendance has not been adversely affected (cannibalised) by the players.

Insights
Insights derived from the development of the players relate in particular to Award & Development, Challenges & External Stakeholders. The key lessons learned from the project were: It is important to carefully consider the time and resources required during the lifetime of the project (e.g. marketing and testing), particularly when one partner is a small organisation with less capacity for changes in scheduling/responsibilities. It is useful to know your partner before embarking on an R&D project that is so close to commercial exploitation. Having an established relationship makes it easier to discuss and implement changes as required. Communication between partners is important, particularly for those partners less familiar with the technology being developed and exploited. External stakeholders (in this case distributors/customers) may not necessarily see the immediate value in the technology that is being introduced, nor will they necessarily want to be involved with it. Careful managing of external relationships can thus often be required to ensure appropriate attention is provided to all stakeholders.

Future
Key areas for the future include decisions on how to resource the player within each arts partners budget and future plans in order to continue to grow audiences. This growth might potentially come from expansion of the players use elsewhere, in particular for curation of films in other than the current geographical areas covered by the GFT and Filmhouse (i.e. outside of Glasgow and Edinburgh). Distrify succeeded in winning grant funding from the second round of the Digital R&D Fund for the Arts in Scotland with the Scottish Documentary Institute, to test and develop new features for the player. This award indicates that the player has potential for further development.

1. Background
The project is a collaboration between the Glasgow Film Theatre (GFT), Edinburgh Filmhouse and the technology partner Distrify to develop an online digital media player that allows for the purchase and viewing of films curated by the GFT and Filmhouse through their websites. With the rapid growth of video on demand (VOD) services in the UK (Netflix, TiVo, Lovefilm, Blinkbox, etc) amongst the filmwatching population, cinemas are facing increased competition for their services. Industry statistics below show that the growth of VOD services is continuing and projected to increase: Online Video On Demand (VOD) in the UK has grown from 0 pa in 2002 to an estimated 243m in 2012, up 50% from 2011. The British Film Institute anticipates continued growth in this area due to improvements in broadband speeds and mobile technology but cautions that robust data is needed to 1 understand the growth potential, particularly for independent and specialised film.

As a result of this increasing competition, both the GFT and Filmhouse were interested in exploring alternative ways of broadening audience reach and increasing revenues, without compromising their physical footfall. To this end discussion between Distrify and the GFT took place to explore the possibility of using Distrifys digital media player technology for offering the GFTs customers an alternative viewing screen from the comfort of their home or on the move. GFT was established in 1974 and is one of Scotlands leading independent cinemas. A non-profit organisation, GFT is part of the Glasgow Film umbrella comprising the GFT, Glasgow Film Festival, Glasgow Youth Film Festival, Glasgow Short Film Festival and Cinema City. Its Edinburgh 3 counterpart, Edinburgh Filmhouse , was established in 1979 and is the trading name for the Centre for the Moving Image which, similarly to Glasgow Film, is an umbrella organisation that also comprises the Edinburgh International Film Festival and Edinburgh Film Guild. Both organisations are dedicated to the promotion of independent film and cinema within Scotland but retain a strong international focus in their activities. The Project team consisted of Jaki McDougall (CEO of the GFT), Ken Hay (CEO of the Filmhouse) and Marjolein den Bakker, who was hired as the Video on Demand Project Co-ordinator liaising between the two cinemas, and the technology partner Distrify. Distrify (http://www.distrify.com/) is a small film/technology company started in 2011 and comprised of twin brothers Andy and Stephen Green, and Peter Gerard, with a number of sub-contracted developers coming on board as the company grows. They provide video streaming, via pay-per-view, as a service to different types of film rights-holders or video-creators ranging from large distributors to cinemas to first time filmmakers. Distrifys technology is intended to make it easy for their clients to sell online video streaming as a rental from its website. Their player also offers other products such as physical copies of films on DVD or Blu-ray. Their client group comprises a range of different sizes of distributors, cinemas, filmmakers and educational groups including the filmmaker Terry Gilliam (of 4 Monty Python), the rock band Led Zeppelin, and Edindocs (the Edinburgh documentary festival). The relationship between Distrify and GFT came about through the shared interests and co-location of both parties in the GFTs building in Glasgow. Distrifys founders are filmmakers who are also programmers and coders. After having difficulties getting their films out to the public, they developed their own proprietary digital media player in early 2011, which remained in beta testing until summer
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1 2 3

http://www.bfi.org.uk/news-opinion/news-bfi/announcements/bfi-stats-yearbook-shows-uk-film-excelled-2012 http://www.glasgowfilm.org/theatre http://www.filmhousecinema.com/ 4 For more details see https://distrify.com/examples.

2011. After taking office space in the GFTs building, Distrify started discussions with the GFT about the possibility of using the players technology with the cinema to develop the idea further, test its commercial applicability and scalability, and attempt to increase the GFTs audience reach and engagement. After learning about the Digital R&D Fund for the Arts in Scotland, Jaki McDougall approached Distrify with the idea of putting forward a bid. The two partners worked on a funding application and brought the Filmhouse in on the bid in order to test the player in a different location 6 and with different audiences. The previous iteration of Distrifys player provided a platform from which further development could take place to suit the needs and aims of the GFT and Filmhouse. The needs identified were to expand their audience reach, offer more options to existing audiences and further develop their business model without jeopardising footfall in their physical locations. Video on demand (VOD) has been around since the early 1990s in television and the web. However, in terms of traditional cinema business models being focused on physical attendance at the cinema for films shown, VOD represents a potentially significant step into the unknown. The potential of cannibalisation of physical audiences, i.e. people choosing to stay at home to watch a film online instead of physically attending the cinema, is an issue for cinemas and distributors alike. Film distributors are dependent on, and understand, physical footfall in the cinemas and how it impacts on their existing business model. They are thus nervous of disrupting that model by offering VOD. With the increasing availability of broadband internet access, VODs ability to allow customers to access a large media library of films, shorts and programmes from wherever they are represents a potential threat to the viability of the traditional cinema business model. Some academics suggest that 7 VOD is one of the most promising killer applications for the Internet of the future. However, VOD also offers opportunities for cinemas to curate films digitally and to reach remote or faraway audiences without the requirement for attending the cinema. As a result, there is growing interest from independent cinemas such as GFT and Filmhouse in exploring these opportunities and alternative revenue streams. From the cinemas perspective, the project focused on developing a better understanding of the potential for the technology to help increase audience reach and engagement, and on testing the market for online film curation. Neither cinema had released films online before, but they were interested in exploring the viability of day and date releases, i.e. the launch of films on the player and theatrically at the same time. Furthermore, with their focus on arthouse films rather than big budget mainstream productions, the player offered the opportunity to differentiate the GFT/Filmhouse player from the mainstream VOD players by playing to their strengths and curating a VOD portfolio of 8 independent arthouse films. From Distrifys perspective the project was geared towards market testing their technology for delivering films online through a player that allows users to pay, share and watch through a single user interface. There was recognition of partnering with respected cinemas to show other cinemas that the technology they offer is not threat but an opportunity. The player offers the potential for the collection of previously unknowable user data for a better understanding of film audiences through their diagnostic back end tools. These tools are available to organisations/filmmakers who use the player to broadcast their films to aid understanding who is sharing the films, where they are being shared to and from (social media and geographical regions), what websites/news stories are encouraging consumption of the films and how effective different marketing strategies are in the success of the films. The project with the GFT and Filmhouse allowed for exploration of all these different aspects within a commercial setting.

5 6 7

Interview with Stephen Green, Distrify, June 2013. Interview with Marjolein den Bakker, GFT, November 2012. Yu et al, Understanding User Behavior in Large-Scale Video-on-Demand Systems , Eurosys 2006, pp 333-344. 8 http://www.filmhousecinema.com/player/

The project was awarded 90,000 by the Digital R&D Fund for the Arts in Scotlands First Call 9 Projects, the largest award of the call.

2. The project
The aims of the project, as articulated in the application made to the Fund, were to: Explore new business models through the use of digital technology to expand audience reach and engagement through a cinema-curated Video on Demand (VOD) digital online service. Explore the viability of the day-and-date business model by simultaneously releasing six different films on Video on Demand (VOD) on the cinemas respective websites and theatrically, in the GFT and Filmhouse cinemas. Trial the affiliate revenue business model, whereby a proportion of the V OD income is returned to the programming cinemas after being shared by customers who also receive affiliate payments. Enable the GFT and Filmhouse to research best practice in broadening their audience figures and assess the impact of windowing strategies on box office takings, by trialling a selection of films with non-traditional theatrical and VOD release patterns. Develop the tools of Distrifys VOD service to gather previously unknowable user data sets, specifically focusing on identifying the geographic location of audiences, the routes to purchase through various marketing channels and examining the relationship between 10 theatrical and Home Entertainment windows.

In the affiliate model, payments are made to individuals who refer customers to a particular product 11 or service, usually through online marketing or sharing via social media. In this case, the affiliate model offered payments to consumers and the cinemas that have curated the films, thus increasing potential reach and revenue generation for the cinemas as well as rewarding viewers for sharing films through the player. Windowing strategies in film distribution suggest releasing a new film at different times and on different platforms traditionally via a premiere, followed by a theatrical box office release, DVD release and then VOD release. With VOD now growing in popularity an alternate windowing strategy might instead see a film released immediately to VOD. The media player was developed on the basis of an existing technology that Distrify had brought to the partnership. Using monies from the Digital R&D Fund for the Arts in Scotland, the three partners sought to further develop Distrifys player to meet the needs of both cinemas and road test the technology. To this end Distrify took the technical lead on the player, developing it according to the specifications and needs of the GFT and Filmhouse, including redesigning their respective websites to address any glitches in operation. Although an unexpected and unbudgeted cost, the website redesign was identified as necessary to ensure both appropriate customer experience and technical integration. Usability of the player is paramount for a smooth customer experience. For example comment boxes were created as well as the ability to contact technical support for any help required in using the player. These adaptations were part of ensuring that customers unfamiliar with the 12 concept were able to use the new service effectively. Whilst Distrify were developing and testing the technology, the two cinemas discussed and identified films that they wished to show on the player. A decision was then taken that the cinemas would not show exactly the same films but instead would share certain films whilst retaining curatorial
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http://www.nesta.org.uk/news/six-scottish-arts-and-cultural-organisations-selected-pioneer-digital-research-and-development Glasgow Film Theatre, Digital R&D Fund for the Arts in Scotland Application, April 2012. http://www.theguardian.com/money/2011/may/21/affiliate-marketing-lucrative 12 Interview with Stephen Green, Distrify, June 2013.
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independence. This decision was taken to ensure that the players offerings were suitably differentiated from each other and that each cinema could retain its artistic distinction and curate material that would be of interest to its core customers. Moreover, audiences in Glasgow and Edinburgh have different tastes and separately curated VOD offerings were a good way of 13 establishing how the player performed in different settings. Introducing the players changed negotiations with distributors. Cinemas negotiate rights to show films with the films distributors, and these negotiations have traditionally focused on box office theatrical releases rather than VOD services. For the films they sought to exhibit through the players both cinemas now had to negotiate for release through the VOD player in addition to the traditional theatrical release. In order to allay any concerns distributors might have over the VOD release, Distrify sat in on negotiations and helped distributors understand the technology and how it worked in relation to the distribution of films. Marjolein den Bakker was appointed as VOD Project Coordinator in July 2012, liaising between the three partners GFT, Filmhouse and Distrify, but physically located within the two cinemas, splitting her time between Glasgow and Edinburgh. Marjolein was charged with working with cinema venue staff from programming, marketing and finance departments to develop the project. This work included sourcing content and promoting awareness for the players. As well as these primary duties, Marjolein also co-ordinated with the marketing departments of both cinemas and worked closely with Distrify to launch the player online. In September 2012 the first film piloted on the player (GFT only) was Holy Motors, ahead of the box 14 office and day and date launch of the film in October 2012. In a press release accompanying the announcement of the new service in November 2012, both GFT and Filmhouse Heads described their motivations for partnering with Distrify and launching the player: Allison Gardner, Head of Cinemas at GFT said Our reasons for pioneering the curated programme online model are two-fold. There are an ever-growing number of films available to us and with our screens already working very hard, we needed to find a way to ensure that great films were not missing out on the exposure we can give them. Secondly, not everyone has access to cinemas like GFT and Filmhouse, or indeed time to go to the cinema when it suits them. Rod White, Head of Filmhouse added The Pla yer gives us the opportunity to provide an extra screen open all hours showing films that we would not otherwise have the room to screen, 15 or audiences simply couldnt make it along to, or may have missed on the big screen.

The official launch of the players on 14 November 2012 saw a slate of films available through both the GFT and Filmhouse websites. The two players launched with a combined six films available on the players, detailed below as per cinema: The Women on Sound It Morgen GYO:Tokyo Rent-a-Cat the 6th Floor Out Fish Attack GFT X X X X X Filmhouse X X X Table 1: Initial slate of films available at launch on GFT/Filmhouse players. Film Up There X

th

13 14 15

Interviews with Marjolein den Bakker, GFT, April 2013 & Stephen Green, Distrify, June 2013. http://www.glasgowfilm.org/theatre/whats_on/4251_holy_motors http://www.eventscotland.org/news/2012/11/glasgow-film-theatre-and-edinburgh-s-filmhouse-join-forces-to-launch-newonline-player

As per the funding application, GFT led on the project by releasing all six films at the launch. The Filmhouse player offered three films. Over the course of the project various other films were added to the offering, bringing the total up to 24 films by the projects end in early 2013. In the autumn of 2012, Distrify moved out of their offices in the GFT building into larger premises, across the city from the GFT. Both Distrify and the GFT indicated that the move had little effect on the 16 relationship, other than reducing the frequency of informal visits between the two. Both the GFT and Distrify characterised their relationship as being very good, mutually productive and one which they will continue. The Digital R&D Fund for the Arts in Scotland helped them cement their continuing relationship through the development and testing of the player for their mutual benefit and the player continues to be present on both GFT and Filmhouse websites.

3. Results
The main outcome for both the GFT and Filmhouse was the launch and retention of the player on their respective websites. At the end of the projects lifetime a total of 24 films had been distributed on the players, of which 17 were shared between the cinemas. This number has since increased by February 2014 to a total of 38 films across both cinemas, indicating that the project has had an influence on both arts organisations activities. The digital media players have been effectively delivered and used by customers of both cinemas. Provisional analysis has revealed a number of positive indicators. One such indicator is the high conversion rate of visitors to the players sites actually purchasing movies, around 12 -13% compares 17 with an industry average of 5% for other VOD services , indicating that the player is serving its purpose of offering another form of consumption for films. Analysis of the cinemas physical attendance has also revealed that there has been no discernible decrease in footfall in the physical locations of the cinemas. The players thus appear to increase audience reach without cannibalising 18 existing revenue streams. No. of films Total Sales Average Sales per film Affiliate Sales 291 Distributor Sales 358 Total Sales Gross ()

31 649 20.94 3723.91 19 Table 2: GFT & Filmhouse Player Sales Data November 2012-September 2013 Although, as Table 2 indicates, raw purchase numbers were initially relatively low, the experimental nature of changing the forms of consumption available to film watchers and the demonstrable interest in the player indicates that there is a market for its intended use. In terms of the uptake of films put on to the player, Marjolein den Bakker said when we just launched the sales were quite slow and we 20 were happy when we had five sales in a week . This indicates that the sales expectations were not high, predominantly because of the novel nature of the players vis--vis the traditional GFT/Filmhouse audiences that were not used to being able to view arthouse films at home. Table 3 breaks the figures down further, by film. With the developmental nature of both the technology and approach to putting films online for the first time, the project focused on proof of concept and on demonstrating that the technology did not cannibalise physical cinema attendance numbers but instead increased audience reach.

16 17

Interviews with Marjolein den Bakker, GFT, April 2013 & Stephen Green, Distrify, June 2013. Interview with Stephen Green, Distrify, June 2013. 18 Interview with Stephen Green, Distrify, June 2013. 19 Data correct as of 25/02/2014. 20 Interview with Marjolein den Bakker, GFT, April 2013.

Total sales The Women on the 6th Floor Rent-a-Cat Up There Either Way A Late Quartet Surviving Progress Jiro Dreams of Sushi The Snows of Kilimanjaro Weekend Tomboy Morgen Stories We Tell What Maisie Knew Yossi Beauty Therese Desqueyroux We Were Here Cinema Komunisto Ray Harryhausen: Special Effects Titan Sound It Out Breathe In I Am Nasrine Beware of Mr. Baker Foxfire Call Girl Something in the Air Family Portrait in Black and White GYO: Tokyo Fish Attack The Pool Holy Motors Stem Cell Revolutions Totals 118 104 50 30 28 28 27 27 23 18 15 15 13 13 12 12 12 11 10 10 9 9 8 8 7 7 6 6 6 5 2 649

Of which distributor 118 104 30 28 27 15 11 10 9 6 358

Of which affiliate 50 28 27 23 18 15 13 13 12 12 12 10 9 8 8 7 7 6 6 5 2 291

Table 3: Combined GFT & Filmhouse Player Sales Data according to type of sale, November 2012September 2013 Throughout the projects delivery, there were clear lines of communication between the tech nology partner and arts organisations. However, the original intention of hosting only day-and-date releases of films did not prove to be feasible with all films, with the concerns of some distributors overriding the desires of both arts and technology partners. Distributors were particularly concerned over the potential for cannibalisation of physical audience attendance at their films and were thus anxious about having their films released online first, instead preferring the traditional route of box office theatrical releases.

This anxiety is understandable given the disruptive nature of the technology, not least given its potential for encouraging the sharing of films amongst users which has been problematic within the film industry. Nonetheless, by summer 2013 several films were released day-and-date on the player and provisional data analysis by the cinemas indicates that the audience reach increased rather than decreased people continued to attend the movies in the cinemas and viewed the films online. However, there was only a relatively small uptake of viewers/purchasers using the players, with the 21 bestselling film achieving 118 sales. These results suggest that the cinemas business model is not likely to change significantly in the foreseeable future. There are, though, signs that the players are beginning to gain some traction in terms of audience reach. Both arts and tech partners recognise the players potential for bringing added value to their operations. Stephen Green of Distrify said: Its a concept that we innovated and created but within the sector of cinemas and film exhibitors its incredibly innovative for them to decide to take part in something like this and to push it in the way that they have when most theatres and cinemas are very resistant to streaming being available anywhere else while their films are on in the cinema. To actually 22 promote it simultaneously from their core marketing is a huge innovation and a step forward. Marjolein den Bakker of GFT/Filmhouse described the project thus: online players exist already but I think having this player linked to a cinema via the player is quite new. People dont know about it yet but I think its a great way to merge traditional cinema going with a new way of looking at films as well. The innovation within the cinemas operations and business models is clear, though it is still too early to effectively gauge the extent of the changes and how sustainable the player is. Nonetheless, the introduction of the new technology and willingness of the partners to sustain the relationship beyond the initial funding period, including the release of further films and the retention of the player on both cinemas websites, indicates that there is belief, on both sides, in its future.

4. Insights
Award & Development Although the project was the recipient of the largest award within the first call, funding and staffing resource were nonetheless identified as an on-going issue. Both arts and technology partners recognised that they perhaps had not assigned funds to the correct areas, in particular to marketing and coding. There was also a question of what they would do to resource the player after the project 23 ended. Although an iteration of the player existed prior to the start of the projects funding period, it still required significant testing and development even after going live, costing both time and money. Stephen Green of Distrify recalls an instance where funding was an issue because we didnt have the resources from the Fund to dedicate somebody even part time to the project [after Marjolein den 24 Bakkers contract ended]. As the project was about proof of concept and testing the market for a novel technology and service, there was little discussion around the longer-term resourcing of the player. The idea was to get the player up and running and see if it worked and if the market liked it or not. After seeing the player in operation, the primary concern of both arts and technology partners was the continuation of the player beyond the funding period and the retention of the staff member appointed. The staff member has
21 22 23

Interview with Stephen Green, Distrify, June 2013. Interview with Stephen Green, Distrify, January 2012. Interviews with Marjolein den Bakker, GFT, April 2013 & Stephen Green, Distrify, June 2013. 24 Interview with Stephen Green Distrify, June 2013.

since moved on due to a lack of available funds to retain her, but resolve remains to continue the player. The intention is that the duties would be shared between all parties involved rather than to push for the appointment of another staff member. However, the project partners are also looking into 25 other funding streams. This will require a number of staff members taking on extra responsibilities which although feasible, in practice represents a resource risk to both parties in terms of staff time. Increased data hosting and streaming costs are a further issue to contend with in terms of assessing the ongoing viability of the project. Challenges Both arts and tech partners felt time was a constriction on the development of the project. The marketing team for the GFT felt rushed at the beginning before settling into the project once the films 26 were released. Similarly, Distrify felt that had they had more time they could have done more preparation in terms of getting the websites up to speed and familiarising their arts partners with the 27 technology and its requirements. As the player started with films at both the GFT and the Filmhouse, this meant that two different teams needed training on how the player worked and how it should be pitched to customers. This training ran parallel with final testing of the player on both websites as well as the redevelopment of the cinemas websites to ensure they were compliant with the player and operating effectively. At this point Distrify were a small (but growing) company without a large staff base so this was a push. An observation made by both arts and tech partners was that more time and resources devoted to marketing the player would have been beneficial in terms of increasing uptake and viewer numbers. Marjolein den Bakker, for example, observed that if wed known beforehand that we had more time or that we could take more time, we probably would have divided the time in the beginning a lot differently... I think the marketing team felt a bit 28 rushed into it in the beginning and then they had more time. Stephen Green also indicated time was an issue, stating if the project had lasted an extra six months 29 that would have been a godsend. If Distrify had had a longer project period then they would have been able to spend more time familiarising the marketing staff to get more buy in to the player, as well as actually marketing the player and creating interest in the service and thus increasing numbers of users/sales. The necessity to discuss VOD rights with the distributors required both partners to be present, which necessarily took them away from other activities. For a small technology company like Distrify, these unanticipated issues meant not being able to work on perfecting the technology. For the cinemas it meant not being able to launch the films they anticipated being able to, both of which necessarily impacted on the performance of the player. Distrifys small size meant that they were working hard to get the player up and running in the cinemas, as well as pushing it in other business activities elsewhere (a common feature of growing start-up businesses). Thus, having more time would probably have given both parties the opportunity to build interest and establish the player on a surer footing with both customers and distributors. This indicates that although the player was taken to market through the project, both the arts and technology partners perhaps were not quite fully prepared for the added work that was entailed in such a short period of time. External stakeholders
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25 26

Interview with Stephen Green, Distrify, June 2013. Interview with Marjolein den Bakker, GFT, November 2012. 27 Interview with Stephen Green, Distrify, June 2013. 28 Interview with Marjolein den Bakker, GFT, November, 2012. 29 Interview with Stephen Green, Distrify, June 2013. 30 as described in section 2.

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Establishing a working relationship with distributors turned out to be the most difficult of the challenges faced by the project. Access to films proved unexpectedly complex film distributors were wary of making films readily available online on the VOD platform fearing impact on the success of their films in terms of physical footfall. Thus, in order for the cinemas to get content for the player they needed to look further afield, including films that had not yet received UK distribution and films that 31 had already been screened in other cinemas. The original intention was to release all films selected for the player on the day-and-date of their launch. Various distributors were wary of this so different approaches were taken, although some day-and-date films were also screened. As a result the players ended up screening a number of lesser-known films, rather than the high profile films originally envisaged, but still remained within the curatorial style that the cinemas were comfortable 32 with. In their interviews, both arts and technology partners were very clear about the importance of recognising cinema curatorial control. Therefore, although the films shown may not have been as high profile as originally anticipated, quality control was still exercised so as t o protect both cinemas 33 brands and reputations. In part the desire to use day-and-date releases for the VOD service was to address and analyse concerns surrounding the possible cannibalisation of physical audience attendance at the launch of the same films in the cinemas. Lessons Learned It is important to carefully consider the time and resources required during the lifetime of the project (e.g. marketing and testing of new products/services). Changing the behaviours of your audience takes time so expectations must be tempered. It is useful to know your partner before embarking on an R&D project that is so close to commercial exploitation. Communication between partners is important, particularly those less familiar with the technology being developed and exploited.

5. Future
Distrify and the GFT/Filmhouse continue to work together on the player through each arts partners website offering a variety of different films. Two key areas for the future are 1. how to resource the player within each arts partners budget and future plans; 2. expanding the players use elsewhere through curation of films in other than the current geographical areas covered by the GFT and Filmhouse (i.e. outside of Glasgow and Edinburgh). The relationship between the technology partner and arts organisations is a symbiotic one where future directions and developments are likely to be discussed in partnership. However, resourcing the player remains to a certain extent uncertain. The challenge will be to make the player cost effective to run as part of the services the arts partners offer, and scalable in terms of applicability and usability within the arts partners business models and beyond. GFT and Filmhouse used the project as a commercial testing ground to determine how receptive customers and distributors were to the technology and change in business model. Now that the technology has been established and audience reach increased without affecting footfall at the physical location, the desire is to see if the player can be used to further grow audiences. This will likely require more media coverage and marketing of the players abilities so that other cinemas are aware of its availability and potential customers further afield are accessed. Stephen Green indicated that both partners will continue to
31 32

Interview with Marjolein den Bakker, GFT, November 2012. Interview with Marjolein den Bakker, GFT, April 2013. 33 Interviews with Marjolein den Bakker, GFT, April 2013 & Stephen Green, Distrify, June 2013.

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look for external grant funding to further develop the player in order to commercialise it further. Distrify succeeded in winning grant funding from the second round of the Digital R&D Fund for the Arts in Scotland with the Scottish Documentary Institute, to test and develop new features for the player. This award indicates that the player has potential for further development.

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6. Further resources
Further project information
To watch, share or explore other options for the different films available on the digital media players, see http://www.filmhousecinema.com/player & http://www.glasgowfilm.org/player. To learn more about Distrify and its player, including different ways of using it go to https://distrify.com for more information. Distrify are also very active on social media websites promoting their work, collaborations and different developments in the film industry more generally. They can be found at the links below: https://www.facebook.com/Distrify https://twitter.com/distrify

Tools and guidance

For anyone seeking to build their own VOD portal, the following website provides a relatively cheap way of doing it: http://workbookproject.com/newbreed/2010/06/21/build-your-own-vod-portal/ For more information on how to stream or make films downloadable: http://www.beyondtheboxoffice.com/blog/film-distribution/online-film-distribution-101download-or-stream-your-movie/ http://douglashorn.com/wordpress/distribution/vod-options-for-independant-film-and-video/

Further reading
Official statistics on the UK VOD market and the film industry more generally are available from the British Film Institutes website http://www.bfi.org.uk/education-research/film-industry-statistics-research/reports A recent article on the realities of VOD including an interview with Peter Gerard of Distrify can be found here:

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Interview with Stephen Green, Distrify, June 2013.

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http://www.moviescopemag.com/featured-editorial/the-realities-of-vod/ An official UK government report on the future of the film industry in the UK from 2012 can be viewed here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/78460/DCMS_film_poli cy_review_report-2012_update.pdf An article on the five best places online to watch films: http://www.newstatesman.com/culture/2013/02/cinema-demand-top-five-places-watch-new-filmsonline VoD is changing the way society interacts with TV and film across the world: Article regarding how Africa is embracing VoD: http://www.bbc.co.uk/news/business24706209 VoD In Europe: http://www.inaglobal.fr/en/digital-tech/article/video-demand-europe

How VoD is changing the industry and its reaction to it: Article concerned about whether VoD is killing Cinema: http://www.techradar.com/news/home-cinema/are-cinemas-under-threat-from-video-ondemand-1044059 Small theaters affected by VoD: http://www.themetropreneur.com/columbus/small-theatersaffected-movie-industry/ Whether VoD is good or bad for indie film: http://www.thewrap.com/movies/article/has-vodbecome-over-saturated-114201

Other examples
Cinema related online film offerings: Curzon: http://www.curzoncinemas.com/film_on_demand/ Scottish Documentary Insititute: http://scotdoc.muvies.com British Film Institute: BFI unveiled their new Video-on-Demand service similar to that of the GFTs in January 2014: http://www.bfi.org.uk/news-opinion/news-bfi/announcements/newvideo-demand-service-bfi-player-unveiled

There are a number of alternative substitutes to cinema curated online film offering such as iTunes, Amazon and many of the major TV channels, however, there is a small number of independent suppliers and two major supermarket chains: Vimeo on Demand offers users the chance to buy work direct from the creator: http://vimeo.com/ondemand Sainsburys Supermarket have also released a Rent-a film offering: http://www.sainsburysentertainment.co.uk/en/section.html?section=moviesonline Mubi : https://mubi.com/ BlinkBox: http://www.blinkbox.com/

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