T207 lecture second half 10 15 2013 last Thursday early period of Hollywood early video evolved from photography the technology to record and display video is key in this market so much of the early power was vested in the inventers and manufacturers The Motion Pictures Patent Company 1908 Placed restrictions on several factors No imports Limited lengths No star actors All filming and exhibition must pay a license fee Film supplies and results were price fixed 10 15 The Film Patent Trust vs The Pirates Who were the pirates Where did they set up shop and why And what happened to the Film Patent Trust A federal district court ordered their dissolution in 1915 AT t in position where they purchased WU and had monopoly powers and were setting up something that would interfere with trust laws Cooperate with government the pirates transform themselves the studios were born but what were they Their origins are obfuscated by their vertical integration Why vertically integrate Production distribution exhibition Get greater profits Greater return to scale Early production in the studio system Balance between director producer and studio Studio owns producer director Who s the gatekeeper Its an issue of financing and return on investment But this is in an era when the idea of a bank funding a cultural product was unheard of What range of artistic choices would be allowed Partially a function of the types of deals o Multiple firms per year for multiple years like chaplin s deal o No real rights because you have an option contract Early distribution in the studio system Consolidations like the first national film distribution circuit IPO money Supply side leverage Bundling book blocking and theater chains Production code Series of standards that wanted to make sure whatever was being shown had good values Antitrust law Every contract combination or conspiracy in restraint of trade or commerce is declared to illegal Every person who shall monopolize or attempt to monopolize any part of the trade or commerce shall be deemed guilty of a felony The paramount decision 1948 the case against paramount reached the supreme court o bundling extra layer of exclusivity o made them give up exhibition labor and the role of unions long term 7 year restrictive actor contracts with options every 6 months for the studio to dump underperforming actors These were full of stipulations with few freedoms what other unions exist in Hollywood o screenwriters guild o writers guild of America o directors guild o producers guild 10 22 The Independents Financed primarily from sources outside Collectively independents produce the largest number of motion pictures Production deals Thinking about Gatekeepers In House Has its own range of options First look contracts Independent producers Very open ended possibilities Negative pickup deals Even more open access Sex lies and videotape The process Development Pitch idea script retainer agreements with lawyers and agents Pre production Sign above the line individuals completion bond agreements errors and omissions insurance workers comp insurance film insurance location releases and permits union and guild agreements financing agreements Distribution agreements music permissions video clip permissions exhibitor agreements At each stage options contracts Buying access to rights at a later date if something happens Windows of release Release windows refer to the points in time at which films tv and other media are released in certain distribution channels and not others Theaters home video Dvd 3 d blue ray dvd On demand Patterns of release Best theater in the best cities The next best pre release theaters in the city s downtown area and maybe the best theaters in the next best cities Broader urban coverage Neighborhood theaters in bigger metro areas Only after the runs in larger cities were through would more significant rural areas have a chance of getting movie reels Post tv movie release patterns now with almost no delay Best theaters in best cities The cities Neighborhood suburban Rural TV as the last stage Goes from particularly exclusive areas at a high price slow areas As your home theater gets better the value of going to an actual theater decreases 11 5 Guest Lecturer devices console 7th generation PC Mobile Arcade Dead EA Electronic arts Activision blizzard Upsoft Capcom Two sided market Two interested groups of people o Publishers of consumers of competitors o consumers of games quality of games 11 12 doubles every 18 months 11 14 google what is the cost of offering each additional product Harder to find In terms of search cost Ability to decipher what you actually want is reduced Suggestion engines 11 21 Privacy in the digital age two basic groups 4th amendment constitutional right within one s home right of privacy right of publicity misappropriation of the name or likeness of another trademark in people different from the right of publicity still a misappropriation of the name of likeness of another however this person has a trademark on themselves in certain lines of business 10 15 2013 10 15 2013