last Thursday:early period of Hollywoodearly video evolved from photographythe technology to record and display video is key in this market, so much of the early power was vested in the inventers and manufacturersThe Motion Pictures Patent Company – 1908Placed restrictions on several factorsNo importsLimited lengthsNo star actorsAll filming and exhibition must pay a license feeFilm supplies and results were price-fixed10/15The Film Patent Trust vs. The PiratesWho were the piratesWhere did they set up shop and why?And what happened to the Film Patent Trust?A federal district court ordered their dissolution in 1915AT&t in position where they purchased WU and had monopoly powers and were setting up something that would interfere with trust lawsCooperate with governmentthe pirates transform themselves“the studios” were born, but what were they?Their origins are obfuscated by their vertical integrationWhy vertically integrate?Production -> distribution -> exhibitionGet greater profitsGreater return to scaleEarly production in the studio systemBalance between director, producer, and studio?Studio owns producer & directorWho’s the gatekeeper?Its an issue of financing and return on investmentBut 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:Multiple firms per year for multiple years (like chaplin’s deal)No real rights because you have an option contractEarly distribution in the studio systemConsolidations like the “first national film distribution circuit”IPO moneySupply side leverage:Bundling, book blocking, and theater chainsProduction codeSeries of standards that wanted to make sure whatever was being shown had good valuesAntitrust lawEvery contract, combination, or conspiracy, in restraint of trade or commerce is declared to illegalEvery person who shall monopolize or attempt to monopolize any part of the trade or commerce shall be deemed guilty of a felonyThe paramount decision1948 the case against paramount reached the supreme courtbundling & extra layer of exclusivitymade them give up exhibitionlabor and the role of unionslong 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 freedomswhat other unions exist in Hollywoodscreenwriters guildwriters guild of Americadirectors guildproducers guild10/22The IndependentsFinanced primarily from sources outsideCollectively, independents produce the largest number of motion picturesProduction deals - Thinking about GatekeepersIn-HouseHas its own range of optionsFirst look contractsIndependent producersVery open- ended possibilitiesNegative pickup dealsEven more open accessSex, lies, and videotapeThe process…Development:Pitch/idea, script, retainer agreements with lawyers and agentsPre-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 agreementsDistribution agreements, music permissions, video clip permissions, exhibitor agreementsAt each stage, options contracts..Buying access to rights at a later date if something happensWindows of releaseRelease windows refer to the points in time at which films, tv, and other media are released in certain distribution channels and not othersTheaters -> home videoDvd -> 3-d, blue ray, dvdOn demandPatterns of releaseBest theater in the best citiesThe next best pre release theaters in the city’s downtown area and maybe the best theaters in the next best citiesBroader urban coverageNeighborhood theaters in bigger metro areasOnly after the runs in larger cities were through would more significant rural areas have a chance of getting movie reelsPost tv movie release patterns: now with almost no delayBest theaters in best citiesThe citiesNeighborhood/suburbanRuralTV as the last stageGoes from particularly exclusive areas at a high price -> slow areasAs your home theater gets better, the value of going to an actual theater decreases11/5 Guest Lecturerdevices:console7th generationPCMobileArcadeDeadEAElectronic artsActivision/blizzardUpsoftCapcomTwo sided marketTwo interested groups of peoplePublishers# of consumers# of competitorsconsumers# of gamesquality of games11/12-doubles every 18 months11/14googlewhat is the cost of offering each additional product?Harder to findIn terms of search costAbility to decipher what you actually want is reducedSuggestion engines11/21- Privacy in the digital agetwo basic groups:4th amendment constitutional right within one’s homeright of privacy -> right of publicitymisappropriation of the name or likeness of anothertrademark in people: different from the right of publicitystill a misappropriation of the name of likeness of anotherhowever, this person has a trademark on themselves in certain lines of businessT207 lecture second half 10/15/2013last 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 – 1908Placed 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-fixed10/15The Film Patent Trust vs. The Pirates Who were the piratesWhere did they set up shop and why?And what happened to the Film Patent Trust?-A federal district court ordered their dissolution in 1915AT&t in position where they purchased WU and had monopoly powers and were setting up something that would interfere with trust laws-Cooperate with governmentthe pirates transform themselves“the studios” were born, but what were they?Their origins are obfuscated by their vertical integrationWhy vertically integrate?-Production -> distribution -> exhibition -Get greater profits-Greater return to scale Early production in the studio systemBalance between director, producer, and studio?-Studio owns producer & director-Who’s the gatekeeper?Its an issue of financing and return on investmentBut this is in an era “when the idea of a bank funding a cultural productwas unheard of.”What range of artistic choices would be
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