Digital Evolution

The way movies were advertised before the creation of the Internet was limited to advertising via television and publications. So what has changed? Technology is evolving at a phenomenal rate.  In order for advertising and marketing agencies in the film industry to keep up with the current technology, agencies have started to apply digital and mobile marketing techniques to reach moviegoers worldwide. These agencies now marketing through the Internet, smart phones, and book readers.

The Internet has singlehandedly changed the world. The way millions of people bank, share information; research topics, and seek employment are all done differently because of the Internet. The Internet opened a universe of new ways for movie producers to reach audiences. Online advertising allows production companies to place ads on millions of pages viewed daily by subscribers. Trailers for the new blockbuster movies coming out could be seen on social media sites when users login to their accounts.  After viewing a trailer the user could simply click on link that would allow them to buy tickets. Advertising movies on Social media sites alone can drive millions of viewers to the box office.

The creation of the smart phone has created various avenues for moviemakers to get their products out to world. Let’s key in on a niche market for smart phones, smart phone applications or apps for short. Smart Phone apps are applications that a user can download to their phone for free or for a fee. These applications are designed for specific functions that meet the users needs.  Filmmakers have created applications that will market and advertise their products to app users. For example, Fandango has an app for the I Phone that will allow users to acquire movie tickets from the I Phone. For more movie apps visit http://www.slashfilm.com/iphone-apps-for-movie-geeks/.

Society is slowly transitioning from paper products to the digital products. Major publishing companies are going out of business because of the recession. Consumers are no longer able to afford monthly subscriptions for a newspaper or magazine. Ironically consumers will still buy a new I Pad or new book reader to read their favorite books and magazines digitally. Publishing companies are now offering subscriptions on I Pads and book readers for their users.  These subscriptions can be paid for a monthly fee or on a yearly basis.  The newest trend in publishing is digital books and magazines. This technology is still being created, a digital book or magazine will allow the reader to read articles and view advertisements interactively. Click here now http://www.dfnionline.com/DFNI-digital.html. So imagine a new film trailer being advertised in a digital book or magazine that will give people an interactive experience.

The E-Book Factor

The world of publishing is changing rapidly as physical books are being translated into digital mediums. The old way of publishing is a slowly dying business. Major magazines and publishing titans are losing billions of dollars because of the economy and the emergence of authors who deciding to self publish. The Internet has shifted the balance of power from the publishing company to the author. The Internet gives the author the ability to self produce the project, promotion to millions of people, and cause the major publishing companies to seek co-publishing deals with the author.

The ability to self- produce an e-book has become an easy and simple process. An author can find everything that is needed to create and produce an e-book online. For example: John Smith can write a book using a basic Microsoft word program. Once the book is edited, John can design his own book cover by downloading free book cover templates by doing a basic Google search.  John can upload his own picture on the back of the e-book cover and design the front cover by using Adobe Photoshop. Now John has an e-book that is ready to be marketed and promoted.

The Internet is a great tool to promote and market an e-book. If this process is done correctly an e-book can make an author millions of dollars. An author can explore millions of niche markets to promote their product. Once the author finds his or her niche market, the author can create a marketing campaign to target customer within the niche market. This method is effective because the target customer is already interested in what the e-book is about. Marketing campaigns can but set up on search engine sites such as Yahoo or Google and social media websites such as Facebook.  By utilizing these marketing techniques an author can reach millions of customers.

Major publishing companies have decided that the Internet and the ability of authors to self publish their work, is not a fleeting phenomenon. This new trend of publishing is here to stay and it is growing at an alarming rate. To salvage their slowly dying companies, publishing companies are beginning to offer co-publishing deals to authors who have a large consumer base for their self-published work.  The co-publishing deal would allow the author to get a major distribution deal, share the copyrights, and royalties with the publisher equally.

E-books are here to stay. My advice to any author looking to get a major distribution deal would be to self publish a few projects and market them online. Create a viral buzz about yourself and your books through social media to develop a following. It will not be long before a major publishing deal will be sitting on your desk.

Ways to get a Co-Publishing Deal

The old ways of publishing are dead. The economic climate combined with frustrated authors who are tired of major publishing companies taking most of the profit from their work, has led authors to self- publish their own books.  These methods can be contributed to recent trends created by the Internet. In recent years authors have been able to harness the power of the Internet to self-publish and market their books to the millions of people. Major publishing companies have been unable to hold to the traditional ways of offering authors publishing deals where the publisher owns the copyrights to the authors work and keeps 85% of the profits and the author receives only 15% royalties from the books. The Internet and the economy has allowed independent authors to level the playing field in which major publishers are offering co-publishing deals to independent authors. Co-publishing deals are created when the author has sold a large amount of copies of their book, has created a sizable fan base, and can market to a large amount of people.

A co-publishing deal is when the publisher offers the author a deal to publish their books for an equal share of the copyrights and royalties. Co-publishing deals in past years were rare and very hard to obtain. The growing trend of self-publishing authors has created a larger stream of revenue for themselves. The recession is causing major publishing companies to go out of business. Major publishing companies are losing billions of dollars yearly. So in order to stay in business major publishers are offering more co-publishing deals.

One way authors can position themselves to get a co-publishing deal is to use Print on Demand Companies to publish and distribute a book.  Using print on demand companies will allow an author to get a book edited, published, and distributed for an affordable price. If the book is successful, the author can sell a large number of copies. The author will also retain most of the profit while earning a greater percentage of royalties.

Another way an author can earn a co-publishing deal is to create a sizeable fan base by marketing and promoting on social networking sites. The power to create a fan base through social media is a powerful technique. An author can place a small ad on face book to create awareness of his or her book. As people begin to click on the ad and purchase the book, a phenomenon called a viral buzz happens. A viral buzz is when people begin to spread the information about the book by word of mouth, email and mobile messaging.  The word will also reach major publishers, who in turn will seek to gain profits from the fan base through the author.

Lastly the Internet offers a number of marketing avenues to for authors to reach a large number of people. We have discussed how using facebook is effective. Another social networking site is Twitter. Twitter is a social networking site where people can post links to their websites, talk about their favorite restaurants, and become followers to each others Twitter page.  An author can create a blog that talks about his or her book. Within the blog the author can add a link to the purchase page of the book.  The author can also write a press release to announce the release of the book. The author can also create a personal website that will allow fans to enter their names and email addresses. The website will also have an e-commerce link for fans to purchase the book and also a forum page for fans to leave a comment. This personal website will allow the author to build a large database of customer that the author will use to build a relationship with. When the author has a new project coming out, the author can simply e-blast the database to promote the new project. These methods require a lot of effort but can be done overtime. Once implemented the author can expect to gain popularity and profits.

Protecting Your Business From Liabilities

All businesses created must be created with some form of legal protection in place.  The film industry is one of the most litigious industries in America. Film companies face lawsuits daily as parties file claims of copyright and trademark infringement. Another film company maybe sued for violating child labor laws in regards to child actors. With all of these litigations happening, how does a new film company protect themselves? We are going to analyze actual litigations and determine what provisions are needed to protect our businesses from potential lawsuits.

In employing the use of minors in the entertainment industry, Sanchez v. Nickelodeon provides a good example of what a film company should give adherence to. Caitlin Sanchez was hired at the age of 12 by Nickelodeon to play the animated character Dora, the star of Dora the Explorer.  Caitlin was paid $5000.00 per episode as well as some residuals from the Dora character. When Caitlin turned 14 years of age she went through puberty in which her voice changed. Nickelodeon fired Caitlin stating that her voice was no longer suitable to portray the Dora character. Caitlin’s parents filed a lawsuit for breach of contract and wrongful termination.  In examining the plaintiff’s arguments there are a number of violations that Nickelodeon is accused of.  1) Nickelodeon failed to have an attorney present when she signed a contract with Nickelodeon.  2) Caitlin’s agent and Nickelodeon forced Caitlin to unconscionably sign the contract. 3) Nickelodeon violated state child labor law in New York in which all contracts involving hiring minors must be review by the courts first before the contracts is legally binding.  I admonish all filmmakers to consult your attorney when you plan to hire a minor for your production. Be aware of the state laws concerning minors in which you are filming. Always make sure the minor has legal representation before initiating any contracts. The minor’s parents should be present at signing as well. 

Famed filmmaker George Lucas created “Star Wars”. In 1977 Lucas employed the use of Andrew Ainsworth to create the helmets for the storm trooper characters. Ainsworth created his own original molds for the helmets.  27 Years later in 2004 Ainsworth setup a website to sell his molds for the weapons and helmets he created for the movie.  Lucas filed a copyright lawsuit in the U.S. against Ainsworth who is a citizen of the United Kingdom. Lucas won a $20 million dollar default judgment against Ainsworth. In 2008, Lucas moves the case to the UK, Ainsworth files a counter lawsuit claiming that he owns the copyright and a portion of the $24 billion sold in merchandising.  In 2010, the UK court dismisses Lucas claims.  The protection of intellectual property is a must for any film company. In this case Lucas went into contract with a person who was not a United States citizen.  A film company in the United States may not always have legal protection in an international setting. Having an attorney who specializes in International Law on your legal team is recommended.  Note that a film can also create multiple sources of revenue in the form of toys, books, posters, clothing, etc. Consult your attorney to file the correct paper work to protect your intellectual properties.

The King’s Speech is a film produced in the United Kingdom that won best picture of the year. The American Human Association is threatening legal action based on the alleged use of a trademark certification. The British film uses the phrase “ No animals were harmed” in the making of this film. The phrase is trademarked by the AHA. The AHA has used this trademark power to demand certain rights of filmmakers who use animals on set. The AHA has no authority over the film while it is being distributed in the UK. However the Weinstein Co. is distributing the film in the U.S. The AHA is also threatening legal action against the Weinstein. Co if the words are not removed from the film in the U.S.  This situation teaches a potential filmmaker to 1) thoroughly search out all clearances and permission for any use for copyrights and trademarks, 2) having ownership of copyrights and trademarks allow the owners to have certain privileges, 3) once infringement has been discovered you have a legal duty to mitigate, 4) Know the scope of your jurisdiction. 

Structuring a film company to minimize litigation is a lot of work. The hiring of the right personnel is paramount. Having a legal team that can analyze all future work before production begins can save time and money.  A filmmaker must know how to create additional revenue streams through the creation of intellectual properties. These litigations serve as a guideline for establishing a successful film company. While no company can avoid being sued, having adequate legal protection helps.

Blog Resources

http://www.entertainmentlawupdate.com

Podcast episode  # 15

Podcast episode # 10

Podcast episode # 18

The Perils of Litigation

The movie industry is full of flashing lights, cameras, and famous faces. On the surface it would appear that the movie industry is one of the most lucrative industries to have ownership in. The latter statement is partly true; the movie industry is lucrative to many owners of major and smaller independent studios. For every blockbuster movie that is shown in theaters throughout the world there are literally thousands of lawsuits that are filed against the studios that produce them. Film litigations are the downside of owning a production company. It is not a question of “if” you get sued but rather “when” you get sued as it relates to producing films in Hollywood.  Film litigations are costly and can take years to resolve.  Another party may file a lawsuit against a filmmaker’s intellectual property such as a film or movie script. Let us look at a few film litigations to understand the many different causes.

The first litigation we shall review is the lawsuit filed by former South Carolina House of Representatives James L. Mann “bubba” Cromer Jr. against Showtime and HBO. Cromer created and filmed a movie called “The Hills Have Thighs” in 2008. The film is a comedic adaptation of the horror cult classic “The Hills Have Eyes”.   According to the article Cromer hired an agent to increase the films profile. After doing so Cromer saw an ad saying his movie would be aired at 1:30 am on a Showtime network called the movie channel. Cromer being excited emailed and called all of his friends to spread the good news.  To Cromer’s dismay, what was aired that night was a soft pornographic movie with the same movie title but with a different director. Cromer filed a lawsuit stating that by airing the soft pornographic film with the same title has caused action of defamation, violation of the Lanham Act, violation of the rights of publicity, intentional infliction of emotional distress and negligence. (Belloni, 2010)

I will merely state my opinion on this lawsuit.  It is my belief that Mr. Cromer is suing the wrong parties. There are a lot of movies that have similar titles. I think both Mr. Cromer and his agent failed to do their due diligence in the area of copyrighting.  Mr. Cromer should have searched to see if there were any films already made with the same title. Even now Mr. Cromer’s attorneys should be trying to ascertain when Salvadore Ross actually created his version of the movie. If the findings state that Mr. Cromer’s film was an earlier copyrighted film, then Mr. Cromer should sue Salvadore Ross for copyright infringement.  Showtime and HBO did not error in showing Salvadore Ross’s version of the film; it was shown after hours for adults. Mr. Cromer acted with haste and announced his film would be shown without thoroughly verifying that it was indeed his movie being aired. 

The next case is well known and many of us as moviegoers are wondering how will this impact the finish product.  It is the litigation between Warner Bros and DC Comics VS. the heirs of Jerry Siegel and Joe Shuster the creators of the “Superman” character.  The Siegel family in particular filed a lawsuit against Warner Bros. and DC Comics claimed that the family owned profits on the movie “Superman Returns” in relation to a “sweetheart deal” struck between Warner Bros. and DC Comics.  The heirs do not have any ownership of the copyrights to the “Superman” character until 2013. The families will own the entire original copyrights to the “Superman character” in which no new Superman films can be made without the families’ approval.  However the court did not rule in the heirs’ favor for the damages but warned Warner Bros. that if the production of a new Superman movie does not begin by 2011, then the families can sue Warner Bros. for damages in 2013 when the families reclaim ownership. (Wigler, 2009)

This case is clearly one that is based on knowing about copyrighting laws and the rights to intellectual properties.   I think the Judge made an error in this ruling.  I base my opinion on Title 17 Section 302 of the Copyright law of the Untied States of America. Under section 302 it clearly states the following ” (a) In General. — Copyright in a work created on or after January 1, 1978, subsists from its creation and, except as provided by the following subsections, endures for a term consisting of the life of the author and then to any heirs 70 years after the author's death.” Copyright Act (1976)

It has not been 70 years since the death of the creators of Superman.  Jerry Siegel died in 1996 and Joe Shuster in 1992.  In my opinion Warner Bros. and DC comics should pay the heirs profits from Superman returns.

The clash between church and state is more common than we may hear about.  Brazil’s archdiocese of the Catholic Church is suing Columbia Pictures for using unauthorized images of the world famous statue The Christ the Redeemer in the blockbuster movie “2012”.  The Brazilian Catholic Church commissioned Paul Landowski to create it in 1931. Under Brazilian law the copyright belongs to the author or work until his death and then to any heir and successors for 70 years.

The Brazilian Catholic Church wants Columbia Pictures to make a public declaration that the company did not intend to cause offense by showing the statue destroyed by a giant tidal wave in the movie. (AFP, 2010)

In my opinion this case is should be simple and to the point but unfortunately it is not. The main issue centers on international law. Columbia Pictures may have violated Brazilian copyright laws, but who has the power or jurisdiction to enforce Brazilian law on an American based company.  I think that Columbia Pictures should indeed offer an apology and settle out of court with the Brazilian Catholic Church in order to continue shooting future film in Brazil. In reality, Columbia Pictures will not be held liable for violating the use of the statue.

To read the articles cited in the blog click on the links below.

http://reporter.blogs.com/thresq/2010/03/lawsuit-says-showtime-hbo-swapped-exlegislators-film-for-soft-core-porn.html

http://splashpage.mtv.com/2009/07/09/warner-bros-dc-comics-win-superman-lawsuit-must-produce-movie-sequel-by-2011/

http://www.google.com/hostednews/afp/article/ALeqM5gJA2-7BRRgMAxlmx4kuMphqQJkVg

Great Networking Tips

        

The entertainment industry is one of the most competitive careers a person can pursue in life.  It takes a certain personality type to deal with people with inflated egos, power hunger production assistants, phony casting agencies, and outright rude directors.  But do not despair there is hope for those who can endure the initial illusion of champagne bottles, lights, and promises of stardom.  In reality landing a job in Hollywood is about having 10% talent and 90% networking ability.  In order to position yourself for the career you desire in the entertainment industry you must make a connection with someone who is already working for the motion picture studio or movie agent you want to work for.  In order to gain contacts in the industry there are a number of techniques you must learn. Here are a few keys to improve your networking. Learn to be a great conversationalist, avoid being apologetic, the art of working a room, and positional nosiness.

Learning to be a great conversationalist can open many doors for the person looking to work in the entertainment industry. Being able to seamlessly blend into the conversations of others without rejection or offense is a great skill.  The person who can grasp this technique will become the center of attention when he or she is speaking. A great conversationalist is viewed as a person who is confident, assertive, and professional. These traits are easily viewed by someone in a position to hire you as a great asset to the company. 

While networking at any entertainment event remember this cardinal rule “never apologize” when engaged in conversations. People who constantly apologize are viewed as weak or easily intimidated. Apologizing displays a person’s inability to handle difficult tasks, unable to meet deadlines, and lack leadership skills when a leader is needed.  Remember that you are socializing for a desired outcome. Perception is everything in Hollywood and the wrong perception could hinder your efforts.

The art of working a room is a great weapon to have in the arsenal of a networker. This one technique alone can gain a person entry into the presence of any CEO in the room. First check your attitude, a person must be able to approach strangers and establish a mutual interest while engaged in conversations. The person who takes on the attitude of “why should I bother to impress other people?” will create a negative energy that others in the room can feel. People will subconsciously avoid you.  Risk rejection by attempting to meet new people. One person may not want to talk with you but may refer you to the person you need to meet.  Keep conversations short without being obvious that you are merely talking to someone to get certain information. Avoid ending conversations abruptly as well. Short conversations allow you to establish more contacts attending the event.

 “Positional nosiness” is defined, as being in the right position to hear information that you were not suppose to be privy to.  Positional nosiness is an act of GOD, it just happens.  A person must be able to seize the moment without appearing as someone who is eavesdropping.  While working on a movie set as an extra, the producer was having a conversation with the casting director about needing a stand-in actor for one of the movie stars on set.  At the time I was in the wardrobe tent and over heard the conversation.  As they were talking I realized that I fit the actors description.  I finished dressing and casually walked out of the tent right past the producer and casting director.  Before I knew it the producer stopped me and asked me to stand- in actor for the movie star.  Positional nosiness is a great way to land a job in Hollywood.  

Networking is a necessary skill to master for anyone looking to gain entry into any industry.  The old cliché “It’s not what you know but who you know” holds true in Hollywood.  Networking is a way to avoid dealing with the gatekeepers of the industry. So remember to practice becoming a master networker and before you know it, you will be working in the industry of your choice.

The business of Managing Film Agents.

So you want to be an actor? A lofty goal with great rewards but the pitfalls and obstacles are many.  To navigate the entertainment industry in the areas of music and film, most people rely on securing the services of an artist manager or agent. For an actor, an agent is the person that would help an actor break into the film industry. The agent and actor would form an agreement in which the agent would secure work for the actor for a fee.   In an recent interview with a industry insider, I learned a different approach to hiring an agent. Our industry insider has appeared in “The 40 year old Virgin”, “Weeds”, and the new television show “No Ordinary Family”. The topics discussed included: why does a person need an agent, what an actor needs before talking to an agent, and the mindset an actor should have when dealing with agents.

According to our industry insider, one of the most common mistakes a new actor makes is misunderstanding that having an agent will guarantee steady work in the film industry.  An agent can only submit you for roles that meet the criteria that the studio is looking for.

If the actor does not meet the studios’ criteria then the agent is incapable of finding constant work for the actor. Our industry expert offered a solution to this dilemma. He stated that the agent must overcome this problem by negotiating with the studios to alter the criteria of the role. The agent must also present his client as the most marketable person for the role, not the most talented. This is key! The more marketable the actor is may affect the success of the project. Marketable actors will help determine what audience will show up at the box office. So in essence an actor needs an agent who is proactive in providing roles based on how marketable an actor is. In the beginning the agent must seek roles for the actor based on volume. As the actor makes a name for his or herself and has an established image, the agents’ focus should focus on higher paying quality roles.  This is the primary function of an agent.  Our industry insider will not sign with an agent who is not capable of this function.

Our industry insider was adamant about actors establishing themselves as an independent business first before signing any contract with any agent. This concept was taken from Michael E. Gerber the author of the best selling book called E-Myth.  The actor is the business and he or she must work on the business and not in it. The actor must establish a personal brand in which every role, television appearance, and radio interview must be create revenue and publicity for the business.  If the actor signs a contract or endorsement deal, having a legal entity in place will help with legal issues that may arise.  Most actor have no idea of this concept, therefore their careers falter when the industry takes a turn for the worst.

Mindset is the most important attribute that an actor must have in place before talking with an agent. Having a mindset of being success is only one part of the equation. An actor must think and operate as a CEO but know when to act as an employee. Too many actors rely solely on talent alone that hinders their career when no roles are available.  The actor must have his or her hands in every aspect of the film industry. When no roles are available, the actor and his agent must create new streams of revenue by pitching scripts, television pilots, and reality shows in which the actor stars in and have ownership in. Our industry insider sees the industry as a numbers game. Audition for as many roles as possible, somebody will say yes. The object is to get your foot in the door and bring your company with you. The agent should help facilitate this process while acting as an independent contractor of the actors’ company.