Digital News Vimeo, content, digital, filmmakers, on demand, streaming, Toronto Film Festival, vimeo — September 10, 2013 0:19 — 0 Comments
Vimeo offers content providers $10,000 advance to stream films
Vimeo continues to push its On Demand service, which was launched at SXSW earlier this year, by offering a $10,000 advance to indie filmmakers if they agree to distribute their films exclusively through its paid streaming service.
The initiative was announced at the Toronto International Film Festival, which ends this Sunday, 15 September – and includes film submitted to this year’s event.
“The exclusivity window applies only to digital distributors – including Apple, Amazon and Netflix – meaning that filmmakers are free to show their movies in theatres first, or via cable providers, if they are offered deals in other formats,” says The WSJ’s Rachel Dodes.
Vimeo CEO Kerry Trainor told reporters in Toronoto that the deal with the film festival “is about furthering the conversation” regarding online film distribution.
A recent survey by Rovi Corp., a digital entertainment technology firm, reveals that movies are the most popular type of content viewed on tablets and agreements with filmmakers like the Vimeo deal are going to be more common as consumers visit cinemas less and increasingly turn to watching films and TV shows on their mobile devices.
“A host of new ‘multiplatform’ distributors have entered the market in recent years, offering filmmakers ”day-and-date” releases, in which a movie is offered via cable platforms around the same time it hits theaters,” says Dodes.
Earlier this month, Kevin Spacey told delegates at the Edinburgh International Television Festival, that TV and film producers should “give people what they want. When they want it. In the form they want it in. At a reasonable price. And they’ll more likely pay for it than steal it.”
The movies that Vimeo On Demand picks up from the film festival will go for $4.99 per stream, which is “the level we see for most feature films on the platform,” Trainor told the WSJ.
And once Vimeo recoups its $10,000 advance, any additional revenue will be split according to the site’s terms: Filmmakers get a 90% cut of revenue, after transaction costs, compared with 70% on iTunes or about 50% with a cable operator, Dodes reports.
Vimeo on Demand has already attracted over 2,000 films across various categories.
Trainor told reporters that some of the features Vimeo wants to add next include the ability for filmmakers to launch pre-sales before a movie is done, which could at least for some replace the need to launch Kickstarter campaigns to seek crowd funding.
Filmmakers who take up Vimeo’s $10,000 advance must agree to give the site a 30-day digital exclusive, meaning they can simultaneously go through traditional distribution channels, and sell their movie to iTunes or Netflix once the month is up, or even earlier if they manage to recoup those $10,000 before 30 days are over.