Well now. I do my best to maintain a positive note where possible, while at the same time being something of a realist. But I pretty much lost my happy thought when I attended an event the other night all about the financial implications of digital media, ‘organised’ by an outfit called Show and Tell Films. Having witnessed them in action, I’m in no hurry to show them any projects of mine, and instead I’ll try and focus on the useful parts of the evening. For an alternative account, go back a couple of days to the Choke review, and read the comments by Mike Donald: meeting him was pretty much the highlight of the evening. In every other respect, I have participated in events run at primary schools that were put together more effectively and impressively, and they don’t have the backing of a half dozen or more sponsors including Skillset.

Onto the good news. The panel included some genuinely interesting people, and I’ll summarise the points they made. This was an evening of questions rather than answers, the principle question being how on earth someone had hired Nathan Barley to put it together. Nevertheless, and allowing for the ongoing difficulties with the sound system which made understanding what some people said very difficult, here’s a round-up of the salient points:

Peter Buckingham – Head of Distribution & Exhibition – UK Film Council

Old models of film and revenue are based on geographical territory. Now, communities seem to be overtaking nations: how does or will that affect production and distribution? And what does that mean for the notion of the ‘local’ story?

How does a filmmaker get value back? Who are big companies looking at to assist them in their projects, and what kind of deals are being struck? eg If an online vendor wants to offer films, how are the deals structured?

Digital rights management is another growing issue: what do you allow consumers to do with your product? Are they allowed just to watch it? If so, how often? Can they play with what they’ve got to make something of their own? How can this be arranged?

The key to some of these questions is to understand actual consumer behaviour rather than assume older models will continue to apply. What is clear is that we’ve dealing with a new model. Some aspects of this are exciting: new methods of production and distribution can cut out older gatekeepers such as commissioners and distributors. And some projects are even funded by their audiences.

The notion of the ‘long tail’ is important here. The future is one in which films will earn small amounts of money for a longer time than is currently the case. Hence unions meeting about getting a cut of revenues into the future.

Louise Brown – Head of New Media – Channel 4

Louise centred on Skins, a brilliantly effective cross-platform success. The show was tied in to MySpace early on, and is an example of a new trend: marketing departments commissioning content. That has led to real world spin-offs such as launch parties for the new series of Skins.

The show’s audience is very engaged: its use of social networking sites fits in with the generation it’s aimed at. Trainee crew members are being sought from fans.

Louise also raised the point that digital media gives people the opportunity to become benefactors, and used the example of The Guild, an online comedy based around online game World Of Warcraft initially backed by fans and now attracting big sponsors.

Stemming from that example, a question of my own: what is necessary for people to contribute? I feel that the answer is a sense of belonging…

Michael Cowan – Founder – Spice Factory

This is a new age with potential for anyone with the guts to go for it. He referenced a film made for a few thousand pounds that’s gone on to make a decent profit in a distribution deal, and Paranormal, made for $50,000 and which Disney will be distributing at large in 2009.

Ed Warren – Creative Strategist – ad agency Mother

The change that many brands are now facing up to can be expressed simply as a shift from being attached to that which people are paying attention to, ie adverts in commercial breaks, to being the centre of attention. Examples are the Shane Meadows film Somers Town and Pot Noodle: The Musical.

Cauri Jaye – Operations Director – WISIWYG Films

Revenue share is the key to making money in the online economy. Old notions of a minimum guarantee for distribution mean nothing in a market that is being tested and is still in evolution. The broad pattern is smaller chunks of money over longer periods of time. When there’s enough data for patterns to emerge, a return to guaranteed fees may be possible.

Innovation is the key. For instance, the guy who sold pixels on his webpage used the money he made to make a film. It didn’t do well, but he got it made. Now that’s been done, you need to come up with something else. Another success has been someone who set up a competition about a film he’s making, the prize to win a laptop. Having got 2 million competition entries, he’s gone to a studio to ask for the money to make the film in question, knowing he’s now got a built-in audience for it. Snakes on a Plane had a similar online genesis.

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