Rain Network 2007
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Rain has expanded its digital cinema network to over 100 art house theaters in Brazil and over 350 digital screens across 20 cities in the US and Brazil. The network allows theaters programming flexibility and access to a large film library. Rain aims to continue growing its network of digital art house theaters to provide more distribution opportunities for independent films through its "Theatrical on Demand" model, which offers benefits like lower costs, flexibility, and increased visibility for exhibitors, sales agents, and producers.
Rain Network 2007
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- 2. QuickTime™ and a decompressor are needed to see this picture.
- 3. What we’ve done (so far)
- 4. …in Brazil : • 100% of art house theatres are connected to the Rain Network • 134 digital screens operating across 20 cities • 157 films shown digitally …in the USA : • 26 theatres operating in 23 cities • Over 350 digital titles available including: - Full Frame film festival 2006, 2007 - Latin Beat film festival 2006, 2007 - Global Lens, 2007 - Undiscovered Gems, 2005, 2006, 2007 - The Metropolitan Opera (NYC) in HD, 2007, 2008 - La Scala Opera (Italy) in HD, 2008
- 5. DIGITAL ART HOUSESDIGITAL ART HOUSES
- 6. How we do it Technology + Innovation
- 7. Operation Database Kinocast Player IP Network Central Server Kinocast WebCapture and encoding Ad Agencies ExhibitorsDistributors Projector Local Server VPN VPNMaster HD
- 8. Theatre Management System & Kinocast Web
- 9. • 24 hour phone and online support • Network operations center Monitoring
- 10. Why we do it The Market Opportunity
- 11. The Market Opportunity “Our culture and economy are increasingly shifting away from a focus on a relatively small number of hits (mainstream products and markets) at the head of the demand curve, and moving toward a huge number of niches in the tail.” Chris Anderson The Long Tail
- 12. The Market Opportunity “Recommendations have all the demand-generation power of advertising, but at virtually no cost.” Chris Anderson The Long Tail Facts 75%75% ofof MySpaceMySpace members use the site to find musicmembers use the site to find music 60%60% ofof NetflixNetflix rentals come from recommendationsrentals come from recommendations
- 13. WHY WE DO ITWHY WE DO ITWHY WE DO ITWHY WE DO IT Consumers want more options, access and control – niche products for all tastes Give them access – Rain’s digital network Make everything available – provide a robust film library Help them find it
- 14. A new business model
- 15. ESPAÇO DE EXIBIÇÃO “Theatrical on Demand” • Digital Theatre Network • International Film Library • New cross-media marketing strategies • Web theatrical management system • Web 2.0 booking • Efficient revenue share model • Agility, Flexibility, Security, Visibility • Low risk – high return A new business model
- 16. “Theatrical on Demand” key advantages • No print or delivery costs • Secure online delivery via Virtual Private Network (VPN) • Only one encrypted encode per film worldwide • Multiple language subtitling A new business model
- 17. ESPAÇO DE EXIBIÇÃO Cross-Media Marketing Strategies • Digital pre-show for trailers – programmed and controlled by Rain • Digital Media Signage – programmed and controlled by Rain • Digital word of mouth – widgets • Online social network – YouRain • Blog reviews • Programming block / line up – collective advertising on tv and radio • Publicity • Guerilla marketing - events and promotions A new business model
- 18. “Theatrical on Demand” business proposal • 50% - 50% from the film rental between Rain/Licensor • $15K P&A, flat fee, retained per new feature • No P&A retained for classic or catalogue films • 30% DVD Royalty • 50% VOD net revenue share • 80% TV Royalty A new business model
- 19. Theatrical on Demand Partnering with one of Latin America’s most important independent distributors… A new business model
- 20. Benefits for Exhibitors Sales Agents Producers
- 21. Benefits for Exhibitors Rain offers programming independence + Access to more movies + Online programming + Remote access for scheduling sessions + Online exhibition control + Flexibility in programming - optimizing theatre occupancy + New advertising and event revenue = AGILITY, FLEXIBILITY, QUALITY, & SECURITY
- 22. Benefits for Sales Agents Rain offers lower risk release and provides savings in 35mm and logistics + More films on more screens + Simple logistics + One encoding per film worldwide + Multiple subtitles + Simultaneous release + Efficient revenue share based model = NEW OPPORTUNITIES, SAVINGS, & LOWER RISKS
- 23. Benefits for Producers Rain increases movie visibility + Low investment at release + Rights management + Multiple subtitles + Real time auditing + Larger number of screens + Delivery and transfer savings = VISIBILITY + ACCESS + SECURITY + FLEXIBILITY
- 24. Case Study
- 25. Case Study “9 Songs” • Digital release generated positive cash flow for sales agents • Digital content reduced the initial risk + costs involved with replication • Movies being distributed in regions where there was no previous market penetration = new audiences + new theaters
- 26. 2008 Global rollout of over 300 art house digital screens throughout the US, Europe and Latin America.
- 27. The Tools
- 28. Online social network connecting moviegoers to an e-box office for screenings on demand Consumers can: • Decide which films they want to see, when and where • Schedule and book community demand based screenings • Access a huge database from classics, to festival films to small foreign films • Discover new and old films through the power of social media referrals • Create and join film clubs The Tools
- 29. The Tools
- 30. The Tools Traveling seasonal film festival showcase for festival fans Audiences can: • Watch films from renowned international festivals • See non-commercially released films • Enjoy different film styles and genres from around the world
- 31. The Tools E-Marketplace for indie film distribution Sales Agents can: •Make real time negotiations and deal transactions using a revenue share based model •Show more films on more screens due to savings in 35mm prints, delivery and subtitling •Low risk – high return
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Editor's Notes
- #12: Wired Mag picture