Filmmaking / Directing : Streaming Question by Todd Schowalter

Hey Todd.

I'd say go for it. There are already so many commercial streaming services but very few niche film streaming services. I think with the right marketing campaign and catalogue you'd do well.

So far nearly every streaming service that exists is successful because the market is still small, the competition is minimal and online streaming caters to a global audience so somebody will tune in.

I wish you all the best on your new business venture and all the success.

How do you plan on making money ?

You will have to make sure that your streaming service is well marketed to SmartTV's which means you will have to be implemented across all of those smart TV O.S.'s some of which require a cut. Roku has an increasingly large piece of the pie on that. I read recently that the revenue generated by these O.S.'s is bigger than the actual platforms. So I can't imagine it's a small expense to get on the average LG TV or Samsung TV and be a ready to use app that's just right in their menu. This probably costs a lot.

But this, in my opinion is what could differentiate you as a startup streaming service. Become a curated service like Fandor.com or mubi.com but actually be an open platform that takes films directly from producers rather than distributors. Allow anyone with a good film to upload it and give back a share with a 90/10 split like Vimeo on demand. Vimeo on Demand is the most filmmaker friendly service out there but it's got zero market share in this arena.

Your streaming service has to be something that the average person will know of and that will take millions in marketing to make happen. Tubitv.com and Vudu and Filmrise and countless others already have a foothold on the b-movie and retro tv market and even they have a "Don't contact us" mentality to any newcomer with a movie to distribute.

Go where nobody has gone. Give all filmmakers equal access, upload control, analytics, a "Vimeo on Demand " style cut and also make sure people know of your platform. That will be a game changer. Build it and I am sure everyone, including establishment will beat a path to your door. Nobody likes the status quo as it only favors investors.

Ally, Dan-

Thank you for responding! I appreciate your support. My model is to offer free subscriptions, with revenue being generated through targeted advertising. Our content and audiences are very unique and the specialized demographics are an excellent opportunity for advertisers to reach our audiences.

That said, the film and entertainment content comes first. We will be producing top quality work and I won't compromise quality entertainment. All advertising must be a good fit, and we will build our reputation and brand on being the source for memorable films for unique audiences and communities.

ML-

Excellent suggestions. We will in fact be building our library directly from producers, and yes extremely filmmaker friendly. Our upcoming awareness campaign will incorporate a variety of marketing vehicles, however social media will be paramount. You're also right on target with our objective to tap into overlooked markets and I want our compensation arrangement with filmmakers to be the best in the industry. Great ideas and feedback and please keep them coming!

Here's a cautionary tale if anyone mentions blockchain. www.breaker.io They're still active even after a few years of stagnation and a rebranding from SingularDTV but honestly I have no idea how they have kept going. Only a few hundred downloads in the android app store. Nine 5 star reviews. Which are probably from the staff. It's one of the first streaming services to try to use blockchain technology for uploads and metrics and full transparency.

My guess is that to get their downloads into the millions on the app store, it would cost them more in advertising and marketing than it cost to actually build the platform. Keep that in mind.

Kanopy.com has, probably the best catalogue of new films out there. It's all top quality stuff from the best indie film distributors around. You've heard of most of the films, the stars, the directors etc. It's a library service. Similar to Hoopla. But it's like the Criterion Collection of library services.

NYC just cut them loose because their licensing fees are too high and not enough people know about them so the subscriber base in NYC isn't big enough to support their catalogues cost. Everytime someone watches even 30 seconds of a film, the filmmaker is paid a royalty fee of at least $1. I'm sure the platform takes the rest.

My point is that this service is amazing and should be flourishing in a place like NYC but NOBODY knows about it. This is the biggest obstacle you will be facing. Even with a catalogue of A-list award winning festival playing movies, you are going to struggle to gain market share.

Todd, everyone here is making valid points about marketing and getting noticed... at the risk of sounding too optimistic I agree with your idea to use social media as a marketing tool. With the right brand you could easily grow a campaign for your streaming service by just having an appealing social media presence. You'll do well.

Thanks everybody! We're not looking at the demographic of filmmakers, we're looking at the demographic of our audience. A lot of the examples brought up are valid points, however we're not taking a mainstream "everything for everybody" approach. This is going to be more targeted to specific niche audiences and communities, and advertisers should benefit by reaching those markets directly.

Ally, thanks for your support! Again, I really appreciate everybody's feedback and the more potential obstacles you can think of the better. We want to address these before rather than after launching!

Kay has a point. But I would argue that if you have a mission statement that favors filmmakers and content creators, you will likely be alone with no competition. Because it's a blue ocean that nobody is going near.

Making a film is hard enough. Allowing an audience to find it shouldn't be 10x more difficult and expensive than making the film.Think of it like this, as a platform you can either be a "gatekeeper" that discourages and dismisses new and up and coming talent and leeches off the talent of existing established artists or you can empower artists new and old and then get out of their way.

To date, nobody is choosing the latter. NOBODY. Which is very odd when you really think about it. I mean, the filmmakers are responsible for the content. How is it that at every turn in the current business model of streaming media they are always getting screwed over?! How is this the case? Because creative people don't often understand the business model and those behind it make it increasingly difficult to understand. By design. You definitely have your work cut out for you. Good luck.

Hi Kay- Imitators are sure to follow anything successful. That's business and I welcome the competition. However, the service that we're offering is only part of the model. I'm attempting to build relationships with both our audience and the filmmakers. Without getting too overly dramatic, I want the company to have a specific vibe, and produce content which creates consistent emotions with its films. When you watch a Road Flower film you know you're going to feel a certain way. I hope that's not too over the top or "out there", but that is what I'm going for and not easy to duplicate.

Hi ML- I just read your comment. Yes, exactly. I have a saying, "Hurdle the Gatekeeper" and that's what I plan on doing. I appreciate your support and I know it's not going to be easy!

Hi Kay- Yep, it's not going to be easy! If it were, it would already be done. In my opinion, Sundance relied too much on their brand. We are too, to an extent, but we're going to match content to receptive audiences. That may be in multiple genres, but say you've produced a film about a 60 year old recently widowed woman who travels the world and finds love for the second time with an eccentric tour guide in Paris. We would suggest that film to an audience who likely would be receptive to it based on their profile. This would be "after" they've entered a profile initially, so in essence the audience would be coming to us. Advertising targeting that audience profile would accompany the film to generate initial revenue. There's much more legwork and hair pulling ahead, but that is my concept in a nutshell. The framework is in place and motion has begun, but I'm still putting the players together.

Very ambitious, Todd Schowalter! Not sure how I can help, but let me know if I can (other than financially)!

Thanks John!

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