Categories
General

What will Philip be up to at NAB?

NAB has arrived, seemingly suddenly, and it’s only two days before we drive up. This year is a slightly less hectic schedule than previous years, as I’m not presenting at any of the FMC Post|Production conferences this year.

While I’m not sure exactly of the schedule, I’ll be helping Larry Jordan and his crew with their mighty “official podcast of NAB” schedule by filing some reports through the week.

2009cslogobanner200x67NAB starts very early Sunday morning when I moderate a panel starting at 8:15 am for the Creative Storage Conference on Electronic Content Delivery and Digital Storage where I expect to learn a lot from the panelists. Apart from the early hour – not my golden time – it should be a great session.

Monday night, more so than usual, is incredibly busy. I’ll be starting the evening at the IMUG (International Media Users Group) MediaMotion Cafe (downgraded from the MediaMotion Ball this year – the ball will be back in 2010), which is sold out. I’ll also be attending the official Avid event at pretty much the same time, while trying to catch the unofficial user event in the central bar. That’s sponsored and your business card gets you free drinks.

The big highlight for me is our Finisher Face-off: the Finisher software with novice editor, up against an experienced editor, cutting a package shot at the show by the Digital Cinema Society. Neither contestant will have seen the already-captured footage before the edit. Should be fun to watch at 2pm Tuesday April 21st on the Final Cut Pro User Group Superbooth - SL10129 near the Blackmagic Design booth. We have no idea how this will go down, so if you’re at NAB, come find out when we do.

We’ll be revealing the results at the Final Cut Pro User Supermeet that night at the Rio Amazon Ballroom where we have an Exhibitor Table (shared). The agenda for the Supermeet looks amazing.

Although the ProMax Digital Lounge is on Monday, Tuesday and Wednesday night, I’ll only be able to make it on Wednesday night. At 6:45 I’ll be presenting on  “Growing Your Production / Post Business During The Recession” based on my new book that will get first showing at NAB but be officially released a week or two later when we get paperback copies back from the printer.

The book is called The New Now: Grow your production or postproduction business in a changed and changing world. It’s packed full of practical advice on how to use networking, social media, company blog and ‘the new PR’ to grow your business whatever the economic circumstances. Like the HD Survival Handbook the new book will be available for PDF download from ProAppsTips.com for $9.95 or from Amazon for $19.95 for those who prefer paperback.

The way the book industry is changing is probably the subject for another post.

Wednesday night is also the RED user event where I’ll before heading off to  the ProMax Digital Lounge.

Hopefully I’ll see you at NAB.

Categories
Distribution New Media

How do the numbers stack up for new distribution channels?

For the last year or two I have been trying to get solid numbers for the budgets for two of my favorite programs: Friday Night Lights, and Mad Men. These two shows are produced less expensively than traditional budgets – that much I knew – but what the budgets actually are seems to have been a State Secret. Until Friday that is, when Variety provided the information I was after in Networks look for low budgets by Cynthia Littleton.

Friday Night Lights‘ budget is:

“about $2 million and change per episode, compared to $3 million-plus for many network skeins (or just under $3 million on the low end)”

For Mad Men:

“Given the scope of the period drama, production execs say they’re amazed “Mad Men’s” second season came in at about $2.5 million an episode. That was up by a few hundred grand from the first, and a princely sum by the standards of AMC and “Mad Men” producer Lionsgate TV.”

FNL has around 4 million viewers on NBC in Season 3, (down from nearly 6 million for Season 1 and 2)  plus the 4-500,000 viewers who saw the show on DirecTV. The drop off NBC was nearly 2 million – 500,000 of whom may have seen it on DirecTV. I suspect the other 1.5 million viewers saw the show via Bittorrent soon after it aired on DirecTV.

Mad Men’s second season rated about 1.5 million per episode.

So, how do the numbers stack up if we were to forget network and satellite delivery and simply sell the show directly to viewers? Let’s start with Mad Men because it lacks the DirectTV complication.

Mad Men

AMC is an advertiser supported network, although it would seem that Mad Men is a loss leader for the network. With costs around $2.5 million a show and an audience of only 1.5 million, the average cost per viewer is $1.67. To deliver that is about 350 MB for an SD version and 1 GB for a good quality HD version. Bandwidth cost per viewer (for Internet delivery) would be about 4 cents for SD and 12 cents for the HD version. The producers would have to net at least $1.71 for SD and $1.79 for the HD version beyond any partner commissions paid (like Apple’s 35% or Open TV Networks’ 15% – although Apple include the bandwidth for delivery).

So, Mad Men would be viable at $1.70 (SD) and $1.80 (HD) if sold direct by the producer. Through iTunes AMC would need to sell for $2.57 per purchaser to cover the production cost if the audience stayed static.

The numbers for Mad Men are so dramatically different from other shows (as we’ll see in a minute) that the hypothesis that it’s primarily viewed as a way to raise AMC’s profile, rather than be profitable in itself. I doubt AMC cover the cost of production from advertising, instead seeing the show as profile building and reputation building, which it certainly has been.

Friday Night Lights

The numbers work out much nicer for FNL. FNL has production costs of $2.1 million (“$2 million and change”) with an audience of approximately 4 million on NBC. Remember, NBC considers this audience to be insufficient to cover the cost of FNL alone, so it did the deal with DirecTV.

According to the Variety article:

For “FNL,” the license fee that DirecTV pays to producer Universal Media Studios for the first window on episodes before they air on NBC covers about half of the show’s production budget, which makes “FNL” financially feasible for the Peacock even as it generates cable-level ratings.

Decoding that we get DirecTV paying around $1 million for 500,000 viewers (net cost per viewer to DirecTV, $2.00). On DirecTV the show aired without commercials, so again this is a loss leader for DirecTV being made up by higher subscriber numbers to the satellite service overall.

What is interesting is that NBC cannot fund the show’s $2.1 million budget from an audience of 4 million. NBC’s net return per viewer has to be well below 52c per viewer per show. (And yet, a net of $1.29 a viewer wasn’t apparently enough when NBC were arguing with Apple over iTunes selling price, despite it being many times higher than their advertising revenue per viewer!)

If DirecTV are paying $1 million, that means the show is viable on NBC at $1.1 million production cost per episode or at 27.5 cents per viewer. That makes the selling price through iTunes look truly usurious at nearly 5x the net revenue per viewer than the revenue from network broadcast. Is it any wonder they lost 1.5 million viewers for FNL to bittorrent?

At 27.5c per viewer the show is viable. Let’s allow some profit and say the network considers the show profitable enough to continue for two more seasons at 30c per viewer per episode. Add the same 4c and 12c per episode delivery cost and the Network should be selling the show, with iTunes margin added in SD for 52c and in HD for 65c. That would be fair pricing in this deal.

Assuming, as we do for new media that new media requires a direct connection between the producers and the viewers, then viewers would need to pay producers for the whole budget of $2.1 million. Working on the total audience of 4.5 million that equates to 47c per viewer per show. Add in bandwidth and that becomes 51c in SD and 59c in HD for direct sales by the producer, or through Open TV Network, 60c for SD and  70c for HD. With iTunes margins (but including bandwidth) the SD version should sell for 72c and the HD version for about 8c higher for the larger file, or 80c.

I would pay 60-70c for FNL in SD and I’m sure HD enthusiasts would happily pay 70 – 80c for the HD version.

Note: These are download-to-own pricing, not rentals!

We can fund high quality production using a new media model of direct connection between producer and viewer, and we can do it without resorting to the outrageous amounts currently being charged for download versions.

Categories
Business & Marketing

How to network in the new now?

Production has always been a network-based business, except we didn’t say it like that until the new now. Back then it was “it’s not what you know, it’s who you know”! Same thing: knowing a lot of people is what networking is about. In fact, one expert suggests that 70% of media positions are filled from within someone’s ‘social’ network.

There are two types of networks in the New Now: face-to-face local networks such as the MCA-I, Lions, Rotary, Kiwanis, Shriners, etc; and the online, ‘social media’ world of LinkedIn, Facebook and MySpace.

Get involved in your industry

If there is a local chapter of the Media Communication Association – International (MCA-I), join it. You should also consider joining the Digital Video Professionals Association (DVPA) for online resources.

If you’re more focused on Event Videography, the Association of Video Professionals, or the Wedding and Event Videography Association International might be more appropriate.

Don’t just join and do nothing. The people who benefit most from any industry organization are those who contribute. Yes, it is extra work but volunteer for the committee. Help organize programs, make announcements and generally get yourself known as a helpful, knowledgeable professional.

Beyond local organizations, get involved with issues that will affect the industry. Know when there are tax changes that would adversely affect your business; when regulation is going to get in the way or other important issue. Right now, people are concerned about shifts in frequency allocation and the reduction of bands suitable for radio microphones that could lead to increased interference. If you use radio microphones, be involved.

Get involved in your local business groups.

Whatever local business groups there are in your area, you should be in at least one and be involved. You will meet other business people, be introduced to the movers and shakers in the town (a.k.a. influencers)

Social Media

Social media is the phenomena of connecting online with business people and old friends/acquaintances. It includes social networking sites like LinkedIN for business networks, or Facebook and MySpace for personal networks. While there are other social networks, like Plaxo, these three are the primary social and business networks you need to belong to.

Social media also is also used to describe any online site or tool that allows users to interact with other users and visitors. So, if you can leave a comment on a post, vote on content or rearrange the design of a site, then it is ‘social media’.

According to Business Week online, the main reason small business should be using social media is because it’s free:

“The biggest reason to use social media is that it’s free. You can be a significant player online without laying out any cash, and in this economic environment cash is king more than ever. It does take time, though, and in business time is money. But getting up to speed on social media is like learning to ride a bike; it’s difficult and intimidating at first, but once you get the hang of it you can get where you want to go quickly—and even enjoy the ride.”

Facebook

You should have a personal profile on Facebook but you should also create a fan group for your company. On Facebook, I’m in groups formed to promote the Final Cut Pro Network and Supermeets; the Boston Final Cut Pro User Group, LA Mixers (Internet Technology and Multimedia); and Goodnight Burbank.

Brett Gaylor used Facebook to promote his documentary, RiP: A Remix Manifesto. They create Facebook events you can ‘attend’ for each of the film’s screenings. They also created an RSS feed that lets you know about the film; created a Twitter channel and had the traditional “keep me posted” box for email addresses.

MySpace

While the momentum seems to be moving away from MySpace toward Facebook, if you can dedicate the time to maintaining two communities there’s no reason not to also have a production presence on MySpace.

LinkedIn

LinkedIn is more a service for business connections, so you’ll want to be there and connect to anyone who could help promote your company. It is also very successful at promoting yourself. I have been approached with job offers because of my LinkedIn profile.

Here are some tips to better use LinkedIn to help grow your business:

1. You should link to your public LinkedIn profile in your email signature line.

Change the URL for your public profile at LinkedIn so that it better represents your name. The default for my profile was some combination of numbers and letters that made no sense. Log into your Profile and go to the “Edit Profile” section. At the bottom of your profile is the link to your public profile and a button to edit it. My public profile is now available at http://www.linkedin.com/in/philiphodgetts, which is much easier to remember or share. I could have used a product or company name as well. Your custom URL must contain 5 – 30 alphanumeric characters without spaces, symbols, or special characters.

2. Write reviews and recommendations for different people across different industries or cultures. Spread your name into as many places as possible.

3. Put as much detail as possible into your profile. Keep going until it’s 100% complete according to LinkedIn. Filling in the whole profile lets people know you treat it seriously and so should they.

4. Join LinkedIn groups that make sense for you and your business. I’m currently a member of the Boston Final Cut Pro User group, Digital Media LA (dmla), FCPUG Network Community and Supermeet, Inside Digital Design Radio and TV, Marketing – Video connect, Television Editors Avid and Final Cut Pro, and VOD Connect.

5. Only ask for connections from those you have some real association with. I’ll happily connect with anyone I know in person, online or have met at a conference.

6. Update your status every couple of days because it shows you’re involved and active on the site. I give this advice but do not always update that regularly!

7. Be optimistic and pleasant in anything you write. Being pleasant gets you noticed.

Many thanks to my friend Dean Forss for suggesting most of these tips on how to get more out of LinkedIn. Most would apply to other social networks as well. For more information on using LinkedIn for business can be found in the regular postings of the “I’m on Linked In, now what???” blog.

This is a small excerpt from my new book coming in April: The New Now: growing your production or post production business in a changed and changing world.

Categories
Business & Marketing The Business of Production

Who else is cutting budgets?

In the previous post I talked about cutting production costs, but nowhere did I advocate just paying people less, mostly because I believe that good talent is worth paying well. I do not, however think there’s fairness in an industry where a few make millions while many can’t get their projects off the ground.

So, imagine my surprise when  Fewer Stars, Fewer Risks As Networks Tighten Belts comes up in my news feeds – courtesy of myNAB365 – detailing how the networks are either dropping the pay to well-known talent (10-50% lower than current pay checks) or opting for less-well-known (but good) talent instead. (I will note that my sixth point – of the ten in the book on cutting costs – advised people to “Go for the B-talent” in name, but not quality.)

All is not woe for the talent though, as the article notes:

Big stars such as Kelsey Grammer have taken pay cuts to keep working. And although Charlie Sheen (Two and a Half Men) and Laurence Fishburne (CSI) pull more than $350,000 an episode, second-tier players who routinely got $125,000 an episode not that long ago now are settling for about $80,000.

I know that actors have limited opportunity for exposure, so a hit series can make it harder to get work afterwards, but two seasons at $80,000 a show should set most people up with a very sound financial footing for life!  Maybe the industry is just getting some sense.

The article also talks about filming where there are incentives and tax advantages that make those locations cheaper; shooting digitally instead of on 35mm film*; running shows with fewer producers involved;  and replacing comedy and drama with reality and shooting multi-camera style instead of single camera style, claiming that multi-camera single take is half the price of single camera multi-take production.

* The choice of shooting digital instead of film could also be influenced by the ongoing lack of a contract between the producers and Screen Actor’s Guild. SAG covers TV projects shot on film, while AFTRA, who covers project shot on video or digital, have a contract in place.

The current economic conditions and sudden downturn in advertising expenditure has stressed an industry already undergoing structural change, and accelerated that change, possible taking it further.

I have a lot more to say in a book I’m writing for smaller production and postproduction owners on how to deal with the changing (and changed) conditions and how to continue to grow their businesses, even in these changed economic circumstances, using the tools that have been created by the very changes that are shaking the industry.  Look for it around NAB 09 time.

Categories
Business & Marketing

How to produce more cheaply

This is part of the larger writing project that (hopefully) will be finished around NAB time. This excerpt is two, of the ten sections, on how to produce more cheaply. I expect this to be a little controversial as I’m saying, essentially, “go as cheap as you can” when I know a lot of my close friends would always advocate “work at the highest quality you can afford”. They may not be different things!

All types of production are undergoing downward budgetary pressure. Some of this is simply equipment driven and of the industry’s own causing. For many years production and postproduction facilities pointed to the standard of equipment they used (or format) to indicate that they were “professional”. Then one day that equipment went up in quality and way, way down in price. Clients who understood they were paying for access to expensive equipment suddenly questioned the cost of production when the equipment went down so far in price.

Smart companies saw this coming and long ago stopped talking about the equipment and tools of production as their differentiating factor and moved to promoting their skills and talent at communication.

What the drop in production costs has created is the ability to create a program in almost every budget arena. How can we do that? We do that by adopting changes in technology and business that favor lower budget production without cheapening the look.

How much you are able to take advantage of these cost reductions depends entirely on the type of work you do and how technically pure your clients need you to be. Keep in mind that even Discovery now accepts HDV source for their “Bronze” programs (and smaller amounts in higher tiers of programming).

Here are two of my Top 10 tips for producing cheaper. Pass on the cost savings to keep clients coming back for more; or hold onto the savings and make more profit.

1) Don’t pay for quality your clients won’t see

This is the number one recommendation and one that’s sure to be controversial. A number of my friends are very quality focused: for them uncompressed 10 bit is a compromise on native film quality! (Ok, I exaggerate a little, but you know what I mean.) These people eschew “consumer” formats (like HDV and AVCHD/AVCAM) because they don’t meet their quality expectations.

Quality is fine. I’ve got no problem with shooting on Viper cameras, and doing 4:4:4 conforms at the end of the process for the Digital Intermediate, if you’re heading for major film distribution. There will always be work that requires the highest quality, but that is not the majority of independent production.

If your client won’t see the difference between something shot with 3-chip and a Thompson Viper, why spend the extra on the camera rental and the digital lab work to process to something editable? If it doesn’t add value on the screen, don’t spend it.

Over the last two years I’ve advised on a number of projects where compressed workflows were indistinguishable from uncompressed workflows. The first example was a multicam Saturday morning show being edited from the switched studio shoot, and the individual cameras. The company was “offlining” this SD project with DVCPRO 50 and then onlining to 10 bit uncompressed from Digital Betacam source. The uprez was taking them 18 hours a show and causing enormous problems for the Assistant Editors.

I suggested that they finish in DVCPRO 50 as it was a perfect match for the Digital Betacam source and challenged them to point to any visible difference between the DVCPRO 50 and uncompressed 10 bit. When nobody, from the Post Production Supervisor down to the editors and assistants, could see the difference the decision was made to use the DVCPRO 50 versions to finish.

A film project, going direct to DVD as the third in a movie franchise, was edited in ProRes 422 HQ from capture of dailies to DVD Mastering, simplifying the workflow.

Another film project, the fifth in a popular franchise, was shot with a Thompson Viper and the digital lab converted the Viper images to editable ProRes 422 HQ. The producer asked for the “highest quality” ‘offline’ in case he could convince the director to not go to a 4:4:4 conform. Given that the release was DVD only, and the market for this franchise would not perceive any quality difference, the company ultimately saved the $70,000 a conform of the Viper source would have cost, by doing color correction of the ProRes 422 (HQ) footage.

In both the last two examples, the ‘film’ was only going to be seen on DVD and the audience was the established audience for the franchise.

Once we get beyond a certain quality threshold (different for every targeted audience) there is no added value in producing in ever-higher, ever-more-expensive workflows “because we can, and we care about quality”. Clients and audiences only care about the “good enough” quality. If you doubt me, go visit 10 of your non-industry friends and see how well adjusted their home TV sets are.

You could rent a Viper or Sony F23 for a film project or buy a RED One digital cinema camera for the project, and the audience, even on a project distributed on film, won’t see the marginal quality improvement that the extra cost of the Viper/F23 provides.

Will an event client see the difference between a decent HDV camera and a $40,000 Panasonic or Sony camera? Does their home display come close to showing even that source as to maximum benefit?

Will a corporate client see, let alone worry about, so-called rolling shutter issues with an EX-1?

Don’t sweat the formats and gear. Even the cheapest modern HD camcorders aimed at the consumer market deliver “to die for” quality of just a few years back.

Compression is your friend

Compressed formats like DVCPRO 50, ProRes 422 and Avid’s DNxHD codecs are your friend. ProRes and DNxHD both do HD work, with minimal compression, at Standard Definition data rates.

This brings great benefit: lower storage costs and easy SAN (Storage Area Network) configurations. Not only is there less storage required (usually less than ¼ that of uncompressed 10 bit) but the storage does not have to be as fast, because the data rates are lower.

These high-quality, compressed formats make it possible to design a SAN based on Gigabit Ethernet , instead of requiring expensive Fiber Channel.

2) Put the money where it gives the best payback

If it’s not worth spending more than the client will perceive on the gear, it is worth spending money on decent lighting and sound. Lighting makes the pictures look great: far more so than any format change.

Research has shown that high quality audio is the cheapest way to “improve the perceived image quality”. Apparently good audio makes audiences think the pictures look better than the same pictures with poor-to-average audio.

Lighting

Gain some expertise in creative lighting then build a basic kit in whichever technology you prefer, although these days I’d be considering LED and fluorescent lighting over more traditional incandescent sources. LED and fluorescent lighting are low heat, which saves on air-conditioning needs (or prevents uncomfortably hot location shoots). LED lighting units, in particular, are smaller and lighter to transport.

Remember, with modern cameras, control of light is more important than the gross amount, once you clear the minimum exposure level that will keep the camera from deteriorating into noise.

Create some basic configurations you know well, and – along with your team – you can assemble quickly for the majority of the work you do. Creative flexibility and experimentation are for higher budget opportunities.

My ideal kit would be a LitePanel 1×1 , Two Lightpanel mini’s and Lightpanel Micro for a camera light. That kit will come to US$3880 and is highly recommended. If you look inside the back pages of the trade magazines you’ll find less expensive competitive offerings. One of the nice things about LED is that they can be dimmed without changing color temperature. If you’re still looking for alternatives check out Zylight .

Audio

Quality audio takes much more effort than using the built-in camera microphone, but that isn’t news to anyone, I’m sure. Invest in some good quality (Sennheiser or Lectrosonics) radio microphone systems and mini-shotgun system if you can, but for a budget kit here are my recommendations. (The higher price of the Sennheiser or Lectrosonics systems is offset by robustness of the gear, particularly the Lectrosonics microphones, that will mean they last many more years than cheaper gear, and offset by the reliability of “it just works”.)

Boom microphones can be expensive and, in general, you pay for what you get. The top-end Sennheiser shotgun will run you around $2500 – way over the top for a budget kit. Instead I settled on an Azden SGM-1X – Super-Cardioid Shotgun Condenser Microphone at $150. It’s a good compromise that can be used on camera for directional atmosphere or on a pole for talent audio. You’ll need a windshield and the K-ZFC Slip-On Fleecy Windscreen (Long) from K-Tek will do the job for around $80.

That boom pole you’ll be needing, along with some strong arms to hold it for any length of time, also comes from K-Tek . If there was the budget there I’d go for one of theirs.

If I had the budget I’d go for the K-Tek KA-113CCR 6-Section Articulated Boom Pole with XLR Coiled Cable (Side Exit) and 5 Locking Positions – Measuring 1.4 to 9.5′ for around $800, but instead we’ll go for the K-Tek KEG-88 Traveler Carbon Fiber Boom Pole at $370. (Yes, I know that’s more than the microphone, but the pole will continue to do duty long after you upgrade the microphone.)



Like shotguns, radio microphones come in a wide range of prices. Highly desirable is a diversity receiver . In diversity receivers there are two independent receivers, with their own aerials, and the receiver chooses whichever output has the best signal, moment by moment. I’m going for a Samson Concert 77 – Wireless Lavalier Microphone System with CR77 Receiver, CT7 Body-Pack Transmitter with Samson LM5 Lavalier Microphone at $220, which is the lowest price diversity system at B&H photo.

You’ll also need (or someone will) noise isolating headphones for location monitoring. Figure at least $50 and up. Figure $100 for cables and audio adapters for getting direct feeds from mixers and PA systems.

Another eight sections on producing more completely coming in April in my new book The New Now: growing your production or post production business in a changed and changing world.

Categories
Business & Marketing

What to do if you’re underemployed?

Production and post-production are constantly evolving and developing. If you are not actively learning you are falling behind. While you have the advantage of experience, those graduating from Film Schools, Universities and even Community Colleges have experience with Final Cut Pro, Media Composer, After Effects and usually a 3D application (like Cinema 4D or Maya). Photoshop skills are simply assumed: grade schoolers are now doing visual effects and compositing.

Whatever new skills you learn, should be consistent with your brand and unique selling proposition. Most people’s immediate thought is to broaden the range of services you offer, in the expectation of being able to service more customer needs. This needs to be done carefully, whether by improving your own skills or partnering with others, to keep true to your core brand values.

One of my friends, Randy Tinfow of Image Plant and Proscenum, chose a different path. Instead of broadening their services, he chose to narrowly define their speciality. Randy says:

“I have actually gone in the other direction, narrowly defining our perceived specialty or “value add” to be in an area of great demand.  So by developing excellence in an area of need, we’ve been able to differentiate ourselves and have as much business as we can handle.  We have not sold editing, animation, compression, or production in 5 years, but 80% of our activity is doing just those tasks.  It’s the other 20% of the work that pulls clients in our direction: “providing enhanced video delivery mechanisms.
“Being great in one important area is far better than being a good generalist.  Certainly more lucrative.  It helps that we can demonstrate how our works ALWAYS saves clients money.”

By building one specific area of expertise – “enhanced video delivery mechanisms”, including the entire Proscenum delivery technology – Image Plant have grown their editing, animation, compression and production services without advertising or promoting them!

Almost everyone will have to deal with non-tape workflows. These workflow changes are upon us so. Now is the time to read and get test footage to become totally familiar with how to edit RED, XDCAM HD/EX, AVCHD/AVCCAM, etc now, ahead of client needs. Or become an expert in getting media online with expertise in encoding and hosting. Inevitably it will drive production and post production.

Resources

If you happen to be in Southern California then UCLA Extension in Hollywood offers everything from acting and animation to television writing and visual effects. Most courses at UCLA Extension and comparable schools meet for six to 12 weeks and cost a few hundred dollars. Longer, part-time certificate programs take up to two years to finish.

The various Guilds also have classes and resources for free through the Guilds’ head offices. Lori Jane Coleman, American Cinema Editors internship director, encourages fellow editors who aren’t on a show or film crew to take a Final Cut Pro class, which is offered free through the guild.

Beyond these regional activities, companies like Lynda.com, Total Training and Class on Demand have both DVD-based training and online delivery of the same training.

  • Tip: You’ll get the most benefit out of any form of visual training by working along with the trainer, or immediately putting the skills into use with your own project materials. Passively watching online video or DVD rarely improves your knowledge. Actively applying what you’ve learnt within 24 hours cements it as knowledge in your brain. If you haven’t used it within 72 hours (3 days) research shows that you wasted your time watching.

Don’t forget, too that most software comes with tutorials. In the Final Cut Studio 2 package there are two DVDs of tutorial included free. You’ll be surprised how many productivity tips can be learnt.

Studio Daily and DV run periodic webinars on relevant topics you can use to improve your skill base.

BuZZdex

One resource you should be using, wherever you are, is the Digital Production BuZZ BuZZdex. The BuZZdex is an index to the best of free articles, tutorials and resources anywhere on the Internet. While we all know there are great tutorials at CreativeCow.net, throughout the Digital Media Net network and at places like LAFCPUG.org or KenStone.net, it is only through the BuZZdex that you can find articles from all these sites, and more, that are indexed by Application, Chapter and Topic.

For example, if you wanted to find an article on Chroma Keying DV in Final Cut Pro, you would go to the BuZZdex and choose “By Application”. Select Final Cut Pro then Articles and Tutorials by category. Select Keying from the category list and the topic sublist will appear . From there you can choose Keying DV and three articles will be listed ready for your learning pleasure.

Or if you wanted to know how to create a fake display on a monitor. Choose Articles then Articles and Tutorials by category and click ‘more’. Select Visual and Creative Effects as the chapter and Simulating Displays. Then simply choose the article that’s closest to the type of display you want to create.

As of today, the BuZZdex contained 7233 references to 4627 individual articles or tutorials. (Some articles have more than one reference in the index because they fit under more than one topic.) No other resource comes even close. These can be further sorted into type, so if you only want to see video tutorials, you can limit the BuZZdex to only showing you video-based tutorials.

 Optimally, regardless of workload, we all should be spending the equivalent of 20% of our workweek on improving our skills. Few, outside Google employees, can realistically find time to do that when our businesses are running hot, so we have to compensate by using any time when business is not running hot to improve our skills and improve our marketing.

Categories
Business & Marketing

Who says micropayments “don’t work”?

When we were proposing micropayments for Open TV Network’s RSS-driven system, one reporter started her article with “Market trends be damned, the Open Television Network launches this week. ”

Such is the conventional wisdom that micropayments have been tried and don’t work. But there is a big difference in “being tried” and “being tried in a way that doesn’t get in the customer’s face all the time”. Micropayment technologies that “get in your face” and require significant data entry for every transaction, or make it really, really obvious that you’re spending money – even if it’s a penny a page.

So, I agree that micropayment models that get in your face all the time have failed. That’s no surprise at all. Although the “penny a page” model has been tried, it could work if it were designed so that there were no big warnings that you were going to spend another penny! (Heaven forbid.)

Because the Open TV Network is RSS based, we used the same “Get” button in the aggregation software (mostly Apple’s iTunes) as the “download and buy button” by pre-pending the file name with the price. We designed our system to work with payments as low as a penny a file (1c) although no-one has yet priced content that low.

Although originally considered to be as low as 1c per purchase, micropayments are now considered to be any amount that would be unprofitable to transact through the credit card system with its current charging models.  Like Apple we aggregate the charges until it is profitable to post to a credit card on file. (Apple, I believe, transacts every week.)

Others use the “buy some currency in advance”. Microsoft use this model as do iStockPhoto.com. You buy some currency and the “exchange rate” may not be one-to-one. Generally you can only spend these currencies on the one site.

Whichever model, I’d like to propose that micropayments, when done frictionlessly – without intruding into the customer’s enjoyment – are definitely successful. The examples that follow are from my own experience, but there are in-game economies in many multi-player games. For example  World of Warcraft Gold, Microsoft Points (X Box) and the Wii game store, use the advance purchase of their currency model.

The secret, I believe, is to create a disconnect between the act of buying and the act of paying.

Ringtones

The mobile industry has the most widely accepted micropayment model: you buy minutes of air time and consume them one at a time. However the bigger success model is for ringtones. $2 for a 30 second snippet of a song (they probably already own) is a multi-billion dollar industry for the Telcos. Any sort of micropayment is easy to add to a phone account. Ringtones are purchased on the phone, on the go and simply added to the phone account. A phone account is a big amount to pay every month so a few ringtones don’t appear to add significantly to the account.

iTunes Store

A 99c music purchase is most definitely a micropayment, one that has now brought-in over $6 billion worth of gross revenue to Apple and its partners. What’s more interesting here is that these micropayment purchases are of content that is mostly available free via various bittorrent sites or services. Despite being available free, people prefer to use the very simple purchase method (Amazon’s One-Click) used in the iTunes Store. Charges appear weeks later on the customer’s credit card of choice. The music purchases – in iTunes or on the iPhone/iTouch – are frictionless during the transaction and the payment essentially disappears into the aggregated credit card bill at the end of the month.

App Store

Apple’s App Store for iPhone/iTouch applications is another example where the most common price for an Application is $0.99. Frictionless. Click buy, confirm purchase and it’s done. With iPhone OS 3 Apple are offering developers the opportunity to charge similar amounts (developer chooses) and the small payments appear weeks later on the aggregated credit card bill.

Open TV Network

As I said, frictionless purchase through an RSS feed that constantly offers new audio, video or print (PDF) content of interest to the viewer, right where they’re viewing the content (in iTunes). Like Apple, this requires an account to be set up in advance, but the purchase is a frictionless as clicking a button. (The confirmation of responsibility happens when the feed is subscribed to.)

Micropayments might not save the Newspaper business (as opposed to the news business) because there are so many sources of news that it’s hard to create the artificial scarcity that would be required to make charging viable. However for tangible benefits and the simplicity of consumption of media or applications, I see a very bright future for micropayments.

Perhaps, ultimately, major established content creators will see the wisdom of offering fairly priced downloads as a way of deterring piracy. When they do, we’ll be ready with the perfect mechanism!

Categories
General

What is Philip reading?

I could not function without RSS driven news feeds. I like NetNewsWire as my client and currently subscribe to something like 294 feeds. (Is that a lot? I certainly couldn’t visit that many web sites repeated times a day to find what’s interesting.)

In addition to these specific articles that I read in depth instead of just scanning the headlines, there were general news items from the US and Australia, and a couple of tutorials that will be added to the BuZZdex today. (I’m still doing that to help Larry Jordan out.) There are also about 20 email groups that come via Mail.

So, the day after iPhone 3.0 software announcement, and all things Irish, here’s what I’ve been reading this morning, and why.

NBCU’s Zucker Calls Out Jon Stewart: Blaming CNBC Is ‘Absurd’

The thoughts of the President of NBCU are always interesting. These types of summary articles also give insight into statistics. Interesting that Zucker thinks that NBCU is a “cable company” (rather than broadcast) and that they are now at “digital dimes” for digital content, up from digital pennies.

How is Avid faring in this tough economy? – Response

A response on the “Chat with Avid” blog from Kirk Arnold. Any comments from companies important in our industry is worth reading. (They’re doing ok but watching the economy carefully.)  In another post Kirk suggests people come to NAB for “the conversations”.

Streaming TV on ABC and MTV Is Profitable

NewTeeVee is a useful blog. Like the NBCU article this one is interesting for the data points it provides.

Google Provides Numbers On Just How Often DMCA Takedown Process Is Abused

Copyright, and the way DMCA takedown notices are being seriously abused by “big media” and those who want to drive out competitors is a subject area I follow closely. This provides some useful statistics.

How-to: building services into iPhone applications

While we’ll probably never build an iPhone application, never say never! So I maintain interest in articles on creating iPhone apps against the day we’ll decided to make one, or create one on behalf of a client.

The benefits of history

Frankly I read every post on Seth Godin’s blog. Marketing is an area where I can improve and his advice is more “out of the box” than most. Always good insight. This one is particularly challenging since we think Assisted Editing will “change the world”. So far I can’t think of who else has tried and failed at this.

Entrepreneurs vs. VCs

While we’re not currently planning to raise money from Venture Capital, I’m always interested in knowing about the process, in the hope that if we do ever need to go through that process, I’ll be informed and prepared. Brad Feld is always a good read.

Zucker Loves Hulu, But He’s About To Kill It

Who wouldn’t read this, given the headline? A different take on Jeff Zucker’s comments about Hulu. Apparently digital dimes aren’t worth much more than digital pennies?

iPhone 3.0 now with SquirrelFish Extreme?

I have a long standing belief that Apple will never allow Flash on their digital devices nor their own website. Instead they’re going down the path of HTML 5 and Javascript for Rich Internet Applications. With 30 million iPhone/iTouch sold that’s the world’s second largest platform not supporting Flash. (I figure there are less than 30 million Macs in use, it’s close and if not yet, the mobile OS X will have more uses than the desktop version). If website owners want to reach those people, they need something other than Flash, and Apple make it easier with improved Javascript speed. The Ajaxian blog is valuable to anyone programming web applications.

Client Collaboration and the IKEA Effect

While I’m not a lawyer (and don’t even play one on the Internet) the [non]billable hour always has great marketing insights for any sort of service company. And a consultancy – the Big Brains for Rent – is part of our business. Get clients involved in solving their own problems is the take-away here.

Major Book Publishers Start Turning To Scribd

I’m interested in self publishing – I think the technical book model will change to updatable pdfs and print on demand for those who want hard copy, so I’m interested in any developments in that space.

Mobile TV Backers Figuring Out That People Don’t Want To Pay For It

 I remain skeptical about “mobile video” although no-one has really defined where the demand is, or where the business model is. 

Vonage Pro now compatible with Macs

We’ve got Macs and we’ve been exclusively Vonage for “land lines” for more than 5 years now so why wouldn’t I be interested?

That’s what’s caught my eye this morning. I’ll probably look at other stories later in the day.

Categories
Business & Marketing Distribution New Media

What is ‘new media’ anyway?

On Saturday (March 14) I was invited to be part of a panel presenting on “Marketing New Media” as part of the Los Angeles Brazilian Film Festival. My fellow panelists were much more experienced in the “traditional” (or old) media business than I. Most have spent their careers at WB, Discovery, et al.

It struck me that we were all using the term “new media” but for those coming out of the traditional production businesses – cable, network, broadcast – “new media” meant new outlets for their existing and future content. With some “webisodes” and social networking added on top. Indeed some of the webisodes are great stories on their own, but overall, ‘new media’ is just an outlet for the properties and brands created by old media.

Indeed, one of the panelists suggested over lunch following that the current conglomerates will simply buy up any ‘new media’ ideas or companies that might get traction and will therefore keep the hegemony going.

Since I don’t come from that background, I see new media as being something different from old media, but until Saturday had not been pressed to define how new media is different.

It’s not production values as some new media has very high production values and some cable shows have very low. Budget alone doesn’t seem to be a distinction. A lot of cable content had very low production values in the earliest days, but now, some 20 years later, cable is winning Emmies for quality drama production because audiences are now too small for network.

To simplify it to “reach” would mean that old media will always have the lead because it has already got the lead. New media could not exist.

To my mind ‘new media’ is the distribution corollary to democratized production and therefore has a distinct flavor difference than old media. After spending the weekend thinking about it, the distinction I would like to draw is that old media’s customer is the advertiser, and there are many layers between producer (creator) and viewer.

In new media there is a direct connection between producer and audience, and shows are made for the audience, not for the channel, network or advertiser.

New media is unmediated. It sinks or swims on the attitude of the viewers, not advertisers or executives.

What do you think? Tell me in the comments.

Categories
Item of Interest Presentations

What is the role of “failure” in innovation?

At the recent Pizza and Post night at Video Symphony event, I focused on the way that I’ve been pushed into innovation. Part of the reason I innovate is simply because I see a need. A few years back, Tim Wilson said of me:

“Philip looks beyond what is possible to what is necessary.”

Or put another way “Necessity is the mother of invention”. Initially, innovation in my world was driven by necessity. I had production ambitions beyond my equipment budget so found innovative gear that wasn’t part of the mainstream, starting with an Apple ][ based computerized edit controllers for a pair of U-matic 2850’s – real clunkers now. If we’d have had the budget for “regular” 1″ gear there would have been no innovation.

I had serial number 0030 for the Fairlight Computer Video Instrument – a crude pre-cursor to today’s computer manipulation of video images – that let me create visual complexity beyond the scope of the hardware limitations. The CVI was years ahead of its time but I knew, even then, that computer manipulation was the future of hardware. (By way of reference, we’re talking the mid-1980’s, definitely well before 1987.)  Low budget production drove me to adopt innovative technologies that may not have been “ready” for traditional mainstream.

That’s another clue to innovation: stay out of the mainstream. I’m essentially self taught (with the assistance of thousands of my nearest and dearest Internet friends) and went into a production business without having ever worked in film or video production.

One of the great freedoms to innovate with program style starts with a trusting client, and the ability to control the process. Trusting clients, who let you explore unusual program styles, are relatively hard to come by and I was blessed with two. An early 1980’s video for the NSW Coal Association (Australia) was a “two hander” safety video except the lower thirds were “visible” to the actors – bought on by the click of a finger from one actor to re-enforce a point. The fourth wall was not broken in the mid 1980’s, particularly not in training video.

My other innovative client allowed me to explore anthropomorphizing the ‘heart and soul’ of an aged care facility. In a video on correct budget process, I created  a two hander between the budget and administrator of an aged care facility (with only those two actors – all other characters were imagined). 

Innovation usually starts with someone saying “Why not?” Why not give that program style a try? Why not try a new piece of equipment that’s a fraction of the cost but isn’t proven in TV production?

Why not try and drive revenue during the quieter periods by making our own programming? If we’d been wildly successful in production we’d have had no quiet periods. Instead we had excess production capacity so we decided to innovate by creating our own programming that we would sell. This was probably more business innovation than technical or creative, but we partnered with a local association to produce videos and training manuals, that paralleled a national curriculum taught in 76 TAFE colleges (think US Community College and you’ll be close) but had no teaching resources. We never sold fewer than 52 of the packages and the revenue sustained us through many of those quiet periods.

In 1994 we were an early adopter of Media 100 – leaping whole generations of technology into the digital non-linear world. I’d fallen in love with the concept when I saw my first Avid about a year earlier, but Media 100 offered price advantages and I could finish broadcast quality on it.

That was the first NLE in Australia’s sixth largest market and it was five years and four Media 100’s later before a single Avid was sold into that market. Digital post became the mainstay of the business, along with effects creation since we could do high end effects in Media 100/After Effects that would otherwise have cost thousands of dollars.

In 1995 I purchased my first modem and discovered the Internet. Specifically I purchase the modem to get access to the Media 100 User Group email group. Suddenly I was no longer the “oddball outsider” in the Newcastle market, but par of a wider movement worldwide among other early adopters of NLE.

By 1997 I’d learnt enough from my peers that I wanted to share that knowledge. At the time I was very into non-linear learning but did not feel that “interactive software” was ready for mainstream adoption at that time. So the Media 100 Editor’s Companion was a two volume non-linear book, with built-in easel because there’s never enough room in an edit bay. 

If we’d been so busy with work in 1997, we’d have probably never followed through and put in the effort. However, because we did, we gained US and Canadian distribution and invitations to speak in those countries. Ultimately the 2001 move to the US was as a direct result of writing that book, which was a result of buying the modem!

That attempt at innovating the training manual also led, indirectly, to being part of the beta program for Final Cut Pro version 1 in early 1999. By now the technology had moved forward and we innovated with the DV Companion. Although we didn’t realize it at the time, we had invented an Electronic Performance Support System – the only one ever applied to creative software. They are essentially a software coach that’s there when you need it, with information delivered in a floating palette in text or video form.

However, because hard drives were small and video codecs inefficient, the only way to deliver > 3 hours of video in the DV Companion, we had to create them as sprite animations within QuickTime. Sprite animations, a.k.a. wired sprite movies, are part of the QuickTime toolset that most people have never heard of. It wasn’t until 2004 before we could move to all video (screen capture content) but in 1999-2004 we were able to innovate and provide video support when no-one else could, because I understood what was possible, although rarely done, with QuickTime.

If the Intelligent Assistants had been incredibly successful, we probably wouldn’t have continued to innovate and create a central resource for post production called the Pro Apps Hub, although it may have happened anyway, as I have a low threshold of boredom.

Ultimately we had to abandon the Pro Apps Hub software: part of the development environment was not moving forward to Intel OS X and that was clearly the future of OS X. Besides, by this time there were a lot of great FCP and Boris training content available and I’d rather be doing something no-one else was.

One of the highest compliments I can pay someone is “You ask great questions.” It is the question that frequently leads to innovation. Back in 2000 I was working on editing a documentary for friends in Sydney and realized how little of the footage ever ended up in the final cut. I wondered if it would be interesting to make that available, but my own sense of aesthetics dictated that this would mean generating custom edits based on search criteria.

We explored that a bit, going as far as demoing an early attempt at QuickTime Live! in early 2002 before leaving it on the back burner until a friend asked if that could be adapted to working with metadata. Just over a year later, in August 2008, we released the first of our Assisted Editing software tools. There’s a lot more innovation to come in that field.

Another great question we got asked was “How can you charge for podcasts?” That question ultimately ended up as the technology called klickTab that is used by Open TV Network. There is more innovation to come there too as we bring the technology to the book business.

Naturally I think both the current businesses – Assisted Editing and Open TV Network – have great potential and room for continued innovation. But if for some reason they don’t take off, then there will be more innovation, pushing the boundaries of what “needs to be done” regardless of whether or not it’s possible. Charging for individual items in a podcast feed was “impossible” until we did it. Building a first cut of a documentary from log notes was “impossible” until we did it. They needed to be done. And by we, I mean my ever smart, partner, Dr Greg Clarke, without whom most of this would not have been possible.