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Direct to Video Too: Bursting the Bubble on Film Distribution

(January, 24 2006)

 

Steven Soderbergh, the man who’s hit it big with “Out of Sight” and “Ocean’s Eleven,” has a reputation for quietly pushing the envelope. His career was launched with the quirky indie gem “Sex, Lies and Videotape” and he won an Oscar for “Traffic,” but there’s been a few rough patches too”—remember “Schizopolis” and “Full Frontal?” “Bubble,” Soderbergh’s latest isn’t so much about pushing the boundaries of creativity but more challenging the way the movie industry does business. The film, a sleepy crime drama set in economically depressed West Virginia, will be simultaneously released in theaters, and on DVD and pay TV. The concept is a radical departure from the tried-and-true, theater to DVD, to pay TV, to cable TV and finally free TV model that has been constructed in such a way to maximize profits at each stage before stepping down to the next, higher-volume and lower-margin market.

 

It’s causing a ruckus in Hollywood and many in the big studios are not so secretly hoping the experiment will fail. The man behind the venture, Todd Wagner, is betting that getting the product out there sooner to a wider potential audience will mean greater revenue prospects. Only about 10 % of Americans go to the Cineplex each year, the rest take their viewing pleasure at home, so by making a film accessible to more while it’s still “fresh,” Wagner and company are hoping those receptive will be willing to pay a premium to bring “Bubble” into their living room on opening night (think of it like a Main Event fight on pay TV).

 

Wagner is just the man to make it happen too, he owns (along with Dallas Mavericks owner, Mark Cuban) 2929 Entertainment, two cable channels and the art house movie chain, Landmark Cinemas. And “Bubble”’s a low cost risk too. Employing nonprofessional actors and using HD digital technology, it cost less than two million dollars to put together. And the brouhaha over the releasing strategy has essentially amounted to a free marketing campaign.

 

But will it work?

 

Cuban and Wagner are so committed to the concept that they’ve inked Soderbergh to make five more such films. It will be of peculiar interest to all in the movie industry to see how the process evolves or implodes. It could be the cornerstone of sweeping change, which is exactly what has studio and distribution execs cringing. If it ain’t broke, why fix it?  Yet the Hollywood movie machine has been floundering for years. Innovation is down and the system has become lethargic, relying on a marketing formulas and an assembly line approach to render its products. Big has been bad for the car industry and it may just be the cholesterol that ails the movie biz. A film like “Bubble,” normally destine for the art house venue or a Sundance or IFC cable pick up, is ideal to test Wagner’s theory. Big extravaganzas like “Star Wars” and “King Kong” still feel ripe for the traditional model of distribution (seeing “Kong” on anything but the big screen is unimaginable), but as iPods and On Demand TV change the way cable and broadcast TV do business, who knows? Next up, the opening of “Men in Black 3” and the new James Bond on your hand held.

 

- TBM

 

 

 

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