Chapter 4 – So What The Hell, Bri?

So if brand is so important and we see that digital delivery is our future, what are we supposed to do? Some folks, the truly insane say, ditch physical goods all together, get on the digital delivery train and don't look back. I do commend this renegade attitude, taking risks is what life is all about. However, I also think cutting off your nose to spite your face is not the best plan of attack in business. 

Face it it's going to be a long while before those pesky red states jump into the digital age. Sure, the fancy pants blue states on the coasts love their technology and geek out on fiber optics and convergence and their blackberry and iPhones, but it's still a small population, what, maybe 10% of the universe who is interested in buying from you? We still get complaints on our retail site that we aren't carrying VHS anymore, I mean, seriously. Mail order, web sales, these are the true money makers with the highest margin. It's the goal of any business to be forward thinking, but not at the sacrifice of the bottom line, core revenue machine. While those hillbillies are calling up my operators placing calls for DVDs to be shipped via mail to their shack in the outer hills, I'd say that VOD and DVD need to have a partnership. Studios need to think about how these two will play together and work to make it a harmonious relationship. Think of it like having two kids that want your attention, abuse one of them and there are gonna be consequences. Let me lay out an action plan that you may or may not choose to call, "Brian Sokel's Sexxxy Solution and Resolution to DVD/VOD Revenue," if you want to just call it, "Brian's Sexxxy" I will understand. 

1. Accept that DVDs, no matter what anyone tells you, will be a viable format for several more years. While no, it is not the sleek, cool format, it is a universally used and recognized format that individuals without home computers or the know how to use a home computer successfully, will continue to use. 

2. Your content, whether it is in a physical format or digital format still retains a brand identity that you and only you are going to be responsible for to protect. If you don't care about it, no one else will. 

3. Control your pricing as you do with DVD. Insist that every VOD provider offering your content puts scalable pricing in place to provide you the flexibility to set your own pricing for your content. You don't let me dictate what I am going to pay for your DVDs, so why should I dictate what I am going to pay for your digital content? 

4. Understand that once you release a title to VOD, it effectively kills the ability for that release to have any legs on DVD. You're selling yourself out essentially. So... 

5. Give DVD the time to breathe. Your DVDs have a higher margin than your content on VOD but of course they take a little longer to circulate into the market. So, don't foul up the system. Give your physical product the chance to flex its muscles. Bring your new release to DVD first, market and push accordingly and then release the content to VOD 90 days later. Maximize revenue so... 

6. Work out an effective release strategy that works with your DVD and VOD retailers alike. Keep everyone in the loop and at the end of the day, everyone wins. 

Really, there's nothing to it. It's not some crazy theory. However, as an industry we've been letting VOD operate like the wild-west and then whined like puppies when we see our DVD sales suffer. 

And that my friends, is Baroque as a motherfucker. 

As ever, 

Brian 

P.S. - Make sure you check out the new site http://popporn.com/ for adult news, interviews and general insanity. It's pretty tops. 

Listening - Hot Snakes - Thunder From Down Under

Watching - The Assassination of Jesse James by the Coward Robert Ford

Reading - Less Than Zero - Bret Easton Elis