Posts tagged ‘micropayments’

Apocalypse 28: Lessons from the film industry

By , 18 June, 2009, No Comment

My friend and indie filmmaker Michael Morgenstern has a blog where he covers, among other things, the shakedown that is taking place in the film industry. It sounds a lot like the one we’re experiencing in journalism–to quote Mike, the challenges are as follow:

“financing its films when the distribution model is defunct, monetizing the Internet where users expect to pay nothing, and conquering the crowd logic of moviegoers and the advertising budgets of the big players.”

In a three part series that you absolutely must read, Mike has laid out how indie film landed in its current quagmire and how he believes it might emerge. Key to his vision are two ideas that have also been touted by new media activists (journalism’s equivalent of indie directors) as models for news. One is micropayments; the other is using a central web portal as the launch and landing pad for non-digital offerings of the most popular content. I have two essential bones to pick with this vision–firstly, that the central web portal for journalism, film and maybe one day music will be Google and there are serious anti-trust issues there, and secondly, that the micropayments system assumes users will set up a digital credit card account accessible at all websites and there are serious privacy issues there. While Mike gets points from this business writer for being more economically savvy than most filmmakers I know, he brushes over both of these issues.

Furthermore, there is a problem in journalism that film doesn’t have–while news consumers will surely benefit from the new opportunities given to small players, news consumers will also lose if the old players are allowed to go under. Serious film aficionados aren’t really worried that there’s a social cost to seeing fewer summer blockbusters from big studios, while they are understandably bullish about the growing capacity of small producers to do high quality storytelling. Not only do the “big boys” in the news industry have good content to offer, the particular kind of good content they have to offer–expensive, investigative reporting–isn’t being replaced by the small producers as the distribution costs drop. That’s because the cost of that reporting isn’t on the distribution side; it’s on the production side, in the form of reporters’ beat expertise, time and travel. Micropayments won’t cover that.

I don’t know enough about film to know if Mike’s vision will work for them. But I know enough about journalism to know it won’t work for us.