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Two of my favorite creative minds in music—Thom Yorke and David Byrne—recently sat down to discuss the future of the music business. Last October, Yorke’s band Radiohead released its latest album, In Rainbows. But rather than releasing it through a traditional music label, Radiohead let fans download the music directly from its website. And rather than charging a fixed amount for the album, users were given the option of naming their own price—down to and including zero.
The sinking fortunes of the music industry establishment may have been instigated by technological change, but they are worsened by the industry’s unwillingness to let consumers buy music that isn’t locked to specific formats or media. It’s like peering into the future of the movie industry.
In both cases, you have industries whose fortunes have been protected for decades by the commingling of content and medium. Record albums weren’t just vinyl, they were vinyl with embedded music: the music couldn’t exist without the physical medium. As tapes replaced records and CDs replaced tapes, higher fidelity and increased convenience of each new format gave consumers a reason to re-purchase content that they already paid for in lesser formats. But when songs are stored as data and can be moved around like any other computer file, consumers will only ever need to buy one copy. As long as open formats are used, people will be able to play their music on any device devised in the future. There goes the upgrade gravy train.
Like the music industry, the film industry is rightfully concerned with piracy, because once music and movies aren’t tied to a physical medium, they can be copied endlessly. But consumers don’t care if this inconveniences the industry; people have shown that they want the convenience of digital content, and they are willing to pay for it. So the more that record companies lock down digital content in order to fight piracy, the less incentive legitimate customers have to buy the product in the first place. What good is the “music as a file” model if it is artificially burdened with the same limitations as physical media?
The movie business hasn’t been hurt by the shift away from physical media yet. But that’s only because technology hasn’t advanced far enough. It takes a lot more data to store a high-definition movie than an album’s worth of high-fidelity music. When a typical consumer’s Internet connection becomes fast enough to download high-definition full-length movies in a matter of minutes, the home market for movies will be subject to same technological dynamics affecting the music business today. And that future is only years away.
But that isn’t the film industry’s biggest problem right now. After all, people won’t pirate content that they don’t want to watch in the first place.
The problem with the film business is that too many insiders forgot that the rest of America doesn’t necessarily share the same view of the world as their friends in Hollywood. Instead, Hollywood has become its own echo chamber, which is why distributors keep pushing out flop after flop of military-bashing films. In Hollywood and at film festivals, such fare is highly praised. But in theaters around the country, the audience for films like Redacted is comprised mostly of empty seats. It’s almost as if Hollywood is producing films only for itself.
My experience in trying to get distribution for Indoctrinate U only confirms this. People in the film business just don’t take seriously the possibility that there’s a market for documentaries outside Hollywood’s typical Michael Moore/Al Gore worldview. I don’t know to what extent that’s out of political bias or the result of a simple Catch-22: they don’t see a market for anything different, but that’s because they’ve never tried distributing anything different.
That leaves us in the position of having to self-distribute Indoctrinate U. And because the Internet will allow us to put the film in people’s hands in the fastest, most cost-effective way possible, we’ll be able to conduct a little experiment of our own. Indoctrinate U will not be available on DVD right away. Instead, we’re going to focus our efforts on seeing whether the Internet can be used to route around the gatekeepers in Hollywood—without the shackles of physical media. (Although unlike Radiohead, I’m afraid, we’re not in a position to give our goods away for free.)
Who knows? Maybe the market can be proven without Hollywood’s help. I think it can. And once the market is proven, we’ll finally know who in the film business wants to serve customer desires instead of the dogma of Hollywood groupthink.
