Pushing past the status-quo.

On Friday, April 27th, Mark Cuban’s HD Net Films and Magnolia Pictures released the new movie Diggers to American cineplexes. Though the film garnered some very positive reviews, you likely couldn’t find it in your local listings. That’s because on Tuesday, May 1st, Mark Cuban’s HD Net and Magnolia Pictures will be releasing the DVD of Diggers to retail outlets nation wide. And though not many theaters are offering tickets, high definition cable and satellite subscribers were able to watch Diggers on the same evening of it’s theatrical release simply by switching on HD Net Movies at either 9 or 11 and kicking back on their own sofas.

How’s that? I get to choose to go to the movies or stay home and watch TV or go buy the DVD? A choice of how I’d like to see a brand new movie in it’s very first week of release? Well that’s down right revolutionary. And something else... it’s fair. Mark Cuban wants you and I to have that choice. Unfortunately it’s a good bet your local theater chain strenuously objects. So much so in fact, that a vast majority of them refuse to exhibit the film. Wasn’t the whole freedom of choice thing figured out back in the late 1700’s around here? I can drink Coke or Pepsi, wear Reeboks or Nikes, supercharge my cholesterol at Burger King or McDonalds, but AMC (and lots of other theater chains) would prefer I have no choice about where I want to see the next summer blockbuster. Sorry citizen, It’s drag your ass out and cough up ten bucks or skip the whole thing all together. That is until the first run at theaters has burnt off and we’ve been deemed patient enough to be rewarded with the DVD release.

Moving the merchandise... whatever it takes, wherever it takes you.

In fairness it needs to be said that HD Net, HD Net Films, HD Net Movies, and Magnolia Pictures are all owned by Mark Cuban. Known in sports circles as the volatile owner of the NBA’s appropriately named Dallas Mavericks and in biz circles as one of the most dynamic dot-com mega-millionaires, Mr. Cuban refers to himself as a complete tech geek. (Though he looks more the part of a movie extra left over from an Animal House frat party scene.) His unique perspective and very deep pockets have allowed him to first build high definition television into “must see TV” and then to develop multiple paths to filling an ever widening pipeline with content. So it really doesn’t matter to Mr. Cuban just where or when you buy his product, just that you do. Not everyone in the movie exhibiting business can grab our money in such a democratic fashion. While Mr. Cuban is embracing capitalism in all of it’s seemingly limitless forms, theater owners are stuck with filling seats and selling four dollar cokes to earn a living. They only need to see that they are in a unique position to be a first choice rather than an only choice.

To use a movie production term, let’s pull focus. How long have you been hearing CDs are dead? Digital downloads surpassed hard CD sales for the very first time this past year. Do you still listen to music? People listen to radio, well most radio, for free because the music business recognized a long time ago that that sells music! Whether you’re buying downloads from itunes or CD’s from BlockBuster (and the chance is you do both), the music is still selling. The bottom line is if I want you to buy from me, I need to provide you a better experience. Price, selection, ease, fun... it’s all part of that experience and the guys who get it right sell more. Period, end of story. Yes, there are other factors and circumstances but reduced to the basics, that’s it. Look at any survey about customer satisfaction and brand loyalty. Don’t worry about how to sell, worry about how customers use. Mark Cuban has his eyes laser focused on how his customers, current and potential, use the product he is selling.

When’s the last time you went to a concert? Has anyone ever suggested that your favorite act’s new CD shouldn’t be released until after the multi-city tour? It’s a much better bet that the CD’s are in mass supply on merchandise stands as you head out of the venue. So you saw the concert, own the CD, even scarfed up a forty dollar t-shirt. If the show was great you’ll be looking around for the concert DVD with backstage interviews and bonus footage and hoping it will be out sooner than later.

The Point? It’s the Product.

So to the theater owners, here’s where you should be paying attention. Let’s have it your way for a moment. And unfortunately you do have it your way for now. There’s a brand new movie I’m really curious to see. The Studio Marketing Machine has done it’s job and saturated my consciousness with a great trailer. The buzz is big and  it’s one of those great weekends to go to the movies. You’re the only game in town and so by default, you’ve got my ten bucks and who knows how much more I grudgingly push across the concession counter. Choices don’t play into this once my feet are in the door. It’s either do or don’t. Want popcorn? Yes or no. Want butter on that? But I accept this and go sit in the room I’m directed to, endure advertisements in spite of the fact that you just took my money, and then see my movie. And once the credits roll, one of two reactions...

A.  It sucked. Talk about buyers remorse. The second the credits hit I’m on my feet leaving my popcorn bag and drink behind as silent payback for getting screwed. If there were DVD’s in the lobby (which of course there aren’t) I’d be tempted to fling them at the movie posters. I’m torqued for wasting my money and my evening. I’m wishing I had waited till the damn thing had shown up on cable or, even better, borrowed it from a friend on DVD (whenever that night be.) Lousy movie, lousy night out, wasted money, bad experience. And now I’m a very leery movie-goer. Given only the choice to go to the movies, I’ll start being more selective about what I see. And theater owners haven’t cornered any more of my money by being so protective of their share of the market.

B. It was great! Loved it. I’ll talk about it all day tomorrow. Money well spent and enough fun to let me forget about commercials and overpriced Raisinets. This is a DVD I will definitely buy. No big deal if it’s on cable, this is one I’m glad I saw on a huge screen with killer sound. When I get my hands on the DVD I’m so cranking up my system. I’m sold, I’m hooked and I’m ready, even anxious to spend more money. Why wouldn’t theater owners want to capture that moment? DVD’s on the counter, special opening weekend discounts, lots of special features I’m completely primed to check out, I’m looking to give this theater another fifteen bucks but they don’t seem to care in the least. Someone hasn’t been reading their salesmanship manuals. Who’s nailing the point-of-purchase potential? Not a soul.

Just like leaving a concert stoked and picking up a CD on the way out, I’d love to buy the DVD then and there. Tomorrow night I’ll be cruising the special features for how my favorite scenes were filmed, checking out alternative endings and maybe even catching some commentary from the director. How are the experiences in a movie theater and in front of my TV somehow mutually exclusive? They clearly are not. It’s the product. If it’s great, everyone will make money. If it sucks, deservedly no one will. I won’t go to the theater, I won’t watch it on TV and I sure as hell won’t buy the DVD. Spending my income is my call as it should be. Make how I see movies my choice and if you’ve been paying attention, it’s clear that there is no business to lose and only business to gain.

Mark Cuban is trying to start a fire under the vision-less dullards of movie distribution and exhibition. Sparks of great ideas become flames and those flames will swell into a bonfire. One that I’m convinced will ignite enormous profits for those who see the common sense genius of allowing customers simple freedom of choice.

Diggers will be an interesting case study. An earlier test run of the concept launched last year when HD Net films did near simultaneous releases of Steven Soderbergh’s film Bubble. Though it was nominated for a Best Director award at the 2006 Independent Spirit Awards, the film didn’t capture enough public attention to be a decisive study. But imagine this scenario with a movie like Mel Gibson’s Passion of the Christ. If that film had taken the path of simultaneous format releases would theater owners have been able to resist jumping onboard and showing the film rather than arrogantly shutting it out? In the best of capitalist traditions, money would have been the deciding factor and a piece of the 600 million or so pouring into box offices would have likely proved hard to resist.

Raise your hand if you’ve recently bought a DVD of a film you also saw in a theater. How about buying a DVD of a great film you were reminded of when you caught a piece of it on television? Ever go to a revival of a terrific old movie just to see it again on the big screen? Movie theaters everywhere have the opportunity to be at the heart of selling us our celluloid dreams, as big screen spectacle entertainment and as enduring souvenirs of cinematic journeys we can take home. The movie industry needs to insist that it’s customers have a freedom to choose. Theater owners need to forget about competing formats and concentrate on creating fantastic experiences that draw us in along with the DVD availability that satisfies customer and business profits alike.

Diggers is from Dirty Rice, HD Net Films and Magnolia Pictures. The director is Katherine Diekman. The writer is Ken Marino. We wish all of those involved great success. We also applaud Mark Cuban and his companies for a bold initiative we hope will succeed.

Monday, April 30, 2007