Class #3 Summer 08: Digital Production, Mace Camhe

Big thanks to Mace Camhe, Founder and Head of Production from The Outfit Media Group (www.theoutfitmg.com). We all benefited greatly form his first-hand experience, which he so generously shared. Mace discussed his job of wrangling talent and educating clients while managing schedules and budgets to get projects to completion. Mace was excited about how the RED ( www.red.com ) is actually transforming acquisition and how is shop is currently hot on the Panasonic HD P2 Format for its speed of no-tape workflow. He enlightened me about how Oakley makes its own “glass” and that it is of superior quality. We discussed “workflow” in the contact of production and post and how Mace keeps a Post Supervisor on staff to Sheppard the process through. Production budgets are being constantly squeezed while quality is still going up due to an evolving talent pool and excellent tools. Speed of production and post is what he says “fills in the holes” and continues to “push the envelope”. Mace talked about how his company becomes part of team that serves clients along with PR companies and advertising agencies. We discussed what makes video viral and how this is more of the future. Mace was good enough to share with us the newly minted teaser for the “Follow-Series” on Kira Plastinina, teenage fashion mogul. Thanks again Mace!

NEWS
Shannon pointed out the NYT article on the success of the latest WHERE THE HELL IS MATT, AKA “DANCING MATT” viral video accruing over 20 million views on You tube and Stride gum as a sponsor. It sparked our discussion on what makes something viral. It was reported in Wired.com that Mark Cuban’s HD NET is going to release movies on HD TV ahead of theatrical turning the traditional “Windowing” upside down. Cuban believes that this will not cannibalize a theatrical release. Nielsen has come out with its “3 Screen” product measuring consumer consumption of content across mobile, PC and TV. Someone else reported that digital cable seems to be getting better uptake than Direct Broadcast Satellite TV. Is it pricing? Quality? Content? Services? User experience? I brought up the FISA law amendment and was informed that it passed the Senate making it Law that the tacos have immunity and could not be prosecuted for complying with the government in granting access to customer’s electronic communications. Any guarantee to your right to electronic privacy has been revoked.

CLASS: Digital Production and Distribution
The Slides for this class can be viewed at this link (I added some additional detail)
We covered digital acquisition, post-production including Digital Intermediate, and digital theatrical distribution with electronic projection. There are a many HD Formats to choose from Prosumer camcorders such as the Cannon VIXIA to the high-end Electronic New Gathering (ENG) and Field Production cameras like the SONY XD Cam and Panasonic P2. The XD Cam uses optical media and the P2 records onto a flash RAM card. No transferring form tape! The higher end digital Cinema cameras include the F900, CineAlta, Viper, and the revolutionary RED. I spoke with an experienced Gaffer, Jimmy Scott who confirmed that the image quality from the RED can be as good as most 35mm shoots and in some cases can reveal even more detail because there is no grain. RED’s latest product will be a 5K-resolution camera.

Digital Intermediate is the process by which all the finishing steps of a film are done digitally. Any filmed elements are scanned and digitized. The final master is indeed digital and can be output to film via a film recorder or encoded into a Digital Cinema Package (DCP) for digital projection. The two competing digital projector manufacturers are Christie Digital and Sony. Sony has the XRD 4K model, which project mind-blowing images up to IMAX size.

3D using the REAL D or 3ALITY system is rolling out. The 10 July LA TIMES ( In 3D! Oh wait... The studios may be ready, but many theaters still aren't) reported that it is now in only 800 of the 35,000 US screens but is viewed as the antidote for flagging feature film attendance, which has dropped over 12% since 2002. Revenues have kept up due to rising ticket prices. The article goes on to herald the forthcoming increase in digital 3D releases.

Electronic Projection also enables exhibitors to show pre-show ads and special events such as the Metropolitan Opera. In the near future digital cinema 3D concerts and sports events will become common.

We also discussed that “Windows” for movie distribution are changing. Mark Cuban announced that he would release some movie on his HD NET TV Network before, or at the same time as in theaters.
Big thanks to Mace Camhe, Founder and Head of Production from The Outfit Media Group (www.theoutfitmg.com). We all benefited greatly form his first-hand experience which he so generously shared. Mace discussed his job of wrangling talent and educating clients while managing schedules and budgets to get projects to completion. Mace was excited about how the RED ( www.red.com ) is actually transforming acquisition and how is shop is currently hot on the Panasonic HD P2 Format for its speed of no-tape workflow. He enlightened me about how Oakley makes its own “glass” and that it is of superior quality. We discussed “workflow” in the contact of production and post and how Mace keeps a Post Supervisor on staff to shepard the process through. Production budgets are being constantly squeezed while quality is still going up due to an evolving talent pool and excellent tools. Speed of production and post is what he says “fills in the holes” and continues to “push the envelope”. Mace talked about how his company becomes part of team that serves clients along with PR companies and advertising agencies. We discussed what makes video viral and how this is more of the future. Mace was good enough to share with us the newly minted teaser for the “Follow-Series” on Kira Plastinina, teenage fashion mogul. Thanks again Mace! Sphere: Related Content

Class #2 Summer 2008

Hope you all had a great July 4th Weekend!
First, let me welcome the new adds to the class:
Mike is direct from a hellish stint as an exec assistant where he was driven to distraction by being ordered to perform meaningless, life sucking tasks and is recovering his self-esteem with the UCLA Producing Certification Program. Exchange Students Vladimir form Russia, Banu from Turkey and Yvonne from Kenya are all in the Cert program too. Vladimir is also a freelance Editor. Gautam is an Engineer and articulate D.J. blogging at http://thesmoothdj.com. Ece is in the Music Business Certification program studying tour management.


NEWS
Vincente tuned us into the new streaming box VOD of over 10,000 movies over the Netflix “Ready” device for $99 from Roku. I was amazed to here that after buying the box you can pay just $8.99 per month for the 1 DVD over the mail and you can watch unlimited movies over the box. Roku was one of the first CE companies to create media “adaptors” which bridge the Internet to the home entertainment devices starting with Internet radio to stereos.

We debated about eBay’s liability in the counterfeit goods case for which a court in Europe ordered eBay to pay $61 million in damages. Most believe that eBay should not be held liable for this would be poor precedent for other Internet e-commerce providers.

Hulu, the new Internet Video “channel” from Newscorp and NBC Uni had some news. More people watch comedies on Hulu than on the Network sites, whereas the opposite is true for dramas. We debated as to why that is. Some say it is the short form nature of comedy. It could also be in the user experience and the way that comedies are showcased on Hulu Vs NBC.com and Fox.com. It could also have to do with the demographics of who is logging on to the respective sites.

Nokia announced that it had made a licensing deal with Warner Music Group. This is an example of new business model for the NOKIA MUSIC STORE, which, I think, is aimed squarely at iTunes and is similar to Verizon’s Vcast Music with Rhapsody. In Nokia’s case, their store will be carrier agnostic and probably be the music solution for many international carriers.

Shannon pointed out this NYT Article about a new Google sponsored media / entertainment initiative with Family Guy creator Seth MacFarlane (NYT Article : Google and Creator of ‘Family Guy’ Strike a Deal)

I mentioned the Android / Google article in the July issue of Wired and how important it could be the burgeoning wireless world.

CLASS
I covered part II of the “Trends” lecture. Recapping demographics and moving on to the megatrends of:

1. Convergence
2. Booming CE Industry
3. Any Screen Anywhere Anytime
4. Wireless Broadband
5. Digital Production
6. Internationalization of the Movie and Entertainment Industry

Next Class we have a guest speaker:
Mace Camhe a Principal of The Outfit Media (www.theoutfitmg.com). We will hear about the Outfit Media Group and talk about digital production trends. Sphere: Related Content

Summer 08 Class #1 - Intro

Welcome to the Class. We have a small and interesting group! Your intros are summarized below:

• Day works on media for the XPrize Foundation. Hard to work for a more interesting place than that! She needs help on choosing a CMS / DAM with web services and is interested in the broad scope. She has a background as a doc producer for National Geo.
• Daryl come big corporate Boeing and is finishing the Management Cert.
• Shannon works in traditional Film and TV production and is interested in cross training for interactive. She recommends the book EVERYTHING THAT's BAD IS GOOD FOR YOU.
• Tiffany handles digital asset publishing and traffic for Disney.
• Monet is our number cruncher on International TV from Sony
• Charles is developing CMS platforms at MySpace and FIM.
• Dominique is getting certs in Producing and Directing
• Vincente Produces for MTV News
• Melanie is working in production and getting her producing Cert.
• Misha is looking for his next gig fresh from a nightmare PA job.
• Steve is a publicist ready to take advantage of the Internet and the Digital Milieu
• Deg is working on a broadband start-up after a tenure as a product manager at Microsoft
• Susan is a QA Engineer and horse trainer getting her cert and ready for online business ventures

We covered the syllabus, attempting to clarify the course objectives and assignments. Daryle will take the mystery shopping assignment for a HD TV, monet will compare Time Warner CATV to DirecTV.

I covered the first megatrends including some basic stats:
of the 6.6 Billion people in the world there are 2.5 billion mobile devices, 1.3 billion people use the Internet. Of 116 million US HHs, about half have broadband and YouTube is the World's 4th most visited site. The Middle East and Africa are the regions with the fastest Internet usage growth rates followed by Asia. Wireless is destined to become the most common way of getting online.

I recommend this podcast for the application of Social Media to PR:
http://ontherecordpodcast.com Sphere: Related Content

Last Class (#12) Winter 2008

Thanks for a great quarter! The final class was jam packed with great pitches. Some of the best were:

• Ozan’s witty DIGI-THINK presentation of futuristic direct brain interfaces may indeed happen. Check out www.emotiv.com
• Andrew’s innovative futuretabloid.com Rumor exchange
• Laureen and Jennifer presented JUMPERINN.com home stay exchange and social network complete with layouts and mock-ups.
• Kahraman’s code-safe security device (written)
• We also heard about several content distribution models including Any and Raquel who want satellite TV wherever they go and Evghenia who wants unlimited content for a flat monthly subscription.

I summed up the course through a 50,000 foot view of some of the largest companies in the media and entertainment industry in the US ( Media Mega Corps ).

We can see how they are formulating interactive strategies through reorganizations and acquisitions. We can also see how the companies are vertically and horizontally integrated. For example GE, which has the largest market cap of all the media giants, owns Universal Studios and NBC, both a large film studio a TV Network and individual TV Stations. NBC is also a partner in HULU with NewsCorp and a $100 million Equity Partner, Providence. Comcast is partners with Sony on its stake in the the largest movie library from MGM, which is also partly owned by Providence. Content companies know they must be in all mediums: Film, TV, Publishing, Internet. They must seek the synergies and minimize piracy and cannibalization of their traditional businesses. They are often at odds within themselves.

Ah the tangled webs we weave. My friend Philippa Burgess from Creative Convergence (www.creativecvg.com) points out how the entire entertainment business has transformed over the past 10 years and all the silos have been broken down. TV Actors and properties cross into features and vica versa. Properties also cross over into games and publishing. CATV has become a rival to the broadcast networks for original series. All players are attempting to understand the impact of the Internet as the WGA strike so aptly pointed out.

It has been great having everyone in class and we look forward to staying in touch! Sphere: Related Content

Class 11, 19 March 2008

Thanks for the presentations this week. They included:

• Online Vault with tiers of service
• Online Newspaper publishing and UI platform,
• Out-of-Home Digital Video Ad Network
• iPhone Personal Productivity Tools
• An online web application for video editing
• A presentation about how online advertising works.

Relevant to out-of-home advertising, I was surprised to discover in my online research wanderings, that Google filed a Patent Application (705014000; 705001000) for “Allocating advertising space in a network of displays”. Here is the abstract:
“Advertisers may upload advertisement messages to a server specifying information such as budget, price per impression, preferred billboards and/or other constraints. One or more keywords or other descriptors are specified for each advertisement message. The system then generates an advertising campaign specifying where the advertisement message is to be output and send the messages to the specified displays. The output may consist of various forms including video, audio, printed incentive, interactive data transfers and/or combinations of these.”

Turns out that Google has a similar patents covering advertising in almost any situation.

The 20 March, LA Times had an article (http://www.latimes.com/entertainment/news/music/la-fi-apple20mar20,1,4485461.story) discussing how Apple is considering moving to a subscription music service for the iPhone. I personally think this is inevitably how it will go. I believe bundled subscriptions, especially via mobile carriers will become a dominant model for music distribution. Nokia is already doing it as well as carriers in other parts of the world.

One of our book reports covered THE FUTURE OF MUSIC by Gerd Leonhard. The book also argues that this “music as a utility” users subscribe to is inevitable.

Also noted this past week is Time Warner’s AOL acquisition of bebo.com the third largest social network with 40 million users for $850 million in cash. No doubt AOL is looking to leverage its 80 million AIM/ICQ users in new ways. Sphere: Related Content

News Bytes: Classes #9 and #10

3 March 08: The Chicago Tribune’s Jon Van reported that the FCC Auction for the analog TV spectrum could yield $20 billion, way more than anticipated. The 214 bidders included Verizon, AT&T and Google. No doubt that these airwaves formerly used for free over-the-air television will be recycled for wireless broadband Internet access that will compete with WiMax, EVDO and even Qualcomm’s Media Flow for wireless streaming video. Widely available wireless broadband will expand the market for mobile devices and mobile content services.

Dateline 15 March 08, Wall Street Journal superstar tech Journalist Walter Mossberg took a look at HULU with a balanced critique. He liked the UI and feature set and pointed out that the selection of videos was, of course, limited to NBC-UNI and Newscorp Content. Essentially Hulu clones YouTubes most popular features: fast search, embedding, emailing, fullscreen viewing. The networks finally get that the Internet is simply an extension of every other form of TV distribution and will rapidly equal or even dominate consumption. The networks are grasping that consumers have a limited tolerance for advertising. The reduced ad load in HULU’s delivered programming reflects this. I still believe that in the long run HULU will NOT become the mass destination its architects desire. The Internet is too fungible, and endless choice via endless search will dominate.

www.aimeestreet.com got a big PR boost from the Spitzer scandal when it was instantly discovered that his service provider, Ashley Alexandra Dupre, aka Kristen, had two tracks on the site. The site prices tracks based on popularity and her two offerings quickly rose to the max of 98 cents.

On the ad front as reported in the NYT 14 March 08, PepsiCo opted to go the event, experiential marketing route for its Tava brand. Aside from the soup of synthetic compounds that go into these “natural” beverages, including “vitamins”, I admire the www.tava.com website as an exercise in branded media. Top level navigation of Events, Music, and Art reveal the strateg of pairing the beverage experience with emerging artistic experiences. Combine with strategic sampling in the offices of influencers at MTV, Google and others, Tribal DDB ( a unit of Omnicom) seeks to mirror the bottom up success of the likes of Red Bull. Free music downloads sweeten the tea.

Any contributed a link RE Intel’s WiMax chipset:
http://www.pcworld.com/article/id,143577-c,tabletpcs/article.html# The article supports the imminent coming of ubiquitous, cheap wireless broadband.
And Facebook’s new privacy options:
http://www.pcworld.com/article/id,143579-c,webservices/article.html

Joyce pointed out this WSJ article discussing the challenge imposed by exponential increases in Internet traffic.
http://www.nytimes.com/2008/03/13/technology/13net.html?ex=1363233600&en=37c92cf02bd0601f&ei=5124&partner=permalink&exprod=permalink
Massive amounts of P2P, video and music uploading and downloading is going to strain the system. Improvements in compression, and expansion in bandwidth will probably keep apace. Some ISPs and their customers who may not have adequate infrastructure may suffer. I see a tiered structure imminent whereby bandwidth limits are imposed with tariffs to begin balancing usage.

Flora sent a link to a Reporter summary of Disney CEO Robert Iger discussing its billion dollar online revenue outlook at Digital Hollywood. 4 million movie and 50 million TV episode downloads on iTunes are impressive stats. He claimed this was incremental revenue an no cannibalization of DVD sales, although I doubt that. Sphere: Related Content

Class#8 One-Wilshire, CRG West

The trip to One Wilshire provided excellent and unique insight into how the Internet works and how a major access point operates. Thanks to Mr. Sam Proudy for his excellent briefing and tour.

One 664,000 square-foot One Wilshire building was the first building to scrape the downtown LA Skyline in 1966. It became an alternative for the closed AT&T network shortly thereafter.

By touring Wilshire One we got to see first hand what a major global Internet Exchange (IX) looks like and get a sense of how it operates. We also got some rare insights into the operation of a major carrier hotel and data center.

The heart of CRG West’s One Wilshire is the Meet-Me room and its Any2 Exchange. This is the essence of the Internet. The Internet is, and was originally designed to be a network of networks. A priori, to achieve this, the networks must exchange data freely or “Peer”. Carrier neutral peering is what makes the Internet work. Seeing the Meet-Me room is a rare glimpse of Peering. Just beneath the visible, vast runs of copper and fiber interconnects, lay the switches and invisible software that manage an average of over 17 Gbps of traffic interconnecting about 120 users. This makes One Wilshire one of the busiest places on the global net.

Some of the interesting facts we learned on the tour:

• The limiting factors in data center operations are power and cooling. The data center is designed for about 150 Watts/Sq Ft. Paradoxically, smaller “blades” simply create much more density and more difficult cooling requirements. Therefore we saw some cages with a lot empty space since the max number of servers can fit in many fewer racks. This is also why Google and Microsoft are building super sized data centers where power is cheap.
• I was surprised to learn about the enormous price differences in power from 2 cents in Oregon where hydroelectric power is cheap, to 9 cents in LA to 13 cents in San Jose.
• Wilshire One sucks up a whopping 25 Megawatts per month. The City of Santa Monica uses about 15.
• Redundancy including failover power and cooling backup is essential. The blackout in Florida on Wednesday is a case in point. The 4 submarine trans-pacific fiber cables that were interrupted a couple of weeks highlighted some of the vulnerabilities and why CRG has separate facilities that back each other up.
• The US is one of the few places where major carriers from around the world can “peer” without government interference. That makes the One Wilshire Any2 Exchange extremely important in the global grid.
• CDNs or Content Delivery Networks such as Akamai and Limelight play an important role in optimizing data distribution.

Sphere: Related Content