Warner Bros. Makes Big Digital Push by Buying Flixster, Rotten Tomatoes | Daemon's Movies
Warner's acquisition of Flixster (and Rotten Tomatoes) is a good indication of how the film industry is finally jumping on the Social Media wagon.
According to this article, the social movie site Flixster drives 25 million worldwide users per month. Its sister company, Rotten Tomatoes which is one of the most trusted movie review aggregators, attracts 12 million unique monthly visitors.
But there is more to this acquisition then just increasing traffic and reaching out to a larger consumer base. This is about DATA. What Warner Bros (or Hollywood in general) can do with this data is to take control of its business rather than giving the power to middle guy distributors such as Netflix for example.
Following this acquisition, Warner will obtain direct link to millions of unique users, and to the data generated by the users' social interactions around the movies. This would be the perfect base to build a direct-2-consumer movie 'Hollywood business'.
These giants mediums of social media trigger heavy streams of data that could deem extremely valuable for the companies that would collect them. Their value comes from the ability to track, measure, mine, parse, and monetize this data in many innovative ways. This model is relatively opposite of Hollywood's old traditional model.
Film studios used to act as wholesalers. Their customers are retailers such as the theaters and TV networks. Today, new digital distributors such like Netflix and iTunes built ecosystems that focused on end-consumer data.
For Hollywood to master direct-2-consumer movies, it will need to rethink their business model and leverage consumer behavioural data. The competition, companies like Amazon and Apple, have enjoyed great reputation of success and analysts believe these two giants are not going to go away for a long time. Will Hollywood be able to step out of its comfort zone and manage to compete in this data-centric platform ? Looking at similar past attempts, we remember the failure story of NewsCorp's acquisition of MySpace ...
In order to succeed, the studios will need to find a balanced solution to the challenges that will be raised by their current customers, form theater chain to digital distributors. They will need to learn how to develop continuous relationship with end-consumers, something different than sequels and franchise movies.
Warner's acquisition of Flixster (and Rotten Tomatoes) is a good indication of how the film industry is finally jumping on the Social Media wagon.
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| Source: http://collider.com/warner-bros-flixster-rotten-tomatoes/88870/ |
According to this article, the social movie site Flixster drives 25 million worldwide users per month. Its sister company, Rotten Tomatoes which is one of the most trusted movie review aggregators, attracts 12 million unique monthly visitors.
But there is more to this acquisition then just increasing traffic and reaching out to a larger consumer base. This is about DATA. What Warner Bros (or Hollywood in general) can do with this data is to take control of its business rather than giving the power to middle guy distributors such as Netflix for example.
Following this acquisition, Warner will obtain direct link to millions of unique users, and to the data generated by the users' social interactions around the movies. This would be the perfect base to build a direct-2-consumer movie 'Hollywood business'.
These giants mediums of social media trigger heavy streams of data that could deem extremely valuable for the companies that would collect them. Their value comes from the ability to track, measure, mine, parse, and monetize this data in many innovative ways. This model is relatively opposite of Hollywood's old traditional model.
Film studios used to act as wholesalers. Their customers are retailers such as the theaters and TV networks. Today, new digital distributors such like Netflix and iTunes built ecosystems that focused on end-consumer data.
For Hollywood to master direct-2-consumer movies, it will need to rethink their business model and leverage consumer behavioural data. The competition, companies like Amazon and Apple, have enjoyed great reputation of success and analysts believe these two giants are not going to go away for a long time. Will Hollywood be able to step out of its comfort zone and manage to compete in this data-centric platform ? Looking at similar past attempts, we remember the failure story of NewsCorp's acquisition of MySpace ...
In order to succeed, the studios will need to find a balanced solution to the challenges that will be raised by their current customers, form theater chain to digital distributors. They will need to learn how to develop continuous relationship with end-consumers, something different than sequels and franchise movies.
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