March 14, 2014

Applications akin to Popcorn Time were making news recently for offering consumers the way to stream movies free of charge, charging movie studios to step it up on mobile to preserve control over the market.

While Popcorn Time isn’t available on iOS or Android devices, apps similar to Movie Tube do in truth already let consumers view movies on their smartphone. Movie studios have to react quickly and work with mobile to have interaction consumers and keep them faraway from these free streaming apps.

“Piracy and torrenting is a large problem, and [movie studios] already don’t have much control over the failings,” said Mark Brennan, head of mobile at Manning Gottlieb OMD, London. “From a web based perspective, they’ve tried working with Internet Service Providers to crack down at the problem, but people who build that technology are always a few steps ahead. This becoming mobilized will just accelerate the method.

“Movie streaming on mobile is a brand new but fast-emerging behavior,” he said. “If services akin to Popcorn Times become popular on launch, then they risk the ordinary being set for individuals not purchasing content on mobile.”

Trouble
Popcorn Time is an app that’s available for Windows, Mac and Linux devices and lets consumers stream full movies using BitTorrent. In essence, it can be Netflix without cost.

While this app has recently been removed for legal reasons, it still suggests a changing time and presents new risks for movie studios.

At an identical time, Movie Tube is supplied in Apple’s App Store and Google Play. Movie Tube is a search engine for full movies which are on YouTube.

The app is funded by ads, but nonetheless presents a challenge for movie studios because the revenue is ending up within the wrong hands.

Another similar app called Popcornflix also lets consumers watch free feature length movies and is supported by ads.

The Popcornflix app

Solutions
According to Mr. Brennan, movie studios ought to beat the contest by working with the gigantic players in mobile.

“Movie studios ought to work lots closer with Apple and iTunes, and Google, the folks who’ve dominant control over the ecosystem that these services run in,” Mr. Brennan said. “It’s probably why Popcorn Times isn’t available on those platforms yet.

“Studios have already shortened the lifespan between theatrical and residential rents release, but mobile consumption being a lot more immediate and important may mean this puts much more pressure to shorten this.”

Disney is combatting competition by creating Disney Movies Anywhere to let consumers watch full-length movies across multiple devices (see story).

Other studios which include Paramount and Universal are likely to simply deliver mobile ads to drive consumers to theaters. Or they devise mobile games and apps to advertise a brand new movie.

Movie studios should take a more proactive strategy to delivering content via mobile.

“For the movie industry, content is king,” said Bill Aurnhammer, CEO of Aurnhammer LLC, Big apple. “Netflix was taking major steps to create original contents to get the higher hand during this market.

“To fight digital piracy, movie studios should use those assets and adopt more efficient digital distribution methods, that specialize in tapping into the mobile area,” he said. “The battle of digital movie viewing is essentially tormented by convenience.

“If the films are made available for streaming when DVDs are released or maybe earlier, illegal piracy becomes less attractive to audiences.”

The Disney Movies Anywhere app

Multiscreen viewing
One thing is certain, and that’s that buyers are consuming an increasing amount of content on mobile. Movie studios ought to acknowledge this trend and react.

“Today, the multiscreen approach is clearly a gigantic play at the moment in the entire media business, and studios obviously aren’t launching streaming sites so everything is running through distribution partners,” said Alan Simkowski, vp of mobile solutions at GMR Marketing, New Berlin, WI.

“[On] the Netflix of the sector or the xfinitiys, which you can watch anything on any kind of platform whether its online, traditional TV, Xbox,” he said. “I mean I’ve got Netflix through Apple TV, but i will watch it on any device besides including my mobile phone.

“It validates that there’s a desire for consumers to view movies on mobile, whether its trough a tablet or iPhone or Android.”

Mr. Simkowski doesn’t necessarily think that apps similar to Popcornflix threaten movie studios because the experience isn’t pretty much as good at the app, but he does view it as a trademark of a client demand for mobile content.
 
This might soon translate to distributers delivering content via their very own apps. HBO and Netflix already provide mobile content via their apps, but maybe in the future there’ll be a Regal Cinemas app that lets consumers watch movies on their smartphones.

For that to occur, studios and distribution partners must interact to deliver on mobile.

“I think there’s an effort from the studio and their partner in order that what you watch out of your TV at house is now becoming available immediately through mobile due to the undeniable fact that mobile consumption is thru the roof on smartphones and tablets,” Mr. Simkowski said. “I think there’s an effort by the studios to be more synergized with the distribution partners to ensure it’s available on mobile and accessible and as fast as possible.

“I think the studios are very regulated when it comes to how they are able to create and distribute,” he said. “I think that’s why you’ve the distribution layered, where you’ve Regal or whoever it can be being the distribution point.

“Will sooner or later you be capable to watch a film to your phone while it’s available in theater through a Regal app That’s a captivating scenario.”

Final Take
Rebecca Borison is editorial assistant on Mobile Marketer, New York