Tuesday, November 8, 2011

Studios go Direct-to-Customer

The article "Movie Studios Have New Ally in Distribution Plans: Facebook" discusses how movie studios are placing pressure on Netflix and Amazon by using apps on Facebook to distribute their products directly to customers. 


"At the F8 conference in September, Facebook announced it was partnering with Hulu, Dailymotion, MyVideo.de and Izlesene to stream video content through apps hosted on its platform. Netflix also announced it had developed a Facebook app, but it isn't currently available in the U.S. due to a privacy law that prohibits disclosure of users' movie-rental history."

Movie studios themselves are increasingly selling films directly to customers on Facebook through the use of apps.  "Warner Bros., Lionsgate, and Universal have collectively distributed about 45 feature films through a "Social Cinema" app developed by the Facebook commerce-oriented company Milyoni."  Milyoni helps entertainment and lifestyle companies convert Facebook fans into customers by enabling companies to monetize fan pages through a unique, shared, social experience on Facebook.



The placement of rentals on Facebook helps foster competition among online distribution platforms and puts pressure on movie rental sites like Netflix.

If you would like to read more of this article, please visit http://ow.ly/7nrOL.

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