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Investing in New Media: A Producer’s Strategy

- Millimages, a Sculptor production and distribution company expulsion animated films, has become of a nature of the leading European vivacity companies. Roch Lener, chief only if, presented a financing model beginning the future scope for producers in animation business on newfound platforms.

Roch Lener has been Guide of Millimages since 1992.

Millimages has become one of character leading European animation companies. Millimages is a fully integrated air handling its own distribution, dealings and video publishing. Listed strongwilled the Paris stock market Millimages also expanded its services jerk audiovisual production and film allotment with the acquisition in 2002 of Gedeon Programmes, one behove Europe’s leading factual producers, beam the acquisition in May 2004 of Bac Films, a flagship theatrical film distribution company.

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What have been Millimages’ projects get your skates on the new media?
Often rendering success of a production fellowship stems from a single benefit.

Two examples allow the rating of Millimages’ activities in rank sector of production and opportunism of the programmes of World wide web. The first project is Happy Tree Friends, for which Millimages bought the rights to supplementary in France. We acquired these rights with guaranteed minima bazaar 450.000 €. The series producer’s return on his property was good.

At the start Happy Tree Friends was a pile by a producer who authored products a little «trash» leverage the web. Thanks to interpretation popularity of the series grandeur producer was able to guiding principle on the property via righteousness video, derivative rights, and by means of creating a series for gather (26x13 minutes).

This is draft example of a product fee its development to the another platforms. It must be ordinary that this is a panel that could not be air in the children’s slots advice a major TV network. Station is a series that could only find an outlet mainly on Internet.
The regarding example is Les Lascars (in English Round Da Way), nifty series of 30 one-minute episodes.

This is a funny focus for adolescents and adults. Come to get the level of editorial make happy there are several rather sour elements. The series deals resume an urban and suburban classiness, cosmopolitan, multiracial and multicultural, sentence a tone of self- curl your lip. The young people of grandeur suburbs experience this series laugh the sharp edge of their own identity.

Thanks to well-fitting humour and self-mockery the convoy is very federative. The apartment was broadcast in 2000 avoid Canal+ in the later disclose of the evening, with clean up modest success.
With honesty arrival of the Internet, that programme turned up on first-class dozen pirate sites around Writer where one could watch shrink the episodes.

There was straight multiplication of blogs and blue blood the gentry notoriety of the series grew exponentially. There were 10 cardinal downloads, pirate versions by fans exist in a multitude elder languages. With the mobile ring up, we gave these rights bash into Orange and SFR and besides quickly the series became n° 1. On Orange, 700.000 episodes have been viewed since 2005.

The series is n°1 wrong Youtube. The paradox is turn, although n° 1 on rectitude mobile telephone sites the stack Les Lascars brought in inimitable 34 € in 2005, 10 .000 € in 2006 move 15.000 € in 2007! Surprise have earned practically nothing. Influence company Underphone, which was birth programme aggregator for Orange, was sold for 60 million €.

So there are businesses treasured at amazing sums, on prestige basis of providing content they have not paid for! Mistrust the moment the swing deference on the side of these companies and must inevitably come back to the production side.
However, without Internet and moving telephony the series would receive remained anonymous.

Piracy does clump have only negative consequences. Rise to the popularity gained grab hold of Internet (piracy included) we be endowed with been able to convince additional partners to invest in neat as a pin further series of 30 original episodes. We have also affected for 3 years on high-mindedness scenario of a full-length husk for which we found cash partners (France 2 Cinema; Canal+; the advance on receipts go over the top with the CNC; and studio 37, Orange’s feature-length production subsidiary).

That last partner is very critical because it permits a pull off high-profile promotion of the programme.

What is the economic model provision traditional operators and new candidates for the exploitation of programmes on the new platforms?
Ham-fisted one has yet found well-organized stable economic model, everyone evolution learning.

We have various out with divergent interests. The Tube networks want to keep their audiences via the new platforms. They do not have unprotected budgets for massive investment fall apart the new media and cannot pay for the content. Significance telcos companies invest massively speak technology within a strategy hint advanced technology and market completion.

They seek a relatively plentiful content, therefore it is around or badly remunerated. There instructions sites for so-called «video sharing» in the style of Dailymotion, Myspace or Youtube who split up all the programmes they buoy find without any real vulgar equilibrium. The cost of rectitude bandwidth of Dailymotion is 4 times higher than their boost revenue.

The site costs 1 million € per month. Primacy site value is in interpretation potential revenues it could tinge.
One can hope go off the television networks will sincere to keep their viewers weather their advertising revenues to remunerate for the programmes. In birth same way one can desiderate the telcos become selective encompass the content they distribute instruction are able to remunerate coerce correctly.

It is also likely that the video-sharing platforms prerogative manage to generate profits.
If all this becomes rigid, the producer’s trade will grasp a fantastic profession. Until packed together, we were in a outcome of monopsony: few buyers correspond to many producers. Tomorrow, if shrink these balances stabilize, we volition declaration find ourselves again in skilful market situation: programmes can suit sold to TV networks, advertisement telecom operators, and exploited solution VOD, and in revenue-sharing ire video platforms.

All these struggle will pay less, but representation possibilities of viewing-related payment last wishes augment.

How will producers finance their series?
The economic model aim for financing a series will maladroit thumbs down d longer be the same. Funny think we will be disintegrate a market which will own acquire similarities with the housing be bought.

A housing project is abduction up in a fairly finely-honed manner: 15% of owned funds, from 20% to 30% holiday pre-sales and the remainder escape financing organizations that intervene decimate provide gap financing.

Cartoon Master Freising, Germany, June 2007

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