Recent deals indicate movies on the Internet are ready to become a gold mine for film producers. For years, it seemed like Netflix and iTunes were the only providers of online movies; and unfortunately, they did not pay producers a lot of money.
But suddenly new Web-based services are appearing everywhere and are aggressively buying movies and television shows. Verizon and Redbox have teamed up to provide a movie streaming service. Google and YouTube are expanding their movie services. Also ramping up are iTunes, Hulu, Best Buy’s CinemaNow, and Walmart’s Vudu.
And as the New York Times reported, increased demand from these on-line services means higher prices for both studios and independent film producers. For this year alone, Netflix is paying producers a total of $1.8 billion for the rights to stream films.
And not only the studios, but also independent film producers, are seeing a robust, accelerating online market for their films. Low-budget films are getting revenues up to $500,000 from video-on-demand services. A new era is beginning in the film industry that will provide new sources of revenue for the independent producer.