Marble Key's managing partner outlines a user-generated strategy that transforms the static DVD environment into a dynamic interconnected conversation.
These are definitely trying times for the entertainment industry. For the first time in 2006, The Digital Entertainment Group reports, overall DVD shipments locked on 1.
65 billion units, about the same level as 2005, after years of double-digit growth. And the future doesn't look brighter either; sales of standard discs are expected to plummet by about 20 percent by 2010, according to Adams Media Research.
And since stakes are high -- DVD sales command over half of films' revenue -- how do you revive that DVD cornucopia of past years?
One thing is clear: the DVD as a medium for delivering filmed entertainment is undoubtedly in a process of transition into a world of video-on-demand (cable and downloads). The Blu-Ray-HD DVD showdown, in my opinion, will matter just until that point when all content is reduced to mobilized data that can be directly exchanged between playing devices and stored online with no need for physical storage containers; much like music CDs have transformed into MP3 files.
However, this vision is at least 10 years away, and there is still time for innovation before throngs of WMVs and MPEGs complete their invasion on how mainstream America consumes entertainment.
My proposal for entertainment marketers is simple. Forget about DVD glory days. Instead think of the smoothest way to ease into that DVD-less future by applying its new rules today.
A good start would be to convert DVD content from closed offline environments into dynamic interconnected conversations by adding user-generated content (UGC) elements and interactivity.
Currently DVDs provide consumers with the ability to browse content by chapters. What if content could be ungrouped using PowerPoint lingo and broken down to its basic elements, so users can select individual scenes, or even objects within scenes, to tag with a comment or link?
This tactic also opens up the opportunity for products placed in the content to be purchased directly online and from future secondary markets after featured products completed their initial cycle.
Naturally viewers will have the ability to turn on and off this overlaid information the same way they do today with director's commentary. Live bridges from offline to the online world that can monetize the film beyond its original $18 tag price could offer entertainment providers new and recurring revenue streams.
Why leave money on the table if you can capture audience at the point of consumption and then refer shoppers to sites like for fulfillment?
Another underdeveloped area in the DVD walled-garden platform is the bonus material section. Yes, behind the scenes content has its appeal, but what about adding dynamic or pre-canned content selected from fan clubs or users' video reviews to establish a real dialog with viewers.
This will give consumers a strong reason to submit content and then propagate: "Hey, check my review on the new DVD release of Superman X." And when you contextually integrate sponsorships around these UGC elements, you're opening yet another recurring revenue stream.
Fan dialogue, now available on DVD Extending the dialog with users to DVDs offers another powerful benefit for entertainment marketers: free and invaluable market research intelligence.
Following natural consumer conversations, marketers can glean prominent trends and consumer tastes that are directly linked to elements within the film or TV show. Simply put, your DVD releases have now morphed into organic focus groups that go much deeper than interruptive survey-based methodologies. What you get is real conversations by real people interacting in real-time on an ongoing basis with your content.
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