Stephanie Prange is the editor in chief of Home Media Magazine. The Yale University graduate joined what was then Video Store Magazine in 1993 and was instrumental in transitioning the publication into a tabloid newsweekly. She spearheaded the publication’s reviews section, as well as aggressive coverage of the home video sales market. She also helped launch the magazine’s Web site in 1996. In her position as editor-in-chief since 2006, she has spearheaded the launch of such projects as the daily blast, transmitted via email each day to readers, and Agent DVD, a consumer publication aimed at genre enthusiasts who attend Comic-Con International in San Diego. She has freelanced for The Hollywood Reporter, The Los Angeles Times and parenting publications. She has an M.A. in journalism from the University of Southern California.
Home entertainment has for the most part been a format to revisit what viewers have had access to in previous forms and times. Theatrical hits found new life (and revenue) in the home entertainment market on VHS, DVD, Blu-ray Disc and digital, as did classics that graced theaters long before the prospect of viewing content on-demand in the home existed.
The home entertainment experience evolved from merely watching the same content available in the theater to viewing extra content — filmmaker commentary, making-of documentaries, Easter eggs, etc. — that the theatrical audience could not access. Also, the video game business evolved into yet another way to experience home entertainment similar to movies, with storylines and realistic graphics. Many saw the game and movie businesses converging.
At CES, other types of home entertainment came to the stage: virtual reality and augmented reality, which offer new ways to connect with franchises that often originate in the theater. There were numerous devices and services that promised to make virtual and other realities a new form of home entertainment, a new way to experience a story. The devices and content delivery systems differ wildly. From the Gear VR, which attaches to the cell phone and accesses whatever viewers can stream online, to the “tethered” experiences that take advantage of the greater power of game systems such as the PlayStation 4. Some experiences require cameras or other devices in the home to orient the player in a space, allowing the viewer to move around. As one VR proponent put it, there are low-end to mid-range to high-end experiences, each offering a different version of a story or franchise. The space has become so active that it spawned its own industry consortium announced at CES, the Virtual Reality Industry Forum, comprised of a few dozen companies joining forces “to further the widespread availability of high-quality audiovisual VR experiences, for the benefit of consumers.”
This kaleidoscope of entertainment can either be viewed as a cacophony or as an opportunity. In the year ahead, “we will see more VR, AR, AI and mixed reality,” said industry veteran Mike Dunn, president of product strategy and consumer business development at 20th Century Fox. “As we continue to evolve the ways we create and distribute content, we must make it easy for the consumer to remain connected to the stories and experiences they love, and we must help them understand the formats available, including defining clear benefits of how and why to purchase.” And that may in the future encompass purchases of VR experiences. Indeed, the Fox Innovation Lab in November released its first commercial virtual reality endeavor, The Martian VR Experience, at $19.99.
We’ve long been rethinking the way we deliver home entertainment — different formats, different delivery services — but in the future we may have to rethink the type of home entertainment the industry delivers.
The industry settled into its usual pattern as 2016 ended, with the Hall of Fame dinner honoring inductees. But again 2016 was by no means a “usual” year. The industry is facing more challenges and changes to its business model.
We’ve got yet another new format debuting: 4K Ultra HD with high dynamic range. It’s a format that could breathe new life into the physical disc, which is the best way to view four times the resolution of HD, with HDR, which produces brilliant highlights, vibrant colors and greater contrast on compatible displays.
We’ve got the growing dominance of subscription video-on-demand services such as Netflix eating into consumers’ entertainment time.
We’ve got new forms of entertainment, notably virtual reality, which could alter the very nature of personal entertainment.
It’s always unusual.
But what stays the same is the quality of people who work in this industry, recognized this month by the annual Press Play: Variety Home Entertainment and Digital Hall of Fame, which honored Universal Pictures Home Entertainment president Eddie Cunningham, actor and filmmaker Jon Favreau, and Epix president and CEO Mark Greenberg, as well as virtual reality evangelist Chris Milk and Google Play, which has been a big player in digital delivery.
“Home video, home entertainment and now digital have been a huge part of my career,” noted Favreau in accepting his award.
It’s remarkable that this more-than-three-decades-old business is still a vital part of the entertainment industry.
And it’s notable that we are once again facing a consolidation in the industry. Just as the video store chains gobbled up smaller stores and chains in years past, Amazon is using its technology and marketplace prowess to assemble a panoply of OTT services under Amazon Channels.
Analyst Michael Pachter sees Amazon Channels as the new pay-TV, a successor to the cable market that has lasted for decades. It’s a development that is both familiar and new, a new way of organizing the home entertainment market that seems to follow some of the usual patterns.
The Martian VR Experience
The business of home entertainment has always been in flux. Since the very beginning of this magazine in 1979, visionary movers and shakers have been changing entertainment. We’ve seen different physical formats, from Betamax to VHS to DVD to Blu-ray to 4K Blu-ray Disc with high dynamic range (HDR). We’ve absorbed the digital delivery revolution and incorporated it into our definition of home entertainment, bringing in Netflix, Amazon Prime and Hulu, among other home entertainment newcomers.
With our November 2016 issue, we recognize some of the leaders of this business, the “Movers and Shakers,” who are forging the future of the home entertainment industry. We’ve got top studio executives alongside digital, retail and trade group executives who are helping to make, distribute and facilitate delivery of the home entertainment we all consume.
As we publish this list of influential executives, the industry is launching a new format, 4K Ultra HD with HDR, on Blu-ray Disc and, to some extent, on digital services — though those delivery mechanisms can be hampered by bandwidth. Several of our Movers and Shakers have been instrumental in getting this format — which promises yet another leap forward in home entertainment quality — off the ground.
In addition to physical disc and digital entertainment, the industry is embarking on newer forms of entertainment that employ virtual and augmented reality, offering another potential stream of income to the industry. The Fox Innovation Lab, under the capable direction of executives on our list, this month released its first commercial virtual reality endeavor, The Martian VR Experience, at $19.99 for PlayStation VR for the PlayStation 4 system and HTC Vive on Steam. Several of our Movers and Shakers are involved in this shakeup of the very definition of home entertainment, a new frontier that allows the audience to become immersed in a story in ways that our industry is just beginning to explore.
We congratulate the Top 50 Movers and Shakers, as well as the Up and Comers who are some of the leaders of the future. They are forging the path of home entertainment. It can be a rocky path, and those that navigate its changes must be ready to meet the unexpected.
We salute them, and look forward to their future accomplishments.
Many home entertainment industry executive heavyweights have espoused the virtues of 4K Ultra HD with high dynamic range (HDR), which offers greater contrast and deeper, more life-like colors, and produces brilliant highlights and deeper blacks. But that’s perhaps what one would expect from executives trying to sell the latest software or hardware format. However, when you talk to the filmmaking talent — cinematographers, directors, etc. — they too see it as a leap forward.
“I truly thought it was the best-looking version of the movie by far,” Deadpool director Tim Miller said at a presentation about the UHD HDR release of his film on the Fox lot in May, noting its “amazing level of detail.”
“The amount of detail that you get in the flames, you see so much more,” added colorist Tim Stipan. “It all of a sudden has more dimension to it. It almost becomes more 3D.”
“It’s like suddenly the sky was not a white mass the way it had been in all the other formats, but had this beautiful detail,” Miller added.
“I think this is the wave of the future because you’re seeing more of what the camera captured,” he added, noting “a lot of the shots had this almost painterly quality.”
“I truly thought it was the best-looking version of the movie by far,” Miller said.
In October, talent talked about the upgrade for both Fox’s 20-year-old Independence Day and its sequel, Independence Day: Resurgence, released Oct. 18 on Blu-ray Disc in 4K Ultra HD with HDR.
HDR “allows us so much more range than what’s available in standard theatrical and standard home theater viewing environments,” said colorist David Cole.
“[Director Roland Emmerich] wanted to update a 20-year-old film,” cinematographer Markus Forderer said. “He wanted to be true to the original but also show an updated version, show the film in its best quality. And I think it looks better than what you saw 20 years ago in the theater because now with HDR you see much more detail in the blacks and the highlights.”
When artists are praising a format, I listen. I don’t think there could be better advocates for a leap forward in viewing quality.
Pay-TV operators have been eyeing the cord-cutters, or those pesky customers who eschew paying for expensive cable packages in favor of getting content a la carte over the Internet, for some time, both with consternation and curiosity. Many say these customers are the wave of the future, driven by the millennial generation, which is used to viewing entertainment unshackled by a TV or cable.
At the same time, the FCC is looking at a proposal to require pay-TV operators to offer free app-based video distribution alternatives to the set-top box, meaning consumers could access video through other devices — a PlayStation or smartphone, for instance — without having to rent a box from the cable company.
“While consumers will still pay their monthly subscription fees for the service, they will be able to download an app to devices they purchase or already own to access pay-TV service, so they are no longer forced to rent boxes from their provider,” read the proposal.
The cable industry is experiencing the kind of change the home entertainment business has weathered for some time. We’ve navigated many different formats and different business models, from sellthrough to cassette and disc rental to subscription video-on-demand. These kinds of existential shakeups have been part of our industry since the very beginning, when VHS competed against Betamax and the very right to rent content came into legal question.
What our industry has been very good at is getting consumers the content they want in the format they want — and that should serve us very well as the entertainment business changes. The home entertainment industry has many experts in navigating change, and I’m sure it will find a way to profitably satisfy this new skinny bundle, cord-cutting consumer as well.
The Merriam-Webster dictionary defines a kaleidoscope as a tube that has mirrors and loose pieces of colored glass or plastic inside at one end so that you see many different patterns when you turn the tube while looking in through the other end; a changing pattern or scene; or a mixture of many different things.
What an apt definition for the state of entertainment!
The different pieces of glass or plastic through which viewers can find entertainment have become an ever more complex kaleidoscope, offering different patterns of entertainment not previously available. Entertainment these days is indeed “a mixture of many different things.”
It’s a complex business our women in home entertainment must navigate. They are looking at an entertainment landscape that is fracturing and shifting with ever more devices and services delivering content. These top women recognize the challenge and are looking for mutually beneficial partnerships. It’s an august group that I’m confident is up to the challenge.
While discussing kaleidoscopes, I must acknowledge the apparent end of Kaleidescape, an innovative company that attempted to bridge the gap between physical and digital entertainment. The manufacturer of high-end premium movie players and servers reportedly is ceasing operations and looking to sell its technology. Founder and CEO Cheena Srinivasan disclosed the situation in an interview with CEPro.com, attributing the decision to finances. The company has been pushing boundaries for 16 years. Kaleidescape cut its teeth selling $14,000 hard drives and servers that allowed users to digitally copy store-bought DVDs. This process ran afoul of studio legal teams, but the company eventually made peace with content owners and, in the end, had distribution agreements with five major studios. Kaleidescape also made the transition to digital.
Kaleidescape may have hit a dead end — or is it a new beginning. As the kaleidoscope of entertainment turns …
The annual Los Angeles Entertainment Summit took place July 18-20, and as usual it helped us all unpack the constant change in the industry. While we heard some disappointing news about physical disc sales, there were bright spots in 4K Ultra HD Blu-ray sales and hits such as Deadpool. Executives from the Entertainment Merchants Association, which puts on the event that also benefits the Cystic Fibrosis Foundation, told the crowd about the trade group’s continued work in creating standards for digital distribution — the future of the industry.
The Tech Tour and a panel explored virtual reality. Attendees at the Tech Tour could play catch with a virtual dog (and stick) and shoot virtual space invaders. It was an eerie contrast with the 1980s-themed arcade games at the Paramount lot — which included the classic Space Invaders game with which those of us of a certain age grew up. Meanwhile, famous DJ Richard Blade mixed tracks from the 1980s with more recent hits. It’s perhaps fitting that the theme of the Paramount lot party was “Star Trek,” a franchise that has spanned the decades.
While we were all contemplating virtual reality, another new form of entertainment, augmented reality, was taking the country by storm. A certain day in July, I heard a shriek from my teenaged daughter’s room. Was she injured? Did something horrible happen with a friend or boyfriend? No. She lamented the fact that the Pokémon Go servers were down. A new form of entertainment had emerged, and it was consuming her entertainment time — and causing her to yell in frustration.
But was it really new? The concept of Pokémon Go is based on an older franchise, one that my daughter grew up with and is nostalgic about. It was the connection to her past — and to content that she loved — that drew her into this futuristic world of augmented reality.
Augmented reality is yet another format to connect viewers to content — something we in the home entertainment business have seen and navigated numerous times. Recently, we’ve focused on 4K Ultra HD with HDR, offering a better, more realistic picture for home entertainment viewers. Whether we bring the consumer along with us depends on how compelling our content is, whether new or old.
Recently, I’ve abandoned TV and have been watching streamed content.
It’s been a gradual process. My teenaged daughters have been doing it all along. While my youth consisted of watching “The Tube” and putting up with commercials, my kids have been watching YouTube without the ad breaks almost their whole lives.
It was hard for me to let go of traditional TV content, but the allure of on-demand, no-commercial entertainment finally drew me in.
For me it started with an interest in the latest “The Nightly Show,” “The Daily Show,” “Last Week Tonight,” Bill Maher and “Full Frontal” comedy news episodes. After I got comfortable Chromecasting episodes from my phone to my TV, I was hooked. That connection from the Internet to the TV was the beginning of an obsession.
I would turn on the tube and yearn for something more compelling, something I could “cast” — without those ridiculously long and growing advertising breaks. Why not turn off “The Tube” and find something I chose to watch without those annoying commercial breaks?
When watching snippets of something fed to me, I would yearn to “cast” the rest of the show I missed in making dinner or picking up the kids.
I wanted more control.
Recently, ESPN conducted an experiment that seemed aimed right at me. They made “OJ: Made in America” available on the cable channel as well as via a streaming app. I’d watch 40 minutes of an episode of the series on cable, and yearn to see the rest on my own timetable. Eventually, I figured out how to “cast” the episodes to my TV, like I had other YouTube channels.
I could watch this amazing series, on demand, on my own time. It’s a very long series, and I’m still not finished, but I will finish it — when I have the time.
I’ve been in this business long enough to see many iterations of increased home entertainment quality (as in more visually and audibly stunning) content trotted out by the content owners. DVD was a revelation. Then Blu-ray Disc upped the ante. Dolby and DTS added to the effect, as did better and better TV screens and 3D viewing.
I’ve never, however, been able to discern quite so clearly the difference that I have seen between an HD presentation and an Ultra HD presentation with high dynamic range. When you see the two side-by-side it is truly a leap ahead. Obviously, 3D was a great leap forward, but it required glasses and (sometimes) gave viewers a headache. HDR is different. As colorist Tim Stippen on the Deadpool 4K Ultra HD Blu-ray (with HDR) put it, “I think this is the wave of the future because you’re seeing more of what the camera captured.”
Seeing more of what the camera captured is putting home entertainment quality on the right track in my book. That puts the viewer in the shoes of the director, cinematographer, actors and other filmmakers. It brings the viewer closer to the content.
“I truly thought it was the best-looking version of the movie by far,” Deadpool director Tim Miller said at the presentation on the Fox lot in May.
And that’s what the home entertainment business has been striving for, at least in recent years — the best-looking version — for home entertainment libraries, and for posterity.
I was once at an event at CES in which director Oliver Stone exhorted movie fans to collect hard copies (discs) of their favorite movies because those copies will become rare in the digital future and will be of the best quality.
The best quality version of content is, and will always be, what defines home entertainment collections. And I think 4K Ultra HD Blu-ray Disc with HDR fits that bill.
With Netflix struggling to satisfy stratospheric subscriber expectations, competitor Amazon has made a new move. Amazon is offering for the first time a standalone subscription service not bundled with its popular shipping plan.
Amazon is making its Prime Video subscription streaming service available as a standalone option for $8.99 a month — the same price as Netflix’s entry-level plan. In contrast, the bundled Prime service offers free two-day shipping on myriad purchases with Prime Video and Prime Music included as free value-added perks for about $100 a year.
The fact that Amazon decided to separate out its video service from the bundled plan is a testament to the service’s appeal — and indeed to the SVOD marketplace at large. Amazon now doesn’t just see video as a value-added perk to free shipping, but as a valuable service on its own — on par with Netflix.
Reed Hastings has often said that competition is flattering and good for the SVOD marketplace, and Amazon’s move seems to acknowledge that SVOD services are a viable and important business on their own. As Hastings contends, Amazon’s move ostensibly validates and supports Netflix and its business plan.
There is plenty of room for multiple SVOD services, especially if they feature unique and exclusive content. Many consumers will likely buy into these services (or not) based on the exclusive content they offer. But Amazon has thrown down the gauntlet as well.
“While we don’t think that Amazon will attract many current Netflix customers, we think it is foolish to assume that potential SVOD customers will favor Netflix over Amazon every time,” wrote Wedbush Securities analyst Michael Pachter. “We acknowledge that Netflix has the much more powerful brand for SVOD, but we are confident that once it announced a standalone service, Amazon declared war on Netflix, and intends to back up its new offering with a branding strategy of its own.”
Jonathan Rettinger, president of TechnoBuffalo, told CNBC Netflix has a lot to worry about over the next few months. "Netflix has had an incredible rise, but they need to be looking over their shoulder because there is an onslaught coming led by Amazon," Rettinger said.
For a long time, Netflix has had the SVOD market cornered, but with Amazon moving more definitively into its territory, Netflix may find the road ahead is not so easy.