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Matt Stump
PPV has found the Web.
Hollywood studios are increasingly using the Internet as a core part of PPV movie marketing activity, even to the point of creating Internet-specific content to help sell PPV movies.
The content breakthrough is best exemplified by the New Line Cinema-ACTV deal to offer a playalong, Internet interactive version of Austin Powers: The Spy Who Shagged Me when it premieres on Jan. 1.
But most studios now have a Web site specific to selling PPV movies. Warners Bros. has created a separate PPV Web site, www.warnerbrosppv.com, to help sell PPV movies and added a heavy Internet schedule to its media buy for The Matrix that premiered late last month.
Universal Pictures created an online sweepstakes to go with the Nov. 26 premiere of The Mummy. It also worked with TelVue Corp. to allow consumers to order The Mummy on PPV through the Internet.
"We're experimenting with the Internet," says Eric Frankel, EVP, Warner Bros. Pay TV. "It has unlimited potential."
But the New Line-ATCV initiative is probably the most complex web-related work to date. New Line created a 92-minute program that is designed to run concurrently when a customer orders Austin Powers on PPV.
The content will include a chat room, trivia questions and pop-up video information, according to David Spiegelman, EVP, domestic TV distribution with New Line. "The PPV launch demanded something outside-the-box that offered viewers a first-of-its-kind experience," he said.
When viewers order the movie, a Web spot featuring actor Michael York appears on the screen. York describes how viewers can access the Austin Powers Web content and gives them time - about five minutes - to download, if necessary, audio and video player files to their computer.
"There are an estimated 23 million homes with a TV and PC in the same room," Spiegelman said, the prime target for the dual cast. New Line believes the netcast could increase buys by 200,000 to 300,000. Even though the movie is a sell-through title with a 52-day window, Spiegelman believes the Netcast will attract those who've seen the movie because it's a unique experience. The movie generated more than $205 million at the box office.
Wild efforts Warner Bros. promises to not be far behind with its Web content efforts tied into PPV, like say two weeks. "We're working on a major, major Internet tie-in," Frankel said, for Wild Wild West, which premieres Jan. 14.
Warner Bros., which traditionally spends hundreds of thousands of dollars on TV, radio, newspaper and magazine media for major PPV titles, added an Internet buy for The Matrix. The studio placed banner ads on 12 major sports, music and entertainment Web sites. It was hoping to generate upwards of 10 million hits, based on the sites' traffic and click rates for Warner Bros. product that's appeared on television.
At Universal, The Mummy sweepstakes includes grand prizes of a Dodge Durango and a trip to Las Vegas. The TelVue ordering option will be available to subscribers on Viewers' Choice and EchoStar.
In addition, according to Holly Leff-Pressman, SVP/worldwide PPV and VOD at Universal, the studio has created an alliance with e-greetings. The online e-mail company will e-mail a notice to the 400,000 people who have logged into Universal's PPV site, reminding them of The Mummy's premiere. Universal was one of the first studios to go on online with PPV marketing information.
Leff-Pressman also is a big fan of loyalty programs and plans to jumpstart Universal's efforts by offering PPV buyers 100 airline miles under the online Click rewards program.
Other studios are also stepping up their promotion activity during the busy winter PPV premiere period. Columbia Tri-Star is supporting Big Daddy, which earned $160 million at the box office, with a cable media buy and creative spots featuring comedians Rob Schneider and John Stewart.
Clips from those spots will appear on cable cross-channel slots for the Jan. 1 movie.
Cheryl Koll, VP/sales and marketing at Columbia TriStar International TV, said the studio had a solid year in PPV. The Sears Family Portrait tie-in promotion with Stepmom helped buy rates for that August title, she said.
Year in review Most studio executives expressed satisfaction with PPV's performance this year. The buy rates generated by DirecTV have helped, and cable's digital rollouts are starting to create a buy rate uptick, at least at some studios.
"We're doing really well from a financial standpoint," New Line's Spiegelman said. "With the changes that Viewer's Choice is making, we're hoping operators will support PPV."
Spiegelman said he's seeing strong buy rates from digital systems and healthy MSO interest in promotions. AT&T, in fact, is doing a separate promotion with Austin Powers, in addition to marketing the Netcast, he said.
Disney's Buena Vista TV division has picked up the pace of it's PPV promotions over the past several years and executives there also expressed satisfaction with the payoff. "We think the results have been excellent for titles we've aggressively promoted," said Sal Sardo, SVP/marketing, Buena Vista TV.
"We see a correlation between marketing and performance and we intend to stay on that course," he said.
Disney is gearing up a major promotion for The Sixth Sense, which generated north of $250 million at the box office and will premiere next spring. "Few titles have such a repeatability factor," Sardo said. "We're mounting a fairly massive campaign against that."
"The participation has never been stronger," Sardo said, dismissing concerns that industry consolidation has disrupted system marketing efforts. "There is definitely a return based on what you put into it."
"All the studios are stepping up the pace of their PPV marketing efforts," Sardo said. "We're on the verge of a new era. Studios are getting more sophisticated and understanding consumers."
Many studios have seen analog cable PPV buy rates fall, as operators drop analog channels to make room for more PPV channels on digital. It concerns some studios more than others. "It definitely is happening," said Dan Cohen, SVP, Buena Vista Pay TV. "But we saw it coming, we expected it."
The flip side is that digital buy rates are strong. "I call it a pleasant surprise," Cohen said.
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