Hollywood looks to the web for DVD sales

04 December 2009

SANTA MONICA: Six of Hollywood's biggest movie studios have agreed to provide content to a newly launched film-clip-sharing website in a bid to counter declining DVD sales and the increasing impact of illegal digital distribution.

Movieclips.com, which features some 12,000 extracts from over 1,200 films, enables users to share clips via Facebook and Twitter as well as purchase and rent featured titles via links to a range of retail partners including Amazon and iTunes, the online retail platform run by Apple. The business model is advertising-based, together with commission on sales generated for associated retail sites. 

According to chief executive Zach James, 27, the new service can offer an important benefit to the film industry which is undergoing a period of huge change, as traditional media and distribution channels decline, and paid-for digital platforms have thus far struggled to replace lost revenues.

"One of the reasons why the studios enjoy the experience of the site is that it encourages users to buy or stream the movie right then and there," he said. "Our goal for the next year is to really refine the user experience and make it more interactive."

The start-up operation based in Santa Monica, California, has signed up Hollywood heavyweights 20th Century Fox, Metro-Goldwyn-Mayer, Paramount, Sony Pictures, Universal Pictures and Warner Bros. Of the major studios, Disney and Lionsgate are not participating.

Data sourced from the Wall Street Journal and Bigpond News; additional information by WARC staff