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HD versus video iPod demand — market forces? [OT but relevant]
Since so much discussion takes place in this forum around HD — “real” HDCam/D-5, or “fake” HDV/DVCProHD — that I thought some good opinions could be forthcoming from this group:
If you look at HD and video ipod as discrete gravitational forces that attract marketing dollars and consumer interest, I am curious about whether “real” HD will eventually occupy only a small niche of cinematic and highend-only broadcast, while programmers, advertisers, record labels and so on will sink their money into having production/post done for the DL market on “fake” HD or SD.
I say this because it seems to me that HD is a construct of a combination of government, industry, and retail outlet forces rather than consumer demand. No one has ever said, Gee, I would enjoy Survivor so much more if only I could spend a few thousand dollars on an HD compatible system and higher cable/satellite rates. Most consumer level “household” HD still looks like crap to me.
Whereas the DL market has clearly emerged as a delivery system that satisfies what consumers really want, and is in-line with the trends in housholds with broadband access, computers, and entertainment devices despite that fact that it is highly compressed and really small!
I think there are parallels to what the cinema industry did in response to the explosion of television sales and programming in the 1950’s — they created a better product i.e. widescreen, color, etc. — thus creating a further distance in the differentiation of the two products, and the financing/allocation of marketing budgets to either.
I don’t expect there to be an extreme shift. In other words, I would never expect Desperate Housewives to be acquired on camera phones. But it does concern me about whether I should even bother investing in a 3-year lease for an HD VTR when more deliverables will be for DVD and various online compressed formats.
What say you?
steve covello
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4 Replies
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I think it really just depends on your business. Are your clients mainly low end to midrange, or high end? As to your comment about “real” HD occupying only a small niche, that’s already the case. Those who can afford “real” HD will choose it. If you offer post services for pro HD formats, you can automatically charge more and get higher end work than if you stick with HDV, etc.
Having said that, if you live in an area that doesn’t have much demand for pro HD production, then you’ll be wasting your money just to offer services that no one wants or can afford. If you don’t live in one of the industry hotspots and you have connections to major markets (LA, NYC, etc.), you may be able to offer services at rates that are competitive with post houses in those cities, as you do not have the high overhead that they do. However, it could put you in a precarious position – the high end clients can afford to have their work done in high end post houses with high end infrastructure that no individual could ever hope to match. The “prosumer” clients or indie film clients, once limited to using either DV or true pro HD, are now focusing their attention on the new consumer HD formats (HDV). I think the middle is dropping out, with work either going high end/pro HD or low end/prosumer HDV.
Who butters your bread?
😉
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Alan said this very well. You can generalize by saying that “features” will use the best quality, and corporate will use DV25, iPod, etc., but this is not the case. Reality TV shows on major networks often use DV25, and here in Orlando, LMG – a convention rental company – does HI END HD production for their “happy face videos” for major corporations – many would assume that they could “get away” with a DV Camcorder and a FCP laptop. So it depends who your clients are. This is the difference between the “HD is not good enough, we must shoot in 35mm, and transfer to a SR5500 at 4:4:4”, vs. “I can’t justify the $199 for a black generator”. It’s your job to find the right clients.
There are drivers that drive with NASCAR and INDY, and there are drivers that drive a taxi cab. Which one do you want to be?
Bob Zelin
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Good comments. I am right in the thick of NYC, having worked with so-called “high end” advertising clients for 15 years, except the decline in overall volume of TV production has relegated many non-A-list post houses to struggle without the spillover that used to be around from which you could build your reputation. Secondly, we have found a dramatic decline in demand for non-A-list directors if A-list directors happen to be available. Cripes, I think Tony Kaye was shooting package goods!
That said, the question for us, as a “middle class” company [in terms of reputation], is whether we should waste our time trying to compete with The Whitehouse, Consolate, Now Corporation, etc., or try to subordinate ourselves with rates so low we get low return on resources, or simply look elsewhere in markets that are emerging.
Thus, the ipod vs. HD. We have worked with “new” digital media companies that stand as a one-stop shop for mid-level clients that want to do TV, direct to consumer, b-to-b, web, PR, sales, alternative media and so forth emanating from ONE production. For us, we see this kind of client as having much better overall profitability on a per-task basis versus trying to seduce clients who want to master in HD — whose rates haven’t imprinted as being much more profitable than when everything was SD. and conventional commercial production rates keep getting lower and lower.
I see it as there being more outlets for compressed formats than there will be for HD. From a marketing standpoint, this is significant.
steve covello
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I think you may have hit on something that could help you to differentiate yourself from other mid-level post houses: the vertical integration factor. By offering a wide range of delivery formats (web, DVD, broadcast, etc.) simultaneously for a given production, you can capitalize on clients’ desire for one-stop shopping. If you can partner with an agency or agencies that handle creative while you concentrate on the technical, you could create a nice niche for yourself. The key is to offer a high level of skill in producing each distribution format so that you can provide your customers with a seamless, pleasant experience. The convenience of getting everything done (and done well) at the same place is worth a lot to the client.
Those who can afford true HD can also probably afford to go to the big name post houses. Such clients are willing to pay a price premium in order to have the peace of mind that comes from working with an established entity that has an established reputation and can provide a fast turnaround. It’s not that other places couldn’t do the work just as well, it’s that the clients can’t afford to experiment and find out. I think that’s what you’re seeing with the phenomenon of the decline of non A-list directors that you mentioned. People will pay extra for a sure thing.
Become a sure thing to your clients, and they’ll keep coming back.
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