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I've worked as a film publicist and film marketer on over a hundred films, from "Stranger Than Paradise" to "Crouching Tiger, Hidden Dragon and "Precious."  My full bio is here.

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Did File-Sharing Make Wolverine a Hit?

Sunday, January 03, 2010

Accept No Substitutes: The Pirated Version of "Woverine" is Not Nearly as Good There is a mind-blowing cover story by Jonah Lehrer in the January 2010 issue  of Wired that suggests that scientists, instead of being neutral observers searching for objective “truth,” actually conduct experiments to prove that their preconceptions are right.  When they find contrary evidence, they either ignore it, or figure their equipment or methodology is faulty.  To paraphrase Paul Simon in “The Boxer,” they see what they want to see and disregard the rest. 

The article made me think:  is this the way so many of us in the industry think about file-sharing?  Are so many unable to see what is really going on because we don’t want to?

So I thought, “How can I be scientific about this?”  After all, there is no way to prove the impact of file-sharing on the business. It happens, and it’s common sense that it’s bad for people to get stuff and not pay for it.

And then I thought about “Wolverine.”  To my knowledge, “Wolverine” is the ONLY big-budget epic film that has been available on the internet weeks in advance of its opening.   Its singularity makes it a particularly intriguing subject for study and debate.

So what happened?  Despite the file-sharing and poor reviews, the film opened  to an $85 million first weekend gross.  Not too shabby.  As file-sharing is known to be detrimental, there was much chatter about how much more the film would have made if over an estimated million people hadn’t seen it on their computers in advance.

Matthew Belloni hypothesized the possibilities in an article in the Hollywood Reporter:

Losses (millions)  
-$7.18 one million viewers times the average American ticket price of  $7.18
-$15.75 The difference between the opening weekend of “Wolverine” and “X-Men: The Last Stand”
-$14.1 “Iron Man” made $102 million over the same weekend in 2008.  “Iron Man” had stellar reviews,  but this sort of movie is “critic-proof,” right?
$00 What if it has no impact?  Maybe it is good marketing?   We doubt it, but expect the pirates to crow about it

$00  you can mention and  reject.  But only if it’s right on the nose--$00 and not a penny more. 

Now that 2009 is over, let’s see how that opening weekend of “Wolverine” stacked up against other films that were very highly promoted in advance:

Film Opening (millions) Theatres
The Twilight Saga: New Moon $142.8 4124
Transformers: Revenge of the Fallen $108.9 4293
Wolverine $85 4099
Harry Potter and The Half-Blood Prince $77.8 4325
Avatar $77 3456
Star Trek $75.2 3849
Fast and Furious $70.9 3461
Up $68.1 3766
Monsters Vs. Aliens $59.3 4104
Watchmen $55.2 3611
GI Joe $54.7 4007
Night at the Museum 2 $54.2 4096

As Mr. Meloni pointed out, “Wolverine” might have made $15.75 million more because it was the latest installment of a very lucrative franchise. Let’s look at the other prominent sequels of 2009, in addition to the ones listed above.

Alvin and the Chipmunks: The Squeaquel 50.2 3700
Angels & Demons 46 3527
Terminator Salvation 42.5 3530
Ice Age: Dawn of the Dinosaurs 41.7 4099
Friday the 13th 40.5 3105
The Final Destination 27.4 3121

As I said, not one of the films listed above were shown online before their release.  Of course the first weekend’s gross isn’t about the ultimate popularity of a film, it’s just a rough measurement of advance excitement.  A lot of people just couldn’t wait to see them.

Afterwards was a different story for “Wolverine online.  Then “Wolverine” was only the ninth most downloaded after five of the other box-office triumphs of the year, as per Torrentfreak: “Tranformers” (#1 on the Torrenfreak list) “Harry Potter and the Half-Blood Prince” (#2), “Twilight” (#4), “The Hangover” (#5), and “Star Trek” (#6).

Of course you can say, this is just another huge opening weekend in a record-breaking year that was full of them--the real issue is DVD sales, which are dropping precipitously.  But less publicized is that, per the Hollywood Reporter,  DVD rentals were actually up by 8.2% in 2009.  People may be getting their movies through Netflix and Redbox, but those are totally legit ways to pay for movies.  So people’s desire to pay for movies in theatres and on home video is on the upswing.   Purchasing DVDs may be down, but the fact is that with every new home video medium, people go on a buying binge to get all their favorite films at the start.   Eventually they own the movies they want and the pace slows.  This is natural.  Blu-ray sales (up over 83% in the first nine months as per the article linked above from the Reporter) will increase for years.  But someday people will have the core Blu-ray library they want and their purchases will slow. Or they will be affected by the guaranteed arrival of The Next Big Thing.  By the way, what is the reason for an avid  DVD collector to buy in bulk now that Blu-ray is here? 

What do you think about all this? 

Please leave your comments. 

Comments (11) -

1/3/2010 7:59:23 PM #

I think only the true nerds/fans would've gone to the trouble of dling a rough version of the film (there were reports that it still had some vfx additions needed) and wouldn't effect the general viewing public to a great extent more than it getting bad word of mouth after it opened (or from reviews, either proper ones or those of people who had seen the bootleg). Given that it was the start of the summer movie season, at the height of a down economy, people might have decided not to take a chance on it. Obviously, enough did to where it opened at $85 mil and totaled around $370 mil worldwide.

The only sad thing about your list above is that they are all either sequels or derivative works (with the exception of Up).

JM | Reply

1/4/2010 12:25:28 AM #

And Avatar (putting aside arguments of similarities to Dancing with Wolves)

martin | Reply

1/4/2010 8:59:39 AM #

Woops, somehow missed that on the list. Cheers martin. You're not the first to make that comparison I've found so I'm curious now to see it.

JM | Reply

1/4/2010 2:34:48 AM #

All this moaning from the film industry ignores (probably deliberately) a very important point - they've had a brand new distribution medium developed for them from which they'll make countless billions and it's cost them nothing in research and development. They're quids in, well ahead of the game.

BB

UK Services | Reply

1/4/2010 2:35:22 AM #

I live in a town with an eight screen multiplex... Nothing big, and it follows we're 45 minutes from the next city with a theater. All we get are MOR family fare and lowest common denominator comedy. Because we have 8 screens, we have to have films that appeal to the broadest section of the populace as is possible (or so the chain owner would have us believe).

I DL films. I do it unrepentantly, and I do so because I wish to engage in my culture and where the theater system cannot provide me a sustainable access point to films in a theater, I am not so ignorant that I can overlook a viable system for seeing films as they are released. The internet does not siphon revenue from the theaters. It merely affords fans of film an option where the theater system is incapable of collecting revenue.

It isn't that a film isn't worth $7 -- it's that too often, it's that the distribution system is too market-targeted and too vanilla in scope. I wanted to see "Up in the Air" this weekend. I couldn't. Nearest theater showing it is an hour and a half away and we just had a blizzard. But bittorrent had it. I saw the film this evening. Lovely (and I hope the screener gets it the nominations and votes it was distributed to collect).

Put it in front of my eyes for $7 and a quality download, and if I love it, I'll buy the Blu-Ray when its released. Just don't make me the criminal because you're too scared to put it on the web day-and-date with the theater system (who, it turns out, are more interested in forcing me to watch commercials than in improving the viewing experience). The revenue streams from concessions and onscreen ads seems to matter more to them than ticket revenue, anyway.

Also -- get rid of the imbeciles I have to sit next to at the theater who are obviously not conditioned for responsible behavior when experiencing communal entertainment.

divertebrate | Reply

1/4/2010 5:10:59 AM #

Divertebrate,

I don't think you're a criminal. There are tens of millions of people like you.  People who would happily pay for a film online if they were allowed by the film industry to do so.  The studio system forces people like you underground. They promote "Up in the Air" in the same way they have for decades. Building up desire in people like you, but making you wait. As if the internet wasn't there to satisfy immediately the desire they've cultivated in you. I have spent a year and a half of my life building SpeedCine because I have a dream that the film industry will evolve to a place where they can serve people like you as a customer and not demonize you.

As I make the argument in my post that file-sharing might not only not hurt the film industry--it's possible that in certain situations it might be a very helpful marketing tool. I don't spell this out in my post, as I want others to think about it, but it seems to me that this is true if this is A) the kind of film (like AVATAR) that requires a theatrical setting in order to get the full experience and B) is something that people like. File-sharing is devastating for bad films. But deciding about A) and B) is not such a hard judgment call.

Now will millions of file-sharers never go to the theatres or buy a DVD?  Hell yes!  You'll never get a cent from those people. However, they might have told two or three more non file-sharing friends that it's really terrific.  But you've lost your money on them forever. At the same time, you have also lost the money you spent on newspaper ads, TV, publicity, trailers, premieres, billboards, ad agencies, etc.

Let's say that a studio exec is willing to entertain the notion of my blog post. Which they absolutely won't but for the sake of argument let's say someone would. It's unknown territory. When the executive pays for advertising, it is out of the experience of what he or she thinks they will do for the movie. If a film like "Wolverine" goes out into cyberspace in advance... who knows what will happen? It's totally out of your control.

But I have been in the film business over 30 years and I can say--you never know.  If there is anyone in the film business who says that marketing is a science--that the same marketing buy will do the same thing for different movies, I haven't met them.  You never know and everybody who works in the business knows this.  

File-sharing happens no matter what you do. You can't stop it.  So why not to see if you can harness it in some way?  I say...it's worth a try.

Do it in secret so that you don't get everybody else pissed off at you.  

Reid | Reply

1/4/2010 9:07:26 AM #

I have to commiserate with divertebrate - my town also lacks a venue for showing smaller movies. That plus exorbitant ticket costs and, at least in my recent viewing experiences, a complete lack of manners in people these days (talking during the movie, mobile phones going off) has led me more and more to watch movies from home. I don't dl movies but can't judge others who do, especially if they have no other way to access the movie. I'm happy to wait for it on Netflix or to watch streaming online. From what I read here, Ted Hope's blog, and others out there, digital distribution may be the way of the future for many smaller movies that aren't sure bets at a physical location. I think this whole 3D gag is a last ditch effort to squeeze as much as they can from creating an event spectacle that can't be replicated online.

JM | Reply

1/4/2010 9:19:32 AM #

Bill Maher said that the Republicans looked to the future and saw radio.  The studios look to the future and see cable. They are very wary of the internet. The most positive thing they've done is Hulu, and it scares the hell out of them.

But the future is with the children. Which is to say, people who have never been alive without a computer and a cel phone. The future will trend low-fi--like MP3s and YouTube--not towards hi-fi like a Blu-ray. But it's not like everything is going to end--I believe people will always go to movie theatres--I loved watching AVATAR--and there will always be a large audience for high quality home entertainment.  

Reid | Reply

1/4/2010 5:42:14 PM #

The people want to be entertained. That $10 bil the industry pulled in this year had to come from somewhere. The horror stories come out of the news via industry mouthpieces but people don't really consider how lucky we are with the current innovations this decade. Hulu (a gambit by some big corps that might pay off) and Netflix are just a few of the success stories. I can't imagine having to go back to the pre-Netflix days. The hardest part will be looking ahead. I think Speedcine is already on top of that.

JM | Reply

1/4/2010 5:15:30 PM #

You make an interesting point in your article about the positive effects of file sharing on the industry and in your answer to divertebrate you mention its potential as a marketing tool. I mention that because I have heard about companies using file sharing as a marketing tool: A few weeks before the TV season starts the first and sometimes also second episodes of some TV shows (especially Showtime's "Dexter" and "Californication") suddenly appear on the internet. None of the later episodes are leaked, so it seems that they are leaked on purpose. And this year's season of Dexter generating the highest ever ratings for a Showtime series seems to be a proof of concept here.

I have to admit that a television series is different from a movie since one or two leaked episodes do not give away the entire story while with a movie you always provide the whole thing but the point is that file sharing can be used as a marketing tool. And I think it will be used because filesharing cannot be prevented effectively and will rather grow than stop. So companies will have to deal with it in a proactive manner instead of a reactive manner.

The Jackman | Reply

1/4/2010 5:32:32 PM #

I don't think that they can openly use file-sharing for marketing because they believe that file-sharing is a heinous crime.  Hence the word "pirate," which evokes the Somalian guys commandeering huge super-tankers. They will continue to spend hundreds of millions fighting it, you can count on that. And file-sharing will continue to grow by leaps and bounds.

They fired a critic for reviewing the download and now they're in the process of trying to jail the guy--assuming he's guilty--who conceivably could have made them a fortune.  Of course there is always the possibility that this was in fact all a very clever publicity gambit that got the film much more press than it might ever have received, but I doubt that.

I can't stress enough that I don't think that file-sharing makes money for the studios, because I don't believe that.  I just think it's possible that it did for this particular film and might for others.

Reid | Reply

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