3 Lessons Filmmakers Should Take From Gaming’s Financial Success

11th December 2013

Between pirating, increased streaming packages and an overall ambivalence surrounding movie theaters, America’s film industry is definitely suffering. Benjamin Swinburne of Morgan Stanley tells “The Economist” that movies account for less than 10 percent of parent companies’ (such as Disney and Paramount) profits, with that figure expected to further decrease to less than 5 percent by 2020. Meanwhile, gaming console sales continue to soar, with Sony announcing sales exceeding 2.1 billion in less than a month. Clearly, the movie industry could stand to learn a thing or two from gaming leaders.

Offer Upscale Experiences

Dingy, dirty movie theaters no longer capture viewer interest. If people want to sit in drab environments watching low-quality movies, they can just as easily do so from the comfort of their own homes — and for a lot less money! And that appears to be exactly the route the average movie viewer is taking, having traded in standard movie tickets for Netflix subscriptions, and, in doing so, propelling the streaming company to revenues exceeding one billion, according to Netflix.com. Movie theaters need to take an alternate approach and go upscale. As in gaming, movie viewers are willing to pay more for quality. Gamers eagerly shelled out for the highly-rated “Grand Theft Auto V,” garnering earnings of over $1.27 billion in the fiscal second quarter of 2014. Film nuts would also gladly shell out for a unique experience, provided their movies are shown at peak quality and in upscale facilities.

Make It Easier To Pay Than Pirate

Massachusetts Institute of Technology’s study points to 12.6 million unique peer shares for 173 games released during a three month period. This seems extensive until you compare it to piracy statistics for movie pirating sites, which, according to a study by MarkMonitor, receive an average of 146 million unique visits every day.

Gamers’ reluctance to pirate does not necessarily stem from feelings of guilt or a desire to financially support their favorite developers, but simply from the sheer amount of effort they must take to successfully obtain their favorite games through digital piracy. Combine that with the sheer ease through which gamers can rent their favorites or access such budget-friendly options as free Jewel Quest, and you have a recipe for minimal video gaming pirating.

Filmmakers can take a similar approach to their gaming counterparts by allowing users easier access to their favorite movies, encouraging them to bypass the hazards of movie pirating through accessible and affordable streaming and downloading.

Expand Across Tech Platforms

Despite all the technological advances of the past decade, film consumption still takes one of two main forms: DVD (or, increasingly, Blu-Ray) purchases, or movie theater visits. Downloads on iTunes and Amazon Instant continue to increase in popularity, but unfortunately, viewing opportunities for these films remain somewhat limited in nature. Movie downloads take up far too much space to be a viable option on the standard iPhone or Galaxy tablet, while streaming’s limitations are often brought about by low-quality or completely inaccessible WiFi. By contrast, gamers can enjoy their favorites on everything from the Xbox One to the Playstation Vita. Smart phones and tablets also serve as viable gaming platforms, offering hours of entertainment at a low cost and with minimal data usage. A significant movie format expansion could similarly encourage film lovers to enjoy their favorites on a wide array of devices, making them more likely to actually pay for their movies.

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