2022 is expected to be another groundbreaking and transformational year for the film industry, even as audiences are still in the throes of the global pandemic. The following are the top film industry trends for 2022 that will affect rights management.

Though it’s questionable whether in-theater releases will ever return to normalcy, online consumer spending on film and entertainment continues to surge. The independent film market in particular is experiencing unprecedented growth. Out of billions spent on content production, upwards of half of that amount went to independent filmmaking productions.

Moreover, low budget no longer equates to low profit, as releasing indies via online platforms opens up independent filmmakers to a global audience immediately. And as major film distributors and streaming platforms are hindered due to COVID-19 production challenges and delays, they continue to draw from the plethora of independent film titles to fill up their content pipelines.

After the onset of the pandemic, both major studios and talent came to the harsh realization that deal-making models adopted and refined over the past few decades were in for an overhaul—despite being largely on opposing sides of the issue. Because A-list Hollywood talent are usually given sizable bonuses based on box-office returns, the cinema shutdown coupled with the surge in online viewing has resulted in more than a few actors-studio conflicts.

For example, Warner Bros. had to scramble to renegotiate deals with talent in big-budget releases like Wonder Woman 1984 after it decided to premiere its whole 2021 release list simultaneously in theaters and online. 2022 will likely see even more hybrid deals between studios and talent for theater and streaming releases.

There’s no arguing that lockdown measures across the globe have resulted in skyrocketing demand for streaming services. According to a report by the Motion Picture Association, global online video subscriptions hit 1.1 billion in 2020, an increase of 26% from 2019. This surge in demand has been met by a myriad of subscription video on demand (SVOD) platforms, the most notable being Apple TV, HBO Max, Peacock, and Disney+.

These new SVOD platforms have managed to build up sizable audiences in a short amount of time—for example, Disney+ has added 100 million customers to its subscriber base since launching in November of 2020. Similarly, WarnerMedia’s HBO and HBO Max streaming service hit an astounding 44.2 million subscribers earlier this year. These successes are sure to pave the way for more niche SVOD offerings entering the streaming landscape in 2022.

SVOD vs. AVOD

It’s worth noting that a variation of SVOD—advertising video on demand (AVOD)—is also expected to surge in 2022. In fact, many of these ad-driven platforms have accumulated larger audiences than existing SVOD offerings. In contrast to SVOD, AVOD platforms generate revenue via ads as opposed to subscribers, with YouTube being the prime example of this model.

Other AVOD offerings are experiencing similar trajectories in terms of growth. For example, IMDb’s free IMDb TV platform has now amassed 55 million monthly active users since its launch over three years ago, with much of the user adoption occurring in the last year or so.

The film industry has also seen numerous productions halted, cancelled, postponed, or extended due to pandemic-related setbacks like lead actors contracting COVID-19 or set closures due to social distancing and mask-related infractions. This has upended the traditional creation, production, and distribution pipeline, as the industry typically relies on a backlog of production-stage films to satisfy viewers according to a predictable schedule (e.g., summer blockbusters and seasonal holiday releases).

With the scheduling unpredictability and resulting production risk created by the pandemic, studios are now hyper-focused on producing SVOD titles to allow for more controlled release schedules for meeting the demand of content-hungry consumers. 2022 productions are likely to conform even more closely to the newer SVOD scheduling models.

The film industry has been completely upended by the pandemic. Suffice to say, online delivery is now the primary avenue for releases. This makes having the optimal solution in place a crucial strategy for protecting new hybrid and online-only releases.

Like other digital assets, new online feature releases require specialized controls for preventing unauthorized distribution. The optimal rights management software can help address these challenges as the line continues to blur between traditional films and digital content.

Not all rights management software is created the same. Business needs can vary extensively. For this reason, PDG offers custom-designed enterprise media and entertainment software application development services for meeting the unique requirements of each client.

The following are some crucial features to evaluate when considering various rights management software options:

— Inventory management: Does it streamline the management of film titles on the same centralized platform?

— Rights availability and conflict checks: Does it come with comprehensive rights and licensing checking capabilities—especially for titles with complex limited rights?

— Secure sharing: Does it allow users to collaborate and share privately and securely?

— Usage monitoring: Does it enable visibility, awareness, and auditing of user behavior and activities? 

— Access and use: Does it provide support for both desktop and mobile user interfaces?

— Performance: 

• • Does it have the capability of updating and reporting on millions of titles? 
  • How long does the application take to generate rights and avails results for thousands of titles across multiple territories? 
  • How long does it take to generate a worldwide rights and avails report?

— Flexibility: 

• • Can it easily accommodate new license types and media? 
  • Does it have the ability to handle things such as SVOD/AVOD, Tethered VOD, Holdbacks and Catch-Ups? These are all relatively new entities created to adapt to an increasingly digital rights landscape.
  • Studios have had to invest time and money modifying their rights management software solutions to account for such  feature, so it’s important a system considers ease of implementing new media/license types in the future as the industry continues to evolve.

PDG Consulting’s CCAE helps reduce much of the complexity associated with hybrid and online-only release licensing, conflict checking, and asset availability. Leveraging its extensive experience and knowledge of the film and TV distribution business, PDG has already developed multiple conflict check and avails solutions for major studios.

We’re a leader in rights management services for over a decade, with a list of prominent media and entertainment customers using our custom software application development solutions.

Contact us to learn more about how our CCAE product and our expertise in media rights management can help you maximize opportunities for your business.