-Caveat Lector-

GOING TO THE MOVIES ONLINE

Big screen comes to Net watchers



AtomFilms

About 500 animations and shorts. Big-name partners include Warner
Bros. Interactive. Goofy-gorey 'Gerbil' animated series by Joe
Cartoon is almost a cult favorite. Star Trak spoof also a hoot.

http://www.atomfilms.com/



Digital Entertainment Network Inc.

Aimed at 14-24 year old Generation ‘Y’ers, DEN programs include
frat-boy, punk, hip-hop shows. Also has big name sponsors,
investors like Microsoft, has filed to go public. Will reopen
site Nov. 8.

http://den.com/



iFilm.com

About 500 shorts. Users vote, top 25 rankings on homepage fetch
out best films. Peephole is nearly always in that list.

http://ifilm.net/main.taf



Pseudo.com

More than 250 hours of home-grown programming each week on 10
channels include all-gamer network, computer hacking show.

http://www.pseudo.com/



Thebitscreen.com

Limited, focused selection of four high-quality films. City Halls
is a 'media well' with words, music and images configured
randomly each time.

http://www.thebitscreen.com/



/Thesync.com/

Small collection of home-grown programs with big names, including
The Jenni Show, featuring Net’s first Web-cam star; and /etc, a
tech show hosted by popular slashdot.org computer news site.

http://thesync.com/



Wirebreak.com

Flashiest site, interactive animation augments highly-produced
video programs. Gilette sponsorship. Biggest hit - Girls Locker
Talk.

http://ww1.wirebreak.com/home/index.php3



ShortTV

Started by a former short film maker, it has a small, refined
library. Also a cable TV station. Among its top showings is
Lurker, a dark film about a woman who hangs around a laundromat
too long

http://shorttv.com/




http://www.msnbc.com/news/331043.asp

Big screen comes to Net watchers

As Dreamworks joins the fray, original shorts, animations, and
talk shows flood the Web

By Bob Sullivan

<Picture: Image: AtomFilms.com screen shot>Animations, like this
claymation spoof of Star Trek, are among the most popular Net
films.

MSNBC

Nov. 5, This year's MP3. The next MTV. That's the kind of
hyperbole surrounding the short Internet video entertainment
category that’s gone from irrelevant, to irritating, to
"validated" in less than a year. Last week, Microsoft founder
Paul Allen gave Hollywood hotshots Steven Spielberg and Ron
Howard $50 million to figure how to entertain the Internet's
masses with short videos. But some think Howard and Spielberg are
already late, as a crowded field of former Hollywood executives
and ambitious filmmakers have already filled the Web with
thousands of short films and TV-style shows.

"It's still a much sexier angle to call your parents and say 'My
film is going to be on TV.'" ROLAND DIB - ShortTV

WHY ALL THIS EXCITEMENT over postage-stamp-sized moving pictures
that haven't really earned anyone a dime yet? When even the
biggest live streaming video event didn't grab a big enough to
warrant an second episode, were it a TV sitcom? When the
potential audience (at least for broadband video) is scarcely 1
percent of the TV audience?

A RAPID EVOLUTION

       "What is apparent is the Web is going through the next
step in its hourly evolution," said Jeff Morris, CEO of Yack.com,
which is trying to be the "TV Guide" of Net video programming.

       The progression has been swift from plain text, to still
images, to downloadable music via MP3. Video is the inevitable
next step, he said, and it will inevitably come faster than we
expect. "There's a growing sense that the train has left the
station. ... I think the video industry has learned a little from
the music industry. They were a little asleep at the wheel and
MP3 showed up."

       Short Net films have been circulating for nearly two
years, about as long as some of the more popular Net film Web
sites.

Thebitscreen.com, for example, has been toiling in relative
obscurity, accepting short artistic films since June 1998.
Pseudo.com has been producing original for-the-Web shows since
1997.

       Most audiences still are counted in the hundreds, while
the available videos number in the thousands. Still, earlier this
year, things started to heat up with the launch of well-funded
sites like atomfilms.com and ifilms.com. Luminaries were
attracted, like former Paramount Digital Entertainment head David
Wertheimer (now CEO of Wirebreak.com) and former Walt Disney
Network Television president David Neuman (Digital Entertainment
Network president). Microsoft, a partner in MSNBC, owns part of
Digital Entertainment Network.

       And now, the big boys are coming to play. Spielberg and
Howard expect their new venture, pop.com, to launch next year;
meanwhile, Warner Brothers Interactive will launch
entertaindom.com before the end of the year. It will offer up
plenty of original content, include made-for-the-Web new episodes
of DC Comics' Superman.

       "It's a good thing for the industry we're in," said
Digital Entertainment Network's Anna Caldwell. "The people behind
pop have big names. It's helping validate what we've been doing
for the past year and a half."

WHY NOW?

       There's sharp disagreement about just how much broadband
will impact the Net video business in the short term, but most
film companies say even the whiff of broadband that's in the air
has been enough to fish out big players to the Net film business.
:Advertisers inevitably want to know the M in CP/M."  MATT HULETT
- Atomfilms.com

 "People forget that broadband is, in fact, here now," said
Warner Bros. Interactive's Jim Bannister. For example, most
colleges, with their ideal Generation Y demographics, have fast
Net connections. "If you care to research the numbers, you'll see
that there is an inordinately high percentage of stream being
served in broadband." Pseudo.com says about 40 percent of its
users are coming through a broadband connection.

       But broadband tells only part of the story of the
ascendancy of the category. What seemed to really shake Hollywood
was the startling success of "The Blair Witch Project." Shot for
well under $100,000, the film has already pocketed millions for
directors Daniel Myrick and Eduardo Sanchez. Many credit the
phenomenon to the film's Web site, which was running and
generating buzz long before the movie was released on the big
screen.

       "That took quite a few people by surprise," Morris said.

HOW THEY'RE DIFFERENT

       Net shows include much of the fare you'd expect from film
makers with names like "Primitive Pictures." There's plenty of
attention-groping sex talk shows, like "Girls Locker Talk,"
"Luscious," and "Cyberlove."

       Another format that plays well is short parodies. There's
practically an entire industry in "Blair Witch" mockery, for
example.

Animation pieces are also a hit, since they require smaller
amounts of data and can be downloaded much faster. Wirebreak uses
a combination of racy animation and streaming video to attract
attention.

       Thanks to the limitations bandwidth imposes on films
(bitscreen.com's Nora Barry calls them "parameters, not
limitations," Net shows are necessarily different. To make life
easier for compression algorithms, directors are urged to keep
movement to a minimum; wide pans and complicated transitions are
discouraged. The videos are small, so nuances are easily missed,
and large, simple singular images have the most impact. And
perfectionists need not apply; aesthetics like lighting tones
can't really be controlled, since the film looks slightly
different each time viewed.

       But there are several new tools at a filmmaker's disposal.
Bitscreen offers one movie that is stored in parts and assembles
itself randomly each time. Live, interactive chats with talk-show
hosts are a staple, and since most shows have a few hundred
viewers at best, chatters act like a live studio audience and can
actually participate in the shows.

WHAT BUSINESS PLAN?

       New techniques also allow for new marketing plans. When
Arizona Jeans agreed to sponsor a Pseudo.com show called Funk,
the first scene was remade and all the characters redrawn
wearing, of course, Arizona Jeans. Several sites even mentioned
the potential for personalized product placement. If a
17-year-old is watching a movie, that bottle on the table would
be Coke. If a 30-year-old is watching, the bottle become Cabernet
Sauvignon.

       More traditional sponsorships from big-name retail and
tech firms are trickling in. DEN, for example, has signed up
Pepsi. Wirebreak shows 30-second spots hawking Gillette's Mach 3
razor. Still, original content can come only so cheap. DEN says
it can spend $40,000 on some episodes. That's why, according to
its S-1 filing with the Securities and Exchange Commission, the
company has no earnings or revenues to speak of.

       "We think you can't be an Internet-only company,"
Atomfilm's Matt Hulett said. "Advertisers inevitably want to know
the M in CP/M." Hundreds of viewers for a talk show, no matter
how focused the group can be, will never excite an advertisers.

       So Atomfilms hopes to make as much money from content
buyers as it does from advertisers. The company licenses its film
collection to other Web sites, airlines, even cable TV stations.
"We're looking for lots of ways to monazite that film."

       That's the strategy employed by ShortTV, a New York-based
company that's a cable outlet first, Web outlet second.

       "Our business model doesn't call for revenue generated by
our Web site," said president Roland Dib. The ShortTV cable
station is available to 2 million viewers in New York and a few
other major markets, and that's how Dib expects to make money.
"The point is to introduce short films to the masses. The Net is
another place to distribute ... but it’s still a much sexier
angle to call your parents and say 'My film is going to be on
TV.'"
       Despite Dib's pessimism, Warner Bros' Bannister is not
only convinced the time is right for Net video entertainment,
he's also convinced his company has a serious leg up on its
upstart competitors.

       "We do have a vision .. with a strong pragmatism mixed
with our understanding of how ... the dynamic that drives teenage
boys to see 'The Matrix' seven times in row is very different
than what drives business men to subscribe to the Wall Street
Journal."

* * * * *


==============================================================
             Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT

  FROM THE DESK OF:                    <[EMAIL PROTECTED]>
                      *Mike Spitzer*     <[EMAIL PROTECTED]>
                         ~~~~~~~~          <[EMAIL PROTECTED]>

   The Best Way To Destroy Enemies Is To Change Them To Friends
       Shalom, A Salaam Aleikum, and to all, A Good Day.
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