I have some concerns with the service.
6. When a user rents your film, it will be available for 48 hours on the site, iPhone, iPad and other mobile devices.
This is what concerns me the most. While of course there are people who will watch content on mobile devices, I would expect the majority of people would prefer to watch on their TV and/or projectors. I could be wrong, but this limiting factor scares me. If there was some easy and convenient way to watch content through your service on all platforms that people would want to watch, I'd be extremely excited about your service.
Instead of a rev share model, we charge a small monthly fee.
$15 for shorts (45 mins or less)
$25 for features (45+)
Combined with the above, this would worry me.
Though, that all being said, what are the usual splits for Comcast/Time Warner carriers? 70/30 split in their favor. If there was some sort of demand, especially if you do your own promotions, your deal does sound like a better option. I presume the .99 is to cover transaction charges and you basically only profit the $10/$25 monthly fees. I'd personally prefer something like a 80/20 deal in my favor with a monthly minimum of $10 to $25 in billables from you capped at some number. That way I'd feel more comfortable that you'd work harder to push my content (and everyone elses, and increase your traffic) and that you were more financially committed to long viewer growth than to long term vendor growth. (I hope this makes sense, if not just ask).
Not saying that I don't like the sound of your service, or that I won't change my mind a week down the track, that's just my initial thoughts.
We just got burnt on our deal in the sense that after 6 years and the film being available on cable, in the stores mentioned and elsewhere that we never saw even 50 cents. They always had costs to recoup, including a $10,000 bill to design the DVD cover. It was crazy.
That really sucks. No limits imposed on expenses? Though 10k for a independent cover does sound slightly excessive.
Good luck!
