“We’re definitely in the figuring-out stage,” says Pirnia, who adds that getting into the market early has helped DIC learn a lot. On Yahooligans!, for example, DIC came to realize that shorter clips were downloaded more, and reduced the average length to three to eight minutes. From its deal with SmartVideo, it has learned about mobile technology, such as the relative importance and reach of the various operating systems, the fragmentation of the handset market and the differences between older (2G) and more advanced (3G) networks. Until you’re active in a new market, “you don’t know what you need to know,” says Pirnia, who advises keeping deal terms short and nonexclusive to maintain flexibility.

The Internet is again providing new avenues for content, which would not have been available for short animation in years past. Courtesy of Frederator Studios.

CPM views new-media channels as a means of both exposure and profit. “Some of what we do is for promotion; some is about monetizing the content directly,” Grant says. “[New distribution venues] allow you a new way to get the word out about your programming.” CPM uses iPod and PSP downloads to help promote some of its lesser-known backlist or upcoming properties, for example. Grant notes that one of the appealing things about many alternative distribution channels is that they offer a wider variety of content, so consumers are able to make new discoveries.

While alternative media services don’t attract as many viewers yet as traditional channels, they already are viable promotional tools. Fred Seibert says the second episode of Channel Frederator included a Flash-animated music video from an indie artist, which caused the artist’s CD to rise from a ranking of 28,000 to 6,000 on Amazon.com within 24 hours of the vodcast’s debut.

Biehl notes that tweens use personal video players to share their favorite shows with friends. “That’s why content providers want to work with us, because [the VUGO] promotes their network TV offerings. It’s another way to reach out to their consumers.” Because all content on Vugo.com is copy-protected and can’t be traded, corporations are comfortable supplying content, Biehl adds.

Adapting Existing Shows
While some animators are creating content specifically for alternative distribution channels, much of the material available to date is repurposed from another medium. Apple’s Townhill explains that the iPod can handle content of all frame sizes and aspect ratios. “It still looks pretty good, but the screen’s real estate is not all in use,” he says. For those making content exclusively for the iPod, he advises creating the animation close to the final frame size, and counsels animators to “keep the master as clean as possible” for best results.

In some cases, existing content may need editing. Pirnia notes that Yahooligan’s broadband content must be simplified for transfer to mobile phones, due to the small screen size. There is more focus on characters, for example, and less background is included.

The alternative distribution space is constantly evolving in terms of what types of content work, how deals are negotiated and how animators are compensated. But there is no doubt new-media services are hungry for content. And animators are well-positioned to get into this market early. Those who take advantage of the opportunity in the short term will be more likely to succeed once these now-new distribution venues become mainstream.

Karen Raugust is a Minneapolis-based freelance business writer specializing in animation, publishing, licensing and art. She is the author of The Licensing Business Handbook (EPM Communications).