I read something interesting today over at AdultFYI about a lawsuit between Anarchy and Gamelink. It seems Gamelink has been fucking Anarchy in the ass over some VOD payments. Anarchy Films you may recall releases such great titles as Cream My Coffee, one tasty movie.
But in all seriousness, this is a very interesting story because no matter how bad the economy is right now, you keep hearing stories of companies doing stupid shit regarding VOD. I don’t know what the fuck Gamelink was thinking but I’m glad Anarchy took a stand against them. But Gamelink isn’t alone in making bad business decisions. I recently heard a story about the CEO of a movie studio who turned down a VOD deal with a very large company, who had been doing business with them for more than 10 years because he didn’t like the guy. The economy sucks right now people. What the fuck are you thinking? Why the fuck would you go out of your way not to make money?
Full story from AdultFYI – Full Anarchy Films Issues a Cease and Desist to GameLink.com
Oren from Anarchy posts: Affective April 1st, 2009, Anarchy Films has issued a Cease and Desist to GameLink.com and Privatevod.com. Jeff Dillon, Business Development Manager, has agreed to remove all Anarchy’s properties from all GameLink sites and affiliates effective today.
Usually Anarchy Films does not like to air dirty laundry, however this laundry stinks so bad, that we have felt that all Studios has the right to know.
The back story is this: Since January 2009, Anarchy Films has realized that its VOD income has dropped by more than 50%. If you remember this is around the time that Private purchased GameLink. We also realized 3-4 weeks later that GameLink is not sending the VOD monies on time.
In the past they had not paid us VOD money from 2005-2008. Their response was ” we forgot “. The more carefully we read the Contract, the more we realized that the contract is bad for my Studio.
The first thing that is bad in the contract is the 25% commission. Most VOD studios pay between 30%-40%.
The second issue is that payment has and must be paid by the 15th of every month. Third, is the Pay By Minutes. 18% of all GameLink customers will buy 10 minutes and will pay 30 cents a minute. 14% of the customers pays 20 cents a minute. 10% pays 15 cents a minute. 7% pays 12 cents a minute and only 20% out of 80% of the customers pays 10 cent a minute.
You know how much they pay the Studios? 2 cents a minute!!!!!! They built their model under a 1000 minutes which a customer pays 9 cents. 0% of the customers buy a 1000 minutes for $87. So the average needs to be around 15-16 cents a minute.
For example: if a studio makes 20,000 minutes a month, GameLink makes $2,600 and the Studio makes $400. But, again remember that 60% of their customers pay between 15-30 cents a minute, so the $ amount is so much higher.
The bottom line is that Anarchy Films wanted to get paid its fair share and of course on time. When they refused to negotiate with us, we decided to pull all our titles from them.
SO HERE IS A COPY OF AN E-MAIL THAT WAS SENT TO GAMELINK AND PRIVATE THIS MORNING FROM ANARCHY FILMS
My bosses have requested me to send this e-mail on behalf of all Anarchy Films, 5th Element, 18 Karats and Python Pictures. Affective April 1st, 2009 all Anarchy Films, 5th Element, 18 Karats, and Python pictures must be removed from GameLink sites, Private sites and all affiliates sites. A Cease and Desist letter will be mailed out to the offices of GameLink as well. As we see it right now, our contract between both companies has being canceled for lack of non-payment by the due dates that GameLink LLC have set up for themselves. All attempts to resolve the situation has being ignored by GameLink.
We also request to schedule a date for an audit starting from day one that our titles went live. In the audit, we expect for fully disclosure of all monies transactions and all GameLink and private sites that our 470 some titles were used in. We will use the audit findings in Court. Please notified the offices of Anarchy Films via e-mail or by mail regarding the audit dates.
On April 1st, 2009 Anarchy Films will issue an official Press release to notify all available news sources about our intent, and all findings will be updated to the press.
We are strongly recommend to remove all our assets from your sites to avoid future legal litigation.
Thank you for your corporation and understanding,