A new social network for movie aficionados could help movie studios find their audiences faster, Fool contributor Tim Beyers says in the following video.
Known as MovieLaLa, the service proposes to connect would-be audience members with movies they might like to see. Those who connect via Facebook (NASDAQ:FB) can share content and invite friends to nearby shows. The Hollywood Reporter says there's also an "icebreaker" feature that allows like-minded fans to find each other and organize an outing.
So far the product is only available on the iPad. Early investors include salesforce.com (NYSE:CRM) chief Marc Benioff and Machinima co-founder Allen DeBevoise. Yet the bigger question, Tim says, is why studios aren't backing the app.
Every major outfit is producing fewer movies than than they were just a few years ago. Sony (NYSE:SNE) is among the latest to scale back, putting more resources into the handful of films that have genuine franchise potential. The Amazing Spider-Man films, for example.
While that strategy no doubt preserves capital in the short term, the risk is higher. One major flop can punish studio profits for a quarter or more. MovieLaLa offers a defense in the form of early access and special promotions for enthusiasts who might help to build buzz.
Either way, Tim says MovieLaLa's arrival signals a more deliberate attempt to market films outside of TV ads and the festival circuit. Media stock investors would do well to follow its progress.
Now it's your turn to weigh in. Do you see social media success leading to box office success? Would you want to see a major studio you're invested in putting money into MoveLaLa or another service like it? Please watch the video to get the full story and then leave a comment to let us know your take.
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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple and Salesforce.com at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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