• Wired, Friday, January 18, 2008 10:45 AM

"Webolution" will no doubt be one of the most closely watched panels at this year's Sundance Film Festival as the independent film industry struggles to tackles the prospect of reinventing itself through the Web. That struggle is best exemplified by the festival's own online offerings, which have been slashed this year, even as video takes off on popular sites like YouTube and MySpace.

Indeed, the so-called "Webolution" has been a slow go for smaller video providers like Veoh and Joost (both are panelists) that offer professional and amateur content. While the writer's strike and subsequent lack of new original TV content has driven millions online, the prospect of a producer actually making money through an online venture is actually quite small.

Sundance is a great example: its Online Film Festival, launched in 2001, has failed to attract the attention expected. Last year, Sundance offered nearly 50 films over the course of the 10-day festival. This year it will show just one film per day; Sundance shorts will also be available for download at $2 each through Apple's iTunes, Microsoft's Xbox Live Marketplace and Netflix once the festival ends. According to Variety, distributors spent $54 million last year on movies that earned just $34 million at the box office.

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