Trends, Innovation and Money

In reading and tweeting on a few news items this morning, I was compelled to write a quick blog post.  I think I am restating the obvious, but sometimes it's good to remember simple lessons.  So, here it is:

If you want to make a lot of money in the entertainment business (or any other business), solve a real problem for a price that people are willing to pay.  That's what successful companies

The Most Important Trend for Entertainment 2010

At this time of year, it's interesting and fun to think about where our industry is headed.  More specifically, what are the important trends in entertainment?  Which changes are most likely to impact those of us who don't work at NBC Universal?

We can talk about the various developments and what they might mean for the various sectors, but I think this coming year there is one single

State Film Incentives and Smoking: An Email Exchange About Competing Policies

I had an excellent email exchange with Jonathan Polansky yesterday and today. Jonathan is a media consultant, anti-smoking advocate and the principal of Onbeyond, LLC , a media consultancy in Fairfax, California. His current project is on behalf of the University of California.

I am going to reprint our exchange for you because I think it raises some great issues. The essential topic is the

Technology and The Collapse of Distribution Windows

An article in today's Variety details efforts by the MPAA to help its members gain the ability to broadcast first-run movies directly to consumer's homes. The article raises a few issues:

1. Apparently, approval from the FCC is needed for the MPAA members to use DRM protection on the broadcasts. Not surprisingly, the studios would be unwilling to give consumers access to broadcasts of

Markets, Sequels and Other Things Filmmakers Need To Understand

As the name of the blog implies, I am all about the business side of entertainment. I suppose I'm fairly creative for a lawyer, but I inevitably look at the entertainment business as a fun, challenging and interesting way of making money. If you're not in it for that reason, then what you're doing isn't really a business.(As an aside, I do serve as a music supervisor for films and there is

Iowa Tax Program Update

After yesterday's post, I got into a great Facebook discussion with attorney/writer/producer/sales agent, Darlene Cypser (@DarleneCypser) of Colorado. She was kind enough to provide a link to the actual auditors' report which ostensibly caused the governor to shut down the program. Darlene suggests that, based on this report, there was definitely a problem. I don't disagree, but we probably

Iowa Film Tax Incentive Program: Is There Really a Problem?

There is an excellent article in today's Wall Street Journal about the suspension of the Iowa Film Tax Incentive Program. Clearly, the program was driving a lot of film business through a state that would otherwise have very little. But when an audit of the program expenditures revealed subsidies helping to purchase luxury cars, an expensive bed and an iPod, the governor halted the program and

Hollywood: Are Things Really That Bad?

Earlier this week, I was listening to my favorite business podcast - The Business, hosted by Kim Masters. Let me preface this by saying that I am not picking on TB or Kim. In fact, I am a huge fan of both. I think Kim is seriously one of the very best entertainment reporters I've seen, heard or read.With that said, I have to complain about the negative tone of some of her recent reports.

Current Trends in the Film Industry Create Both Challenges and Opportunities

In this article from Friday's Variety, Peter Bart and Michael Fleming paint a fairly negative picture of the current state of the Hollywood film business. In its subtitle, the article promises both the yin and the yang of the prevailing conditions, but by the end of the piece, it feels like a lot of yin and only a little yang. They don't really put much emphasis at all on the bright side of the

Smart Money Chasing Proven Producers

An article in today's Variety gives details of recent deals where financial partners other than studios are backing development efforts of proven film producers. The top line relationship addressed is Barclays Bank's reported backing of Jerry Bruckheimer's development efforts with a $20 million credit line. The article also discusses yesterday's Imagenation Abu Dhabi deal with Walter Parkes

Pros and Cons of the New Ortenberg Business Model

I had a great discussion today with Ted Kroeber regarding the new venture from Tom Ortenberg, One Way Out Media. The new company is slated to undertake a variety of functions in the independent film world, including financing, distribution and consulting. This of course takes advantage of Tom's vast experience and superior track record in the film industry.On the positive side, I think Tom's

TV Widgets - A Revolution In Interactive Media

For those of us who watch the media landscape (and make our living in the entertainment business), the development of truly interactive television is an elusive landmark that has been slowly approaching for years. It has become almost a myth, with millions of dollars already lost because it failed to develop as quickly as many hoped it would.In the past year or so, I have written fairly often on

Recorded Programming Has Not Significantly Altered TV Viewing Habits. Will it ever?

Today's Hollywood Reporter carries an article on the impact of digital video recorders (DVR's) on television viewing habits. The article tracks a study on the topic, and makes a couple of interesting points.First, although many homes (36%) now have DVR's as a part of the home entertainment system, over 90% of TV viewing is still done in the traditional linear sense. The programs recorded on the

Negotiation: Eloquence Does Not Equal Effectiveness

Most often, I like to write about developments in the entertainment business and the likely implications for members of that industry. But every once in a while, I feel compelled to share something I've learned in the course of my work day. Usually the lessons are not new, but have only been forgotten. I figure sometimes all of us can use a reminder.Recently, I have been reminded that effective

Blockbuster's Dilemma

This week Blockbuster announced it will likely be closing almost 1,000 of its stores in the near future. Of course, this is no surprise. It has been clear to everyone who watches this industry that the retail video store is dying a not-so-slow death. And the success of the Redbox kiosk business is speeding that process.So, Blockbuster is now going to spend up to $60 million in shutting down

Digital Cinema Funding Comes Out Of A Coma

This week's big news on the business side of the film industry has to be JP Morgan's announcement of its return to the digital cinema funding business. The Wall Street survivor announced a $525M fund that is targeted to roll out about 500 new digital screens per month, almost doubling the North American penetration by the end of 2010 to as many as 13,000 screens. The fund will ultimately

Cross-Platform Synergy Isn't Just an Advertising Strategy

A day doesn't go by without some media executive talking about "promoting a brand across all of our platforms." In normal person speak, this means, "I think we're finally figuring out how to make the Internet work for us."Initially, I think traditional entertainment companies viewed the Internet as a threat (of course) and then as another place to advertise their films and programs. Now they are

An Honest Take on The Current State of Indy Film

The recent coverage by the Hollywood Reporter of the independent film business included an article by by Steve Zeitchik on the current state of the industry. While Steve starts with a lot of doom and gloom, implying that the entire industry may be on the brink of collapse, he ultimately paints a fair picture that I found somewhat positive. His ultimate conclusion is that producers need to keep

Viacom vs. TWC: Who has the power in the new media landscape?

Happy new year to all. Early this morning (technically after the old contract expired), Time Warner Cable and Viacom reached a new deal. Basically, the story was as follows: Viacom felt that TWC was paying too little for Viacom programming relative to the number of viewers. A Bernstein media analyst, Michael Nathanson, backed this up in a published report, and he appeared to be right. So,