just tristan.

@tristanwalker. foursquare biz dev. graduate of stanford business school. i do some other stuff too.

• out with the old. in with the new (media).

  
  

  

  Studio execs need to wake up. The media industry is broken and the studio execs are left trying to pick up the pieces.

  Today, the New York Times revealed that William Morris Talent Agency is close to signing a deal with YouTube that would allow its clients take ownership in the videos they produce by using YouTube’s massive distribution platform.

  This deal is game changing. And it’s a win-win for both companies. The deal would allow clients of William Morris (i.e. Denzel Washington, Russell Crowe, Snoop Dogg, etc) to completely bypass studios and TV networks for content they wanted to create for the web. This offers a great opportunity for talent to get paid for content at a time when studios are greenlighting fewer and fewer films and cutting fees. The deal also would be a natural progression for YouTube because it allows the company to expand its professional content product offering from older cataloged content, to newer, fresh content. William Morris would also lure major consumer brands to YouTube’s programs as sponsors, which would be great for YouTube as they have been struggling to balance their massive viewership with the little ad dollars they receive against user generated content.

  Previously, it may have made sense for studios to be reluctant to offer their best content in an ad-supported model, and instead distribute their content through Netflix-like channels. Well, at least until the Netflix Watch Now platform started its expansion program. The New York Times recently reported that the service will eventually allow users to watch any movie they want, at any time and at no extra charge. Studio execs just don’t get it. Who will need HBO, Showtime, Starz, Cinemax on demand services when companies like Netflix and YouTube will eventually be able to stream any of the professional content (both cataloged content and fresh content) that we want to watch, and be able to do so cheaply?

  Studios are losing control, and good for them. They are deserving. They are leaving too much money and too much opportunity on the table. Netflix and YouTube are cracking the code. Who wants a piece of the pie?

  Peace.

  30 Jan 2009 / 1 note