A recent comment in an article on CNET.com caught my eye:
“If I owned a studio, I’d make movie theaters pay me,” says Dana Brunetti, producer of “House of Cards” and “The Social Network.”
Needles to say I had to read the article. First note was that this comment was in the context of a web focused conference, so there may be an element of “playing to the audience”, but in essence the argument is that more online/web companies should follow Netflix (and Amazon, Google and Apple) into producing more original content.
With online and technology-based companies already threatening traditional distribution methods, the impact would be huge: “Once Silicon Valley can create content as well,” said Brunetti, “they’ll own it soup to nuts.”
I can’t argue with that. More original production means more jobs in the industry. (And yes, more clients for my day job’s business.)
What appeals to me is the push for “per program” content purchase. As long as the pricing issue is solved. It should cost no more (over a month) for a la carte purchases of limited programming, than it is for a full cable subscription.
Comments
2 responses to “Are Silicon Valley and Hollywood in opposition to each other?”
Philip,
“As long as the pricing issue is solved. It should cost no more (over a month) for a la carte purchases of limited programming, than it is for a full cable subscription”.
I think the model will end up being a combination of “a la carte” with low subscriptions for a “library” of older content, particularly older movies.
Of course, the pricing issue is far from solved. Here in Oz I spend $180 a month for broadband internet and cable TV. I buy a “total” cable package as there is no way to get anything smaller and still get sport, movies, and the few “entertainment” channels I want.
When Netflix opens here next year I expect a radical shift ion pricing .
Philip/Tony,
I too am in Australia, and from my point of view there are a number of problems that must be resolved;
1) as mentioned by Tony, in Australua at least, we are forced into buying Foxtel (cable), about $74/month minimum for a decent package. There is no a la carte.
2) to get the ‘must watch’ shows we will be forced into subscribing to all of the Netflix like providers for their exclusive content… Stan, Presto and Netflix – Plus an Internet connection with a decent mount of bandwidth.
So for all of our tv we could expect to pay about $170/month. And the content providers, cable at least, will continue to make us endure commercials, whether it be between shows or during (as in “The Walking Dead” on FX on Foxtel). I hope Netflix, Stan and Presto remain commercial free into the future!
With these costs, it’s easy to see why so many veer towards piracy.
Will pay per view change things? Maybe, but will as many shows survive without the traditional launchpad of a 24 hour constant stream of programming? Will a shows success depend on word of mouth?
One thing is for sure, multiple players will occupy the space and there will be huge competition… but i my opinion, at some point big players will fall.
Regards
Steve