Category Archives: The Business of Production

Two companies: $8 billion of production

It’s hard to imaging but between them Amazon and Netflix plan on spending $8 billion on original content in 2016.

Amazon is expected to spend $2 billion, subsidized by Prime subscribers

Netflix’s subscribers will finance $6 billion in original programming.

Combined that would be 60 movies with a $100 million budget each. (Typically 400-500 movies are released by studios every year.)

Or 3000 ‘hour’ television episodes assuming a $2 million an episode budget. (Some would be higher, some lower). At 23 episodes a season, that’s one season for 130 different shows.

The Terence and Philip Show Episode 72: Workflow 2016, featuring Lumberjack

In this episode I get to spend a lot of time talking about the background the Lumberjack System, in the context of  the very unsexy topic of workflow, particularly automating the workflow. I share many of the background decisions related to Lumberjack System – our logging and pre-editing system for Final Cut Pro X – including why it’s limited to FCP X.

Other topics include automation; Digital Heaven’s announcement of SpeedScriber; how Lumberjack has developed based on user, and use, feedback; the post NAB development of noteLogger; Prelude LIveLogger and the Premiere Pro ecosystem and NLE market shares; how development resources are allocated.

Adobe sets new revenue, subscriber records

Adobe revealed record quarterly earnings on March 17th, with $1.38 billion in quarterly revenue ($5.5B annualized) and 4.252 million Creative Cloud subscribers (us included).

Of course, Adobe is strongest in document handling and photography but every subscriber has access to the entire Creative Cloud suite. I believe the integration between the video and audio apps is one of Adobe’s strengths in the creative TV, film and video space.

If I had to place an educated guess, I’d say there are more active Premiere Pro CC users than Media Composer active users, but not as many as Final Cut Pro X.

Apple to create original programming?

According to an article on MacRumors today, Apple is negotiating with Studios and Producers to create original programming for Apple TV. Two thoughts.

Apple have long created their own content by running music festivals and recording the performances.

It’s been a long time coming, but I thing it was inevitable. Back in late 2009 I postulated on What if Apple or Google simply bypassed Networks and Studios? My conclusion then:

Clearly, either Google or Apple could destroy the existing content production industries without borrowing or risking their business. Just what leverage do the current middlemen really have?

It’s a strategy that’s working well for Netflix and Amazon.