The Nexus of Online Video: Hollywood, Silicon Valley & the ‘Death’ of MySpace…

Actually, while a mouthful of a title, it is one that might have been even longer, so to include both MySpace AND Yahoo! Why? Each had moments of prime opportunity where they could have “bridged the gap” between the content of Hollywood and the technology of Silicon Valley. And both failed to do so.

One of the key items that I discuss at length at WebTVWorkshop in Hollywood is why…and how…Hollywood does not have [and has not had] “control” of Digital/Online Video, as it now does essentially in the Cable, Broadcast, Film and Syndication worlds.

This is key, because if they don’t continue to get more involved and get some “control” in some sense, they will continue to then lose ground in several areas that are already affecting them.

They are starting to realize this, true. But as I see it, they are reacting to outside forces, not leading them…or controlling them. Yet. Will they get a handle? Most likely, but more pain is inevitable on that path. [Not everyone will see this as a bad thing, as Hollywood of course has many detractors. But we’ll leave for a separate discussion.]

We are already seeing both a fragmenting of audience, and of ‘distribution’: people “cutting the cord”, more time being spent watching video on-line than off, and movie revenues under pressure due to less DVD usage.

Yahoo! [as those of us over 30 may recall] held great promise as the first attemptor at this synergizing process in the late ’90s, with the making of Terry Semel as CEO. Former Chairman of Paramount, etc., Mr Semel was a Hollywood heavyweight, defined. Maybe it was too early, maybe it was a lot of things, but Mr Semel did not come close on this. As from my comments on SAI [image below], then comes MySpace.

An even greater “miss” on video, was MySpace. It IS a greater miss…because it is also a much greater irony.

MySpace became huge in the Music world, the place that bands HAD to be. But it was bought by NewsCorp, a property that owns not a single Music library. It does however, own TONS of video content.

In fact, as NewsCorp also owns Fox, it had a world of Movies, TV, Sports and Broadcast vehicles to choose from, essentially. And yet, they ceded more or less, to Youtube. Owned as it were, not out of Hollywood, but out of Silicon Valley.

The irony abounds, and the nexus is not [yet] in Hollywood for WebContent. This is one of those ‘Would Have Been/Could Have Been/Should Have Been’ scenarios that people like myself will watch & ponder on, for some time to come.

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~ by MindOnMediaSales on March 26, 2011.

3 Responses to “The Nexus of Online Video: Hollywood, Silicon Valley & the ‘Death’ of MySpace…”

  1. are you on linkedin?

  2. Thanks – where is article source?

  3. By sitting back and waiting for “the money”, networks and studios no doubt saved hundreds of millions of dollars that didn’t get wasted on digital video and online experimentation. Kudos for them, until you think about the hundreds of billions of dollars they’ve probably lost irrevocably by not defining the online viewing experience and leaving that to upstarts like YouTube.

    The 15 year olds watching Shane Dawson and Phil DeFranco today are tomorrow’s 18-35 core demographic, and they (especially when you factor in the increasingly immersive qualities of video games) are growing up expecting more than a passive, “lean back” experience from entertainment.

    Studio content simply does not translate. You *can’t* just put Desperate Housewives on the internet and expect the same results you get from putting it on TV. Inaccessible stars, tightly closed production veils, one way broadcasting – these are out-dated experiences that ultimately will be met with indifference by millions of viewers trained (by others) to expect more from what they watch and engage in.

    I don’t know what the future of entertainment looks like any more than anyone else does, but even assuming “digital pennies” do inevitably turn into “digital dollars”, Hollywood will be playing catch up and ill-equipped to succeed without a long, painful, and expensive adjustment period.

    Omnia mutantur, nos et mutamur in illis – all things are changing, and we are changing with them.

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