consolidations

1
consolidations

• 05.06.06

2
is the index really gone?

• just because an image is converted to data does
  not mean that the pointing function is
  eliminated
• surveillance video and webcams highlight the
  importance of a fundamental connection between
  image and referent
• viral videos pointing to a maker, pointed to
  through viewing, linked through distribution

3
economies of scale

• low end of the scale
• individual productions of YouTube
• 1998 Festen The Celebration
• first wide theatrical released for a feature film
  shot on digital video (transferred to 35mm film)
• opens up use of professional, prosumer,
  consumer DV for independent film shooting
• the idea of democratic filmmaking through lowered
  costs of digital technology

4
economies of scale

• has digital technology lowered the cost of
  filmmaking?
• not necessarily
• in fact, one could argue that it has contributed
  to the dramatic increase in production/postproduct
  ion costs
• rising costs of special effects, the increased
  dominance of special effects based films

5
economies of scale

• has digital technology lowered the cost of
  filmmaking?
• King Kong 207 million
• X-Men The Last Stand 210 million
• Pirates of the Caribbean Dead Mans Chest 225
  million (est.)
• Superman Returns 260million (est.)
• Spider-Man 3 approaching 300 million
• the increased costs going mainly into CGI
  (computer generated imaging)

6
economies of scale

• has digital technology lowered the cost of
  filmmaking?
• yet while digital technology has generated the
  overall increase in filmmaking costs, it has also
  opened up the range of outlets for distribution
  and the types of low-budget films that can be made

7
theatrical presentation

• theatrical projection
• conflicts b/t studios (distributors), theater
  chains, tech companies (TI JVC)
• also Boeing, Technicolor, Eastman Kodak
• who will pay? who will profit? what are the
  risks?

8
theatrical presentation

• cost 150-200K per screen
• theater chains to foot most of the bill
• studios make most profit
• studios propose contributing (in exchange for
  more control over theatrical content)
• sticking points
• agreeing on a technical system
• encryption and compression standards

9
other venues

• digital television DTV
• ongoing and endlessly postponed conversion to
  over-air broadcast digital
• digital TV mainly through satellite cable
• DVRs and personal management of TV
• telecoms v. cable companies

10
other venues

• the third screen
• that is, besides the computer the TV
• the i-pod (etc.) the mobile phone
• short clips (under 3 min.)

11
consolidation convergence

• consolidation
• ownership
• the merging or takeover of media companies
• concentration in a few media conglomerates
  oligopolies
• a process that started in the 1960s
• Paramount ? Gulf Western diversified
  conglomerate ? Paramount Communications
  concentrated conglomerate ? Viacom multimedia
  conglomerate, now streamlining
• synergy integrating the parts

12
consolidation convergence

• convergence
• technology
• the merging of all media formats into one unified
  digital format
• initially, one device
• now, multiple devices allowing for multiplatform
  use and interoperability
• focus on personal and intimate media

13
convergence strategies

• News Corp.
• Fox Interactive Media owns
• MySpace
• FoxSports.com
• IGN IGN.com, GameSpy.com, TeamXbox.com

14
convergence strategies

• News Corp.
• converting MySpace into an personal portal
• each MySpace homepage can function as a portal
• sales transactions will be made through those
  portals
• portals being redesigned to more easily deliver
  targeted advertising programs
• importance of advertising leads to content
  restrictions (humans scanning MySpace and
  Photobucket for nude pictures)

15
convergence strategies

• News Corp.
• New Line Cinema ad for Wedding Crashers DVD run
  across all Fox Interactive properties
• integrating Nip/Tuck and Family Guy
• being careful not to force things on the audience
  
• Wall Street Journal 25 Jan. 2006

16
Time Warner

• and the limits of consolidation
• timeline
• late 1910s, early 20s Warner Bros. and Time Inc.
  (separate companies, film publishing)
• 1990 Warner Communications (already a multimedia
  conglomerate) and Time Inc. (still mainly a
  publisher, but w/ HBO) merge to form worlds
  largest media company
• 1996 Time Warner buys Turner Broadcasting
  (including CNN)

17
Time Warner

• and the limits of consolidation
• timeline
• 2001 AOL takes over Time Warner (AOL/Time
  Warner)
• much hooplah about synergy and the victory of
  new media over old
• conflict between media cultures
• stock options v. cash bonuses
• enabling sharing v. control of content
• last gasp of the internet economy AOL drags down
  company value name removed almost jettisoned

18
Time Warner

• and the limits of consolidation
• 2006 still currently the worlds largest media
  company
• but now following a trend of reducing size
• failure of synergies competing units would not
  work together
• demands for in-house discounts (such as by HBO to
  show Warner films) created resentment, not
  cooperation
• too much conflicting interests in such a large
  company

19
Time Warner

• and the limits of consolidation
• 2006 still currently the worlds largest media
  company
• now, units look for outside partnerships first,
  then to other units in Time Warner
• units that are not industry leaders will be
  sold
• new buzzword adjacencies a more contingent
  network rather than a tightly integrated system
• competing w/ the new media companies Google
  Yahoo!
• Wall Street Journal 2 June 2006