How Digital Companies Are Moving In On Studios
Tuesday, September 6, 2016
From The Hollywood Reporter:
…The majors are still the first port of call for any significant project; they still have an unparalleled ability to get that project developed, cast, shot, marketed and into theaters; and despite extraordinary technological and economic change, they haven’t allowed any upstarts to challenge their hegemony.
Amazon’s entry in the film business is still relatively small-scale. None of the pictures it has backed (all so far are acquisitions, and all are being released theatrically through various partners) is particularly expensive or likely to be a blockbuster. But the company is just dipping its toes in an industry it knows little about. It has the personnel, the deep pockets and the sheer chutzpah to make its investment much, much bigger. And it will.
Nor is Amazon the only giant trespassing on studio territory.
Netflix has also been in the vanguard of laying siege to the old bastions of Hollywood power, with a war chest of $5 billion to spend on different forms of content — multiples of the amount spent annually by any single studio, and many times what each studio makes in profits. Most newcomers are restricted by a lack of funds, but Netflix has money to throw around. This isn’t a short-term experiment, it’s the beginning of a long-term plan…
- Read the full article at HollywoodReporter.com