Dan Hamilton's shared items

Wednesday, November 7, 2007

Eisner says Blame Apple. He's Wrong.

Leave it to Michael Eisner to prove exactly what's wrong with the studio mindset regarding video digital distribution:

The studios "make deals with Steve Jobs, who takes them to the cleaners.
They make all these kinds of things, and who's making money? Apple!
They should get a piece of Apple. If I was a union, I'd be striking up
wherever he is."
Ugh.  As I have noted before the mindset that Apple is to blame for the supposed lack of profits on video digital distribution is simply hog wash. 

First of all, the studios haven't seriously taken a shot yet at digital distribution.  Apple's only got around 1000 videos for sale on the iTunes store.  Moreover, I am convinced that video sales of films are just not what people want - rentals are where the volume (and money) is (and I am not the only one who thinks this).

More importantly, the movie and TV studios are just irrationally wedded to an advertising model.  They think that ads will make them money, the same way it makes them money on TV.  But it will not work in the digital world.  They have to offer their products digitally in a manner that is convenient, simple to use and, can be accessed anywhere.  For many reasons, an ad based model doesn't fit that bill (not to mention the fact that it is very easy to eliminate ads in digital distribution - and that absolutely drives the studios nuts).  And they have to offer the content at a price that is reasonable ($9.99 for a movie download - without the DVD extras - and $1.99 a TV episode is pushing the upper limits here.  And yet, they want higher prices!).  And of course, they continue to insist on restrictive DRM

Not only is Eisner an idiot for his Apple comment, he's just plain wrong on the writer's strike:


For a writer to give up today's money for a nonexistent piece of
the future -- they should do it in three years, shouldn't be doing
it now -- they are misguided they should not have gone on the
strike. I've seen stupid strikes, I've seen less stupid strikes,
and this strike is just a stupid strike.
Now, I admit I don't know all the details about the writer's strike, but I do know that the whole reason there is a strike is because the writer's forgot to deal for DVD's the last time.  Seems reasonable to me that the writers don't want to let several years of digital revenue pass without them having a deal to getting a share of it.

So, after all this BS, where does Eisner think the of video distribution future is?   Yup, you got it - the internet.  Thats where is putting his own money.  What a clown. 

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