... Jeffrey Katzenberg traveled south to Anaheim today to talk about online video, a business he does see growing into the next big entertainment business platform. ... [He] talk[ed] about why online video, particularly on YouTube, is such a promising creation and distribution platform for a new generation of talent outside traditional Hollywood.
“I think the opportunities ahead are so immense,” Katzenberg said. “This platform is in its infancy. Monetizing that is still a struggle. What we will see in a very short period of time, that will all start to migrate up to the top of the pyramid. I believe in five years, 95 percent of the value will come from the top 5 percent” of video creators. ...
I was never convinced that 3-D movies, which Mr. Katzenberg's once touted as game changers, were actually going to alter overall theatrical attendance very much. But on internet delivery, Jeffrey is probably onto something. New Media has certainly paid off for his company, what with their humungous deal with Netflix.
The challenge, of course, is how to monetize the tidal wave of internet content. To figure out how to do that will need high-powered, innovative thinking, because tweens, teen-agers and twenty-somethings are not jazzed about having to pay for what they listen to and watch. And there are plenty of ways to get movies, music and cartoon shorts without charge.
(YouTube, which Jeffrey thinks is the wave of tomorrow, is a dandy vehicle for downloading high-quality music. All you need is a handy, on-line converter and voila! You have your own library of free tunes!)
The internet is, at present, a double-edged sword for content providers. I have no idea when ... or if ... that will change.