Newer Tech, Different Biz

Aaron Levie in Variety tells us:

... In front of every studio, network, firm, label and agency is an opportunity to embrace innovation and evolve its business model to compete on a scale and in a style commensurate with an industry capable of reaching half the planet in a click.

Early examples are inspiring: U2’s latest distribution deal with Apple, Thom Yorke’s surprise direct album sale, Jared Leto ... and his venture VyRT monetizing an online community around live events and concerts, DreamWorks Animation and Disney both acquiring major YouTube channels and producers, and disruptive new content licensing models led by Netflix. But these are still the exceptions in a sea of business deals done the same way as they were when Lew Wasserman presided over MCA.

The true opportunity is in re-imaging the industry end-to-end ...

Look back at the history of motion pictures, established companies always need to be dragged kicking and screaming to the next turn of the road.

Few of the larger movie studios wanted to embrace sound motion pictures. They had too much investment tied up in silent movies. But the market pushed them.

And almost no moguls embraced television. They tried to freeze the medium out, except that Disney jumped in, then Warner Bros., and then everybody else hopped aboard the thundering freight train.

So here we are again in the 21st century, and the internet has destroyed the record companies comfy old business models of selling records/little silver disks in brick and mortar stores. And the movie conglomerates are bound and determined that it won't happen to them.

Trouble is, technology and markets go where they go. Older companies either adapt of die. There's really no two ways about it. It's been the way of the world for a long time, and there won't be any stopping the new realities now.