Tuesday, April 29, 2014

DWA Diversification

Jeffrey notes where the company's future will be.

... “Diversity is essential for us if we want to grow the business.” He added, “It can’t come fast enough” of the need to seek new platforms and outlets like TV, streaming and on-location entertainment." ...

For a long time, DreamWorks Animation had a high-risk, Pixar-style business model: Make a smash hit theatrical feature, make another smash-hit theatrical feature, then make another smash-hit theatrical feature.

The problem with this strategy is, over long stretches of time it's Un. Su. Stainable. And Jeffrey K. is right with his analysis of the Big Picture.

... “TV is a growth business. Short form content is a growth business. Movies are not a growth business." ...

Domestically, movies haven't been a growth industry since 1946. The rest of the globe took up a lot of the slack after that, but people began staying home for most of their entertainment when Truman was on his way out, and it's never changed. Now, of course, kids and twenty-somethings watch most entertainment on their phones, iPads and computers, and flat-screens are a second thought.

Movie screens? Great if you have yourself a blockbuster. Otherwise, not. Jeffrey is going in the direction Walt did in 1954, and his instincts are right.


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