Fix Studios in 2010

The foundation of entertainment is built upon the concept of the studio. Within its walls the magic of the filmmaker is created and distributed throughout the world. However the past five years or so have been meet with tremendous hurdles. There is trouble in paradise, and most of us generally avoid it. The economy seems to have intensified some of the its more immediate needs. However, nearly every facet of its business has changed from talent to advertisement. Studios must learn to adapt if they will continue to thrive, and here’s my two cents.

1. New Blood

There have been several corporate power struggles since tinsel town. This saber rattling has  accommodating fresh young thought by way of Ben Silverman. Ben Silverman is credited with helming “The Office” into critical acclaim, and other notable accolades. His story is one of success, and continue scrutiny. NBC has grown steadily, and even taken a very forwarding thinking stance regarding new media and addendum content solely available through them. For example, “The Office” now offers original webisodes off their site with the same characters and writers. Excellently done. Others who have taken New Media by the horns is Michael Eisner. Who can forget this power player leaving Disney to begin Veoh, and investing into original content studios such as Vuguru, and even finding and funding great talent by way of Big Fantastic?

2. New Content

Networks are slow to adopt new forms of content to better reach their audiences. Recently, NBC has begun to create webseries surrounding their successful brands. “Hero’s”, “Office,” and “Scrubs” all offer content featuring the same talent pool that is bringing its mainstream content. Online audiences have readily adopted this content. Mash-ups are also extremely popular among key male demographics. Networks must be faster to adopt, and even to pioneer different content forms for their eager audiences.

3. New Revenue

Studios are very slow in not only recreating revenue models, which is understandable, but slow even to exploiting or nurturing existing ones. For example, syndication residuals were not considered a goldmine until Jerry Seinfield caused studios to stand up and take notice of the money he was entitled. Not to mention the Olympics revenue models where laughably disproportionate. Nearly half the viewers consumed the Olympics through the internet and yet internet sales were largely ignored. The studios need to be faster on the uptake.

For example, “Remote-less TV” has been a successful experiment conducted by Fox on Fringe. Essentially you charge a premium to less commercial advertisers and this sponsor receives less often yet still more prominent position. This causes the audience to have to sit through less commercials. Other studios are not losing this money, but have yet to act upon improving the user experience! Get it in gear!

4. Discover New Distribution Opportunities

Large conglomerations with a wide variety of distribution methods should consider restructuring their output to be more effective. Previously films fell into four separate budgeting structure or options, and now it has changed into two main genres to accommodate  big blockbusters or independent films. This chasm is gradually widening over the recent years. Previously, as recently as 10 years ago, blockbusters were considered over 75 million. Now blockbuster can run up and over 150 million easily.

George Lucas shocked many as he decided not only a different format for his Star Wars sequel, but also decided to bring programming to Cartoon Network of all places. Previously I could see a Star Wars originals coming to Sci-Fi faster then to Cartoon Network. Despite it all it has done very well.

Steven Soderburg release BUBBLe over several different outlets on the same day. This was herald as a large risk, as it tempted to reinvent the distribution model outside of theatrical chains. Why buy a theater ticket for 8 dolllars when I can buy it the same day for $20?

5. Corporate Consolidation

Consolidation is in order. Due to economic difficulties, and dwindling profits corporations must consolidate or restructure to survive. This does not necessarilyily mean unemployements rather a reappropriation of funds and personale. New Line has succeeded since being folded into Warner Bros. Universal has done a very good job of this. Universal is currently the only studio I know of which has not only post a consecutive two year high profit surge, but also made better use of their smaller studios such as Lions Gate.

6. Conglomeration Conflicts

Studios typically belong to a conglomeration of corporations. For example, NBC is the distribution network whereas Universal is the production house, both of which are owned by General Electric (GE). Typically these facets of a large corporation find themselves overlapping in mission and vision and can quickly be working against one another. Inter-department conflicts arise much more frequently then most higher management would care to admit, but it doesn’t change the fact they are working against one another.

7. Reinvent Talent Contracts

During the 1940′s and 50′s MGM were producing excellent entertainment largely due to the fact that they held “More Stars then there were in heaven” contracts. Who could argue the fact? Actors such as Marx Brothers, Katherine Heburn, Judy Garland, Shirely Temple, all were found under one roof. Under contract for years not by picture. Essential MGM owned Fred Astarie & Ginger Rogers respectively and decided to pair them for over a dozen movies which are the icons of musicals. Is this “ownership of talent” unheard of in other arenas?

Promising corporate leadership are offered their salaries with incentives or bonuses for work well done obviously with the condition of solidarity and confidentiality during their term or involvement. Event Organization pay large sums to represent music artists live events for the entirety of their careers. Why not the same for big screen talent?

Studios must begin to become talent houses once again, just as MGM once did, and invest into actors careers from the inception. This will keep costs down, casts loyal, and the overall quality of films will have improved by the large stable of excellent actors. Ocean’s 11 is a rare example of a star studded cast which boggled the mind that all were involved. Lets have that again.

Conclusion

Obviously, studios are in for a rough season ahead, but there may be a few bright spots in the midst of it all. Challenge, and hardship make change all the more crucial and immediate. Desperate times, desperate measures. Studios rise and fall with popularity, and success, but lets hope that the industry as a whole is able to improve and succeed in the coming crisis.