Friday, October 2, 2009

Pros and Cons of the New Ortenberg Business Model

I had a great discussion today with Ted Kroeber regarding the new venture from Tom Ortenberg, One Way Out Media. The new company is slated to undertake a variety of functions in the independent film world, including financing, distribution and consulting. This of course takes advantage of Tom's vast experience and superior track record in the film industry.

Tom Ortenberg
On the positive side, I think Tom's business model shows a recognition of the many and varied needs of independent filmmakers. Tom sees that many projects are missing only one or two links in the "success chain" and he sees an opportunity to fill those gaps.

On the other hand, I see a couple of potential problems. First, to compete effectively it is often best to focus. Not only does this send a strong message to the marketplace, but it allows a company to concentrate on the things it does best. The second risk for One Way Out is that it could be perceived as a competitor by many of the companies with which it needs to have close relationships in order to succeed.

With that said, I believe that Tom can overcome those challenges and be successful in this venture, as he has been in his prior positions. However, I suspect that his business model will evolve over time and his focus will narrow once he finds the areas in which he is gaining the most traction and making the most money. We all are watching closely and wish him the best.

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