The Essential Element For Success In The Entertainment Business

Anyone who reads my posts or tweets, knows that I love technology.  I'm always reading and writing about cutting edge technologies and how they are impacting the entertainment industry.  New tech is driving the launch of new companies, and the development of new strategies for old companies.  Technology is undoubtedly the most important factor for achieving success in today's entertainment business.  Or is it...?

As I often do on Saturdays, I spent the past couple hours looking at all of the recent entertainment and technology news.  There is plenty of it, as usual.  New methods for driving content from televisions to mobile devices, and the Internet to televisions and from clouds to everywhere.  Consumers can truly get whatever they want, however and wherever they want it.  

With all of these amazing new capabilities for viewing and listening on countless devices, what is the best strategy for success in our business?  With all of the new possibilities, the answer actually hasn't changed. Regardless of how you do it, you have to give consumers something that they really want to watch or hear.  And what do they want?  A great story.

The one essential truth of the entertainment business -- the one constant that does not change with technology -- is that people want to be touched emotionally.  That's what draws them to read, watch or listen.  They want to feel the emotional impact of the story being told.

All of the amazing new technology gives us better tools for touching people's hearts, but only if we tell great stories that trigger that emotional response.  Faster frame rates and 3D and better surround sound and IMAX all make a huge impact on our bodies, but it is the story being told that ultimately touches our hearts.  And that's what people want from their entertainment experience.  It is why they put their money down.  They want to feel the emotion...love, anger, fear, passion, humor....They are buying an emotional experience, not just raw physical stimulation.

I am more enthusiastic than ever about the prospects for entertainment success through the use of great new tech.  I'll continue to look for innovative ways to deliver content to people everywhere.  But it will only matter if the content is truly special.  

Technology is the beautiful box, paper and bows in which we wrap our gifts, but wonderful stories are the gifts.  Let's never forget why we went into this business -- to touch peoples' hearts and souls.  

Personal Media Devices Are The Future of Entertainment

An article I saw last night discusses how major computer manufacturers are all chasing the iPad with similar tablet devices of their own.  You can read the article for the interesting details.  However, I wanted to quickly comment on the importance of this trend.

The iPad is truly a new class of hardware that has changed the media landscape.  It's a highly portable device optimized for obtaining and displaying robust media.  The screen is big enough and sharp enough to deliver a satisfying video experience, serve as an eBook and display the news, weather and sports.  It is connected, so you can have a constant stream of new content.  It is literally a window through which you can look at the entire world, 24-7.

Once there are a number of viable competitors, prices will come down.  India already says it can make a competitive device for as little as $10.00.  This means that the majority of consumers will eventually have the capability to grab whatever they feel like seeing on a real-time basis.  And each device will know who is using it  and where they are, and thus be able to deliver customized advertising content.  Just take one minute to think about the commercial implications of that. It is absolutely huge.

The iPad and its eventual competitors don't replace theaters or flat-screen TV's, but mobile media will quickly become an equally powerful (and eventually, the most powerful) segment of the media landscape.  If you are a content producer and you want to be ahead of the curve, start thinking about mobile media today.  That's the direction the money will flow for several years to come, and the trend has already started.

Many Entertainment Opportunities for 2010

Here we are on February 1. We are fully into 2010 -- past the time when we are wishing one another a happy new year.  We're getting down to business.  We're also past January, which is the month of trade shows and awards.  In the past 30 days, the Consumer Electronics industry had their big shindig in Las Vegas, the musical instrument business had it's major annual conference in L.A., the independent film business gathered in Park City, Golden Globes were awarded, Grammys were awarded, the DGA honored directors -- the list goes on.

So what do we know as a result and how does it help us?  Here's a short (and certainly not comprehensive) list:

1.  We know that 3D is a huge phenomenon.  Will it last?  Probably, but it remains to be seen.  In the meantime, Avatar is the biggest film ever in terms of box office dollars, and the CES show was all about 3D technology for the home.  At the Grammys last night, the audience wore their 3D glasses without shame.  The technology has emerged from the nerd closet and become a part of the ubiquitous mainstream.

This creates big opportunities to capitalize on this phenomenon.  Everything from cool 3D glasses for the home to 3D networks to low-cost 3D remakes of classic content.  There is a lot of money to be made in the next few years by riding the 3D wave.

2.  Distribution continues to decentralize.  There are a plethora of small, specialty content distributors coming alive and many of them will do well.  The music business has showed us that technology gives power back to the artists.  When you can reach your audience directly, you don't need to pay a huge premium to large companies for market access.  Bad news for the huge companies, but probably a net positive for the artists and the audience.  There is infinitely more music to choose from than 10 years ago, and there are more artists making a living.  They aren't getting rich, but many small, specialty artists are actually able to survive through their art.  That is very different than it used to be.

And the same phenomenon is coming to film.  The DVD is in its final cycle before it dies all together.  Blu-Rey is nice, but it will also eventually go away.  Filmmakers are creating quality content for a fraction of what it used to cost.  The artists are gaining access and control; it is the same pattern as seen in the music industry.  Make no mistake -- if you want to make a living as an independent producer, now is a very good time to be getting into it.  You may not make the gazillions enjoyed by the successful producers of the past couple of decades, but you will be able to live a nice life from your art.

3.  The world is becoming one market.  More than ever before, we are all gaining access to the world market.  -- and the world's money.  Companies all over the world (like Reliance, for example) are investing in U.S. content and companies.  And international sales of films and other content is becoming an increasingly important part of the overall financial picture, even for smaller films.  When something catches on, it doesn't stop at the coasts of North America.  It is as easy to find an online audience in England or Norway or Japan or even China as it is to reach people in Chicago or Denver.

Of course, the real challenge is still in finding business models that will work in this new environment.  Advertising dollars are big, but limited.  Online commerce is a better model, but the value of content online is clearly much lower than in a physical environment.  But it is also less expensive to create the content, so technology has delivered both the problem and the solution.  And for consumers, that means a lot more choice.  But with that choice, marketers face the challenge of rising above the din to find an audience.

That's enough for now.  It is enough to spin your head.  Suffice it to say that it is a completely new world and many people will continue to gain wealth in this new environment.  Keep your head up and look for the opportunities, and there is nothing to stop you from being among the new crop of winners.