Topic: Yet Another Sign of Things to Come?
Hollywood Producer Set to Make Shows for Xbox
LOS ANGELES — Microsoft, seeking to expand offerings on its Xbox 360 console, has reached an agreement with a company headed by Peter Safran, the veteran Hollywood producer and talent manager, to produce original shows for distribution on the system.
Through his Safran Company, Mr. Safran represents clients like the actor and producer Sean Combs (“Monster’s Ball”), the actor and writer Nia Vardalos (“My Big Fat Greek Wedding”) and the filmmakers Jason Friedberg and Aaron Seltzer (“Epic Movie”). Mr. Safran founded the company in 2006 after leaving Brillstein-Grey Management.
Speaking by telephone last week, Scott Nocas, global marketing manager for programming of the Xbox Live entertainment service, said he expected similar deals to follow. “We definitely look at this as the first of many,” said Mr. Nocas.
In an interview at his office in Los Angeles last week, Mr. Safran said his first round of programs would all be scripted, as opposed to reality shows, and would probably run under 10 minutes. He said he planned initially to focus on genres, like comedy and horror, that appeal to the Xbox 360 audience, which is heavily concentrated from the ages of 14 to 34, and tends to be more male than female. The first shows are expected to be available to viewers by the fall.
Microsoft’s previous forays in digital entertainment include a two-year-old initiative, MSN Originals, to provide original shows for the Web, and an ill-fated foray more than 10 years ago in which it poured about $100 million into Internet shows like the comedy “475 Madison,” about an advertising agency, then quickly canceled most of them.
“The Xbox is unique. It operates at a level outside of what we generally consider Web entertainment,” Mr. Safran said, referring to the system’s tight demographic base, which is defined by the appeal of signature games like the Halo series.
The new shows will be available exclusively via the Xbox 360 for a time, then may appear elsewhere, Mr. Safran said. Mr. Nocas said at least some of the shows would be supported by advertising.
Current programming on the Xbox 360 includes movies and selections from cable networks like the Sundance Channel and Spike TV. Viewers pay for access to films with points that can be purchased for cash or accumulated through activities on the system.
Mr. Nocas said that about 10 million people had signed up for the Xbox Live service. Roughly 18 million of the game systems have been sold worldwide, he said. The Xbox 360 is up against PlayStation 3 from Sony and the Wii from Nintendo in a hotly competitive gaming marketplace.
Mr. Safran is the latest in a growing line of Hollywood players who are seeking to tap into the digital entertainment market, where revenue still falls far short of that from traditional movie and television distribution outlets. Filmmakers like Joel and Ethan Coen and stars like Will Ferrell have recently become involved with Web-based companies like FunnyOrDie.com or 60Frames Entertainment.
Mr. Safran and Jake Zim, chief operating officer of the Safran Company’s Safran Digital Group, said they expected to recruit established filmmakers for their new productions, but did not plan to seek involvement by major movie stars.
http://www.nytimes.com/2008/03/31/busin … xprod=digg
Ok, the big story here is not that Safran is making exclusive content for Xbox Live Video Marketplace, yet at the same time it is.
Follow me if you will.
One of the big worries that I have had about this brave, new world of digitally distributed content (music, television, movies, etc.) is that all the various digital platforms are corporate proprietary - there is no industry standard here, and there probably will not be for at least another decade. What this trend will lead to as platform holders vie for public attention to their service (which in entertainment = money) is ultimately the content itself would start becoming exclusive on a per service basis.
So while we have various contenders (Microsoft, Apple, Bittorrents, Azureus, TIOTI, etc.) and more on the way, each vying for market dominance as entertainment makes the gradual shift to online distribution, each of these various platform holders are going to start looking for what they call differentiators to draw consumer attention to one service over the others. And the easiest differentiator of all being the content itself. We can already see examples of this in the videogaming arena where Xbox Live Arcade, Playstation Network and soon WiiWare are all offering various exclusive digitally distributed game titles exclusively. It's a huge deal that will approach the billion $$$ mark this console cycle alone, as these services often enough are turning into deal breakers for consumers adopting gaming hardware.
Ok, this is all and well as we already have something extremely similar with the network system. You can only watch Heroes and The Office on NBC, or you can only see How I Met Your Mother on CBS, or Lost on ABC, or South Park on Comedy Central. Now here is where future problems may arise: while true, I can only see South Park on Comedy Central, I can use the exact same television/cable box/satellite dish to watch The Office on NBC. With proprietary online services beginning to create exclusive content for themselves, in order to view that content, I have to invest in several hundred $$$$ worth of proprietary hardware (on top of my TV) to get the full viewing experience. So if I want to watch a TV show that is produced exclusively for Xbox Live service, then I have to invest in a $350 Xbox 360 to do so. Should the same day I want to enjoy a television program exclusive to Apple, then I also have to shell out another $300 for an AppleTV. So far, most services to date like TIOTI and VUZE are restricted to using a desktop PC to enjoy their offerings, but if any of these contenders ever expect even have a hope at capturing the attention of a mainstream audience, they are going to need to move their services from the desktop to the living room couch, and to do that requires they too start offering expensive settop boxes as most consumers are completely unaware or do not care, of the ability to hook your PC directly up to their livingroom TVs.
So here we are today with the above announcement about television content being created exclusively for one of these proprietary settop boxes. And as with such initial statements of the future, said announcement is rather small. I mean, you look at the announcement and you see a rather obscure Hollywood development company making 10-minute episodes of TV and you think to yourself that it's not even a big deal. But these things never remain small. They start small as a way to test the waters - no one wants to lose billions making huge risks. But when these smaller . . . "proof of concepts" turn out successful, bigger deals begin to happen over night. As Microsoft rep, Scott Nocas, was quick to point out, the announcement the deal with the Safran Company, is only the first of many more to come. And there can be little doubt, Microsoft won't be the only one to invest in bringing exclusive content to their online entertainment service.