@ Year-End Digital Media Review: Kutcher, Huffington Talk SAG, Online Video And Saving Journalism
Some may have thought that pairing the politically minded Arianna Huffington with a Gen-X actor/entrepreneur like Ashton Kutcher didn’t make sense—particularly for a Q&A focused on the future of digital entertainment. But the discussion at our Year-End Digital Media Review and Mixer revealed that the two had more in common than you might expect: they both believe that the Internet and online content have permanently changed American politics and they both explained how their respective industries are struggling to bridge the analog/digital gap. Huffington also shed some light on how her company plans to spend some of that $25 million in funding it announced last week:
SEE ALSO: Huffington Post Closes $25 Million Third Round; Plans Include ‘Focused Acquisitions’
—Should SAG strike for more digital rights and revenues?: “Given the economy, I don’t think that anybody wants to see people not working right now,” Kutcher said. “The really tricky thing is—where’s the income going to come from? I think we need to figure out how to generate money digitally first before we can decide how it will be divvied up. [With online content] it’s not a situation where syndication is a cookie-cutter business. If studios sell a TV show or film into syndication, there’s a clear view of where the revenue will come from. On the Web, that’s not clear. If a video gets posted to a MySpace or Facebook page, who’s paying that syndication cost? If there’s a commercial that’s aired before the clip, who pays? Does the user have to pay the syndication fee? How is the income going to be generated? We need to answer that before we can answer any other questions.”
—The trouble with Hollywood: Kutcher said it’s clear that studios and networks are facing the same financial issues gripping the print and music industries. “Hollywood and even the TV networks have a huge dependency issue. They have a premium product with a premium price tag and premium revenue stream, and they’re trying to move it into an online landscape that won’t support it. They’re only using the Web to support the giant—not creating original content.” More after the jump.
—The trouble with print: “Before online media, print was in trouble because of Craigslist,” Huffington said. “Now it’s in trouble because the auto industry and Hollywood—two major providers of ad revenue—are not advertising in the same way. Combine that with the legacy costs, printing costs and all the staff needed to produce a newspaper and together it has created the perfect storm for things that would have seemed impossible even a month ago—like Tribune filing for bankruptcy.”
—Saving investigative journalism: Huffington: “We’re creating an investigative fund out of the latest round of financing. And we’re going to have laid off journalists pitch stories and investigate them.”
—What’s next in the digital entertainment space: Better quality video and more ad dollars, according to Kutcher. He said that the billion dollar predictions for online video ad revenue could come true—particularly as latency issues continued to improve. Kutcher: “The faster people can get video, the more serious a growth market it will be.”
Posted In: Media & Publishing, arianna huffington, ashton kutcher, la year-end review panel
iTunes TV Shows
Social Standing
Which media brands are getting a lift from Tweeters and bloggers right now -- and which are getting panned?
Show Me: