Jerry Yang and Michael Eisner don’t have that much in common (well, actually… but that’s a separate post) but both are bullish that in five years, the Web will overtake TV, in one capacity or another.
Jerry Yang mentioned this recently about online ads being larger than TV ads, and Michael Eisner echoed the sentiment today, sort of:
Eisner predicted that within five years the internet will be as important content-wise as cable satellite (note that’s a clear prediction as compared to his previously vague statements about the timeline for all of this). Cuban then started talking tech, explaining why it won’t happen, to which Eisner just replied: “This is why I’m in content.” Basically meaning: we’ll let you guys figure out the tech, and I’ll make a good story.
I actually agree with Eisner on that one, so I guess we have that in common. I can’t be bothered with all of the hype surrounding new technology and all of the winner-take-all attempts at tech platforms… but a good story is worth a lot regardless of the platform and in the hyper-distribution world we live in, the value of that content rises exponentially.
What else do we have in common? Oh, right, his Vuguru and our WatchMojo.com are both a few of the elite made-for-web content producers being included on Hulu’s launch.
I’ll take our odds…
Michael Eisner has some interesting things to say on the state of online media:
”The fact of the matter is that it’s not easy to write, direct and cast. … How many times can you watch a kid get hit in the groin? YouTube can be indiscriminate about how bad it can be.” There’s still a need for big-pocketed people to find and fund talent. Big companies aren’t going away. Rupert et al aren’t stupid troglodytes. “You’re going to need someone to bring it together. Everybody can’t do it, it is about talent.”
Via PaidContent.org.
I don’t want to speak on behalf of Veoh, a company Eisner invested in. Anyway, I don’t want to speak on behalf of Veoh because it’s one of our distribution partners at WatchMojo.com, but I think because of his involvement in Veoh, he understands that UGC vs. professional content debate better than many, and let’s face it, even YouTube is trying hard to move away from UGC. But connect the dots to something else Eisner said:
“Insanity.” “There’s all of this rhetoric by the media companies about this ‘great new digital business’, which is a small, growing business that will one day be dominant (but it isn’t, yet there’s no money there yet.” Because all of the entertainment folks are talking up digital, the writers assume there’s a lot of money there. Take Prom Queen: “We made history, but we didn’t make money. … I’m doing it because I think it’s fun; I think it’s the future. … For a writer to give up today’s money for a piece in three years is stupid.” The studios can’t give in because there’s nothing to give. “The studios deserve what they’re getting, because they’ve been announcing how great it is.” But it’s only great in theory. ”They made deals with Steve Jobs, who takes them to the cleaners. Who’s making money? Apple.” Entertainment executives can’t admit that they’re not making money. Writers should be striking in Cupertino. (Hard not to see this as a slam on Disney successor Bob Iger, who cut the first video deal with iTunes.)
Well, one reason why there is little money in it now, frankly, is because TV companies are stingy and protective with their content, and high traffic sites like YouTube and Veoh are full of UGCrap, not professional content. That’s one reason why we’ve had a lot of success with those sites, but I tend to agree, unless there is more players like WatchMojo.com, advertisers will be slow to migrate ad budgets online.
[Disclaimer: Veoh is one WatchMojo.com’s many syndication partners.]
Veoh features more than 100,000 videos produced by professionals and amateurs. It also hosts videos from movie studios and magazine publishers, including Viacom Inc.’s Paramount Pictures, Lions Gate Entertainment Corp. and National Lampoon Inc.
Veoh has made a lot of moves to gain traction as an important player in the video file sharing and distribution segment, such as launching Veoh TV, something that is sure to raise the concerns of some of the old media content producers. Armed with a lot of capital from everyone ranging from former Walt Disney CEO Michael Eisner, Time Warner Inc., Spark Capital and Goldman Sachs Group Inc.
Veoh today lured former Yahoo! ad executive Steve Mitgang to become its CEO. I have no idea who Mr. Mitgang is, but as a content provider to Veoh (we just signed and have yet to get them our content) it’s certainly a welcome sign to see an experienced ad executive join a site like that: “The video marketplace is still in its very early days,” Mitgang said. “If we think about a world where there are billions of videos to choose from, there’s still an opportunity for a company to help people discover, access and watch all kinds of videos, while enabling advertisers to engage those viewers.”
Indeed… interesting to see how the fight for video advertising online will continue to shape up.
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