Aspects_20of_20Concentration Hollywood and the Internet by jpl7986

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									Aspects of Concentration
     Hollywood Studios
   Internet Corporations
  Hollywood Studios: Carsey-
     Werner-Mandabach

Produced shows like “Cosby” and
“Roseanne;” specializes in off-beat;
One of last studios independent of major
network for scripted shows;
CBS, NBC, ABC have all tried to buy it;
Other “independent” studio is Sony
Pictures Television;
In Fall 2003, 6 major networks together
own 77% of prime-time show; unscripted
shows make up most of the rest.
    Independent Studios ctd
Decline of independents traced back to 1995
removal of restrictions on right of networks to
own, syndicate shows they air;
Networks have every incentive to favor own
shows; but still buy from independents as well;
Three quarters of new shows fail, few producers
have enough own money to risk;
Half-hour comedies typically cost more than $1m
per episode; hour-long dramas cost $2.2m.
 Where does the money come
           from?
Carsey-Werner-Mandabach still dependent
on syndication revenues from “Cosby” and
other shows to finance new projects;
overall, syndication revenue accounts for
75% of studio’s profits. 66% of revenues
Has sought to diversify: invested in cable
network Oxygen Media; co-production
deal with Paramount
        Consequences
Fewer “quality” shows
Less originality
Networks just interested in the
highest margins, safe shows they
can run through largest number of
outlets
Networks focused on same audience
(18-49) that advertisers pay most to
reach
              Internet
On-Line Travel
– InterActiveCorp acquired Hotwire, Sept
  2003; its major competitor is Priceline,
  which may yet be acquired by
  InterActiveCorp
Web-Search
– Yahoo! Inc. acquired Overture Services
  Inc. in July 2003; competitor LookSmart
  is in trouble, while Microsoft may
  develop own search capability
            Internet (2)
Real Estate Services
– Homestore Inc. may be acquired by
  Yahoo! Or InterActiveCorp
On-Line Diets
- eDiets may be of interest to InterActive
  Corp.
On-line Dating
- Match.com and Udate.com have been
  acquired by InterActiveCorp

								
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