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Wednesday, February 8, 2012

Reason for Merger: The Media is merging and changing rapidly.

Amazon is now partnering with Viacom (MTV, Comedy Central, Paramount Pictures, and other divisions) for distribution of their product and production of original content.

Redbox and Verizon are forming a new company to compete with Amazon and Netflix.

Google/You Tube are producing original programming, setting up networks and continuing to grow in the distribution industry.

Netflix is launching original programming, expanding its product range and offering expanded distribution opportunities.

Apple will soon launch its full service streaming networks to go along with Apple TV and iTunes.

Sony has its own distributing system (mostly outside the US) along the lines of Amazon and Netflix.

Newscorp is taking FOX on-line and direct to sets taking full advantage of on-demand and mobile for launching new programming and supporting existing product on all of their networks.

Six corporations control 99% of all product produced and over 80% of distribution. They increasingly package and combine programs, films, revenue and marketing costs decreasing income for the creative people who produce the product that corporations now call "software."

Companies, such as Redbox and Verizon, are forming new joint companies, as others allow studios to "buy in" rather then take over entirely. The web is growing and part of the goal is to decrease the cost of labor...meaning talent.

Consider this SAG and AFTRA members as you get your ballots at the end of the month.

1 comment:

Anonymous said...

I personally believe that sooner or later EVERY SINGLE thing will be owned by one company when it comes to cell phone carriers and the internet. So this does not come as a surprise to me!

G.Silva
COM101 - 4049 SPRING 2012 (4049)