Archive for November 2007

Let Them Eat Reruns

November 20, 2007

With the WGA and AMPTP now slated to resume negotiations after the Thanksgiving holiday there may be a ray of hope for the resumption of production.

The producers had said they’d never sit down again while a strike was proceeding, and now it seems that this was just negotiating bluster. Needless to say, both sides try to sound as tough as they can during this process — that’s what negotiations are all about.

In this vein, the producers have floated the idea that the strike will turn out to be a net positive for them. They’ll just air reruns or new reality shows and, after the strike hits its sixth week, they’ll be able to use “force majeure” clauses to break various development and production deals that they’ve wanted out of.

But here’s the rub — are audiences really that stupid? Do they really not notice the difference between reruns and original programming? Do new reality shows have a guaranteed audience? Frankly, I doubt it.

To see it otherwise is to assume that it doesn’t matter what’s on the air — the suckers in the audience are going to watch anyway. That breaks the oldest rule in the book: “Never underestimate your audience.” TV may be addictive, but there are plenty of other screens available now and when the public gets bored, they’re going to go elsewhere.

Hopefully, cooler heads are going to prevail, and the parties will find a way to share the wealth. Unlike most of the news coverage so far, an article in today’s NY Times offers some specifics about the deal points in question using webisodes of “Lost” as an example.

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Avid’s Consumer Strategy

November 18, 2007

Nancy Hawthorne, Avid’s new interim CEO, spoke to stock analysts at the JP Morgan Small/Mid Cap Conference in Boston a couple of weeks ago and said some interesting and important things. The company “did not integrate the several acquisitions that we did particularly well, and as a result, we have kind of a mishmash of different systems, and the company has not been positioned strategically to operate as a seamless entity in presenting a lineup of products to the marketplace.”

That’s certainly true and it’s great to hear a high-level Avid executive say so. She also talked about the company’s new focus on product quality, again a very positive thing.

She stressed the company’s expertise with big enterprise customers, and, regarding the Pinnacle division, commented, “we do need to understand what role the lower-end technology plays in our lineup. Is it strategically critical to us, or is it not?”

A week later Apple dropped the price of Final Cut Express from $300 to $200, added a mixed HD/SD timeline, and improved compatibility with iMovie.

All of which begs a key question: can Avid make a business at the top of the professional market and avoid direct competition with Apple, or is there really only one, increasingly democratized market that everybody is part of, one way or another? To put it another way, can you envision a future where young people use iMovie and FC Express and then come to Hollywood and switch to Media Composer?

Maybe — but for that to work, Avid would have to be innovating like mad in the professional world, with a product that was clearly and unambiguously superior. If FCP and MC are even roughly competitive, then it seems to me that you have to go after mindshare — which means you gotta get ’em young. Apple hasn’t won this game yet — iMovie ’08 got a decidedly mixed reception when it was introduced, and there’s a huge paradigm shift between iMovie and Final Cut. Avid, coming later to the party, could build something more consistent and scalable.

But either way, whether Avid wants to go after the whole shebang or just the professional market, they’ve gotta get busy with the software, making it sing for the people who use it, namely editors.

My intuition is that there’s only one game in town. Focusing on the pro market can only succeed as a temporary strategy. In the end, you’ve gotta duke it out at all levels. Otherwise the pressure from below will kill you.

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Short and Verrone Clash

November 15, 2007

With the IA striking theaters in New York and the WGA striking the studios, IA president Tom Short wrote to WGAw president Patric Verrone Tuesday, saying, “I have warned you and predicted the devastation that would come from your action. Those predictions have now come true. … It’s time to put egos aside and recognize how crucial it is to get everyone back to work before there is irreversible damage from which this industry can never recover.” (NY Times. Variety.)

Verrone responded, saying, “for every four cents writers receive in theaterical residuals, directors receive four cents, actors receive 12 cents and the members of your union receive 20 cents in contributions to their health fund. … To put it simply, our fight should be your fight.”

Meanwhile, Variety reported on a pair of polls showing wide public support for the writers: a Pepperdine poll showed support at 69% vs 4% for the producers and a SurveyUSA poll came up with 63% vs 8%.

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No Avid Booth at NAB

November 14, 2007

Avid announced today that they won’t have a booth at NAB 2008. Instead they’re planning private meetings in Vegas and “a series of customer-focused initiatives in 2008 – all of which will be designed to make it easier for customers, prospects and the media to interact with the company.” They’ll reveal the details in February.

For long-time Avid watchers like myself, that’s a huge change. The company has lived and died for NAB every year for nearly two decades now. But, no question, Avid needs to interact with editors much more effectively than it has in recent years and NAB hasn’t necessarily been the best place to do that.

There was a lot of talk on the net yesterday about this announcement, most of it positive. Lots of people, me included, want to see Avid strike out in a new direction, and any sense that they’re doing that is a good sign. But the press release tells us mostly what Avid isn’t going to do. It seems like we’ll have to wait until February to learn more about what positive steps the company plans to take.

Ultimately Avid lives or dies based on the quality of its products. It spent a great deal of effort in 2007 fixing bugs. The result is that Adrenaline is a much better application, and for me, choosing it now is a no-brainer. But there’s still plenty to do.

Long term, it’s hard to see how Avid can compete effectively for the hearts and minds of newbies if they don’t stand up and do battle with Apple in the public arena, staking out a vision for the future of post production. In the past, that’s always started with NAB. For many Avid watchers, it’s going to be hard to avoid the interpretation that the company is avoiding NAB in order to avoid going head-to-head with Apple. But only time will tell.

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Putting Residuals in Perspective

November 12, 2007

In an article in today’s NY Times, Michael Cieply covers a recent study that looks at the overall profitability of the major studios. The report estimates that the majors distributed about three billion dollars last year in gross participation deals to stars and big above-the-line talent — deals that typically pay out regardless of whether a picture makes or loses money.

Meanwhile, the WGA estimates that total residual payments last year were just $121 million. So, as usual, the little guys fight over a tiny slice of the pie, while the big guys take home a huge hall.

The report also says that, over all, the majors lost about $2 billion last year, so $3 billion looks very significant to the town’s bottom line.

The networks aren’t going to present this strike objectively — they’re hardly disinterested observers. But many liberal voices have come down firmly on the side of the writers. The New York Times ran an interesting and supportive op-ed piece yesterday, by Damon Lindelof, co-creator and head writer of “Lost,” covering many of the key issues in the context of a newly Tivo-ed and digitized TV environment.

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HD Notes on Iron Man

November 9, 2007

The ACE tech blog has posted some useful information about the use of DNxHD-36 on the show “Iron Man,” edited by Dan Lebental. I’m eager to shift to this workflow, but it sounds like there have been some pretty significant growing pains.

Iron Man Update

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