May 8, 2012
Amazon’s Going Hollywood
Building on its move in late 2010 to get into the movie production business, Amazon said last week it is soliciting ideas for comedy or kids series that can be distributed over the company’s video streaming service.
Amazon has been ramping up its spending in recent quarters to add movies and TV shows to its Amazon Instant Video service, increasing competition with Netflix. But both companies are also working on producing their own content to create some differentiated product while reducing the reliance on the costly major movie studios and TV production companies. Other potential competitors working on original programming include Hulu, part owned by Walt Disney, and Google, through its YouTube division.
Under the formula, creators can submit ideas for television series to Amazon Studios’ website. One new project will be optioned per month and added to a development slate where it will be tested for viability with an audience. Within 45 days of getting pilot TV scripts, Amazon will either extend an option on the project for $10,000 or ask the creator to put the idea on the Amazon Studios website for public review. If chosen for a full-budget series, the winner is awarded an additional $55,000 plus royalties, bonuses and a five percent of any earnings from toy and t-shirt licensing.
Amazon Studios’ new series development efforts are being headed by Joe Lewis, formerly of 20th Century Fox and Comedy Central, and Tara Sorenson, of National Geographic Kids.
"In the course of developing movies, we’ve heard a lot of interest from content creators who want to develop original series in the comedy and children’s genres," said Mr. Price in a press release. "We are excited to bring writers, animators and directors this new opportunity to develop original series."
First launched in November 2010, Amazon Studios accepts movie scripts and asks customers to review the ideas online, using the feedback to choose which project should go ahead. The production arm has received more than 700 test movies and 7,000 scripts so far, with 15 projects under development. Among those under development are the horror/action/adventure movie, "ZvG: Zombies vs. Gladiators," and the comedy, "I Think My Facebook Friend is Dead."
- Amazon Studios to Develop Original Comedy and Children’s Series for Amazon Instant Video – Amazon.com
- Welcome Series Writers and Creators – Amazon.com
- Amazon Studios – Amazon.com
- Look out, Netflix: Amazon trying to develop original programming for streaming service – Reuters/San Jose Mercury News
- Amazon Studios opens door to TV: Net retailer calls for submissions of comedy, kidvid pilot scripts – Variety/Chicago Tribune
- Amazon wants to expand into sitcom – The Seattle Times
BrainTrust
Recent Discussions
Discussion Questions
Discussion Questions: How important is developing original content to the success of video streaming services? What’s the likelihood that Amazon will find some success bringing hit TV shows and films to the marketplace?
Poll
There is a department store in the Philippines that promotes their bridal registry to engaged couples. It then offers these same couples a baby registry for when they have children. When they do have children they offer the children a birthday registry. And, yes when these children get engaged guess where they go for their bridal registry?
So for Amazon, same concept; they can get customers, but with movies instead of a registry. But then again, this may just be another form of registry since once these children are old enough to shop, it will be with Amazon. I think this is a great move on their part and just another form of the new world of social media that is not voice, not text, but video!
Developing original programming that has any viability is extremely difficult — just ask any of the major networks! The extremely small number of programs that actually became successful was a significant reason the major networks started ‘reality programming’. It is significantly cheaper to produce a reality program and therefore much easier to become profitable.
Perhaps Amazon should combine the fiscal benefit of ‘reality’ programming and the art of storytelling to connect with their target (younger) audience. The 30 minute KONY2012 video campaign has been viewed by 90 million people. I became aware of this because my 16 year old daughter sent me the link and suggested that I watch it.
We live in a highly fluid and creative society, which started changing at increasing speed when tablets and smart phones became accessible to the general population.
My 3 year old grandson has moved from the kids shows on TV to a variety of iPad options because he can be more selective about what he watches. Want to see fire trucks? No problem. Just set up a search for him and he can choose from the options. As soon as he learns how to spell, grandparents will not be needed for that either.
Regarding streaming comedy, this needs filters. There is already a lot of really bad stuff clogging up the i-way. One of the advantages to both the broadcast and cable media is the limited bandwidth inherent in programing. When you remove time as a governing factor, what fills the space could be even worse than what we now must sift through to find something worthwhile.
Increased opportunity for creativity doesn’t necessarily mean more good stuff will be available.
I think it may ultimately be more harmful than helpful to video aggregators and streaming service providers to get into the original content production business. While they may indeed find some success with the occasional hit, there’s no doubt it can be detrimental to their relationships and negotiations with content publishers, studios, and partners. Netflix, Amazon, Apple, and others are supposed to be in the business of providing consumers with access to the widest variety of quality content as possible.
Another example of how Amazon is looking to bring everyone to their shopping cart. Starbucks was on this for awhile before dropping it as not their core business.
At this point, what “isn’t” Amazon’s core business?
Content is king. If Amazon wants to offer a video service, it must have content. The cost, as described above, does not seem great and is significantly below what the networks pay for kidvid, so it makes sense. If Amazon can build a following for the shows there is plenty of money to be made in ancillary sales.
Comedies and kids’ shows create loyal viewers for streaming services if they work. A few advantages:
1. Comedies and kids’ programming is lower budget than drama or action. Terra Nova’s challenges finding a network to foot production stands as an example.
2. Unique programming can be aired all at once rather than in succession like traditional TV. This convenience attracts a larger audience and enables “marathon” viewing.
3. The savings over buying established content can offset promotion costs. Netflix’ renegotiation with Starz was expected to increase from $30 to $300M per year. The failure of the deal yielded a large pool for Netflix to reinvest elsewhere.
But this move risks getting online services into hit-driven businesses, as Adrian suggests. If the misses pile up, the strategy fails. An even smarter bet is canceled programming with an established audience. Netflix is bringing back Arrested Development and picked up Kevin Spacey’s House of Cards, which was based on a canceled UK comedy.
Talk about losing focus — what’s wrong with becoming the largest retailer in the world? Not a big enough task? Sounds like a bad case of A.D.D. to me. Walmart’s no doubt breathing a sigh of relief.
More Discussions
How Timely Is the Planned Lowe’s Website Renovation Focusing on Personalization?
Is Lowe’s being timely with its website reno, and is it right to be placed as…Should Costco Be Opening Members-Only Gas Stations?
Is this the right move for the warehouse club?As Boomers ‘Age Out of Peak Purchasing,’ How Can National Brands Retain Interest With Gen Z?
According to a recent First Insight study titled “Is Gen Z Still Choosing Your Brand,” while…
There is a department store in the Philippines that promotes their bridal registry to engaged couples. It then offers these same couples a baby registry for when they have children. When they do have children they offer the children a birthday registry. And, yes when these children get engaged guess where they go for their bridal registry?
So for Amazon, same concept; they can get customers, but with movies instead of a registry. But then again, this may just be another form of registry since once these children are old enough to shop, it will be with Amazon. I think this is a great move on their part and just another form of the new world of social media that is not voice, not text, but video!
Developing original programming that has any viability is extremely difficult — just ask any of the major networks! The extremely small number of programs that actually became successful was a significant reason the major networks started ‘reality programming’. It is significantly cheaper to produce a reality program and therefore much easier to become profitable.
Perhaps Amazon should combine the fiscal benefit of ‘reality’ programming and the art of storytelling to connect with their target (younger) audience. The 30 minute KONY2012 video campaign has been viewed by 90 million people. I became aware of this because my 16 year old daughter sent me the link and suggested that I watch it.
We live in a highly fluid and creative society, which started changing at increasing speed when tablets and smart phones became accessible to the general population.
My 3 year old grandson has moved from the kids shows on TV to a variety of iPad options because he can be more selective about what he watches. Want to see fire trucks? No problem. Just set up a search for him and he can choose from the options. As soon as he learns how to spell, grandparents will not be needed for that either.
Regarding streaming comedy, this needs filters. There is already a lot of really bad stuff clogging up the i-way. One of the advantages to both the broadcast and cable media is the limited bandwidth inherent in programing. When you remove time as a governing factor, what fills the space could be even worse than what we now must sift through to find something worthwhile.
Increased opportunity for creativity doesn’t necessarily mean more good stuff will be available.
I think it may ultimately be more harmful than helpful to video aggregators and streaming service providers to get into the original content production business. While they may indeed find some success with the occasional hit, there’s no doubt it can be detrimental to their relationships and negotiations with content publishers, studios, and partners. Netflix, Amazon, Apple, and others are supposed to be in the business of providing consumers with access to the widest variety of quality content as possible.
Another example of how Amazon is looking to bring everyone to their shopping cart. Starbucks was on this for awhile before dropping it as not their core business.
At this point, what “isn’t” Amazon’s core business?
Content is king. If Amazon wants to offer a video service, it must have content. The cost, as described above, does not seem great and is significantly below what the networks pay for kidvid, so it makes sense. If Amazon can build a following for the shows there is plenty of money to be made in ancillary sales.
Comedies and kids’ shows create loyal viewers for streaming services if they work. A few advantages:
1. Comedies and kids’ programming is lower budget than drama or action. Terra Nova’s challenges finding a network to foot production stands as an example.
2. Unique programming can be aired all at once rather than in succession like traditional TV. This convenience attracts a larger audience and enables “marathon” viewing.
3. The savings over buying established content can offset promotion costs. Netflix’ renegotiation with Starz was expected to increase from $30 to $300M per year. The failure of the deal yielded a large pool for Netflix to reinvest elsewhere.
But this move risks getting online services into hit-driven businesses, as Adrian suggests. If the misses pile up, the strategy fails. An even smarter bet is canceled programming with an established audience. Netflix is bringing back Arrested Development and picked up Kevin Spacey’s House of Cards, which was based on a canceled UK comedy.
Talk about losing focus — what’s wrong with becoming the largest retailer in the world? Not a big enough task? Sounds like a bad case of A.D.D. to me. Walmart’s no doubt breathing a sigh of relief.