Representatives from mainstream media companies covered the methods they use to make money with their content.
By Vanessa Saint-Jacques
11/18/2008
HOLLYWOOD, Calif. -During the Free Speech Coalition's summit Tuesday on "How to Survive and Thrive in the Digital Environment," the seminar "Is Mainstream Media Making Money in this New Environment?" was moderated by Michael DeSanctis, a partner at Jenner & Block, and featured panelists Dean C. Garfield, executive VP of the MPAA; Lawrence A. Kanusher, senior VP, business and global affairs, Sony BMG Entertainment; David P. Kaplan, senior VP and intellectual counsel, worldwide anti-piracy operations, Warner Bros. Entertainment; David Ring, executive VP, business development, Universal Music Group; and Steven Englund, partner, Jenner & Block.
The diverse panel spoke out about some of the methods, albeit nascent, that companies are employing in order to monetize content in a piracy-rampant environment. As we have come a long way from packaged goods, new and more-diverse business models are needed to stay healthy in the digital market.
Speaking for UMG, David Ring noted that the "a la carte download" model continues to bring in revenue; though it still has been deficient in greatly offsetting fiscal declines due to piracy. This is where experimentation is coming into play. One avenue several panelists noted is to actually borrow piracy models, and see how users like to search and gather content on those sites. Another important thing, noted Garfield, is to look at each piece of content individually, and market and deliver it appropriately, from movies to TV, and from mobile phone delivery to online streaming.
The issue of giving it away for free, i.e. promotions, also entered the discourse. As Ring pointed out, it's difficult to re-sell a product to the same person who already downloaded it for free. However, technology does appear to be giving business owners new ways to exploit content, by having products appear to be free when in fact they aren't, through methods such as product placement. They initially cost nothing to the consumer but eventually will turn into a monetizing opportunity.
The panelists went on to speak about watermarking as a useful took to track user preferences, how to turn piracy sites into legitimate sites by partnering (or "suing and then partnering," as Englund, with a wry smile, pointed out), and how to redirect potential consumers to legitimate content.
Though many of these methods are in the trial stages, as befitting an ever-changing marketplace, the panel seemed hoperful about future prospects in the current "if it's online, it should be free" climate.
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