![]() "A few years ago, I don't think YouTube was on their radar as a big, broad, viable global platform with an enormous audience. Richard Raddon, co-founder of online video management company ZEFR, said traditional media companies have only recently begun to see YouTube as a valuable platform to invest in. Those are the contexts underlying all of this." "The mass numbers of viewers coming to these channels is what it's all about," Csathy said. 2012: Legendary Pictures buys Nerdist Industries.2013: DreamWorks Animation SKG buys AwesomenessTV for $33 million.March 2014: Disney buys Maker Studios for $500 million.Hollywood studios investing in YouTube content: Peter Csathy, chief executive of investment fund Manatt Digital Media Ventures, said the scarcity of leading YouTube channel networks has contributed to a run-up in the price for the few that remain. bought the AwesomenessTV network for $33 million, with a bonus potential of $117 million if the studio met earnings targets over two years. led an $18 million investment into videogamer network Machinima. It also follows other media giants into the space.Įarlier this month, Time Warner Inc.'s Warner Bros. That helps networks generate regular views on multiple devices, and enables them to deliver video ads on a massive scale. ![]() When people subscribe to these channels, they're notified when new videos are available. launched a technology startup incubator called Disney Accelerator, which promises to seed 10 companies with $120,000 each to develop ideas that'll have a big impact on entertainment and technology.ĭisney's purchase price - which could hit $950 million if Maker hits performance targets - also validates the increasing value of so-called "multichannel networks." Those are the mini media empires that provide funding and support to video creators while taking a cut of ad revenue generated from views on YouTube. The acquisition comes a month after The Walt Disney Co. The deal also signals Hollywood's new openness to technological innovation, an acknowledgement that media giants don't have all the answers. The purchase is a sign that the entertainment industry's content and technology startups are coming of age and proving to be as valuable to Hollywood as app makers are to the giants of Silicon Valley. released "Fred: The Movie" in 2010, using the character that Lucas Cruikshank turned into a viral, if annoying, sensation on YouTube. It wouldn't be the first attempt to mine YouTube for characters that could be taken mainstream. Mayer said that Disney could also find talent for its TV shows and movies in the YouTube stars on Maker Studios' channels. "To the extent that they're finding YouTube, we want to be there too," he said. He said that while Disney also reaches younger viewers, their habits are changing. It's very hard to replicate," Mayer said. "They have the biggest audience on YouTube. Combined, Maker has 380 million subscribers and generates 5.5 billion views per month.īuying Maker Studios will help Disney reach young audiences, said Kevin Mayer, Disney's executive vice-president of corporate strategy, in an interview. The purchase will give Disney ownership of 55,000 channels - including Epic Rap Battles of History and makeup expert Amy Pham's The Fashion Statement. The Maker deal is Disney's biggest acquisition since it bought "Star Wars" creator Lucasfilm Ltd. said it would pay up to $450 million more in bonuses if Maker meets performance targets, the company said. It's the latest and largest acquisition of a YouTube channel network by a major Hollywood studio and represents another vote of confidence in the video service as an incubator of talent. Disney said Monday that it is buying YouTube channel operator Maker Studios for $500 million as the family entertainment giant seeks to stay in front of younger viewers who are increasingly watching short videos online.
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