Panel, Conference Presentation
Entertainment: The Big Picture
- International markets, which currently generate 70 percent of revenue, are predicted to grow rapidly in China and Latin America, transforming the film and content business into a significant growth sector driven by expanding platforms and digital adoption.
- Experts anticipate the mobile internet's rapid adoption in developing economies will create unprecedented opportunities for content monetization and distribution, supporting models ranging from $5 million to $100 million film ventures and interactive "free to start" games.
- The industry is expected to pivot toward original programming and measured event-based content as traditional repeat models face pressure from DVRs and streaming services, while smaller tier networks will diversify by investing in new originals.
- A strategic shift toward IP ownership is viewed as a necessity for survival in the streaming era, with leaders expecting deal-making to evolve regarding revenue sharing and content creation to prevent a lack of innovation driven by exuberant transactions.
- Activision Blizzard aims to lead the free-to-play interactive entertainment category, with future game-to-movie adaptations expected to be produced internally to ensure quality control and utilize advanced facial animation technology.
- Leadership anticipates a generational shift in late-night television featuring Stephen Colbert, with expectations for his tenure to last approximately 20 years despite concerns regarding political views on broad broadcast networks.
- Future success is projected to rely on a portfolio approach across diverse cost curves and edges, with the belief that increased distribution channels, including potential Netflix entry into feature films, will benefit all content producers.
- Concerns remain regarding the Comcast-Time Warner merger's impact on local advertising markets and digital rights, though leaders expect rational resolutions and believe the resulting entity will be strong enough to avoid further merger concessions.
- Legal outcomes in the Aereo copyright case are critical, with CBS and Universal Studios expecting a ruling in their favor; if lost, alternatives include OTT and cable network conversion without financial consequence.
- Financial projections indicate the company will maintain a stock price near all-time highs due to a defined growth profile, with optimism for the upcoming upfronts despite challenges in the acquisition market where capital availability exceeds purchasable assets.
- While technological change is often overestimated, linear television is expected to retain 98.98 percent of viewing, with premium video advertising remaining a high-value proposition due to higher viewer engagement compared to digital banner ads.