<![CDATA[Gawker: valleywag, paramount]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, paramount]]> http://gawker.com/tag/valleywag/paramount http://gawker.com/tag/valleywag/paramount <![CDATA[5 questions Viacom doesn't want Valleywag to ask Philippe Dauman]]> Touchy Viacom flack Jeremy Zweig called Valleywag up to let us know personally that we'd been disinvited from next week's press-only screening of Tropic Thunder. Such a pity! Because we had a list of questions we were going to ask Viacom CEO Philippe Dauman:

  • Does the fact that you're screening Tropic Thunder for a bunch of local tech reporters rather than the usual film critics suggest that you're not particularly confident in the film's critical reception?
  • How will the lost $450 million financing deal for a slate of movies that would have included Tropic Thunder affect your Paramount movie studio?
  • Why do you keep making poor Jeremy Zweig tell reporters that your lawyers didn't ask for YouTube users' personal information when you did, in fact, ask for their usernames and IP addresses — information most Internet users would consider personal? And what's he supposed to say now that you've agreed to mask them?
  • Isn't Viacom's investment in social network Flux at best an irrelevancy and at worst a mess?
  • Why is Viacom's MTV, after 13 years of trying, incapable of running an online music service anyone wants to use?
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<![CDATA[Steven Spielberg taking money from digital film pirates?]]> Steven Spielberg and David Geffen are offering Indian conglomerate Reliance ADA a large stake in their production company Dreamworks in exchange for $600 million. What none of the press has mentioned? That Reliance was accused by Universal of selling pirated DVDs. Universal, though, is a rival of Dreamworks parent company Paramount, which in turn is a division of Viacom — who are busy suing Google for $1 billion in copyright infringement damages. Your move, MPAA. [Current] (Photo by AP/Kevork Djansezian)

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<![CDATA[Obscene iTunes profit margins finally win Hollywood's heart]]> apple_tv_set_top_box.jpgSteve Jobs has finally wooed all the major studios, including Fox, Warner Bros., Sony, Paramount and Universal, to sell movie downloads on the day DVDs are released. On Friday, you'll be able to wait a while as American Gangster downloads over your crappy American broadband connection for $14.99. And it will be delivered in lower quality than standard DVDs, without any of those annoying extra features. But it will have Apple's DRM installed with every copy! What finally brought Hollywood to the table?

As Defamer points out:

Time Warner CEO Jeff Bewkes cited a 60%-70% profit margin during a VOD trial for Warner Bros. films on cable — more than twice the return on Time Warner DVD rentals.
If those margins hold for Internet distribution, and customers start adopting digital movie downloads in big numbers, it'll be hookers and blow time in Hollywood again soon enough. (Photo by James Thompson)]]>
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<![CDATA[Why Don't We Feel Better About All These New Movies on ITunes?]]> The inevitable grouping of the major studios under the iTunes roof finally occurred today, when Apple officially announced it had reached agreements with Universal, Paramount, Fox, Warner Bros., Sony and Lionsgate (along with previous bedfellow Disney) on day-and-date downloads of their new DVD titles. The studios had made most releases available for rental since earlier this year (with catalog titles for sale before that), but this marks the first time users can buy and download new releases on their DVD street dates.

The good news: You can wait and watch Made of Honor on your iPod in about three months! The bad news: It'll cost you $14.99 to download it. (Or $9.99 three months after that.) And for digital media that costs exactly nothing to reproduce, package or distribute, we think that amounts to little more than information highway robbery. And just in time for the studios to stonewall SAG on new-media revenues!

Or maybe they're not quite connected — yet. Conceding it would get paid for new media when studios got paid, the WGA settled its strike in February by negotiating for roughly 2% of studios' online grosses each year through 2011. But in an earnings call yesterday, Time Warner CEO Jeff Bewkes cited a 60%-70% profit margin during a VOD trial for Warner Bros. films on cable — more than twice the return on Time Warner DVD rentals. It's anyone's guess how that shakes out in terms of purchases, but with DVD sales last quarter at $3.5 billion, and with a fairly clear break between online and traditional media consumers, even a tenth of that revenue online would be enough for SAG president/time-bomb Alan Rosenberg to reinforce the hard line as the first round of negotiations come to a close Friday.

Moreover, as an observant tipster pointed out to us this morning, the markup on these downloads is pretty obscene, maybe even illegal. After piracy concerns were allayed in the last year, pricing was the only remaining sticking point for Apple — which wanted to keep purchases at $10 — and studios, which compromised at $15. Albums on iTunes cost an average of 40% less than their CD counterparts; but with online retailers and box stores pressuring DVD prices below $20, why should they get away with a difference as little as 15% in some markets — especially with no extra features or deluxe packaging? The courts have even addressed this before, but it usually applies to manufacturers complaining about suppliers, not the other way around. Someone! Get the FTC on the line!

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<![CDATA[Twee hipsters can now download Juno from iTunes]]> Everyone's favorite over-allusive Indiewood hit Juno is now available for download at the iTunes Music Store for $14.99. The move marks Fox's first foray into offering new DVD releases as paid downloads through Apple's popular service, with the studio joining Paramount and Disney. Amazon's Unbox already carried the title, where it's also available to rent. Apple TV owners won't be able to rent Juno until May 14.

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<![CDATA[Apple lands all six major studios for movie rentals]]> Hollywood.jpgJust confirmed at Macworld: all six major studios are onboard for iTunes movie rentals. That's Walt Disney, Warner Brothers, Paramount, Sony, 20th Century Fox and Universal.Variety thought Sony, Universal and Warner Bros. were unlikely to sign on for "various competitive reasons." Maybe there's hope for the flailing Apple TV yet. Why? It's all you need to access the films. No computer required. (Photo by Boereck)

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<![CDATA[Apple and 20th Century Fox strike digital movie rental deal]]> The Financial Times reports that Apple and News Corp.'s 20th Century Fox film studio have signed a deal for digital movie rentals. Consumers will be able to rent the latest Fox DVD releases from iTunes for a limited time. The deal, which will likely be announced at Macworld in January, would likely be matched with an upgrade for the woebegotten Apple TV which has been de facto dead on arrival since it was released. It is suspected that Disney, which has extremely close ties with Apple — Steve Jobs is its largest shareholder after Mickey bought his Pixar animation studio — will be on board at launch as well.

One analyst said "Fox and potentially other studios are coming around to the idea that there is nobody out there to challenge iTunes." The rumor mill pegged Sony, Paramount and Warner Bros. as having talks with Apple about movie rentals, but this is the first concrete evidence of a deal. With Apple getting into millions of homes as a result of increased Mac sales and millions of video-savvy iPods and iPhones sold this holiday, the service could get off the ground much faster than competing services from Amazon or Netflix, which have foundered. We mentioned the possibility of Apple setting up a movie rental service back in November.

More: Fox to allow DVD copying on Apple's iTunes

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<![CDATA[Writers' strike hurting, not helping CollegeHumor]]> College_Humor_Hand_Vag.flv.jpgThe television and film writers' strike over Internet pay was supposed to be a boon for Internet-only content creators. But according to CollegeHumor cofounder Ricky Van Veen, that's not been the case.

"I think TV/features and Web shorts are two different animals," Van Veen told me. "Creating a 44-minute episode of Lost and a 2-minute short like Hand Vagina definitely require different skill sets."

In fact, Van Veen says the writers strike is hurting College Humor. Or at least its brand. Viacom's Paramount studio bought the rights to a CollegeHumor film a couple years back and signed on Gene Stupnitsky and Lee Eisenberg, writers from The Office. But, Van Veen said, "The project is on pause because of the strike."

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<![CDATA[Is Web video the new "direct to DVD"?]]> Viacom is determined not to fall into the music industry's technophobic trap. Instead, it's embracing the online-video frenzy by releasing Jackass 2.5 directly onto the Web next week. Initially offered as a free streamed video on Blockbuster's Movielink, it will eventually move to pay outlets like iTunes and, yes, DVD — which is where this on-the-cheap knockoff probably would have landed just a couple years ago.

The stunt, as explained by execs at MTV and Paramount, is to prove that digital distribution is a viable business model for long-form entertainment. If so, it only proves this much: Junk distribution channels attract junk content. Instead of going direct to DVD, producers are now saving their worst efforts for the Web. The only difference between Jackass 2.5 and Michael Eisner's Prom Queen is the length of time it takes to bore us.

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<![CDATA[The Pirate Bay takes on corporate raiders]]> Amidst all the hubbub about MediaDefender — the file-sharing policing agency whose private email files were recently spewed across the Internet, revealing unsavory antipiracy plans — one particularly interesting tidbit has bubbled to the surface. The Pirate Bay, a major file-sharing site, says it now has proof from those files that the music and movie industries have been paying hackers to attack the site. It is now taking this information to the police and charging the Swedish arms of Fox, EMI Music, Universal, Paramount, Atari, Activision, Ubisoft and Sony with technical sabotage, denial-of-service attacks, hacking, and spamming.

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<![CDATA[Make discs, not war, Sony says]]> Extending an olive branch in the midst of the high-definition movie-format wars, Sony has cordially invited HD-DVD rivals Microsoft and Toshiba to join the Blu-ray Disc Association. It is pretending HD-DVD backers didn't just shell out a ton of cash to get Paramount (and Michael Bay) on board.

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<![CDATA[Director Michael Bay changes his tune on HD-DVD]]> In an effort to prove he's as fickle as he is talented, Transformers director Michael Bay has retracted what he calls a Kool-Aid-fueled denouncement of Paramount's deal to support, exclusively, the HD-DVD format for high-definition movie discs. When Bay first heard the news, he posted, "I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" In what could only have been a fit of rage, he then decreed there would be no Transformers 2. Why the change in tune?

Bay later explained that his rant was spurred by a dinner conversation with a few "Blu-ray owners" who were upset over the announcement. He "over reacted [sic]." He then sat down and watched 300 on HD-DVD and declared himself a convert. Good news. He's back on the Paramount bandwagon, spouting something about $200 HD players and that he "liked what he heard." Was it the sound of money? Cause he's reconsidering his rash decision about Transformers 2 as well.

Money was definitely a motivator for the Viacom-owned studio, Paramount's CTO has confessed. Though perhaps not in the way some think. Alan Bell praised HD-DVD's cheapness, which he attributes to the fact that the HD-DVD standard is more settled, making it less expensive to produce both discs and players. He also claimed Paramount liked various technical features in HD-DVD. Of course, the $150 million in marketing dollars Paramount received from a consortium of HD-DVD supporters doesn't look that cheap.

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<![CDATA[Paramount fails to put HD-DVD out of our misery]]> ParamountParamount and Dreamworks, you best think about what you've done. There's a war on in the high-definition movie world, and you just picked sides. Signing up with the HD-DVD faction for the pittance of $150 million in cash and promotions only prolongs a format skirmish that's in need of a good snuffing. Target and Blockbuster have already said they plan only to carry Blu-ray discs, and sales of that format are outpacing HD-DVDs, according to recent reports. Now, we don't have a dog in this fight; we just want it to be over as soon as possible.

Paramount studio exec Rob Moore's argument that HD-DVDs are cheaper and therefore more appealing to consumers is moot. Consumers willing to drop $400 on a standalone Blu-ray player aren't going to be swayed by a few dollars. What is going to influence them is the number of movies offered in each format. The dueling HD disc types are already both hindered by a "why upgrade?" mentality. Consumers, by and large, are waiting to see which format will die before committing. Prolonging the battle may temporarily line Paramount's pockets, but ultimately, the stalemate just gives digital distribution of movies more time to catch up.

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