All Things Digital

While in Los Angeles, BoomTown visited the offices of Hulu, the online video service that has been an unexpected bright spot for two Hollywood behemoths--NBC Universal (GE) and News Corp. (NWS) (owner of this site)--who launched the premium online video service as a joint venture last year.

Helmed by former Amazon exec Jason Kilar, not much was expected of Hulu, given that traditional entertainment companies have been slower than slow in embracing the digitization of their businesses.

But, armed with the clout of its partners, along with $100 million in private equity from Providence Equity Partners, as I wrote back in late October, Hulu has been a pretty decent effort and has gained surprising traction, both in its distributed content and also on its site.

Yet despite its clean look, easy-to-use tools, relative openness and also addition of more and more premium content, it will still be a long slog for Hulu, as it tries to make a big business out of all of it and battle the increasing power of bigger sites like Google’s YouTube.

Nonetheless, so far, so good. And, so we visited its HQ in Santa Monica, Calif., with our No. 1 son, Louie Swisher (Hulu’s true audience) in tow to see how the service is put together and meet some of its employees.

Thus, this fine video, in which Louie does a very good dance interpretation of the service at the start–although what else would a mother say?

(Also, here is a longer interview with Kilar about Hulu and its future.)

Here’s BoomTown’s longer interview with the deceptively sharp Hulu CEO Jason Kilar, which I did while I was visiting the start-up recently.

In it, we discuss a wide range of topics about the premium online video service, which is a joint venture of NBC Universal (GE) and News Corp. (NWS) (owner of this site).

In it, he talks about everything from the reasons for the early success of Hulu to the state of content online in Hollywood to where it is all going to the sticky question of monetization (or lack thereof).

Also, when the heck is “Law & Order” going to be on Hulu? And “Seinfeld,” please.

(In addition, here is a video and post of my tour of Hulu HQ in Santa Monica, Calif., with Louie Swisher, who gives a very fine dance interpretation of the service at the start, I think you will agree.)

So, as readers of this blog know by now, I can get a little obsessed with certain digital companies or topics, sort of like a geek version of “Kolchak: The Night Stalker.”

Except, the werewolves BoomTown has been trying futilely to kill come in the form of juvenile widgets!

Over the last year, of course, I have been majoring in the foibles of Facebook and the tribulations of Yahoo, with a minor in studies of Internet video and online content creation in Hollywood.

While I have posted on a huge host of topics, companies and from all over the world, the drilling down has been a good thing in that the column has broken a lot of stories on our area of expertise and also has developed less idiotic analysis over time.

And don’t get me wrong–I love the relentlessness that blogging provides. Let’s be clear: Facebook’s Mark Zuckerberg and Jerry Yang of Yahoo remain on my most wanted list.

But it is time to widen the circle and add new Web companies to stalk to our repertoire and I welcome reader input.

So, here is a list of some digital companies I am thinking of zeroing in on next:

1. Amazon: For the love of Kindle, Jeff Bezos sure knows how to hold on and keep on trucking. In a previous life, BoomTown covered retail for seven years (that is a lot of time being forced to contemplate Wal-Mart) and even covered Bezos when he was just starting out.

2. eBay: A kissing cousin to Amazon, the development of commerce on the Web has not been properly scrutinized and it will be interesting to see how this company fares in its post-Meg Whitman phase.

3. HP: While it seems a tad dull, I like the idea of looking closer at this important tech company as it moves further into the digitization of all its businesses.

4. Microsoft: Need we ask? Between its wacky investment in Facebook to thwart Google to its full-scale attack on Yahoo to thwart Google to its nonstop efforts to thwart Google, something must have gotten in the water supply up in Redmond. Seriously, it is easy to portray the software giant as incompetent when it comes to Web issues, but we like its recent chutzpah.

5. Hollywood: Disney, CBS, Viacom, News Corp., Time Warner and the rest of those old-media outfits have always been a focus here, but as convergence ratchets up, it is important for techies to really be up to speed on what they are up to.

6. Apple: We can’t let that friggin’ Fake Steve Jobs get all the funny lines, can we? No, we cannot.

7. AOL: After two books, you might think I would be colossally bored with the perpetually stumbling icon. Not so! Until it vanishes, a la Netscape soon enough, I shall probably be compelled to follow it to the ends of the earth.

As to topics, here’s what I think is interesting going forward: multi-touch technology becoming more widespread; data portability (and not because of Scoble!); privacy related to social advertising; genomic and body hacking; and the opening up of the mobile experience.

As always, I welcome any and all suggestions. Except, of course, if it’s another werewolf widget.

Was it just me or did you also get a bit of déjà vu upon reading a story today by the New York Times’s Laura M. Holson about yet another mash-up of a Hollywood talent agencies with Silicon Valley VCs.

That’s apparently what is happening with a new investment venture that includes the William Morris Agency, Accel Partners, Venrock and–filling out the unlikely foursome–AT&T (T), as a limited partner.

The focus of the investment fund will be to hand out cash–and, presumably, expertise–to digital media start-ups in Southern California.

While the Times drilled in on the presence of a big cellphone carrier–just the kind of company that my partner Walt Mossberg has dubbed one of the “Soviet ministries” for stifling innovation with overly controlling behavior in the mobile space–I am more focused on the rocky road of many such deals that have been struck in the past.

Now, I think all the players involved are very smart, including Accel’s Jim Breyer, Venrock’s David Siminoff and also William Morris CEO Jim Wiatt (as well as Morris’s Paul Bricault).

That said, a lot of sharpies have gotten sucked up in the past into the this-has-to-be-a-marriage-made-in-heaven dreams of the perfect Hollywood-Silicon Valley pairing.

Today, there are a number of interesting efforts, such as Comedy Central’s deal with the creators of “South Park” to create a joint-venture digital studio, as well as the better-known pairing of Sequoia Capital with the Will Ferrell-led Funny or Die comedy site (see my video interview with Sequoia’s Mark Kvamme about the site below).

And, of course, although nothing was actually settled, the recently ended writers’ strike was all about content revenues that might–or, perhaps more accurately, might not–be coming from digital sources in the future.

But if the past is prologue, this new group of investors might have to learn to be a bit patient.

Breyer acknowledges as much in the Times’s article. “There is always a fear, I know, that the bubble is about to burst when a parade of actors and actresses comes through my door,” he said, before noting, “this time the discussions are much more rational.”

I guess that is why the funding is in the tens of millions of dollars, the article noted, rather than the larger sums that have been spent in previous attempts to forge these kind of tech and entertainment alliances.

In fact, Holson herself penned a very good piece in 2002 about the failure of one much-touted experiment in such an integration–LivePlanet–between celebs Ben Affleck and Matt Damon and Redpoint Ventures.

That company was supposed to be a multimedia wunderkind, straddling the tech and media worlds with all sorts of gizmo-content wonders. One of its debut press releases in 2000 was, in fact, titled: “LivePlanet Unveils Integrated Media Concept–Entertainment Experiences that Span Traditional Media, New Media and the Physical World.”

Now, it is a shadow of that. According to a January article in Variety about the shuttering of its film unit, “LivePlanet evolved into a satellite company that [partner Sean] Bailey, Affleck and Damon would return to when not engaged in their own projects.”

In the 2002 piece, after a series of problems, including the bust of the dot-com bubble, Affleck himself got it dead right.

”If we stick around long enough and convince people we can do these things, we will matter in the new economy. I’d like to slip to the last page to see how it ends. But who knows.”

And, even six years later, who knows?

Here is the Kvamme video, in which he discusses Funny or Die:

While the writers’ strike in Hollywood was going on, BoomTown has been offering up suggestions about stuff to watch.

Of all the many videos out there, the most promising to me have been the many, many spoof videos the writers have done about the strike that just ended.

Along with terrific videos of the strike itself from the front lines at places like United Hollywood, there were tons of really well-produced online videos by writers, who are now back to plotting sitcoms and dramas for television and writing film blockbusters.

Too bad, as they have done some amazing work in the online space and one hopes it will continue.

Here is a very funny one called “How the Writers Strike Ended: Script Cops”:

What does it take to imagine a new industry out of orange groves?

A lot more than settling a strike, I would posit.

A lot has been written about the writers’ strike in Hollywood, which is officially over after three acrimonious months with the overwhelming vote by the members of the Writers Guild of America to accept a contract it hammered out with the entertainment studios.

Writers will presumably be back at their keyboards today.

The toll? Hundreds of millions of dollars in lost revenues and no new episodes of “Heroes” (what will evil Sylar do now that his powers have returned?), all over how writers should be paid for content that appears online.

That there is precious little money being made online by anyone does not seem to have mattered, as the struggle metastasized into a symbolic battle over all the wrenching changes that digital technologies have made on the industry and are sure to make even more significantly in the future.

Writers, most of all, understand a dramatic narrative, and this one tells the tale of their work being digitized and downloaded without a lot of reward or control. It is a familiar story to them, of course, as technology after technology has not been kind to them.

In this three-year deal, victory was declared when the writers did get a percentage of the revenue from fees paid to stream their work on the Web.

Sorry to be a downer, but those fees will always and forever be peanuts, even if getting a percentage (rather than a residual) is seen as a win.

That’s because the big bucks in online content must come from advertising, which the writers will not grab a piece of at this point, if ever.

And if you think the creation of original online content is in its nascency, and it is, the robust business models around how to pay for it are even more stillborn.

Of course, there is money here and money there–some from items purchased, some from sponsorships, some from basic CPM economics.

But it is all very tentative and small now and advertisers are still not springing open their wallets with the kind of money they are used to spending on television.

And why should they? It is safe to advertise there, despite dwindling audience, wherein quality online content has so far shown itself to be very uncertain.

While there is an occasional errant hit of the most basic kind (Funny or Die’s “The Landlord” or similar material), there is no systemic or large-scale efforts to establish this industry of original online content in a way that is different from what has come before.

Of course, writers did hightail it up north to Silicon Valley during the strike to try to get some money to create new kinds of online-entertainment production companies.

But it felt like it was out of desperation, rather than a real commitment to change the system they were working in and to pioneer new forms of entertainment based around the Web medium.

The last time writers tried to marry venture capitalists, by the way, was in the last bubble and that was out of pure greed at the sight of the dot-commers all getting rich.

Well, greed did not work then and fear will not now. I would imagine writers will now abandon those efforts now that their old paychecks are back.

That’s too bad, because what’s needed is a whole new class of talent that has very little stake in the old one and who are seeking new ways of creating content, doing business and, most of all, envisioning the future.

Perhaps that is unspecific and not as real as the deal that was hammered out at the Luxe Hotel in the Brentwood section of Los Angeles between union reps and Disney’s Bob Iger and News Corp.’s Peter Chernin.

Now I have stayed at that hotel, in fact, for a conference, held nearby at the Getty Museum on a high hill overlooking Los Angeles. Called the Entertainment Gathering, it touched on the changing nature of the entertainment industry and also on the collision with the digital world it was facing.

Of course, there was a lot of talk about the innovation boom in Silicon Valley and what it meant for the entertainment industry.

At a break, one old entertainment mogul attending wanted to point out to me that Hollywood was like that once. He regaled me with stories of the mostly immigrant entrepreneurs who had left the certainty of the East Coast and had come to California and created a whole new business in the orange groves that once dominated the Los Angeles region.

“Can you imagine that?” he asked me, sweeping his hand over the vista.

Indeed, I could.

Until the writers’ strike in Hollywood is over–who knew it would go on this long?–BoomTown has decided to offer suggestions about cool new stuff to watch.

Today, I urge one and all to head over to the videos being done by celebrity, actor, talk-show host and larger-than-life personality Rosie O’Donnell.

Unlike a lot of celebs, who flee the online cameras of sites like TMZ.com, O’Donnell has been putting herself out there for a while in her unusually forthright–and sometimes downright odd–blog.

She uses, at various times, text, pictures, collages and video, which yield an always entertaining assortment of offerings.

This is exactly the way new media is created–it’s not television, or print or radio even (O’Donnell uses a lot of music in her posts), but an entirely new form of compelling content that is made for the Web.

To my mind, she has taken to the medium in a way few others have, trying all sorts of things, especially in her varied video offerings.

That can mean simply filming her family as they do art projects on a rainy day, to answering viewer questions using her iSight camera and little else, to making funny little gems like this one, in which she makes light of being dubbed the most “annoying” celebrity by some poll.

Here’s that video:

When last we checked in with NBC Universal CEO Jeff Zucker, he was merrily trashing Steve Jobs and Apple.

What a difference a three-month-long writers’ strike in Hollywood makes.

Yesterday, in an interview in the Financial Times, Zucker said: “We’ve said all along that we admire Apple, that we want to be in business with Apple,” he said. “We’re great fans of Steve Jobs.”

Hmmmmm.

It was only at the end of last October when Zucker (pictured here) was slapping the digital media business, and especially Apple, in an interview with New Yorker writer Ken Auletta at Syracuse University’s Newhouse School.

In it, Zucker blamed Apple for ruining the music business.

To be fair, Zucker did add “in terms of pricing” to the idea that Apple was the villain, noting that NBCU only had $15 million in revenue for its video fare on iTunes in its last year (a service it had just pulled off of to do its own thing).

He wanted NBCU to have the ability to raise prices on some shows it was selling to get better returns, even though Apple’s Steve Jobs has stuck to his guns on keeping pricing lower.

The entertainment industry, long used to controlling all the action, has long hated this, of course, since Apple’s iPod device has essentially been the only one widely embraced by consumers.

“We don’t want to replace the dollars we were making in the analog world with pennies on the digital side,” said Zucker, in what is admittedly a very good metaphor for the fast-changing situation for old media caught in the new media tsunami.

But then he stepped right into it by suggesting Apple should pay back media companies like his. “Apple sold millions of dollars worth of hardware off the back of our content and made a lot of money,” he said.

At the time, I noted: “That’s sort of like Britney Spears asking the tabloids to hand over a big bag of Benjamins for making such bank covering her riveting high jinks and crotch emergencies. Frankly, she has a better argument than Zucker.”

Nonetheless, NBC has been fast-forward on its efforts with its Hulu video sharing site, a joint venture with News Corp. (owner of this site).

And, quite correctly, in the FT piece, Zucker noted that the strike has spurred him to begin cutting back on some old television traditions, like the pilot season and the once-glamorous upfront presentations to impress advertisers.

“Things like that are all vestiges of an era that’s gone by and won’t return,” said Zucker. “I think there were a tremendous number of inefficiencies in Hollywood and it often takes a seismic event to change them, and I think that’s what’s happened here.”

Seismic, indeed.

Until the writers’ strike in Hollywood is over–who knew it would go on this long?–BoomTown has decided to offer periodic suggestions about cool new stuff to watch, focused on a more geeky audience.

We’ll start with TV–no, not the tiresome (sorry!) “American Idol,” but a new series on the same Fox network, which is “Terminator: The Sarah Connor Chronicles.”

OK, it has some techish qualities–killer cyborgs, cool gadgetry, time travel–but the fact of the matter is the “Terminator” movie series is my secret favorite, except for the genius of “Planet of the Apes” and “Soylent Green.”

OK, I might have apocalyptic tastes. In any case, as a fan of the “Terminator” movies, I was expecting the worst.

But a nicely menacing tone and a great cast, headed by tough-chick mom Lena Headey (of course, I had to use this picture of the actress here), was a happy surprise.

It takes place right after the end of the second “Terminator” movie and includes another tough-teen girl “good” cyborg, who protects the boy who will be the leader of a rebellion in the future.

Best of all, you can completely ignore the television and watch it online, either by buying it on iTunes or streaming it on Fox.

Here’s a trailer:

While at the Sundance Film Festival, I took a little tour of Park City, Utah, visiting with Chris DeWolfe and Dani Dudeck of MySpace and Sundance’s digital guru Ian Calderon and trudging up Main Street with my celebrity tour guide, Jane Lynch (who is about as hysterical as you get in “Best in Show” and “The 40-Year-Old Virgin”).

This is my third year at Sundance, where I moderate tech panels for the independent film festival.

Obviously, issues related to technology are becoming ever larger for the film community and most especially for the independent filmmakers, as they seek to get their material wider distribution than Hollywood’s current chokehold system provides.

The Sundance Film Festival is held annually in Park City and focuses on screenings of new indie films. Still, Sundance has been expanding additional offerings in the digital arena with panels throughout the festival.

The panel I moderated (see video here) was about online video, called “Webolution!–Hollywood Adapts to the Web.”

Here’s the video:

Here’s a video I did on the panel I moderated focused on online video at the Sundance Film Festival on Saturday, called “Webolution!–Hollywood Adapts to the Web.”

Tech is getting a lot of attention in Hollywood, so talking about online video is a key area for the independent filmmakers who are here this year.

Topics on the panel were wide-ranging, including: social networking, politics, the writers’ strike and the need for more broadband.

Better yet, here’s the description of the panel:

“The writing is on the wall–the industry must adapt to new media or face extinction. Today’s studios and independents are finally embracing the challenge of porting content and revenue to new distribution strategies. Join Hollywood power brokers and new media superstars to discuss their strategies for the Web.”

The panelists included Ted Sarandos (Netflix), Dmitry Shapiro (founder and CEO of Veoh.com), Dan Glickman (MPAA), Jason Kilar (CEO of Hulu.com), Mike Volpi (CEO of Joost.com), Erik Flanagan (EVP Digital Media MTV Networks/Comedy Central/South Park Studios) and tech strategy adviser Phil Lelyveld.

In other words, me and seven guys, which is about par for the course in Silicon Valley!

Here’s the video:

And here is my video touring the festival.

I just got to Park City, Utah, for my annual visit (well, this will be my third year here) to the famous film festival that takes place in this lovely mountain resort.

While I like a good movie as much as the next person, I am no film aficionado, nor do I have a screenplay stuffed in a drawer, nor do I hope someday to direct. I do like celebrity sightings, of course.

I am here because the Sundance Film Festival has understood early and often that technology is becoming increasingly important to the future of the film industry.

Because of that, they’ve been expanding additional offerings in the digital arena with panels throughout the festival.

The panel I will moderate is a great one about online video, called “Webolution!–Hollywood Adapts to the Web.” It will take place tomorrow at 12:30 p.m. at the New Frontier on Main here.

Here’s the description:

“The writing is on the wall–the industry must adapt to new media or face extinction. Today’s studios and independents are finally embracing the challenge of porting content and revenue to new distribution strategies. Join Hollywood power brokers and new media superstars to discuss their strategies for the Web.”

The panelists include Ted Sarandos (Netflix), Dmitry Shapiro (founder and CEO of Veoh.com), Dan Glickman (MPAA), Jason Kilar (CEO of Hulu.com), Mike Volpi (CEO of Joost.com), Erik Flanagan (EVP Digital Media MTV Networks/Comedy Central/South Park Studios) and tech strategy adviser Phil Lelyveld.

Videos, of course, to come, along with visits with various tech players here, who are increasing in number annually. And, maybe, a Hollywood celeb or two.

Well, that was quick.

Unlike the writers, who have been striking for a dog’s age now (11 weeks), the Directors Guild of America reached a three-year deal with the Alliance of Motion Picture and Television Producers after just five days of talks.

Internet issues were front and center, as with the writers.

“This was a very difficult negotiation that required real give and take on both sides,” said DGA president Michael Apted in a statement. “Nonetheless, we managed to produce an agreement that enshrines the two fundamental principles we regard as absolutely crucial to any employment and compensation agreement in this digital age: First, jurisdiction is essential. Without secure jurisdiction over new-media production–both derivative and original–compensation formulas are meaningless. Second, the Internet is not free. We must receive fair compensation for the use and reuse of our work on the Internet, whether it was originally created for other media platforms or expressly for online distribution.”

In practical terms, that means that directors get jurisdiction over: derivative product from other covered media; original content above $15,000/minute or $300,000/program or $500,000/series; and original content under that threshold when a DGA member is involved.

Here’s the DGA release with all the particulars of the settlement.

What this means for the writers’ continued strike is unclear, but the DGA agreement could be used to jump-start the negotiations between the writers and Hollywood studios anew.

One thing is certain: The pressure is now on the screenwriters.

We at BoomTown are very interested in content on the Web these days, especially given the ongoing writers’ strike in Hollywood and its wrangling over digital (and a whole lot of other) issues.

The intersection–or perhaps collision is a better word–of the entertainment and technology industries continues at an ever more frantic pace.

And it’s clear the strike is putting into fast-forward efforts by writers and other “talent” to do an end run around the traditional studio system of funding and distribution.

There has been, no surprise, a lot of noise recently about writers looking for funding coming up to meet with venture firms in Silicon Valley, the results of which I remain wary still.

Nonetheless, such marriages are inevitable, as the entire content distribution system shifts to new paradigms in a likely-to-be painful transformation whose end result is decidedly unclear.

To get some clarity, I decided to pay a visit to Mark Kvamme of Sequoia Capital to talk about his nascent efforts in the arena with his investment in the online comedy video site, Funny or Die, which was launched last April.

Starting with a small $17,000 seed round, Sequoia and others have recently sunk a more serious $15 million in the effort. The site has yielded a few Web hits, mostly done by Kvamme’s partners and the site’s co-owners–actor Will Ferrell and Adam McKay (Chris Henchy is the third leg of the entertainment stool, although the trio has wrangled in a plethora of Hollywood’s hipper comedy elite to contribute to Funny or Die).

Mixing professional content with user-generated material makes for a pretty lively site, where videos are voted up (funny) or down (die).

Results for Funny or Die are still mixed, with big success for one with Ferrell and McKay’s daughter, called “The Landlord,” which has garnered more than 50 million views. Its follow-up, “Good Cop, Baby Cop” (see here), is also popular.

But those are the exception, of course, with several million monthly unique visitors engaged for about five minutes a visit.

But Funny or Die is definitely doing a lot better than some other failed efforts in the genre, such as NBC’s DotComedy.com, Time Warner’s This Just In and Time Inc.’s Office Pirates. Current competitors include sites like CollegeHumor and the Onion, although each one has a taken approach.

Funny or Die’s will be to expand to new areas, such as a recent site on skateboarding and other extreme sports fronted by Tony Hawk called Shred or Die and another one called MyBlueCollar, focused on redneck comedy. Eat or Die–using famous chefs–is next.

But who knows what tomorrow will bring–as the song kind of goes–in a world where few online video sites survive?

Here’s Kvamme to talk about it:

5. Because his World Wide Pants production company took only two weeks to bang out a separate agreement with writers to go back to work at his “Late Show” on CBS from their strike after saying they would try to make a deal.

4. Because he will get the best guests now, because actors would rather forgo Botox than walk across picket lines over at places like NBC’s “Tonight Show” and “Late Night” to flack their latest movie, TV show or whatever.

3. Because his show will be funnier than competitors, who are also resuming production with their writers still on strike, because writers are funny and nonwriters are, um, not.

2. Because this might prove to be a small return to sensibility between the two sides in the fight–writers and studios–both of whom are not negotiating at all as much as conducting what is now a pretty senseless PR fight in which everyone is a loser and no one will win.

1. Because he named his production company World Wide Pants.