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six Media – lions

Six companies take the lion part in the world of Media and then they can be considered ‘the Lions’ of this professional field:

Currently, Hollywood Studios manage the 80% of the Audio – visual Market in the world and are an important asset for USA economy (10% is shared among  “mini – majors”, like Fremantle Media, Starz, Lionsgate, ecc. and another 10% or less is for 500 little  companies).

Italy is one of the 8 best buyers for Californian Studios, and gains 20 millions  from the international selling of contents (soccer not included).

There are, moreover, other  six principalities located just 400 miles north of Los Angeles, in the Silicon Valley, and each with highest market capitalization of the Hollywood principalities. Hollywood wants the money of the principles of the valley (also to replace the moribund market for DVDs) and in fact they need for their products. Content that, anyway, not everyone in Hollywood want to give “Incos”…

 At Cannes, while at Mipcom, NetFlix top manager Ted Sarandos, complaint that some companies, like Hbo or Starz Media, do not want to sell their products to him. Situation will change early, however. Currently, some studios sell very expensively their library products to not damage cinema or pay TV. Otherwise, Incos will start to make contents on their own, like studios do, and they will not need an intermediation  any more, as digital technology makes possibile to reach the consumer directly.

Then, Incos manage trade channels (IpTv, streaming, download) but not yer high values products, whereas Studios surely have high level contents but also need intermediation for trading.

We must remember that, until recently, the studios have always used intermediaries to distribute their products (movies, TV networks, shopping for home videotapes and DVDs and, ultimately, the Incos). But now that digital technology, broadband and reduced regulation have revolutionized the entire distribution system, the studios have bought the first TV networks to broadcast and cable distribution and are now preparing to deploy broadband.

For now, however there is an armed truce, which is to create a new distribution system called UltraViolet, the studios have developed together with Inco for a more effective selling online contents.

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