Changing Economics of Creativity in Hollywood: Kevin Reilly and Jenna Lyons

The Cannes Lions Media Festival agenda and private event schedule reflects a shift from the event39s heritage of creativity to a focus on data analytics transparency advanced media emerging technologyamp160and brand safetyamp160 Tactical and transactional priorities dominate today39s media and advertising conversationamp160 Almost ignored are the ongoing economic battles in Hollywood still the creative epicenter of the media businessamp160 The Writers Guild of America has instructed its members to fire their agents and they39ve compliedamp160 The Association of Talent Agents dominated by five leading agencies are restructuring their businessesamp160 Program packaging the staple business model for more than two decades is collapsing as Amazon Netflix Hulu and studios claim 100 of backend IP ownership and shift to costplus production fundingamp160 Studios and networks are testing new economic models that expand well beyond the traditional revenue boundaries of advertising distributionamp160 In the next eighteen months the new economics of creativity in Hollywood will redefine the industry driving transformation that could leave advanced video technology playing catchup These new economics will have a ripple effect that will send advertisers and content distributors in new and unexpected directionsamp160 Kevin Reilly and Jenna Lyons discuss these trends and moreJenna the dynamic and charismatic former Creative Director and President of J Crew points to the similarities between the current transformation of the television industry and the transformation a decade ago in retailingamp160 quotWhen we were talking ten years ago about starting a new retail business we needed to reverse engineer starting with ecommerce and layering on bricks and mortarquot she saysamp160 quotUntil then the retail business was bricks and mortar plus printed catalogsamp160 It39s an incredible advantage to be launching a business in television today blending content and commerce starting from what39s happening in the future rather than being locked into past modelsamp160 The business we39re launching with WarnerMedia is really excitingquotKevin Chief Content Officer of WarnerMedia DTC shared that WarnerMedia has a financial interest in Jenna39s successamp160 quotWe use our real estate in the linear universe to drive results and eyeballs which can have great impact on driving commercequot he saysamp160 quotWe don39t want our real estate to be the end gameamp160 Our goals are not just to occupy a time period and sell adsamp160 We39re thinking more broadly and where our shows fit in a much more expansive universeamp160 Shows may take on different forms in different placesamp160 They may start on a linear adsupported network and may end up on our streamer or there could be different versions depending on where it works bestquotKevin points to the HGTV series Fixer Upper and its hosts Chip and Joanna Gaines as a modelamp160 quotHow do we drive larger value beyond the showquot he asksamp160 quotWith Fixer Upper people can39t get enough of the productsamp160 We want to grow Jenna39s business togetheramp160 We have a lot of flexibilityamp160if it needs to grow faster it canamp160 We can be agile and adapt to the opportunitiesquotquotWe are creating new revenue streams on both sidesquot Jenna addsamp160 quotEcommerce would not normally have a show to support it and vice versaamp160 We39re creating a place where people can participate blending commerce and lifestyleamp160 This isn39t just about selling productsamp160 We want to connect with audiences through real tangible experiences centered around a wholistic lifestyleamp160 We39ll create ways for advertisers to be a part of it with deep integrity in how the viewer is able to connect and engageamp160 Magazines were forced to put products in magazines based on the advertising modelamp160 That39s blown upamp160 We39re serving a bigger ecosystemamp160 We may have a popup experience special events creating moments to connect with people directlyamp160 Meeting our customers is something we want to figure out amp160We may renovate and sell a housequotAs Kevin views the new economic realities unfolding in video content creation and distribution he sees creative opportunities to completely reengineer traditional modelsamp160 quotWe can premiere shows on the streamer and move to linear have a linear run and then move audiences back to the streamerquot he explainsamp160 quotWe can seed programming in one area grow it and make it biggeramp160 If we love a streamed show with not as many eyeballs we can use linear almost as a marketing tool amp160and remind the audience it39s at the streaming serviceamp160 We39re not a oneportal businessamp160 We have severalquotConfronting the conflict between writers and agents Kevin believes the WGA39s position is symptomatic of the changing landscapeamp160 quotThe backend value had two universally accepted markers Nielsen in TV and the box office in feature filmsquot he saysamp160 quotBoth have eroded drastically especially in an ondemand worldamp160 The movie business window will need to evolveamp160 Streamers making motion picturesamp160 A lot of data isn39t being captured or sharedamp160 So the traditional backend doesn39t exist and valuing it is more difficultamp160 By the same token the traditional value of talent agencies and ownership positions in program packages is decliningamp160 The writers are coming after agencies and packaging when packages are a much smaller percentage of the businessamp160 No one loved packaging but we all lived with it in a rising tideamp160 We need to redefine its value in a slowing tideamp160 We are at the time in this business when everything is being resetquotHaving worked at J Crew for 27 years Jenna is excited by quotnot following a wellworn path and being in a business that could not have existed ten years agoquotKevin acknowledges quotas much as we need to make tremendous TV shows there39s a lot of content availableamp160 Being more than a show is excitingamp160 We39re imagining what the future can be and building to a visionquotClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Changing Economics of Creativity in Hollywood: Kevin Reilly and Jenna Lyons

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Changing Economics of Creativity in Hollywood: Kevin Reilly and Jenna Lyons

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