Viacom – Antenna http://blog.commarts.wisc.edu Responses to Media and Culture Thu, 30 Mar 2017 23:48:47 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.5 What Are You Missing? Jan 13 – Jan 26 http://blog.commarts.wisc.edu/2014/01/26/what-are-you-missing-jan-13-jan-26/ Sun, 26 Jan 2014 15:00:00 +0000 http://blog.commarts.wisc.edu/?p=23519 Here are ten (or more) media industry news items you might have missed recently:

net-neutrality1) A federal appeals court in Washington D.C. has dealt a massive blow to ‘net neutrality’ rules, finding the FCC overstepped its authority by requiring broadband providers like Verizon and AT&T to treat all Internet traffic equally. While it is unclear how much authority the FCC will retain, it is clear the decision greatly decreases the FCC’s ability to retain several such rules. For much more information on this course case, it’s impact on the future of the Internet, and how you can help be heard, I highly encourage you to read Danny Kimball’s recent piece on Antenna.

2) The FCC may soon have another massive decision on its hands, as multiple names and companies have become revealed as potential buyers of Time Warner Cable, a move that would bring yet more consolidation to an already oligarchic system and thus would likely come with ‘bundles’ of strings from regulators. Original reports saw Charter Communication going public about plans to acquire TWC, with the company under the leadership of John Malone making a public plea to TWC investors after the company itself didn’t take original talks seriously. The proposed deal was originally for $61 billion, roughly $132.50 a share. Not long after these reports surfaced, new movement came out of a possible split-deal between Charter and Comcast for TWC, though the proposed deal is unclear of whether it means both buying the company together or Charter buying wholesale but selling particular regions to Comcast. The reports mostly end there, but the deal is clearly heating up and it seems something ought to give soon enough.

3) While we’re on the subject of “great things happening to undeserving cable providers,” Verizon this week announced it has agreed to acquire Intel Media, a broadband streaming video service from the technology company. While no precise amount has been released, the approximation based on earlier valuations put the deal around the $200 million mark. It is not entirely clear how or when Verizon plans to integrate the Internet TV service with its own broadband and FiOS network, but the over-the-top service is expected to launch before the end of 2014.

4) Big money is certainly on the table for the NFL’s Thursday Night Football, as Fox, CBS, ESPN, and Turner Broadcasting have all submitted bids, with NBC expected to join in as well. The NFL is looking for offers of 6 to 8 games in a package for a one-year deal. Despite bids from ESPN and Turner, the belief is the NFL wishes to land a network deal, ensuring higher ratings to in turn boost valuation when the bidding takes place again next year.

5) Reorganizations are happening at Viacom, with two next units being announced in the past two weeks. One is a new Programs Acquisitions Group, a unified group that will control all aspects of the acquisitions process across all of Viacom’s U.S. media networks. The second change is a new ad-sales unit called Viacom Velocity that will create special content for advertisers using their various networks. Viacom executives referred to a recent campaign done exclusively on Comedy Central to promote Marvel’s Thor: The Dark World featuring the film’s Tom Hiddleston. Did I mention this story just so I could link to this video? You tell me:

6) Fox has once again been denied an injunction and even a rehearing of its case against Dish and their ad-skipping DVR  the “Hopper.”  Fox had petitioned for a rehearing after being denied the injunction last summer, and their goal of proving infringement in court looks slim. Fox might choose to try and take the case to the Supreme Court, but with the Aereo case already set to be decided their, it is unlikely the High Court would take such a similar dispute.

7) If you read “What Are You Missing” regularly, you are no doubt aware of the recent spat of musicians and artists filing lawsuits against their labels over missing digital royalties owed via various music streaming sites/services. The Counting Crows are now the newest addition to that growing list, which now includes artists as far ranging as Peter Frampton, George Clinton, and Rick James.

8) An interesting case out of an appeals court could change the way Internet gossip is seen and tried in future cases. The court found that Internet bloggers can in fact use First Amendment rights as a defense against defamation lawsuits, claiming the speaker does not need to claim status as a trained and employed journalist as long as the public importance and public image of the subjects in question is established.

9)  China is taking stricter measures to control online video and book publishing in order to help combat piracy and regulate content. The new regulations require posters of “microfilms,” a burgeoning market alternative to state-approved media, to submit their real names when uploading content to video streaming sites. While this could have much broader impacts, the language of the regulatory body’s announcement seems to indicate a more narrow focus on these microfilms, rather than the much larger swath of user-generated content.

10) The little guy is fighting back as an independent regional movie theater chain in the Southeast, Cobb Theaters, has filed a federal antitrust lawsuit against AMC, claiming the national chain as coerced film distributors to deny product to the smaller chains. The claim accuses AMC of contacting major film distributors and studios asking them to deny product to the regional chain, using its market control as leverage.

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What Are You Missing? Aug 5 – Aug 18 http://blog.commarts.wisc.edu/2013/08/18/what-are-you-missing-aug-5-aug-18/ Sun, 18 Aug 2013 13:00:36 +0000 http://blog.commarts.wisc.edu/?p=21411 Ten (or more) media industry news items you might have missed recently.

jeff-bezos-washington-post1) Granted, you probably didn’t miss our top story, as the news of Amazon founder Jeff Bezos purchasing the Washington Post for $250 million was all over the media. It is important to note this is a personal buy, as the Washington Post will be a part of Bezos’s personal portfolio unaffiliated with Amazon.com. The large reaction to the story stems both from the possible creation of a new media tycoon as well as the history of the Washington Post, a family-controlled newspaper with a storied history of investigative journalism, most notably the Watergate scandal. While Bezos has said he will take a hands-off approach in the day-to-day operations, tax incentives and write-offs could force him to take more direct control. With Rex Sox owner John Henry buying the Boston Globe, you might be thinking of buying your own paper; however, The New York Times wants you to know they are not for sale. And from the tales of “Be Careful What You Read,” Chinese government-run news agency Xinhua claimed Bezos purchased the Washington Post by accident while browsing the web, a ‘story’ appearing in The New Yorker’s satirical Borowitz Report.

2) Next, our report from the front lines in the never-ending war between Time Warner and CBS over retransmission fees leading to Time Warner’s decision to blackout CBS in New York, L.A. and Dallas which could extend into September. TWC threw a PR strike, claiming they offered a new a la carte option for customers wishing to get CBS, an offer CBS CEO Leslie Moonves called a “public relations gesture,” a “well-wrought distraction,” and finally, a “sham.”  Another TWC letter raises issues with what it calls CBS’s policy of “coercive bundling” with premium channel Showtime, as well as blacking out access to CBS.com from TWC internet users. The casualties of the blackout for CBS, according to analysts, could range around a loss of $400,000 per day, not bad enough for investors to run away. TWC, on the other hand, is feeling the hurt in the PR war, as their perception score on BrandIndex fell after initiating the blackout. But what about us, the people and our beloved CalmPirateCBS shows, the collateral damage? Well, a class action suit has been filed by TWC customers in Southern California who are seeking recovery of fees paid for missing Big BrotherDexterRay Donovan, and the PGA Championship. But other would-be victims rise above in times of media strife, as piracy of Under the Dome has seen an increase since the blackout. KEEP CALM AND PIRATE SHOWS. (NOTE: The writer of this post and the folks at Antenna do not condone piracy. This is a joke in the vein of the above wartime metaphor.)

3) Turning to CBS predecessor Viacom, showing that cooperation can be done as they have struck a new tentative deal with Sony for an Internet-TV service. The deal would allow content on an in-development Sony service that streams live television, which could launch as soon as the end of the year. The deal would be a boon for Sony, who is launching their new gaming system, the PlayStation 4, this holiday season in direct competition with Microsoft’s XBox One, with its own slew of television-related content. Analysts are seeing this as a possible start to a new era in competition for cable and satellite providers, as consumers are given another option for content, but this time with access to it live.

4) In international news China will resume payments to U.S. film studios from Chinese box office revenues after a dispute over a WTO-violating tax hike. MPAA chairman/CEO Christopher Dodd made the announcement, signaling the end to the dispute as well as the beginning of payments owed by the Chinese government for over a year. So while China is paying U.S. movie studios, there is no word on when the U.S. will start paying China back for that $1 trillion or so from our debt…

5) Speaking of U.S. politics, GOP chair Reince Priebus threatened to deny 2016 debates to both NBC and CNN after it was announced both networks were planning to air programs (a miniseries and documentary, respectively) about Hillary Clinton, he stated in letters sent to both Robert Greenblatt and Jeff Zucker (and reposted to the GOP website). After neither channel budged, the GOP officially voted to ban 2016 primary debates from NBC and CNN, later releasing the text of the resolution. In a related story, it is currently the year 2013.

A shameless reference to my South Carolina Gamecocks

A shameless reference to my South Carolina Gamecocks

6) After the NCAA dropped its licensing deal with EA Sports over inclusion in its yearly college football video game, three of the biggest conferences in college sports (SEC, Big Ten, and Pac-12) have announced plans to do the same. Each school, conference, and of course the NCAA itself make personal deals for licensing of team logos, names, and other trademarked material, so although each can make their own decision, many are following the NCAA’s and conferences’ lead. The moves not to license come as the NCAA and individual schools face mounting litigation from former and current student-athletes over the use of likenesses without compensation, a cost that seems to outweigh the income from licensing.

7) Another quick story from the world of video games, as American Express and popular online game League of Legends  have announced a partnership that will see the release of prepaid credit cards that not only feature imagery and characters from the game, but allow a user to gain in-game currency (called Riot Points) by activating and loading money onto their card, essentially encouraging use of the cards to better one’s abilities within the game.

8) A new research report has found an increase in the rate of cord-cutting, noting the “numbers aren’t huge, but they are statistically significant.” Cable operators Comcast and Time Warner have been hit hardest by deserters as pay-TV subscribers have been shrinking overall. Recent financial results from Canada show the trend happening ‘up North,’ as well.

9) Following in the footsteps of After Earth and White House Down, Jerry Bruckheimer’s The Lone Ranger will join the list of bombs of 2013’s summer as Disney is expected to lose up to $190 million on the blockbuster, despite coming out ahead of predictions in overall earnings for the quarter. What makes this news particularly interesting is that stars Johnny Depp and Armie Hammer, as well as Bruckheimer have blamed critics for the film’s failure, implicitly making the bold claim that people actually listen to critics, despite Grown Ups 2′s financial success/critical panning.

10) StePhest Colbchella, the annual music celebration on Comedy Central’s The Colbert Report hit a snag when scheduled performers Daft Punk cancelled only a day before their scheduled appearance due to a contractual exclusivity agreement with fellow-Viacom channel MTV to (secretly!) appear on the Video Music Awards next week. While some questioned whether this was planned all along, Colbert addressed the controversy with notable aplomb.

11) Finally, a silly story with a headline so perfectly descriptive, I will let it speak for itself: U.S. Battling Dictator’s Son for Michael Jackson’s Glove.

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What Are You Missing? March 3-March 16 http://blog.commarts.wisc.edu/2013/03/17/what-are-you-missing-march-3-march-16/ Sun, 17 Mar 2013 13:00:51 +0000 http://blog.commarts.wisc.edu/?p=19113

Ten (or more) media industry news items you might have missed recently:

1) Surprisingly, the biggest news items of the past two weeks come from the ‘dying’ world of publishing. The ‘Time’ in Time Warner is officially breaking off as Time Warner has announced a split with its magazine division, Time Inc. The spin-off will make Time Inc. an independent, publicly traded company, currently the number-one magazine publisher in the U.S, featuring PeopleSports Illustrated, Forbes and of course, Time. But Time Warner isn’t the only conglomerate making bold publishing moves, as News Corp. is creating a new publishing-focused company, still named News Corporation, granting it a healthy starting-allowance of $2.6 billion. This has led to multiple reactions from the industry with fears of possible layoffs at Time.

2) Staying in the world of magazines, Next Issue Media has expanded beyond Apple to launch on Windows 8 and Microsoft products like the Surface. Following a subscription model for unlimited access to over 80 magazines, Next Issue has been called both ‘Hulu’ and ‘Netflix’ for magazines. (The jury is still out on which one we are all going to call it. Post your suggestions in the comments below!) CEO Morgan Guenther is aiming for 1 million subscribers in the next 18 months.

3) Back to battling conglomerates, new information in the legal battle between Cablevision and Viacom has come to light. To catch you up, at the end of February, Cablevision filed an antitrust suit against Viacom, arguing against the mass media giant’s method of bundling its less performing cable networks with must-watch ones claiming, “The manner in which Viacom sells its programming is illegal, anti-consumer, and wrong,” in what may very well be the least self-aware statement ever made by a corporation. Now, Cablevision is claiming Viacom was threatening a $1 billion penalty if Cablevision refused the lower-tier networks. More on this irony as it develops.

4) The release of EA’s highly anticipated reboot of the SimCity video game franchise may go down as one of the biggest disasters in the industry’s history (though nothing touches the unforgettable landfills of Atari E.T. cartridges). Utilizing EA’s already highly controversial always-online DRM protection, SimCity became unplayable for thousands of players due to server issues and shut-downs. An alleged EA employee blasted the company on Reddit, expressing frustration and disappointment over the launch. EA responded by increasing server capacity and offering a free game, but many have not been assuaged, especially after computer modders/hackers revealed the game can function offline, but EA refused to allow that capability despite the massive amount of server failure.

5) In more video game news, the Entertainment Software Ratings Board (ESRB) and the Entertainment Software Association (ESA) have announced a new campaign to educate parents on the industry’s ratings system and parental controls. This comes as a response to increased media scrutiny, particularly in the possible connection between video games and violence in teens and young adults. In a related move, the ESRB has changed its policy on game marketing, following a model similar to Hollywood in that publishers may show trailers for Mature (M) rated games to a wide audience, as long as a green slate (a la movie trailers) precedes the footage.

6) Hulu’s future is in question, as Disney and News Corp. are discussing strategy for the online streaming service, with the implication begin one may buy out the other’s stake (which would be another third. The final third is primarily owned by Comcast, who is barred from management decisions to a federal regulatory agreement). The talks appear to be centered around the companies’ divergent views on Hulu’s primary operation, with News Corp. favoring the paid subscription model of Hulu Plus while Disney wants to focus on advertising-based revenue from free streaming.

7) News from the ‘upfront-line’: upfront season has begun! Cable and smaller broadcasting divisions have already begun the annual process of selling airtime to advertisers. Two of the more newsworthy reports come from NBC News Group, where Matt Lauer joked about recent negative reports on his image and Today’s slipping ratings, and Disney Kids, pushing the use of multi-screen viewing patterns and, much more importantly, the upcoming summer spin-off “Girl Meets World.” We demand Mr. Feeny!

8) At the box office, the past two weekends played Jekyll and Hyde for Hollywood, providing them their first flop and first mega-success of 2013. Two weeks ago, Jack the Giant Slayer brought in an estimated $28 million domestically, just 14% of its nearly $200 million budget, though it shows promise in Asia. Last weekend, however, Oz: The Great and Powerful proved to be just that, bringing in over $80 million domestically and $150 million globally. While this is good news for a Disney, who started planning for a sequel before Oz‘s release, it is better news for the entire domestic box office, as current year totals are 17% behind 2012.

9) Unionized healthcare workers at the Motion Picture Television Fund hospital stated their intention to strike for three days starting this Monday, March 18. MPTF responded with intentions to hire replacement workers for the strike. Talks fell through this past Wednesday, and the union plans on following through with their strike.

10) A new study from Carnegie Mellon‘s Initiative for Digital Entertainment Analytics, published on March 6, draws the conclusion that since the shutdown of piracy-giant Megaupload, legal digital movie sales and rentals have increased, drawing a distinct correlation. Their findings show, “a positive and statistically significant relationship between a country’s sales growth and its pre-shutdown Megaupload penetration.”

And finally, The Silly Side, the news stories too inane not to share:

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What Are You Missing? Feb 17-March 2 http://blog.commarts.wisc.edu/2013/03/03/what-are-you-missing-feb-17-march-2/ Sun, 03 Mar 2013 15:25:22 +0000 http://blog.commarts.wisc.edu/?p=18806 Dual-Shock-4_contentfullwidthTen (or more) media news items you might have missed recently:

1) Over 6 years after their last console release, Sony announced their latest gaming console, the PlayStation 4. While they did not reveal what it would look like, they did detail its functioning, new controller, hardware specs, and user interface. The system will include iOS and android apps to enhance the gaming experience.

2) The Academy Awards, or rather the Oscars, took place on February 24th. Six of the films nominated for Best Picture had earned over $100 million at the box office, making it the most commercially successful group of nominees to date. In the documentary short category, Inocente became the first Kickstarter-funded film to win an Oscar. The big news of the night became Seth MacFarlane’s hosting, which elicited a lot of criticism and sparked discussions about Hollywood’s potential sexism and racism. The Academy stood behind MacFarlane’s performance, and in fact this year’s Oscar ceremony showed increased viewership, especially in key younger audiences (which had been a concern for the producers). MacFarlane was not the only one in trouble on Oscar night, as The Onion faced an intense reaction towards a tweet, for which they offered a rare apology (And for anyone who is wondering how Ted came to life at the Oscars, here’s how!). The Independent Spirit Awards, which honor independent films, also took place last weekend.  Silver Linings Playbook came away the big winner, irking some people because the film’s $21-million budget technically put it outside of the classification for “indie film.”

3) Although they won an Oscar for visual effects for their work on Life of Pi, Rhythm & Hues filed for bankruptcy last week. They were cut off from discussing the plight of the industry in their acceptance speech, which upset many visual effects workers. Visual effects artists are protesting the layoffs and bankruptcies their industry is facing using any outlet they can, including social media and open letters (including a second one to Ang Lee).

4) New copyright alert system is launched by the film, TV, and music industries. The warning system gives people six strikes before they begin enforcing consequencesSony has also developed a patent that would be able to distinguish between piracy activities and legal downloads. Internationally, France is also looking at increasing their (already very strict) anti-piracy laws. Thinking of piracy, how much does “free” music actually cost to artists involved?

5) For the first time in 12 years, music sales grow a small but symbolically important amount. In other music news, Billboard is beginning to include YouTube plays of a song in their formulation of their “Hot 100 List.” This change will allow YouTube hits like “Harlem Shake” to boost their stats. Most of YouTube’s top channels are music-based, suggesting the importance of this connection. Google is considering getting into the streaming music business. Pandora has put a limit on free listening, citing increased royalty fees as the reason, and Spotify is meeting with the record industry to ask for price breaks on royalties.

6) The 2013 box office totals are off to a slow start, 13% behind last year, and Jack the Giant Slayer opened to a disappointing $20-30 million. After taking a big loss on Rise of the Guardians, DreamWorks is forced to lay off 350 employees. The news is not all bad though, as Oz the Great and Powerful debuted with $75 million and The Hobbit closes in on $1 billion worldwide. In other movie news, Hollywood plans to cut back on sex and violence? And Regal Entertainment gets even bigger by buying Hollywood theaters.

7) In the publishing world, New York Times plans to sell Boston Globe. Variety announced they are making big changes–dropping their daily print editions, eliminating their paywall, and adding three new editors in chiefTim O’Brien, The Huffington Post‘s executive editor, has decided to leave.  Reader’s Digest files for Chapter 11 bankruptcy. And are digital book signings the way of the future?

8) Numerous companies are reporting hackers entering their systems, including Twitter, Tumblr, Pinterest, NBC.com, Apple, Microsoft, and Facebook (no user data was taken; but if it is compromised in the future, how would Facebook recover?).

9) In TV news, it’s pilot season! ABC is developing a miniseries How to Survive a Plague, based on the Academy Award-nominated documentary about the continuing AIDS crisis. A&E hit a record number of viewers for their reality series Duck Dynasty. Nielsen ratings are changing to reflect the new ways that people access television. Kaley Cuoco of CBS’s The Big Bang Theory tweets positively about Dish Network’s Hopper, though CBS is in the process of suing them. AMC fought with Dish about licensing fees, and AMC’s fourth quarter profits took a hit as a result. The FCC is being pushed to modify the current standards of TV product disclosure to create more transparency with regard to show sponsorship. Cablevision, with the support of Time Warner Cable and DirecTV, filed an antitrust lawsuit against Viacom, claiming that they practice illegal block booking of stations (an accusation that Viacom leveled at John Malone 20 years ago).  The lawsuit could lead to people being able to more selectively sign up for channels, only paying for the ones they want.

10) In other miscellaneous news: Clive Davis comes out as bisexual. Girls Gone Wild files for bankruptcy. And future technologies–the iWatch? Transparent Smartphones? A computer that never crashes? Or what about touchscreen T-shirts?

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What Are You Missing? Nov 21 – Dec 4 http://blog.commarts.wisc.edu/2010/12/05/what-are-you-missing-nov-21-%e2%80%93-dec-4/ http://blog.commarts.wisc.edu/2010/12/05/what-are-you-missing-nov-21-%e2%80%93-dec-4/#comments Sun, 05 Dec 2010 15:00:29 +0000 http://blog.commarts.wisc.edu/?p=7544 Ten (or more) media industry stories you might have missed recently:

1. Twitter’s bidding value has reached $4 billion, pretty good for a service whose purpose its own CEO can’t even pinpoint. Another Twitter exec said there are no plans to parlay Twitter into a news network, but Mathew Ingram says in some senses it already is one (and have you watched CNN?), as is social media in general. Twitter can also be used to crowdsource a story for Tim Burton.

2. We’re finally (hopefully) done with two long, drawn-out movie studio stories: Disney has sold Miramax to Filmyard Holdings, and MGM can now officially relaunch itself anew. But we’re not yet done with the long, drawn-out story of who will take over the MPAA. For a time it was said to be Democratic politician Bob Kerrey; now the name is Republican politician Tom Davis. And we’re not sure what the future of the British film industry will be without the long, drawn-out Harry Potter series to rely on.

3. Awards season is shifting into middle gear: Winter’s Bone is really cleaning up, winning at the Gotham Awards and the Torino Film Festival and leading the Independent Spirit Award nominations, which also had a few surprises; the National Board of Review liked The Social Network best; Sundance has announced its competitive slate (and the out of competition fare); the Academy has released the animated and live-action short Oscar nomination shortlist; and Roman Polanski accepted a Best Director award from the European Film Awards via Skype.

4. Blockbuster is hoping a new ad campaign (“We’re not closed yet!”) and a new pricing scheme (“Hopefully you’ll return this late!”) will rescue it. In contrast, the only thing rising faster than Netflix is the volume of articles on the rise of Netflix, which leads David Poland to offer his familiar “Wait a minute” perspective, while Dian L. Chu wonders if a crash is possible, and Paul Carr wonders why the studios don’t like Netflix more.

5. Wii console sales have declined precipitously; at the Xbox’s 5th birthday mark, there are no new consoles on the horizon; and Disney is shifting attention from console to online and mobile games. And why not, with games like Angry Birds garnering lots of money and new addicts.

6. Hard to keep track of all the piracy and copyright news lately: The US government has shut down over 80 websites suspected of piracy, Fox has gone after an online script trader, Viacom is appealing the YouTube case, Pirate Bay lost an appeal, prosecutors dropped a case against an Xbox hacker, the Supreme Court refused to hear an appeal by a 16-year-old illegal downloader, Google will try out new anti-piracy measures (which make Greg Sandoval wonder which side Google is on now, Team Copyright Owner or Team User), and China (Team China) is fighting intellectual-property abuse.

7. Google’s looking to make a library distribution deal with Miramax, part of a larger plan to feature more long-form content on YouTube. Google’s plan to acquire Groupon fell through, though, ending an already tough week that saw the company investigated for antitrust allegations by the European Union and having to respond to criticism that it helps corrupt businesses. But hey, at least it’s not MySpace.

8. A UK court ruled that paid news aggregator services have to pay newspapers when those services feature newspapers’ online content, even just headlines and short extracts, which could have significant implications (though the ruling will be appealed, of course). Something like Google News (and WAYM!) is ok because it’s free and ad-supported, not subscription-based.

9. Half of the Grammy nominations went to indie artists and labels, but Leonard Pierce says it’s more complicated than that. Spotify took a big financial loss last year, but Bruce Houghton says it’s more complicated than that. Fergie won a Billboard Woman of the Year Award; I wish it was more complicated than that.

10. Good News for TV Majors links from the past two weeks: Ad Volume Standards, The Netflix Challenge, DirecTV May Drop Channels, Walking Dead Closes Writers’ Room, Copps Criticizes Media, Good TVeets (#liesshowrunnerstellyou edition), Terriers Coverage, US Worried About Rep on Canadian TV, Net Neutrality Vote, Comcast Dispute, Attention Span Issue.

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Not Dancing in Central Square http://blog.commarts.wisc.edu/2010/11/19/not-dancing-in-central-square/ http://blog.commarts.wisc.edu/2010/11/19/not-dancing-in-central-square/#comments Fri, 19 Nov 2010 17:23:44 +0000 http://blog.commarts.wisc.edu/?p=7412 Last week, Viacom announced that it was planning to sell Harmonix and had already classified the Cambridge-based development studio as a “discontinued operation.”  When Viacom’s MTV Games purchased Harmonix four years ago, the conglomerate was hoping to expand into console gaming.  Executives also likely bought into the then-popular myth that the gaming industry was recession proof.  Viacom’s announcement last week indicated that the hoped-for expansion into gaming did not go as smoothly as executives had hoped.

As I walked by the door to Harmonix on my way to buy pork chops, I thought about all the reports.  In my opinion Harmonix is one of the most innovative gaming firms around these days.  It seemed odd that Viacom would put Harmonix up for sale before Dance Central really had a chance to make a splash (the game was just introduced on November 4).

What kept bouncing around my brain was the quote that echoed through many trade press accounts: CEO Philippe Dauman’s statement that “the console games business requires expertise we don’t have.”  Dauman’s statement illustrates that firms who buy in to the games business (allegedly to target those 18- to 49-year-old men whose hands are stuck to the controller controlling an avatar more often than their eyes are glued to the television screen watching sitcoms) may have little idea of what to do once they have brought studios into the fold of their media empires.

Do conglomerates have the “expertise” to do games right?  Thinking beyond music, dance, and rhythm action games, conglomerates may believe that games may be excellent opportunities for extending intellectual properties or venues for the extension of transmedia franchises.  Regardless of whether game firms are parts of the conglomerate or independent contractors, conglomerates (and divisions) must balance the desire to protect their intellectual property by imposing rules on how characters and narratives may be appropriated and exploited and allowing game designers and game divisions to translate intellectual properties from filmic/televisual experiences to ludic experiences.  Is this balancing act too complex for conglomerates?

Development for multiple consoles, the relationship between retail sales and sales of DLC, and the fact that games only really exist as texts once they are played add layers of complexity to producing, marketing, and distributing a game that are simply not present in the film or television industry.

Despite the industrial rhetoric of convergence and synergy, are the cultural logics of television and gaming too divergent?  Can media conglomerates firmly entrenched in the logic of broadcasting, cable, film, and publishing ever really understand what makes game companies tick?  Or, are the production and economic logics of what makes something fun to play and interesting to watch too distinct?  Can conglomerates be successful at both the televisual and the ludic?  Or must they choose, as Viacom seems to have done?  Is the ludic beyond the pale, so to speak, and does this pose a problem for media firms in what independent game designer Eric Zimmerman has called the “ludic century?”

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