A lot of money to develop original! Silicon Valley Technology Corporation Becomes Upstart in Hollywood

On September 16, the Guardian website wrote an article about how Silicon Valley’s big technology companies have become newcomers to the television industry. The power of Hollywood is in turmoil. Various technology companies have invested huge sums of money to increase their input on original content. Traditional TV broadcasters, which have dominated popular culture for decades, are struggling to keep pace with them.

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The impact of technology companies

The playwright William Goldman once said that nobody knows anything in Hollywood. Because few people can accurately predict which movie can be called. But after the technology company entered Hollywood, the situation was different. Those companies think of a little bit: To conquer the TV screen, you have to save money, save money, and save money.

Geeks are relying on strong financial resources to turn themselves into the master of entertainment - or at least content copyright owners - and this process also determines what we watch and how we watch it.

Apple plans to invest $1 billion to create original content, allegedly targeting the studio that produced "Gone with the Wind." At this weekend's Emmy Awards, Netflix and Hulu will compete for multiple awards with Stranger Things and The Handmaid's Tale. YouTube is also increasing the production of original programs and movies, increasing relevant budgets and setting higher goals. Facebook is also waving cheques valued at one billion U.S. dollars, and investment in a single episode of new programs may reach up to 4 million U.S. dollars. Snapchat may also follow up soon.

Traditional TV broadcasters, which have been playing a role in shaping pop culture for decades, are also trying to keep pace with technology companies.

"I think the term 'arms race' is not enough to describe the current fierce competition," said Craig Erwich, senior vice president of content at Hulu.

Platform and content copyright

This fully reflects the great convergence between TV, Internet, and wireless technologies. For traditional TV broadcasters, it is no longer enough to make hot shows. They must also put content on various platforms for viewers to download and streaming, or risk losing ads and subscription revenue.

In order to share those incomes and to differentiate their own products and services, technology companies must own content rights—whether through acquisitions or making their own content.

Hulu executive Elvich pointed out that original content, especially hot topics such as “The Story of the Maid”, played a role in defining the quality of a company and boosting subscription revenue. "This is something we can rely on ourselves to acquire. Exclusive rights are essential."

For Apple, entering Hollywood can help it offset the decline in iPhone and iPad sales while boosting its streaming music services. Adding programs and movie libraries to the service will bring much more value to the original subscribers who pay $10 a month, and should also attract new subscribers. If that content is only available on Apple's devices, it means that consumers have another reason to buy an iPhone and an iPad.

The 69th Emmy Awards hosted by Stephen Colbert will be held at the Microsoft Theatre on Sunday, US time, when companies will compete for fierce competition. Hulu has 18 nominations, of which 13 are from The Maiden's Tale and 5 from its first original documentary, the Beatles: Eight Days a Week - The Year of the Tour. Amazon has 16 nominations.

Hulu's "The Story of the Maid"

HBO is still a giant-like existence with 111 nominations, of which Westworld has 22 exclusive titles. However, Netflix narrowed the gap with HBO over previous years with a total of 91 nominations for hit episodes such as "Strange Story", "The Crown" "The House of Cards" and so on.

Apple took "Planet of the Apps" and "Carpool Karaoke" to enter the original content field, but the two reality shows that were played through Apple's music service were mocked. However, in view of the fact that the company has already led Jamie Erlicht and Zac Van Eimbog, two senior executives who had led Sony's fierce content such as “The Deadly Addict” and “The Crown” (Sony’s leadership). Zack Van Amburg) will incur a great deal and will also spend $1 billion to create an original TV show. It is expected to become a force that can't be overlooked.

“Put billions of dollars to make it clear that Apple is paying more attention to original content than it was a year or even six months ago.” Jan Dawson, media analyst at market research firm Jackdaw Research, points out, “They want quantity. With both quality and quality, you want to create something like "Game of Power."

According to "Financial Times" report, the original content department of the technology company may rent the studio of Culver Studios. The well-known studio has witnessed the production of famous films such as "The Matrix" and "The Gone With the Wind." Apple declined to comment.

Amazon is also associated with the studio. It allegedly competes with Apple for the distribution rights of the James Bond film series and may also compete for the 007 series of derivatives.

Netflix played the role of a leader, and it was originally determined that light was a platform is not enough. In 2013, Ted Sarandos, the company’s content director, pointed out that the company decided "to rush to become HBO before HBO becomes us." What he means is that content producers will eventually create their own streaming media platforms and will no longer provide Netflix with their content.

He is right. Last month, Disney announced that it will terminate the transaction with Netflix and will launch its own streaming media service in 2019.

However, Netflix has been building a huge library of content. This year, its original content budget has soared from $300 million in 2013 to $6 billion. The huge war fund will be able to support the launch of at least 20 programs.

Even YouTube, which has 1.5 billion monthly active users and 1 billion hours of viewing on user days, feels that it needs to create original content. It plans to launch more than 30 original programs and movies this year through its subscription service Red, and this number will be raised to more than 40 next year.

"We want YouTube original content to represent premium entertainment content," said Susanne Daniels, global director of YouTube's original content. She talks about the dance program "Step Up: High Water" and the comedy series "Cobra Kai"; also talks to YouTube creators and Demi Lovato, Katie. Collaboration with celebrities such as Katy Perry.

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In addition, the "Wall Street Journal" reported this week that Facebook will spend the most of this year two billion US dollars for its new video platform Watch to create original content. Snapchat is also interested in getting involved in the script. The company said that it should complement content from traditional television broadcasters rather than attack them directly.

New era winners and losers

The constant flow of capital into Hollywood made some people uneasy. “It feels like being paid for it every day,” said John Landgraf, CEO of TV Channel FX, in a news media event last month.

Netflix’s two comedy special shows paid Dave Chappelle up to $60 million, causing the industry’s attention. In this competitive environment, competitors with smaller budgets can hardly afford big-name talent.

But in this revolution, the audience is undoubtedly the winner. They can get high-quality content, rich content choices, and convenient viewing channels in the so-called television golden age. In theory, this is also the gilded age of creative personnel - they are also sought after by new and old capitals, and their works can be displayed on major platforms.

However, for those who are at the bottom of the food chain, the new era is still no different from the old era. “For me and many friends in the show business, the feeling is why we didn’t get more jobs? You still have to go around and still have to work hard and audition everywhere.” Actor Mike Funk Said.

Casting director Dea Vise said that performance paid for online content is often below the state minimum wage. “The job is harder than ever before, it has to be long and the rewards are low.” A technician said that some of Netflix's shots simply pushed the working group to the limit. "You have to work harder. The schedule is crazy. We all feel exhausted."

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