Media mogul Jeffrey Katzenberg pitched Apple on new TV service

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in General Discussion edited July 2017
DreamWorks founder Jeffrey Katzenberg is shopping around an innovative mobile-first TV service, dubbed "New TV," to a number of technology and telecommunications firms including Apple, Google, AT&T, Verizon, T-Mobile, Snapchat and Spotify.


Jeffrey Katzenberg. | Source: Getty Images


The proposed venture, which Katzenberg estimates will cost about $2 billion to launch, is centered around original short-form content no longer than 10-minutes in length, reports CNBC.

With a $2 billion war chest, New TV's goal is to deliver high production quality and big-name talent for a mobile-first generation. Katzenberg told the publication that J.J. Abrams, Ron Howard, Mark Burnett and Jerry Bruckheimer have shown interest in working on projects, while deals are already in place to license custom content from Disney, FOX, CBS and Lionsgate.

The media executive shared additional details about the service with Variety, which published a cover story on New TV on Wednesday. The idea behind New TV is to create a network that markets short, but powerful content, similar in form to the sea change authors Dan Brown and James Patterson brought to publishing with novels containing short, rapid-fire chapters. New TV marries the worlds of highly produced TV shows with short-form programming typical of outlets like YouTube.

Katzenberg wants New TV to produce fresh, original shows, and is not interested in condensing or chopping up and re-serving existing content.

"It's unbelievable how many hours we all spend watching great TV content today and, separately, how much time we are consuming short-form content," Katzenberg said. "So why can't those two worlds come together in what is a new creative and business alignment?"

Whereas production companies spend anywhere from $5,000 to $10,000 per minute for mobile-minded content, Katzenberg is looking to lay down up to $125,000 per minute, the report says. Further, each episode will lack advertisements to keep the up to 10-minute segments free of interruptions. Instead, monetization will be drive by sponsorships and brand integrations.

On the topic of money, Katzenberg wants to use the $2 billion he is looking to retain from a distribution partner as seed money for new projects. According to Variety, producers or studios working with New TV would earn revenue consistent with what they make from traditional TV, and content creators are expected to retain rights to their programming.

Negotiations are fluid, as is the basic premise of New TV, but Katzenberg is already meeting with potential backers. Last week, the media mogul was seen talking to high-power tech executives at the Allen & Co retreat in Sun Valley last week, including Apple CEO Tim Cook and SVP of Internet Software and Services Eddy Cue. He also spoke with YouTube CEO Susan Wojcicki and Verizon execs Lowell McAdam, Marni Walden and Tim Armstrong, the report said.

"Is this a gigantic undertaking? The answer is yes," Katzenberg said. "Is it bigger than DreamWorks? I hope so."

The pitch comes amidst Apple's own efforts to break into the video production industry with original shows like "Planet of the Apps" and "Carpool Karaoke."

Comments

  • Reply 1 of 11
    SpamSandwichspamsandwich Posts: 33,407member
    Not surprising people go to Apple "hat in hand" to convince them to pour unbelievable amounts of money into TV related projects now.
    jbdragonjony0
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  • Reply 2 of 11
    NY1822ny1822 Posts: 621member
    someone has to crack the youtube monopoly 
    liketheskyjony0
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  • Reply 3 of 11
    Solisoli Posts: 10,038member
    NY1822 said:
    someone has to crack the youtube monopoly 
    Google put a lot of money into doing that but ultimately just had to buy them out, and how much bigger are they now?

    I wonder if they only way to beat YT is for usage patterns to simply out grow their service. For example, FB is more social and they also offer a great deal of video.
    jbdragonlikethesky
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  • Reply 4 of 11
    Take caution Apple...you don't want to purchases another case of snake oil, like Planet of the Apps. 
    jbdragon
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  • Reply 5 of 11
    buckalecbuckalec Posts: 204member
    Had the misfortune of working for the emerging networks division of a large US media company beginning with U. The fact that he's having to pitch and use PR speaks volumes.
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  • Reply 6 of 11
    Lucioguidolucioguido Posts: 9unconfirmed, member
    Seems similar to what Snapchat is trying to launch. 

    Im just not convinced people want such short, professionally produced content. YouTube is so much better for DIY videos and other short amateur content. I think Netflix's success by getting rid of strict time limits highlighted that people still mostly want content to be 20 - 90 minutes. There's exceptions like robot chicken, but these seem like niche audiences. 
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  • Reply 7 of 11
    jbdragonjbdragon Posts: 2,315member
    One thing is for sure, I see no point in Apple launching the same old bundle type TV like everyone else. It's no different from Cable TV. If it's not a-la-cart, there's no point. Every channel can set their own price point and Apple gets their cut. It could be FREE to $15 per channel. HSC, Free, PBS, FREE, CW is already FREE. You want more viewers, you better be cheap. or less paying viewers at a higher cost. People will pick whatever channel(s) they want. You could even have mini bundles. Say you pick 5 channels, and get a little discount. 10 channels, a little more. Pick 11 channels, you get a discount for the 10 and pay a bit or free for that 11th. If it's the same bundle crap as everyone else is doing, it's just a waste of time. I sure wouldn't sign up. I won't sign up to music as it is as I think $10 a month is already to much. I don't tune into enough music to ever make that worth it and it's most costly then Netflix. Everyone has the same lame $10 plan. Like that's the magic number. How about $5 and limit the hours or something? There's already $5 for students, so it can't be that big of a deal. 10 Minutes are clips. Not really a show. Maybe a Cartoon or something on Youtube fits that kind of time format. Over paying for content is not going to make it better. You'll need like 4 shows plus the 10 minutes for commercial or whatever in between per hour.
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  • Reply 8 of 11
    SpamSandwichspamsandwich Posts: 33,407member
    Time for Apple to buy Disney (and by extension: ESPN, Lucasfilm, Pixar, ABC, etc.). Go big or go home!  /s
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  • Reply 9 of 11
    Speaking of shorts, I'm off to watch Dunkirk this afternoon - Nolan's shortest film since Following!
    edited July 2017
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  • Reply 10 of 11
    This effort is mainly interesting for a) the competition it will provide for YouTube, and b) the business model of no ads. I think b) makes it a strong contender to be effective at a).
    jony0
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