Hollywood... here's an industry that has resisted, tooth and nail, every innovation... talking pictures, colour movies, television, colour television, cable television, the VCR, the CD, the DVD, DVRs, and of course... the internet. At every introduction of technology, the powers that be in Hollywood have fought, resisted, folded, and have gone on to make gobs of money on the new technology despite their bottomless stupidty.
Once again, they are mounting a futile resistance to the march of time. They want to restrain, hinder, and shackle the possibilities created by the digital media and the universal reach of the web.
Any other industry, presented with an opportunity to distribute its goods to every nether region of the world, costlessly and effortlessly, would embrace and rejoice in the development. It would be seen as the greatest gift from the gods, and would be pushed forward for all it was worth. But not Hollywood... oh no!
These people who populate Hollywood must have descended from the genetic stock of those Neanderthals who argued against the first use of fire!
How can such unbridled and unrelenting stupidity continue to be rewarded? Any other industry would have long vanished. The merciless winds of change, present in other industries would surely have insured their evolutinary downfall and elimination. But amazingly that hasn't happened to Hollywood. The reality is that they have had one thing on their side, and that is... content is still king. And no matter how efficient, seamless, cost-effective the channels of distribution, without killer content, everything is moot.
And as long as they can keep control, physically, technologically or legally, over the desired content, and keep us the consumer under their yoke and chain, all is well in Hollywood.
Well maybe not this time... look at the music industry. They thought they had stemmed the tides of time when they killed Napster. But since that time, the value of the music industry has nose-dived and continue to do so. Mind you, this is not the value of music produced or the value of music consumed, but the value of music packaged and controlled by the "music industry" of old. To paraphrase George C. Scott as Patton, "closed systems are a monument to the stupidity of man... if Microsoft (MSFT) and Intel (INTC) can be overcome... anything created by Hollywood can be overcome."
Imagine if all the control was yanked away from the greedy palms of the shucksters in Hollywood and rightfully placed with the end consumer, and with the real creators of content. Then we'd really have something. Well that utopia is still some time away... but we'll get there. Hollywood is just an intermediary. And no matter how much glitz and glam they ensconce themselves in, they are basically car salesmen. In the end, all intermediation is disintermediated!
The irony is that, for the moment, our champion in this glorious battle is none other than Mr. Jobs. Who nearly sunk his beloved company, Apple Computer (AAPL), the first time around by insisting on the toddler strategy: "That's mine! I don't share!"
Well maybe time does give wisdom. Maybe, it's just the rebel in him... that always wants to be fighting "the Man" from the outside... even as he has become "the Man" and the ultimate insider sitting on the Board of Disney (DIS) as it's biggest shareholder. Or maybe Mr. Jobs stumbled on his insight by happy happenstance. Whatever the case may be... "the enemy of mine enemy is my friend". So he is our champion for the time being, in thwarting the mind-numbing stupidity of Hollywood. And Mr. Jobs does make cool stuff!
On Tuesday (Sept. 12), Mr. Jobs will make his "Showtime" announcement. You know it will be something big. Last week, Apple unveiled their update of the Mac-mini as well as their iMac line, including the introduction of a brand new 24" iMac. Now why would a consumate showman like Mr. Jobs release these major updates with no fanfare whatsoever, the week before he takes stage? You have to bet it's because he thinks he's got some doozies that he doesn't want upstaged. The bet is that it will include the new Apple iTunes Movie Store, at minimum. Let's hope he hasn't been forced by Hollywood to dumb-down the offering to such an extent that it is a non-event. But I somehow doubt it. Jobs is at the top of his game, at least for the moment. And he will continue to have the wind at his back. So let's hope we can continue to ride Jobs' tailcoat for a bit longer. But never underestimate those sad souls who work in Hollywood, and their ability to destroy value.
As for those Hollywood powers... Your days at the top of the food chain are numbered. Enjoy it while you can. And if you are asking us... "Do you really think you have a chance against us?" I'd like to quote from one of your own memorable movies... "Yippee-Kai-Yay, motherf***er!"
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