Eufemmé Films, LLC

This is where it's at now: Web Originals. Learn to morph, shift, re-invent, evolve, choose your metaphor.  Change is inevitable.  Great summation by LAist of the most recent Digital Hollywood conference in LA.

As this LAist article points out, "The new breed of web entertainment companies have more in common, culturally, with tech companies than traditional media. [  ] Web entertainment creators are thinking more like scrappy tech start-ups than Hollywood players."  

Not only that, but this evolution has had a huge impact on advertising.  New divisions are sprouting up in ad agencies for new areas such as web video, or social media, along with their existing digital divisions.  That's a good thing--especially for web video content producers. Ad agency creative directors, if they are smart, will look to web video producers who specialize in this medium instead of forcing their back-pocket traditional production companies to adapt, like it or not.  Some will, or can.  Most won't, or can't, even if they tried. Traditional production is expensive.  It's difficult for a traditional production company to comprehend a web video production budget, and they can't afford to.

Bottom line is, "The demand for high-quality, homegrown web video is exploding", as the article states. "The DNA of original web content comes more from the tech business than from traditional Hollywood," as Jonathan Handel, an entertainment attorney and Digital Hollywood panelist so eloquently concluded.  

Exciting times, no doubt. Get "bionic" people!  That's for those of you old enough to remember the reference to, "We Have the Technology". If not, nevermind. 

A recent BusinessWeek article outlines the inevitable, "If Internet video continues to catch on as a marketing alternative for small businesses, . . . $20 to $30 billion in advertising that currently goes to the business and trade press could evaporate. Small firms that typically advertise in their industry trade publications, business publications, the Yellow Pages, and on cable television could shift their marketing dollars into producing their own video content."

Yes, it's true.  Online video, web video, internet video, however you'd like to refer to it, is growing as a viable marketing vehicle.  And yes, while the cost of producing a web video is dramatically cheaper than traditional commercial film production, as the article points out, one should try to keep the production value high.  Web video doesn't have to look cheap. The cost of a well-planned and professionally produced web video is still significantly less expensive than traditional production.  That's all I'm saying.  But the article makes some good points, worth a read.

Last week EQAL, creators of original web video content, announced it wasn't going to produce original content anymore, but rather, create content around existing TV shows that have a built-in audience (and advertising).  The annoucement spawned several articles last week written about the current state of web video (See, PaidContent.org, Los Angeles Times). And today, Ripe Digital announced it's shut down, the most recent shakeout. The bottom line is that web video is going through severe growing pains and a typical maturation process. '60 Frames' recently shut down, as did Disney's 'Stage 9', as did web series that were developed by NBC, HBO and AOL.  

So what's wrong? I think it's timing, once again.  Remember BMW Films back in the late '90s?  It was too early then, and it's still early (although America was introduced to Clive Owen--alas, I digress).

But for every web video studio that has shut down over the last two years, the reasons for doing so have been varied.  One common issue for all of them--a lack of ad dollars. Pure and simple.  Many believed advertisers would come running, but they didn't.  Other factors impacting the fragile state of web video include, an oversupply of content, the recession, a lack of metrics with insight into who the audience of a given web series really is, a fragmented market, and some would argue that the brand itself is part of the problem.

So what's the solution?  Well that's the million dollar question, ne c'est pas?!  One thing is key.  Content creators need to build audience and have a distribution strategy.  How do you do that?  Find and target your audience.  Locate them online then engage them, get them involved in your content and create an emotional attachment that fosters their loyalty. Content with a loyal following will eventually attract advertisers.  

If you can find a way to integrate an advertiser (aka a brand) into your content BEFORE production, while still focusing on creating entertaining web videos, a brand's involvement in developing creative video content ancillary to its own product will make them rise above the 'noise'.  When content creators and brands have produced compelling content together, as Christine Beardsell puts it, "people will be more willing to friend, follow, tweet, digg, or push whatever that button is to connect a brand to their world and friends" I agree--both the content creator and the brand will find their audience.  Producing web video this way will also allow content creators to tap the brand's existing market of loyal customers (the built-in audience).  By producing web video this way with advertisers, content creators have sponsorship opportunities at the development/pre-production stage which helps covers production costs. Producing original content first, then trying to find a brand fit, is risky.  Hence, all the web video studio shut downs. However, EQAL is now on the right track with the company’s new project with TV chef Paula Deen.

Overall the industry is still in its infancy and the strategies and business models are all embryonic.  These are growing pains we're seeing manifest before our eyes, but the gestation period is necessary.  I know, enough with the pregnancy references, you get the picture.