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Wednesday, October 20, 2004

Vertical Integration in the Entertainment Industry

Mark Cuban along with Todd Wagner believes that vertical integration and the ability to contol the supply chain are the vision for the entertainment properties and in the process put together various companies. Mark expands,"The goal in putting all of these companies together is to be able to control our own destiny. We want to be able to create films in HDTV format via HDNet Films and 2929, acquire them through Magnolia and then distribute them digitally to our Landmark Theaters. We also have the ability to sell, show and distribute them in whatever (DVD, HD, etc) format we think consumers want, rather than what Hollywood dictates . Our goal is to provide entertainment to consumers, how, where and when they want. As Todd says, “what a concept, give the consumer what they want, rather than have someone tell them what they want.”

Things are going great, but there has been a side benefit that I had hoped for, but never really expected to happen so quickly. We are making and distributing movies that can truly impact peoples lives. HDNet Films is completely a documentary about the Enron debacle called Black Magic, which should be out this winter. Magnolia has taken the idea of movies that change peoples lives to an even greater level with the release of two movies:

Woman Thou Art Loosed & Voices of Iraq.Production and Distribution - two important elements of the entertainment industry are making significant advances in their own ways. There may be a emerging technology in future which may bring these together.
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"All views expressed are my personal views are not related in any way to my employer"