Striking Writers to Launch Online Video Co., Seeking $30M+
Out of work and newly wise to the state of content being distributed online, a group of professional writers is looking to start their own production and distribution company. Aaron Mendelsohn, writer of the Disney film Air Bud and an active WGA member, is captaining the efforts, and says he has gotten a group of “A-list” film and TV writers on the team. He’s also partnering with online community experts from Silicon Valley and raising “north of $30 million” in venture capital, with the idea of launching a company called Virtual Artists later this year.
Mendelsohn has his elevator pitch down cold: “We are a coalition of top film and television writers and top tech innovators who are dedicated to creating and delivering professionally made content directly to the end user, and who believe in the model of freedom and inclusiveness over the model of control that has been employed by the big media conglomerates for the past 100 years,” he told NewTeeVee this week.
The strike, Mendelsohn said, has been crucial to the project’s inspiration in more ways than one: “Otherwise we’re all just too damn busy rowing the boat.”
Virtual Artists will offer professional writers deals to develop and produce films, TV shows and shorts for a reduced fee but a larger ownership stake. It will also look to acquire content. Mendelsohn said he was primarily targeting the 12,000 members of the WGA, “But if there’s a great movie that’s created by some kid in Iowa or Beirut who has a real gift for storytelling, we’re definitely going to be looking for the gems out there.”
On the technology side, the company is looking to foster communities around its content and include viewers in the development process. Henri Poole of CivicActions and Brian Behlendorf of the Apache Project and CollabNet are serving as advisers.
As for the large amount of money he’s looking to raise, “Entertainment has not traditionally been a good investment,” Mendelsohn admitted. “You could burn $150 million on one Golden Compass and lose your shirt.” But this is going to be “lower budget” fare, he said, along the lines of Juno, Napoleon Dynamite, Curb Your Enthusiasm and The Office. “You don’t need to pour a sh–load of money into entertainment to find an audience,” he said.
Virtual Artists will not be alone in this space; there’s also 60Frames (our coverage), Blowtorch Entertainment (our coverage), and more; see this Los Angeles Times piece, which mentions another venture from striking writers called Hollywood Disrupted.
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[...] group of disaffected WGA members, led by Aaron Mendelsohn, are now pushing for an independent, writer-owned venture, called “Virtual Artists,” to be launched s…. The NewTeeVee blog reports that the new coalition is currently seek startup capital of $30+ [...]
WGA Collective To Start Independent “Virtual Artists” Venture on January 12th, 2008 at 8:06 am - Permalink
[...] Worst Nightmare: Obsolescence Striking Writers to Launch Online Video Co., Seeking $30M+ Out of work and newly wise to the state of content being distributed online, a group of [...]
Hollywood’s Worst Nightmare: Obsolescence « on January 12th, 2008 at 8:17 am - Permalink
Good luck! It’s abou time!!
mikecane on January 12th, 2008 at 8:18 am - Permalink
[...] the efforts, and says he has gotten a group of “A-list” film and TV writers on the team. Continue Reading @ NewTeeVee Share/Send Sphere Print Previous [...]
Striking Writers Want To Launch Own Online Vid Company, Seeking $30 million - GigaOM on January 12th, 2008 at 9:47 am - Permalink
[...] of movie writer Aaron Mendelsohn and some fellow striking writers to put together a mini-studio to produce Web content. They’re looking for VCs to put up $30-million or so to launch their studio, Virtual Artists [...]
Writers’ strike and Web video: A continuum - - mathewingram.com/work on January 12th, 2008 at 10:01 am - Permalink
“Air Bud” + “Top Film and TV writers” = cognitive dissonance.
Owen Byrne on January 12th, 2008 at 11:28 am - Permalink
[...] It was inevitable that a group of writer’s with an entrepreneurial bent would bed up with Vent…. Poor bastards those writers. bad to worse . [...]
Howard Lindzon » Writers in Bed with Venture Capitalists...OY on January 12th, 2008 at 12:33 pm - Permalink
Yeah, the guy who is famous for the Air Bud franchise is spearheading this? Yeah the investors will just line up. Was he gainfully employed before the strike? Or is he just using it to feather his own nest.
I won’t watch his work on TV or in a theater, what makes him think anyone will watch his work online.
Tony K on January 12th, 2008 at 12:45 pm - Permalink
Studios know that they are going to be toast on the Internet
I think that the big studios in all categories of media know that their days of controlling media are counted. With such disruptive platforms as Youtube, BitTorrent, DivX, $200 HD camcorders, Miro, Video-blogging, it’s just a matter of time before the cool writers and composers get directly together with the cool performers and producers and decide to release the shows directly to the viewers without any need of big media moguls interfeering and taking the largest part of the revenue and destroying a lot of the creativity in the process.
$100 video-on-demand set-top-boxes, cheap, open and unrestricted portable media players (700mhz, WiFi, WiMax and HSDPA) and other open on-demand Internet access hardware will make it completely user-friendly for everyone to get those independant shows delivered instantly over the Internet from the show creators themselves.
In France once the parliamentarians suggested to pay the artists through taxes, such a thing as a $5 tax on average per citizen was suggested, which could fund much more than what all artists combined are paid today. Thus providing a system for many more talents to express themselves and create even higher quality content with complete creative freedom.
The quality and popularity of the shows being measured very precisely through the Internet connected on-demand system and through social networking tools and some popularity and quality measurement tools provided by the state which also neutrally redistributes the culture tax money directly to all the artists who deserve it.
Anyways, it’s not I guess useful to think about this right now, cause all those shows have to stay on media giant tv channel networks for now, but I would guess everyone should prepare themselves for this probable media revolution coming up. Especially a new administration such as when Al Gore “invented the Internet”, probably could set the reform agenda on the table which would take away the control on the media from the established studios (that is, unless all the candidates are corrupt or media conservatives).
Charbax on January 12th, 2008 at 1:31 pm - Permalink
Internet television is getting warm. Warmer. Hot!
http://www.RSSLiveTV.com
Gerald Z on January 12th, 2008 at 1:34 pm - Permalink
oh now look, i’ve gone and wet myself!
come on, $30 million for a bunch of writers? does anyone have business experience? is Air Bud going to be their mascot?
My god if that’s the best they can do they should be a hell of a lot more quiet with their ideas.
Gyrus on January 12th, 2008 at 2:58 pm - Permalink
I blogged about this today. I love the enthusiasm and excitement, you get the sense they really believe people are going to care, that they’re bringing something to the table, etc. But, they’re not the first credentialed entertainment people to try to give it a go with a video startup, and anybody experienced in internet business will tell you a list of credentials (unless they’re internet specific) and a pile of money guarantees nothing in internet business.
There is and will be a market for professionally produced internet video content, but it’s early. No amount of money or talent will make something mature any faster than its on course to mature. At least not to pay writers and directors nice fat salaries :)
Welcome to startup world, boys. :)
patricia on January 13th, 2008 at 2:27 am - Permalink
[...] [via NewTeeVee] [...]
Writer strike has a news: Launching a new online video co. — winandmac.com on January 13th, 2008 at 4:01 am - Permalink
[...] January 13, 2008$30 million online venture proposed for striking TV writers At the beginning of the TV writers strike, I predicted that some enterprising writers would discover that the TV networks are becoming less relevant as a mass distribution channel and decide to go it alone. While the proposed $30 million enterprise is not exactly a go it alone business, it would provide an additional outlet and potentially some financial backing for independent producers. Out of work and newly wise to the state of content being distributed online, a group of professional writers is looking to start their own production and distribution company. Aaron Mendelsohn, writer of the Disney film Air Bud and an active WGA member, is captaining the efforts, and says he has gotten a group of “A-list” film and TV writers on the team. He’s also partnering with online community experts from Silicon Valley and raising “north of $30 million” in venture capital, with the idea of launching a company called Virtual Artists later this year. (from GigaOm) [...]
$30 million online venture proposed for striking TV writers | on January 13th, 2008 at 5:14 am - Permalink
How do I get involved? How do I invest, and how do I apply for a job with this group? This idea, right here, defines what the web is evolving to next, and exemplifies the economic and business-model changes that are around the corner.
I want in.
gochet on January 13th, 2008 at 9:52 am - Permalink
[...] sites. Interesting to see this data as it coincides with renewed interest in online video endeavors thanks to the writers strike. Another Pew Survey released six months ago had the percentage of [...]
New Pew Surveys: Online Video & Web Use Among Teens | netZoo.net | WOOZradio on January 13th, 2008 at 4:40 pm - Permalink
[...] Striking Writers to Launch Online Video Co., Seeking $30M+ « NewTeeVee (tags: writersstrike film Hollywood movies onlinevideo openness trends) [...]
iJump.co.nz » Uncategorized » links for 2008-01-14 on January 13th, 2008 at 8:25 pm - Permalink
[...] Battelle has some great advice for striking Hollywood writers hoping to put up an online video startup. Guys, it’s a great idea. But don’t make the same stupid mistakes your bosses made and [...]
Striking Writers Going into Online Video: Start Small on January 13th, 2008 at 9:00 pm - Permalink
[...] to view online original programing? Will we see online video numbers skyrocket? Or will the striking writers give television a blow that will take years to recover from (remember what happened [...]
Damon’s Rants » Writer’s Strike = Increased Digital Spending on January 13th, 2008 at 9:05 pm - Permalink
[...] in venture capital, with the idea of launching a company called Virtual Artists later this year. Read the rest of this post Liz Gannes is a blogger for NewTeeVee.com. Print Sphere Comment Tagged: writers’ strike, Aaron [...]
Striking Writers to Launch Online Video Co., Seeking $30M+ | Liz Gannes | Voices | AllThingsD on January 14th, 2008 at 1:56 am - Permalink
[...] a group of professional writers is looking to start their own production and distribution company, reports NewTeeVee. Aaron Mendelsohn, writer of the Disney film Air Bud and an active WGA member is leading the [...]
VentureBeat » Roundup: Intelius and A123 forecast IPOs, EMI cuts, Coghead and more on January 14th, 2008 at 7:29 am - Permalink
[...] NewTeeVee (blog colectiv dedicat exclusiv mutatiilor noilor media bazate pe video in-linie, nu uita sa comenteze ca Virtual Artists nu sunt singurul venture format de grevisti, valul de start-up-uri “new video”, cu scenaristi din industria “veche”, avind si branduri ca 60Frames, Blowtorch Entertainment sau bulversantul Hollywood Disrupted (care probabil se va ocupa de productiile pr0n, dupa nume). De urmarit ce-o sa iasa, voi reveni. [...]
Scenararistii isi asteapta investitorii, pe net | MyKinda Tech si Gadgets on January 14th, 2008 at 10:08 am - Permalink
The production of TV and Film around the world faces exactly the same mass media economic problem.
The current model is simple. Studios take the risk. They scout for and fund the investment and reap the majority of the reward through distribution. The talent is paid a little, with a select few receiving much, much more than others. Basically though, the Studio owns it all.
Off the back of the WGA strike, talent is looking at new ways to create content and keep most of the ownership.
“Virtual Artists will offer professional writers deals to develop and produce films, TV shows and shorts for a reduced fee but a larger ownership stake. It will also look to acquire content.”
This is one example of many groups of talent coming together to seek VC investment; Virtual Artists, Hollywood Disrupted and 60 Frames.
The problem is that these new firms are simply replicating the same mass media economic model, the model they have been institutionalised into. If you think about it, these new firms are simply playing the role of the Studio, but on a smaller scale. They face the same transaction costs to find talent and create new programming that the studios do.
My question. When these new ventures grow, will the TV/Film world look any different? The economics are exactly the same, just spread out over more small/niche/focussed Studios. A bigger pack of wolves, different clothing.
Right now, their offering is to ask the talent to take the risk (reduced fees) and in reward be given a larger share of revenues. Who’s the real winner here?
The new wolves…, and they will have the same problems the studios face. They will not be able to scale investment, production and output. They will have to control tightly what is invested in and what isn’t. They will become the new bottlenecks for talent.
Gordon Mattey on January 14th, 2008 at 11:46 am - Permalink
[...] mix a recession and a drop in the help-wanted index, the sub-prime meltdown, and an explosion in online traffic growth fueled by the writer’s strike, virtually assures that the complete obliteration of most dailies is going to occur sooner than [...]
Even Simpsons Characters Are Taunting Daily Newspapers » article » Diggings on January 14th, 2008 at 11:56 am - Permalink
[...] [Via New Tee Vee] [...]
Angry Zen Master on January 14th, 2008 at 12:27 pm - Permalink
I think this is a great opportunity for all of us creatives to continue perfecting the craft and taking control of the situation.
I’ve found another site for writers & filmmakers, ADOOGA.COM, that lists hundreds of major brand contests with huge cash rewards $$$ (Chevy, Nabisco, Casio, POM, PeptoBismol, Gibson,…)
I’ve entered three contests in the last month with potential rewards of $50,000 and various other prizes
Chris Sherrill on January 15th, 2008 at 11:08 am - Permalink
[...] From Online Media Daily yesterday, on the launch of Strike TV: Set to launch in February, the online channel will feature original video shows created by working professionals in the TV and Film industry. Funds raised by ad revenue will go toward the Writers Guild Foundation Industry Support Fund, assisting non-WGA members, including IATSE and Teamsters affected by the strike… Strike TV will use a Web video platform that allows for videos up to 40 minutes in length, although most will likely be 5 to 7 minutes long. Shows will be rolled out in slates, with the number of slates dependent on the number of videos that are actually produced. Another group of striking writers is hoping to launch their own production and distribution company, according to Liz Gannes on the NewTeeVee blog. [...]
The Pop View » Blog Archive » The post-strike digital world on January 16th, 2008 at 11:52 am - Permalink
[...] TV writers are meeting with web start-ups, as reported in the LA Times (17/12/07), with updates on NewTeeVee [...]
FanTrust » Blog Archive » FanTrust picks for NATPE 2008 on January 16th, 2008 at 11:53 am - Permalink
[...] it could certainly signal the potential start of a trend. Many striking writers have already turned to the Internet as a place to ply their trade and with advertisers on board, the strike could hasten a paradigm [...]
Writer’s Strike Helps Online Ad Sales : New Web 2.0 Magazine on January 17th, 2008 at 12:34 am - Permalink
[...] Aaron Mendelsohn and partners are looking for investment capital to launch an online video company that will deliver original programming directly to the consumer. One does not have to be an [...]
Gonzalo Barr :: WGA Strike In a Nutshell (Updated 1/17/08) on January 17th, 2008 at 4:05 am - Permalink
[...] joins a growing group of startups trying to use established talent and evade television, such as Virtual Artists and [...]
Swingers Director to Launch New Media Co « NewTeeVee on January 17th, 2008 at 12:54 pm - Permalink
[...] TV writers and producers are going there too: NewTeeVee reports that a group of striking writers who… [...]
On Digital Media » Blog Archive » On Digital Media, Episode #56: New Tee Vee on January 21st, 2008 at 7:09 pm - Permalink
[...] help of money and/or expertise from the tech industry is the new hotness. (See also our stories on Virtual Artists, Jackson Bites, Blowtorch Entertainment, and [...]
Film 7 Raising Fund to Bypass Studios « NewTeeVee on January 22nd, 2008 at 12:02 pm - Permalink
[...] the writer’s strike still dragging television down, will the web become a viable medium for the entertainment industry? Probably not for awhile, but one group of writers are raising more than 30 million to do their own [...]
Virgin Galactic - Mario Andretti Racing School - Writer’s Strike - Marketing Sherpa - Mint Money - The Free Line 1.25.08 on January 25th, 2008 at 8:18 am - Permalink
Many TV Stations just re-run old re-runs ans sell advertising spots - They won’t pay for better programs that people like, some produce cheap realit TV (BS) so it will backfire on them and give producers/writers to deliver directly to the people. It will only work if we all have superfast broadband networks at a reasonable price. If not, then the ISPs will kill it. Under the present system of free enterprise and economic models, there will always be someone who will want to milk it for all the money they can, and deliver as little as possible. They say ‘Greed is Good’ but only for a select few. (And their Bankster friends)
Ian Shelby on January 25th, 2008 at 10:51 am - Permalink
[...] the writer’s strike still dragging television down, will the web become a viable medium for the entertainment industry? Probably not for awhile, but one group of writers are raising more than 30 million to do their own [...]
Free Line Report 1.25.08 - Richard Branson - Marketing Sherpa - Mario Andretti - Visual Artists - Mint Money Management on January 25th, 2008 at 11:56 am - Permalink
[...] for video analytics is yet, but with so many web production shops opening for business (see Film 7, Virtual Artists, Jackson Bites, Blowtorch Entertainment, and 60Frames), the honeymoon could last for a [...]
TubeMogul Launches Premium Video Stats « NewTeeVee on January 28th, 2008 at 9:22 am - Permalink
[...] problem is, all the new players like Film 7, 60Frames, Jackson Bites, and Virtual Artists, are just trying to recreate the Studio model for the internet. These nouveau Studios still cover [...]
Opportunities for talent in TV2.0 « Gordon Mattey’s Blog on February 2nd, 2008 at 2:53 am - Permalink
[...] LOVEFilm and blinkBox. Other new digital projects from filmmakers and striking writers include Virtual Artists, Jackson Bites, Blowtorch Entertainment, and the Film 7 [...]
Super Size Me Filmmaker Starts Short Doc Shop « NewTeeVee on February 7th, 2008 at 11:05 am - Permalink
[...] writers on the creation of a new Internet-based production company that is said to have raised more than $30 million in VC funding. They plan to develop and produce original films with the intention of distributing [...]
VentureBeat » Hollywood meets VC money, both online and offline on February 8th, 2008 at 2:35 pm - Permalink
[...] one group of out-of-work writers are trying to raise $30M for a start-up production company called Virtual Artists. Another group has started Hollywood Disrupted and there’s an Internet Video production house [...]
Media Tonic » Blog Archive » Writers’ strike affecting network TV popularity on February 18th, 2008 at 12:05 am - Permalink
Hey everyone,
I am an American expat in Madrid, Spain. I run an English language online magazine here and work in video production. We have a really cool WEB TV show related to travel curiosities hosted by a well known video blogger.
We have the pilot and are looking for some funding. Is anyone out there interested in checking it out? Please email me at business (at) mapmagazine.com.
Phil
PS: We are also about to shoot a European wine show pilot and perhaps an international beer show. If you are looking for fully-equipped American video journalists in Europe with awesome presenters, shoot me an email. You can also check out my video production Web site at http://www.themapagency.com
Viva WEB TV!
Phillip Stark on April 5th, 2008 at 7:57 am - Permalink
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N.L BANSAL on May 2nd, 2008 at 4:36 am - Permalink