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Panelists speaking during the "Hollywood and the Digital Consumer" panel discussed how technology is disrupting habitual spending within entertainment companies and at the same time allowing consumers to have greater choice.
One of the main topics was the future of free content.
Blair Westlake, corporate vice president of the media/entertainment and technology convergence group at Microsoft, said, "New content doesn't necessarily have to be free. There's not a 'one-size fits all' model. We're going to see more pressure on traditional revenue streams. And the next ten years will involve more change than we've had in the past ten years."
It was easy to market in the past because there were so few mediums, noted David Bishop, president of worldwide brand integration at Sony Pictures Entertainment. "Now there are so many new tools that we need to make sure that we fully understand how consumers are interacting with them," he said.
"But getting exactly what we want and when we want it is still a challenge. We all want consumption to be easier, so we need to work together in this direction," said Vince Messina, Yahoo!'s entertainment category development officer.
Sony Pictures is one studio making it easier on consumers by digitizing its library so that it can be distributed everywhere. "People don't want to have to pick one outlet, they want variety," Bishop noted.
Digital entertainment continues to shift dramatically as mobile and gaming markets have caught up with that of movies and music.
During the "Game Power: Entertainment as Franchise" session, moderator Mark Friedler, CEO of GameDAILY/Gigex, Inc. and an iMedia contributor, said that the title "Game Power" demonstrates the result of new and expanding creative gaming technologies in development, in platform and in delivery. As gaming's influence grows, it will invade and partner with entertainment and advertising sectors, from movies and TV to music and mobile.
Friedler asked the audience, "which of the following releases had the biggest opening day revenue: "Titanic," "The Incredibles" or "Halo 2"? The answer is Halo 2, which grossed $125 million in its first day."
He then asked panelists to highlight the consequences of increasing gaming usage. Don Daglow, president and CEO of Stormfront Studios, said, "the pyrotechnics and the realism on the screen are enhancing the consumer experience. Expectations of consumers are rising quickly. Games are being played on the same television that movies are played on. The consumers see a resolution that matches the television screen, so now they have higher expectations of what game developers offer."
"With games continuing to be sold at a $49.99 price point instead of $80 or $90, publishers like THQ are taking a closer look at the bet they're making. Licensing decision-making will become a longer process," predicted Germaine Gioia, vice president of licensing at THQ.
Panelists then discussed the marketing angle for games.
Dario Spina, vice president of marketing and promotions at Spike TV, said, "We have to look at gaming consoles as entertainment and community centers. Gaming companies seek us out for promotions and advertising, and we think there's a good fit because of the target."
"Today there is more pressure on the business partners because of the cost to develop new games. Advertising partners are feeling this pressure," predicted Jonathan Epstein, an agent at United Talent Agency who originally founded GameSpot. "The opportunity to cross market music and entertainment within gaming is going to be huge."
What exactly is the potential of cross-over among media?
Gioia said, "It's so rare to find a licensing product that you can advertise in all international markets, so Star Wars was truly unique. THQ launched a suite of applications, like short message on mobile, to coordinate with the theatrical movie launch. Integration globally and across carriers and mediums is going to be remarkable. Media should be able to talk and work with each other."
"The power of partnering is key. The tools we use to create games and films are becoming more alike, so the overlap of people and technology will help with cross-over," Daglow said.
Friedler asked, "Do movies make good games?"
"Movies are two-hour experiences whereas gaming delivers hours and hours of re-playable experiences," Gioia said.
Daglow reiterated the power of emotion: "Game creators want to create the same feeling that people have when they connect with human beings on a movie screen. They can use movie characters' emotional energy and the movie's creative elements, but the game experience is more complex."
After mentioning that the mobile gaming industry is the next entertainment power driver, Friedler asked panelists to describe the future of mobile gaming.
Epstein replied, "There were early gaming leaders that pursued mobile development and distribution by outsourcing, but now it's relatively cheap to offer mobile games. It's going to be an exciting market."
Spina said, "SpikeTV is only a two year old brand, so our focus has been to put programs on the television screen. But as digital technologies emerge, we're starting to look at long and short form on multiple screens. We want to develop properties that live on television and get noticed by other companies who want to work with them."
Then he added, "Understanding the power of multiple media usage, we want to relaunch our website to make it broader as a destination site for men."
The hardcore market as a percentage of people is relatively small at eight percent, Friedler noted. Online game sites get a higher percentage of advertising budgets than hardcore gaming. Daglow added that he believes online social components will become required for all games.
And not just for games -- interactive and digital components should be required in all entertainment categories.
Rebecca Weeks is the content director for iMedia Summits.
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