Big news: Jeffrey Katzenberg and Meg Whitman have secured $1B in funding for NewTV.
The big idea: Combine Netflix production quality ($5–6M per episode) with episodes closer in length to YouTube videos (<15m).
Who is backing it? Backers include Disney, Fox, Sony, Lionsgate, MGM, NBCU, Viacom, WarnerMedia, Alibaba, Liberty Global and Madrone Capital.
When does it launch? The launch is slated for late 2019.
$/minute for made-for-mobile content:
1) Industry standard — $5–10k
2) Katzenberg plan — $125k
Flashback #2: Katzenberg’s NewTV Video Startup Raises $800 Million
Strong pedigree: Katzenberg launched Dreamworks which was later sold to Comcast for $3.8B in 2016.
The big question: Will enough people pay for this type of content?
Multiple price points including:
1) Lower priced option — Light ads
2) Higher priced option — No advertising
The target audience will the 25–30 age group.
Quote from Mark Burnett– Chairman, Worldwide Television @ MGM:
“Every time you go to a commercial break, you have to create a hook that would make the viewer stay around through commercials… It’s a very similar logic here. At the end of every 10 to 12 minutes, there’s a hook. You can’t wait to see what happens in the next episode.”