Sunday, July 06, 2008

MacFarlane & Google to release Web ONLY Content

clipped from www.nytimes.com
Google and Creator of 'Family Guy' Strike a Deal

LOS ANGELES — Google is experimenting with a new method of distributing original material on the Web, and some Hollywood film financiers are betting millions that the company will succeed.


In September, Seth MacFarlane, creator of "Family Guy" on television, will unveil a carefully guarded new project called "Seth MacFarlane's Cavalcade of Cartoon Comedy." Unlike "Family Guy," which is broadcast on Fox, this animation series will appear exclusively on the Internet.


The innovative part involves the distribution plan. Google will syndicate the program using its AdSense advertising system to thousands of Web sites that are predetermined to be gathering spots for Mr. MacFarlane's target audience, typically young men. Instead of placing a static ad on a Web page, Google will place a "Cavalcade" video clip.


Advertising will be incorporated into the clips in varying ways. In some cases, there will be "preroll" ads, which ask viewers to sit through a TV-style commercial before getting to the video. Some advertisers may opt for a banner to be placed at the bottom of the video clip or a simple "brought to you by" note at the beginning.


Mr. MacFarlane, who will receive a percentage of the ad revenue, has created a stable of new characters to star in the series, which will be served up in 50 two-minute episodes.


In an interview, he described the installments as "animated versions of the one-frame cartoons you might see in The New Yorker, only edgier."


For a more substantial fee, Mr. MacFarlane has been working with advertisers to animate original commercials that will run with "Cavalcade." Google and Mr. MacFarlane would not reveal any of the advertisers, but the two said that several deals are among the largest ever landed by AdSense, which went into business in 2003.


Google, which calls the distribution service the Google Content Network, until now has only dabbled in distributing original content. In May, it announced a deal with The Washington Post to distribute real estate listings from the newspaper's Web site in a similar manner.


But the partnership with Mr. MacFarlane represents a bold step into the distribution business, one that, if successful, will surely send shock waves through the entertainment business. "Cavalcade" is not only from a high-profile Hollywood talent, but also carries a multimillion-dollar production price tag, by far the largest amount spent on original Internet content to date.


"We feel that we have recreated the mass media," said Kim Malone Scott, director of sales and operations for AdSense.


Until now, budgets for original Webisodes have peaked in the low six figures because creators have not been able to figure out a business model that allows for higher spending. Either advertisers have not wanted to pay, or it has been too difficult to attract a large enough audience to support the cost of television or movie-quality work.


But Media Rights Capital, a boutique production company that has the ability to invest about $400 million a year in movies, television and Internet episodes, thinks it has figured out a sustainable business model with the Google Content Network. Every time someone clicks on one of the syndicated videos, the associated advertiser pays a fee, with shares going to Mr. MacFarlane, Media Rights, Google and the Web site that generated the click.


"We believe the revenue could be formidable," said Karl Austen, a lawyer who worked on the deal. "What is exciting is that this is a way to monetize the Internet immediately. Instead of creating a Web site and hoping Seth's fans find it, we are going to push the content to where people are already at."


Media Rights sells the advertising inventory. Asif Satchu, the company's co-chief executive, would not reveal how much advertisers were being asked to pay, except to say that it is "significantly higher" than if they were placing the same ad via AdSense.


Hollywood's powerful Endeavor talent agency helped shepherd Mr. MacFarlane through the negotiations, which started during a recent gap in the animator's contract with 20th Century Fox. Mr. MacFarlane said he wanted to take a stab at an original Internet program because he was feeling constrained by the "taste police," a k a the Federal Communications Commission

No comments: