Jeffrey Katzenberg, CEO of DreamWorks Animation, has designs for the future of the moviemaking business, which he shared at the Milken Global Conference's Entrepreneurial Leadership in the Corporate World panel.
Well, really the movie distributing business, and it skews toward new technology, mobile devices and the demand for instant gratification.
“I think the model will change and you won’t pay for the window of availability," Katzenberg stated. "A movie will come out and you will have 17 days, that’s exactly three weekends, which is 95% of the revenue for 98% of movies."
"On the 18th day, these movies will be available everywhere ubiquitously and you will pay for the size," he continued. "A movie screen will be $15. A 75” TV will be $4.00. A smartphone will be $1.99. That enterprise that will exist throughout the world, when that happens, and it will happen, it will reinvent the enterprise of movies.”
Katzenberg believes this model will be a reality 10 years from now.
According to Variety, Katzenberg has been steering DreamWorks toward short-form, digital movies as well as television content. "Movies are not a growth business," he told the panel.
Others on the panel agreed with him, citing new technology as disrupting older businesses like the film industry. “Few networks are impacted (by technology) more than the media business," said Greg Maffei, president and CEO of Liberty Media Corp.
Apart from discussing the future of movie distribution, Katzenberg also doled out portentous advice to young folks. “Great leaders and thinkers talk to kids today and say ‘follow your dream,’" he said, according to Variety. "I’m not sure that’s a great idea. How about follow your skill? That thing you are really good at, that may become your passion.”