Machinima Wants Hollywood Studios as Partners or Investors
/ Jul 18, 2013

Machinima

A month ago, multiple reports indicated that Machinima was looking to raise a massive round of financing (as high as $70 million) to launch a premium over-the-top video service, which would allow it to compete with the likes of Netflix, Amazon, and Hulu. The company believed then that it had the ability to create a lucrative business by offering high-quality, TV-like programming and making it available via an owned-and-operated platform that users could access across multiple devices.

That hasn’t changed, as a Reuters report from earlier today says Machinima is still looking to raise a massive money round, but now closer to $80 million.

Back then, I argued that if Machinima wanted to successfully follow through on its content ambitions and become a new Netflix or HBO, any money round it raises needs to include a major media company like Comcast or Time Warner. The reasoning is simple: if you plan on charging people to access your SVOD service, you better have content that they want to watch, and if it’s an subscription-based OTT service, are willing to pay for. There are large media companies with an abundance of IP that Machinima’s core audience of 18 to 34 year old “fanboys” recognize and already love.

It appears that there is similar thinking at Machinima. According to the Reuters report, Machinima is in talks with Hollywood studios including Time Warner’s Warner Bros. and Viacom’s Paramount Pictures to partner on TV-length programming or have them come on as investors.

Machinima has existing relationships with Warner Bros. and Paramount, having partnered with WB on the live-action “Mortal Kombat: Legacy” series and with Paramount on an upcoming Grand Theft Auto-style action series.

Machinima CEO Allen DeBevoise told Reuters that his company plans to license full-length 44-minute shows, which Reuters notes, is the average runtime of an hour-long TV episode.* In this scenario, the studios producing the programming that Machinima licenses would keep ownership over the shows, which would allow them to monetize by packaging them for distribution in international markets.

Tags: , , , , , , , , ,


SuperSong

Sony’s FIFA Song Contest Culminates in Hour-Long Special...

Peter Chernin 4

VI Power-Sixer: Peter Chernin / Fathering the Fourth Generation...

telemundo

Telemundo Bridges Seasons of ‘El Señor de los...

ryan wyatt

Ryan Wyatt Departs Machinima to Head Programming at Major League...

MattDiamond5

VI Power-Sixer: Matt Diamond / Focused on a Digital Media Empire

GermanNetflix

Netflix Reportedly Eyeing German Expansion in Fall 2014

MobileAPP

Nielsen Preps OCR (Ad Measurement) Expansion to Mobile

uproxx

Entertainment Site Uproxx Acquired by Male-Focused Publisher Woven

AFI_Orange_Black

TRAILER: Go Back to Litchfield in ‘Orange Is the New...

NewsToKnow

Thursday 4.17: News to Know

everlast george ruiz

EXCLUSIVE: George Ruiz, Leo Kei Angelos Follow ‘First...

Flama

Univision and Bedrocket Debut Flama, an OTT Network ‘for...

6secfilms

Tribeca Film Festival Announces 2014 #6SecFilms Winners

RanHarnevo04

VI-Power Sixer: Ran Harnevo / Building the Future of Video

tv4 mckenna

TV4 Entertainment Debuts First Original Series...

MagnetMinute2

Reaching Out to Online Influencers: ‘Magnet Minute’...

Network A

Network A Expands Out-of-Home Distribution Reach

the young turks

The Young Turks Network Raises $4M from an Unlikely Source

NewsToKnow

Wednesday 4.16: News to Know

oh liza

Reviewed! Indie ‘Oh, Liza’ Finds a Unique Voice Back Home

VidCon

New Keynote Speakers, Panels Announced for Vidcon 2014

YoutubePlaybookBrands

Hacking the YouTube ‘Playbook for Brands’: 10 Content Tips

DavidFreeman2

VI Power-Sixer: David Freeman / The Power Broker for Online Video

Choosen

Crackle Premieres All of ‘Chosen’ Season Three

karen cahn

Karen Cahn, GM of AOL On Originals, Departs

NBCDigital

NBCUniversal to Create Original Shows for Hulu, Channel Sites, VOD

james franco

Vimeo Exclusively Selling New Film from James Franco

AOLadvertising

AOL Introduces Non-Stop Video Experience on Home Page

Yahoo_HOC

Yahoo Is Still Chasing Its ‘House of Cards’

NewsToKnow

Tuesday 4.15: News to Know

Zappin

Court Denies Danny Zappin’s Request to Stop Disney-Maker...

PowerSixerBanner5

Welcome to the Inaugural VI Power-Sixer

Jocelyn Johnson

Who are the most important executives in the online video space? Better yet, who are the best executives in the online video space?

That’s not an easy question. Even for an industry that most would describe as still emerging, there are many who can be considered very important. In fact, when we sent out a call for you, the industry, to nominate those who would best fit the description of an “online video power player,” we received an overwhelming number of submissions.

But that’s a good thing. It proves that this space, this oft-criticized space, is not one to be ignored. There are interesting deals, mergers,

ErinMcphersontile2

VI Power-Sixer: Erin McPherson / Right Place, Right Time, Right...

Hindenburg3

EXCLUSIVE: British Pathé and Mediakraft Bring the 20th Century...

BBC

BBC Commissions WWI Documentary Series for iPlayer

EvolveMedia

Evolve Media Names New CTO

VEVO2

VEVO Brings Entire Library to Yahoo Screen

freddiew

Freddie Wong’s RocketJump Inks Content Deal with Lionsgate

VIS_HemlockGrove

Netflix Sets Premiere Date for ‘Hemlock Grove’ Season Two

RelativityMedia2013

Relativity Media Places a Bid on Maker Studios