A New Era of Collaboration: Tech and Entertainment Come Together

The tech and entertainment industries, once at war over the issue of digital content distribution, have begun to put their differences aside and collaborate on various projects. The realization that they cannot afford to continue fighting has led to a new era of cooperation, with joint ventures, strategic alliances, and photo opportunities materializing regularly. This shift is driven by the desire to profit from the ability to deliver movies and music over the Internet in a pirate-proof format.

Key Takeaways:

• Apple's iPod has become a successful digital media player, but many new partnerships are still predicated on technology that has yet to be created, such as antipiracy solutions.
• The cross-industry romance is fueled equally by optimism and results, with companies working together to develop digital businesses and license their content.
• Major entertainment companies, such as Universal Music Group and BMG North America, have licensed hundreds of music videos and struck multiple digital licensing deals in the last year.
• Companies like Microsoft, Hewlett-Packard, and Intel are pushing for a completely digitized home, with a central media player used for personal computing, downloading movies and TV shows, and listening to music.
• The new partnerships are only beginning to discuss money, with Mr. Peter Chernin, chief executive of News Corporation, questioning how someone gets paid for creating software that moves content around.
• The collaboration is also driven by a generational shift, with Hollywood producers and video-game companies working together and recognizing the value of each other's industries.
• The importance of Terry S. Semel's journey from Hollywood to Silicon Valley cannot be underestimated, as his success at Yahoo has helped to break down barriers between the two industries.

Statistics:

• Apple sells more iPods than Macintoshes.
• In the last year, BMG North America has struck 55 digital licensing deals, from video-on-demand services to master recordings for cellular ring tones.
• Universal Music Group has licensed several hundred music videos to a video-on-demand service.
• Microsoft's MSN.com offers video games, music, and Disney movies for downloading.
• Movielink, the film download service backed by major studios, uses Microsoft's technology.
• Intel has developed an antipiracy technology that has been licensed by Warner Brothers.

Sources:

• Carleton S. Fiorina, chairman and chief executive of Hewlett-Packard Company
• Michael D. Eisner, chief executive of Walt Disney Company
• Leslie L. Vadasz, top executive at Intel Corporation
• Jack Valenti, chairman of Motion Picture Association of America
• Steven P. Jobs, chief executive of Apple Computer Inc.
• Sally Field, actress
• Terry S. Semel, ex-Warner Brothers chairman and co-chief executive
• Peter Chernin, chief executive of News Corporation
• Jimmy Iovine, chairman of Interscope Geffen and A&M Records
• Neil Young, executive in charge of production at Electronic Arts
• Dr. Dre, rapper
• Sheryl Crow, rock star