[Ed. Note: This is the first part of an 8 part series that will run each weekday morning through next Friday.]

In an interview with CNBC’s David Faber last November, legendary media titan John Malone said this of the network television model: “It don’t work.”  Now, perhaps Dr. Malone was just getting in his digs on traditional media, which he does from time to time.  But in this case, he’s right. The network television model has been failing for some time, and so has the feature film financial model.

This naturally leads us to ask the question “If it is broken, can it be fixed?”  As the Internet continues to flummox media companies, forcing management to confront increasingly fragmented audience pools, we must further ask, “if it can be fixed, what exact form does this fix take?”

The ultimate goal of this series of articles is to proffer different financial models for media companies of all kinds to consider – and find one that will ideally offer a higher degree of financial stability and therefore deliver value to shareholders. This model should permit media companies to achieve maximum ROI in a world where alternative financing, production, and distribution will become increasingly important.   Readers will discover that the cure, such that it is, is at least as dependent on a set of objective criteria that constitutes good storytelling as it does on a re-jiggering of the financial models. (more…)

Ask any corporate chieftain about the current economy and – unless they sell burgers for a dollar, canned goods, or alcohol – they’ll tell you about the tough conditions their companies face.  But within this economic crucible, the target is still moving:  Entertainment and consumer tech companies are facing an entirely different set of challenges, as consumers have changed their entertainment habits. 

As has been widely reported, the Hollywood studios have been hit particularly hard.  DVD sales are down 6% over the past year, and Disney and Sony have already cut hundreds of jobs in 2009. 

To be sure, some of this is a natural result of Hollywood’s insistence on churning out tedious, recycled narratives with the hopes that increased vulgarity and special effects will cover for their lack of creativity.  But aside from the obvious criticisms that I, as a conservative, might lodge against the movie industry — Hollywood is also plagued by a refusal to embrace the emerging demands of the marketplace. 

One emerging demand is the need for wholesome entertainment.  Quality films like “The Incredibles” and even the now-classic “Forrest Gump” consistently out-perform R-rated films, yet Hollywood continues to ignore consumer demands and produce more and more “Rotten Tomato” films.  (more…)