Consider: the top 20 companies in the United States ranked by market capitalization include no media companies. But according to figures assembled for The New York Times by Equilar, which compiles data on executive compensation, media companies employ seven of the top 20 highest paid chief executives.

The names are familiar and the numbers are large: Leslie Moonves of CBS ($60,253,647), David M. Zaslav of Discovery Communications ($49,932,867), Robert A. Iger of Walt Disney ($37,103,208), Philippe P. Dauman of Viacom ($33,396,104), Jeffrey L. Bewkes of Time Warner ($25,670,263), Brian L. Roberts of Comcast ($25,087,379), and Rupert Murdoch of News Corporation ($22,418,292).

The data indicates that average pay of the 10 highest paid chief executives for media companies was about $30 million, more than the captains of technology or finance and other industries, who average $6 million to $14 million less.

Disney's ABC network will become the first broadcast network to stream its shows live online through an ongoing service, starting with viewers of its TV stations in New York and Philadelphia on May 14 and expanding to its other stations by the end of the summer.

Starting on July 1, Disney will only provide its WATCH ABC service to subscribers of cable, satellite and other TV subscription services that have agreements with ABC to offer the service to their subscribers in New York and Philadelphia. Subscribers must provide an authentication code to be granted access to the shows.

Later this summer, Disney said it will expand use of its WATCH ABC service to authenticated subscribers that receive its TV stations in Los Angeles, Chicago, San Francisco, Houston, Raleigh-Durham and Fresno, California.

The app will initially allow users to be able to watch the service on Apple's iPad and iPhone and on the Kindle Fire device, and later this summer on Samsung Galaxy devices.

The report also claims that in the future, ABC will “withhold its most recent TV episodes from the free versions of Hulu and ABC.com, further limiting access to paying subscribers of cable and satellite providers only.”

Disney filed 10 requests in the U.S. Trademark and Patent Office this month to coin the phrase. Disney's filings are mainly for merchandise, presumably connected to an upcoming film. The areas they are hoping to secure include “education and entertainment services,” “fruit preserves; fruit-based snack foods,” “toys, games and playthings,” “clothing,” “footwear,” “backpacks,” “clocks and jewelry” and more.

[W]hile joining a consulting firm is acceptable, those who do are reluctant to work for clients reviled by liberals: gun makers, tobacco companies, Big Oil, union busters.

The big through-line in Noam Scheiber's piece on former Obama administration officials cashing in is that there are certain sensitivities and levels of mixed feelings. And after all it makes sense. If you're trying to parlay your connections and inside knowledge into financial gain, you can't go do things that anger all your former colleagues. But he does note one exception that I think is important and actually more pernicious than the other examples he explores in more detail:

There’s also the entertainment industry, which is “a for-profit corporate space that’s a safe area for Democrats,” says a former White House staffer. “You can go work for Harvey Weinstein and make all this money.” Obama aide Michael Strautmanis recently left to help oversee “corporate citizenship” at Disney, and Jim Gilio, a White House spokesman, now represents talent at a Los Angeles entertainment law firm.

[I]n high-level Democratic Party circles, the entertainment industry is somehow seen as different from other corporate sectors—intrinsically viewed with less suspicion. And that's when your corporate lobbying gets extremely effective and when the policy consequences can get really pernicious.

[H]ollywood has really managed to turn off the critical thinking functions of many Democrats, leading to a situation where the backlash against SOPA/PIPA had to be lead by Republicans.

Striving for a visage different from the one Margaret Hamilton made famous, Howard Berger, an Oscar-winning makeup artist, “was finally able to come up with a shade of green which satisfied Disney’s legal team,” SlashFilm.com reported after a visit to the set. According to Disney’s production notes Mr. Berger named his custom color Theostein — a conflation of the witch’s name before she turns wicked, and Frankenstein.

About 40 dwarfs were cast in “Oz the Great and Powerful” as Munchkins... They still have weird hair, but Disney lawyers nixed at least one style as too similar to one from the original movie. It was tweaked in postproduction using computers.

For years, people who write about TV have been wondering just what the tipping point would be, when DVR usage, online streaming, and pirated viewing of TV broadcasts would become so significant that networks would essentially have to invent a new business model. The networks aren't at that point yet, but they're so close that everybody's talking about it with great confidence, as if the Internet hasn't thrown a great fear of the unknown into their souls. There's still far more money to be made in the old model, the sort of money that can still afford to produce big, ambitious shows like Revolution, as opposed to smaller-scale things like reality series and multi-camera sitcoms, than there is to be made under any new model. But the tipping point is almost here.

Is it ever. The news of big things happening with online service providers, especially Netflix, never stops pouring in. Though traditional analysts might recommend Disney start a cold war with Netflix, the companies instead recently entered an exclusive partnership to stream lots of content from Disney, Pixar and Marvel. There's only one part of that sentence I wish I didn't have to type: exclusive. It's a word that pops up all too much in recent news about evolving TV and movie business models.

Netflix has been stockpiling exclusive original content, including a lot of potential hits like the revival of Arrested Development, a new drama starring Kevin Spacey, a murder mystery produced by Eli Roth, a new Ricky Gervais series and more — all on top of deals like the one with Disney. Then there's the infamously closed-off HBO and its hoard of ultra-popular shows that can't be accessed without a full cable package plus an HBO subscription (and which also happen to be among the most pirated shows). HBO recently reached its own exclusive agreement, this time with Universal — to air the studio's films and keep them off of Netflix, along with the rest of the HBO catalogue. For at least ten years.

Paul Tassi has a good grasp on what this move really represents:

I think people are missing the larger idea of what's happening here, and that's HBO becoming the closest thing Netflix has to a direct competitor. The groundwork is already in place with the aforementioned Go service. Add in exclusive access to movies from all those studios, and $15 a month for HBO Go starts looking nearly as appealing as $15 a month for Netflix.

Basically, HBO is betting against cord-cutting, but also trying to compete in the online space, assuming that most people will keep their cable and pay extra for exclusive content plus digital access to that content. I can see that being true for a while (lots of people have both cable and Netflix), but it makes no sense in the long run. Eventually, HBO will be forced to offer some sort of online-only subscription.

But will even that be enough? Here's where we get back to the exclusivity problem. All these exclusive deals are serving to fragment a market that doesn't yet have clearly defined rules for delivery. Exclusivity is a great thing for creators to sell, and a great thing for businesses to leverage, but in this transitional phase for distribution models, it's harming everyone involved by making sure piracy retains its biggest advantage: comprehensive access. Networks have always had exclusive shows, but they all ended up in the same place — your television, delivered through a single antenna. Then later you needed not just an antenna, but a cable, to get everything. Then later you needed to pay more for specific cable channels to get certain shows — and lo and behold, those shows were among the first and most widely pirated.

The knee jerk reaction to piracy's unflagging popularity is to assume that, as the mantra goes, "people just want everything for free." But as the evidence that pirates buy more media has continued to pile up, that idea has been stripped of its credibility.

As some people have been pointing out for years, piracy's real advantage lies elsewhere: convenience, selection and availability. Piracy is currently the fullest realization of the internet's potential as a culture-machine: virtually any movie, any TV series, any song, any obscure documentary or bootlegged live performance, all accessible to anyone. No need to subscribe to multiple different providers; no release windows or geographical barriers. The fact is that no other means of obtaining media has matched piracy in terms of sheer selection and accessibility, so naturally it has never gone away, even though it has many significant flaws like spammy sites and spotty quality control.

I'm not saying everyone should hand everything to Netflix — only that service providers, studios, networks and everyone else involved need to employ a little game theory and figure out how to move the business forward to everyone's benefit. This means partnerships that allow more sharing of content, new infrastructures that make delivery and payment more seamless, and the undeniably challenging elimination of geographical restrictions and other obsolete licensing concerns. As the world moves away from the captive audience and towards a culture of infinite choice, expecting people who want comprehensive access to buy multiple different subscriptions from multiple different companies is tragically foolish. The culture machine has been built; pirates shouldn't be the only ones using it properly.

As Techdirt has discussed before, the famous "Mickey Mouse Curve" shows how copyright extensions always seem to come through just as Mickey Mouse is about to enter the public domain. So it's not entirely impossible that Disney will be pushing for yet another extension fairly soon, and for more after that.

What that means in practice is that creators of works like the Philip Glass opera presenting Walt Disney in a less than totally flattering light are likely to find themselves unable to use any of the iconic Disney images beyond what is permitted by fair use. And so a crucial facet of modern culture will not be available for artists to build upon as they wish for the foreseeable future -- hardly how the copyright bargain of a time-limited government-enforced monopoly in exchange for releasing works into the public domain is supposed to work.

Follow me @glynmoody on Twitter or identi.ca, and on Google+

If you’re a Netflix subscriber and you have kids, you’re about to make those kids happier. Netflix and Disney just inked a new deal, making the former the exclusive American subscription TV service for “first-run live-action and animated feature films from The Walt Disney Studios.”

This marks the first time that a major Hollywood studio decided to side with a digital distribution rather than a traditional TV provider. The deal is also a high-water mark for a company that some were speculating was ripe for takeover as recently as last month.

“The pay TV business as we know it is on really safe grounds until sports distribution changes,” Cryan added. “It’s technically difficult to distribute that stuff online at scale. In addition to that, the business is stacked up so you pay a lot for ESPN and other sports channels not available elsewhere. Until that changes, the core of the pay TV business is on relatively safe ground.”

These aren't the defendants you're looking for.
Image source: CC BY 2.0

In 2007, Lucasfilm even released tools that would more easily enable remixing of Star Wars content. A top Lucasfilm lawyer, Jeffrey Ulin, began speaking at conferences and to the media about the value of fan mash-ups and remixes. Those works were "part of keeping the love of Star Wars and the franchise alive... We're really trying to position ourselves for the next 30 years," Ulin told the Wall Street Journal in 2007.

Certainly, Disney fans who make their own movie featuring Mickey Mouse are more likely to get a cease-and-desist letter from a Disney lawyer than an award. After all, it was Disney who famously lobbied Congress to extend copyright terms in 1998, so much so that some dubbed the new law the Mickey Mouse Protection Act. Perhaps no single company more than Disney bears more responsibility for the sorry state of the US public domain, which hasn't seen any significant works added to it in decades. For the most part, culture after 1923 has been frozen in a state of private ownership—mostly owned by the large media corporations that began rising at about that time.

As if all this wasn't enough of a shock for Star Wars fans, Disney has also announced that they will revive Lucas' abandoned plans for Episode 7 and aim for release in 2015. One can't help finding some irony in the statement from Lucas:

“For the past 35 years, one of my greatest pleasures has been to see Star Wars passed from one generation to the next,” said George Lucas, Chairman and Chief Executive Officer of Lucasfilm. “It’s now time for me to pass Star Wars on to a new generation of filmmakers. I’ve always believed that Star Wars could live beyond me, and I thought it was important to set up the transition during my lifetime. I’m confident that with Lucasfilm under the leadership of Kathleen Kennedy, and having a new home within the Disney organization, Star Wars will certainly live on and flourish for many generations to come. Disney’s reach and experience give Lucasfilm the opportunity to blaze new trails in film, television, interactive media, theme parks, live entertainment, and consumer products.”

As most of us know, fans of Star Wars and other Lucasfilm properties have loudly criticized Lucas for retaining tight control on his old works and, worse still, meddling with them by releasing updated versions to replace the beloved originals. There has long been a wish that Lucas would let Star Wars "live beyond" him—but I doubt selling it to Disney is what anyone had in mind.

It's unlikely anyone has high hopes for the quality of future Star Wars movies, but if Disney built a Star Wars theme park, it'd probably be a hit. Meanwhile, what are the odds that Darth Vader will finally get paid?

The Disney company had a moderate level of success with the original characters featured in early black and white short films. Disney did not really hit stride until making full length animated features. Giving credit where due, “Fantasia” was original Disney characters and story line, if you want to call it that. “Fantasia” was literally a series of short animated stories edited together to a soundtrack made up of mostly public domain music for which Disney paid no license (with the exception of “The Rite Of Spring”).

From there on, most Disney feature animations would be based on stories that had since fallen into public domain. Snow White, Cinderella, Sleeping Beauty and many other princess stories, were based on age old fairy tales that Disney was not required to pay license or royalties for. Later works would include children’s literature like: “Pinocchio”, “Alice in Wonderland” , “The Jungle Book” (released just one year after Kipling’s copyright expired),– All in the public domain! Disney didn’t pay a cent for story license, yet reaped many millions. The “Little Mermaid”, “Beauty and the Beast”, “Aladdin” and all features made under the reign of Michael Eisner, would be from public domain. Of course, Disney touted “The Lion King” as an original story. Not! Besides being an adaptation of Shakespeare’s “Hamlet” told through a pride of lions, there are way too many similarities between The Lion King and a 1960s Japanese animated series called “Kimba the White Lion”. Though Disney claims these a coincidence, they would sue anyone else into oblivion if they came half as close to one of their properties.

The mystery woman accompanied the young leader to a Pyongyang theater on Friday night to watch a performance of North Korea's Moranbong band. The display included a cast of Disney characters, attracting the attention of The Walt Disney Company which issued a statement Tuesday saying it had not authorized their use.

Or, you can attempt to reshape the cultural norms of future generations by going to the source: kids. At least that's what analyst Todd Juenger suggests in a recent report about children's programming on Netflix. Juenger conducted a focus group with mothers and discovered that they really like Netflix as a source of entertainment for their kids, especially since they can put it on whenever they want—and that kids are growing accustomed this. To hear Juenger talk about it, you'd think this was both surprising and bad (it's neither). His advice to the providers of children's programming? Stop this trend immediately:

His advice for entertainment companies is to be cautious about how much kids programming they make available to the online video streaming provider and in which windows. "We remain firm in our belief Viacom and Walt Disney should limit their content availability on Netflix," Juenger wrote.

...

"Moms are increasingly directing their kids to alternative viewing modes for content control, commercial avoidance and time management," Juenger summarized the findings. "The moms we talked to originally subscribed to Netflix for themselves, but have recognized the dwindling supply of content for adults and are now using the service primarily for their kids…The content selection is perceived to be significantly better for kids than for adults, and the lack of commercials and ability to control the viewing choices are seen as positives.”

According to the analyst, the focus groups described children as device agnostic, "happily watching on TV sets, tablets, computers, even phones, with indifference." The result: “Our concern regarding Viacom and Disney’s kids’ networks has been reinforced,” Juenger said. “Viacom and Disney should do everything in their power to steer viewership toward modes with the best long-term economics, namely traditional TV and emerging forms of TV Everywhere VOD.”

Yes, he's confirmed that the "lack of commercials and ability to control the viewing choices are seen as positives", in case anyone in Hollywood was still clinging to the hope that consumers would grow to hate those things. And yes, kids are "happily watching" on a variety of devices, and we can't have that, can we? Some might respond to the observation of a clear consumer preference in young children by trying to embrace that change early (if anything Hollywood does with technology can be called "early" at this point) but Juenger thinks they're better off trying to hold back the tide, or at least redirect it into their proprietary canals.

The funniest part is that suggesting Disney and Viacom should try to "steer viewership" is appealing to the very power such companies are losing. Big media empires don't get to "steer viewership" the way they used to, and that's exactly why these new distribution methods represent a threat to them. Juenger is suggesting they keep the sinking ship afloat by tying it to... itself. That's not going to work.

Insanely long copyright terms are how the culture industries avoid competing with their own back catalogs. Imagine that we still had a copyright term that maxed out at 28 years, the regime the first Americans lived under. The shorter term wouldn’t in itself have much effect on output or incentives to create. But it would mean that, today, every book, song, image, and movie produced before 1984 was freely available to anyone with an Internet connection. Under those conditions, would we be anywhere near as willing to pay a premium for the latest release? In some cases, no doubt. But when the baseline is that we already have free, completely legal access to every great album, film, or novel produced before the mid-80s—more than any human being could realistically watch, read, or listen to in a lifetime—I wouldn’t be surprised if our consumption patterns became a good deal less neophilic, or at the very least, prices on new releases had to drop substantially to remain competitive.

1. If rightsholders want consumers to obey the law and support their preferred business model, they first need to stop making it impossible for consumers to follow the rules. Copyright needs to be weakened, not strengthened.
2. Content industries need to end the stalling and excuses—perhaps understandable in 1998, when I first wrote about digital distribution in "Unleashing the Killer App," but not now, nearly fifteen years later. They need to embrace digital media and new channels fully, even if doing so means tolerating a considerable amount of unauthorized distribution and reuse as working models for profit-generation rapidly evolve.
3. Public education needs to focus not on self-righteous indignation but on collaborating with consumers on finding ways to compensate creators for the value of their work. If consumers understood the economics of content creation and distribution, and given an easy way to cooperate, they'd do it.

"The Advisory Group members are from all stakeholder groups and all regions, representing Governments, the private sector, civil society, academia and technical communities."

The Securities and Exchange Commission has sent letters of inquiry to at least five movie studios in the past two months, including News Corp's 20th Century Fox, Disney, and DreamWorks Animation, a person familiar with the matter said.

The letters ask for information about potential inappropriate payments and how the companies dealt with certain government officials in China, said the person, who was not authorized to speak publicly about the letters.

China's booming middle class is increasingly willing to pay tickets prices for a cinema experience, forgoing cheap pirated DVDs and free internet downloads.

“A link distributed on December 3, 2006 by defendant DOTCOM links to a musical recording by U.S. recording artist ’50 Cent’. A single click on the link accesses a Megaupload.com download page that allows any Internet user to download a copy of the file from a computer server that is controlled by the Mega Conspiracy,” the indictment reads.

Dotcom told TorrentFreak that the file in question wasn’t infringing at all. He explained that he actually bought that song legally, and that he uploaded the file in private to test a new upload feature. He quickly picked a random file from his computer, which turned out to be this song.

“The link to the song was sent using the private link-email-feature of Megaupload to our CTO with the file description ‘test’. I was merely testing the new upload feature,” Dotcom said.

“The URL to this song had zero downloads. This was a ‘private link’ and it has never been published,” he added.

Hello Megavideo,

My name is Joshua from the Warner Bros. Advanced Digital Services department. I would like to know if your site can take a Media RSS feed for our syndications. We would like to upload our content all at once instead of one video at a time.

Thank you for your time and funny content,

Joshua D. Carver

In the past year, Warners has been one of the most aggressive filers of oppositions at the USPTO's Trademark Trial & Appeal Board. Especially over The Wizard of Oz.

For instance, the company has gone after potential merchandise associated with Dorothy of Oz, a $60 million-budgeted animation film scheduled to be released later this year by Summertime Entertainment.

Warners also has attacked registrations on a series of neuroscience books entitled "If I Only Had A Brain," a restaurant called "Wicked 'Wiches Wickedly Delicious Sandwiches," a clothing line known as "Wizard of Azz," Halloween costumes under the brand name "Wicked of Oz," and dozens of other Oz-related marks.