This morning, while perusing through the many newsletters I receive in my inbox, I ran across the news that RIPE Digital joined the list of digital programming start-ups to go bust as the company seeks a buyer for its assets, per Deadline Hollywood. Male-oriented Ripe Digital was founded in 2004 with over $40 million in funding from Hearst Television, Time Warner, Columbia Capital and others as both an online and VOD production outfit.  With all due respect, the founder is Ryan Magnusson, who is truly an early internet pioneer, and I would consider legendary.  I’ve known him and his team for over ten years, dating back to when they built Zentropy Partners, which I thought was one of the hottest digital companies out there.  In fact, last time I saw Ryan, I almost ran him over while he was crossing Melrose, barefoot, obviously coming out of Sweet Lady Jane’s (LA’s best bakery).

I was truly shocked to see that they had actually received so much funding.  See, I’ve been around this block before, and surely many other Executive Producers have as well.  Back in the late nineties, there was a wave of “original digital content” companies popping up and raising venture capital at a staggering rate.  Remember DEN (Digital Entertainment Network) or ICEBOX.  If my memory serves me correctly, I believe DEN raised over $80 million in its short run, blew through it, then closed down.  So true of just about all the other companies positioned as “digital Content Production companies”.

What I don’t understand is how these mega-media conglomerates and venture capitalists ever derive such a huge value for the “digital studio” business.  I tried building one back in the late nineties, and then soon realized this niche was not viable.  So, to see this happening again, is truly amazing.  It’s simple…the definition of a “digital content production company” = “produces cheap content”.  That’s it.  That’s the reality, and these media companies should know better.  On one hand, they are investing millions into these sort of companies, while just down the hall, their development/production teams are looking for original web series and programming for about $30,000…FOR 12 EPISODES.

The flaw with this model is the simple fact that producing content is producing content…it still requires cameras, crews, lights, sound, editing, etc…, so whether it’s distributed via the Internet, or on TV, or in theaters is really just part of the overall distribution strategy.  Producing content for digital distribution does not require any extra special skills to warrant these type of nich companies, plain and simple.  They are all just the same as any other production company…many times just producing on the cheap.

I do realize there are certain aspects of production that are exclusive to the digital world, for example, any interactivity, as that is what the Internet is all about.  But, this again, is just part of the overall content/distribution mix.  I write this because it’s what Executive Producer 2.0 is all about.  An EP2.0 is a person who can see the big picture, and the new world of multi-platform content.  He/she can develop multi-platform programming, typically based on the primary distribtuion, be it TV, film, digital, mobile, live event, etc…  Based on this, the EP2.0 can then build out the multiple extensions to fully realize the incredible revenue potentials that exist in this multi-platform arena.

So, my bet on who’s next…how about AGILITY STUDIOS, another promising digital content production company with a totally whacked business model of working with young content producers by making them sign a contract which virtually gives away all their rights throughout the universe in perpetuity, for about $5,000.  They lured some pretty smart folks, and good friends of mine that I’ve worked with at Fremante/American Idol, to run the digital studio, which is…WAS…led by Keith Quinn, who just announced his new role as SVP Creative Development and Production at Paramount Digital Entertainment, which is a great spot.  We’ll see what happens to AGILITY. 

Enough on this, thanks for checking us out, we’ll keep writing, and in the meantime, please check us out at www.multibrain.net, where you’ll find the Executive Producer 2.0 in action.