Is Microsoft (NASDAQ:
) planning to take on Netflix (NASDAQ:
), Redbox (NASDAQ:
), Amazon Prime (NASDAQ:
) and other streaming video companies? According to Peter Micelli
-- an agent with Hollywood's largest talent agency, CAA (Creative
Artists Agency) -- the answer is yes.
In a speech quoted by
, Micelli estimated that streaming video companies are spending
millions more to produce their shows than traditional
"The cheapest show is $3.8 million an episode," he said.
"House of Cards started at $4.5 million and (executive producer
David) Fincher took it way above that."
The budgets may be inflated, but House of Cards' success has
attracted the attention of several big players within television.
Now Micelli believes that Microsoft is poised to enter the fray
and that Nancy Tellem is leading the charge.
Tellem, who has been referred to as one of the
most powerful women in entertainment
, once served as the President of CBS (NYSE:
). During her tenure with the company, she helped steer the
network to first place by acquiring marketable, mainstream
She also ensured that all of her shows went back into
production after the writer's strike that occurred during the
2007-2008 season. This was an essential part of the network's
success. NBC (NASDAQ:
), ABC (NYSE:
) and Fox (NYSE:
) decided to halt production of their new shows, including Life,
Eli Stone and Pushing Daisies -- all of which were canceled the
Tellem came to Microsoft to create a new production studio.
She has not revealed her specific plans for Xbox Live or any
other Microsoft service/device, but an announcement is expected
to come this year. Micelli believes that announcement will
involve new and original video content.
"...Right behind [Netflix] is Xbox and Nancy Tellem," said
Micelli. "She's going in looking at it in a similar way to
Yusuf Mehdi, the head of Microsoft's interactive entertainment
business, recently told
that the company aimed to create content that is "big and
"All I'll say about our current and future investment is [that
it is] about doing things that are big and premium," he said.
"Other people will try some lower-end things; what we will do is
things that are big and beautiful."
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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