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FEBRUARY 18, 2000

POWER LUNCH
By Ronald Grover

Tinseltown Is in a Tizzy to Grab Net Bucks
From Eddie Murphy to Ed McMahon, they're going online. But will it ever be more than a coming attraction?

 
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It's Oscar time again in Hollywood. The race officially began this week, with the usual lists (and lists and more lists) of nominations, all panting eagerly for the Mar. 26 gala event. But look past the eight nominations that Dreamworks' American Beauty garnered, or the seven that Miramax' The Cider House Rules received, and you'll find a couple of odd newcomers. The films are called Humdrum and Killing Joe, nominated separately for best-animated film and for best short subject. These are the categories that never make it to ABC's telecast. But the real interest here isn't the films, but the company that brings them to you -- a Seattle-based Internet company called AtomFilms.

By now, you're probably sick of hearing about the latest dot-com that strikes terror in the hearts of traditional company execs and promises to turn its babyfaced founders into millionaires. But for Hollywood folk, the Internet is fast becoming the hottest thing since the talkie. Now, let's be clear here. No way will the Net ever replace the pure thrill so many of us have when we settle in to watch a flick at the theater. And for a while, at least, TV looks safe. But for pure mountains of money, even such jaded Hollywood stars as Eddie Murphy are starting to feel the Internet itch.

Next week, Murphy is expected to sign on to make (and maybe star) in short films to be made by something called Pop.com. Launched in October by Dreamworks and director Ron Howard, the new site will use billionaire Paul Allen's moolah to create an online showcase for new filmmakers to strut their stuff. What will Murphy do? Who cares. With his name attached to the project, it's guaranteed to lure big money from new backers, some hotshot new directors, and a set up for the inevitable IPO. And you thought Eddie was satisfied with the $20 million he collected to make The Klumps, the all-too-dreadful sequel to his hit The Nutty Professor.

HANDS OUT.   We're talking Internet riches here. And Eddie isn't the only one looking for a big-league payday. Just last week, Batman director Tim Burton, a former animator at Walt Disney, signed on with San Francisco-based Shockwave.com to make animated shorts for the Web site. Friends star Jennifer Aniston, South Park creators Trey Parker and Matt Stone, and even Johnny Carson's old sidekick Ed McMahon have also joined the Net brigade.

Indeed, it seems like all of Hollywood is lining up with its hand out. Talent agencies like William Morris and ICM have created Internet departments, whose sole purpose is to get their clients on the gravy train (and, of course, to take their 10% cut). William Morris alone negotiated the Burton, South Park, and Murphy deals. ICM has gone Morris one better. Its Co-Pesident Nancy Josephson is backing Voxxy.com, which is targeting younger women. Aniston is an ICM client and will be making and starring in 13 episodes of shows catering to problems that teen women face.

What a fresh idea. But it's not the concept that attracts talent like Aniston, it's the stock options. The South Park duo of Parker and Stone got an estimated $2 million in Shockwave stock for their deal. Insiders say Spiderman creator Stan Lee pulled down an estimated $5 million in cash and stock from Shockwave, roughly the same deal that Burton got. By this spring, Burton will be sending something over the wires called Stain Boy, five-minute shorts drawn in charcoal that came from a Burton book entitled The Melancholy Death of Oyster Boy and Other Stories. Pardon me if I don't log on daily waiting for that one.

NEW LOWS?   But then again, a 48-year old entertainment reporter isn't the Internet's target audience. In almost all cases, these sites are aiming young -- let's be generous and say under 30 years of age. And therein lies both the great potential and the possible flaw of new ventures like these, which are counting on streaming video to make movies appear on computer screens as fast as they do on a TV screen.

To differentiate themselves from traditional TV and full-length movies, the Internet will have to create edgy, hip, and totally unique characters that can stand alone. In short, they'll have to aim beneath the threshold of respectability that even lowbrow TV offers today. But to get folks to log on to that stuff, they'll also need mainstream stars like Eddie Murphy or Jennifer Aniston, who have made their mark -- and earned a fan following -- in mass media.

If this sounds like a vicious cycle, it is. Internet sites like AtomFilms are signing on first-time directors as fast as it can, offering them $500 and some stock options for the rights to put their short films on the Net. The young directors I talk to say the money is nice, but what they really hope to accomplish on the Net is to get discovered. Then they're off to make feature films, TV shows, even commercials, and they'll leave the Internet behind. That's the way of Hollywood: Michael J. Fox makes it on the tube, then heads off to Tinseltown. Same for Eddie Murphy, Chevy Chase, you name 'em.

Which makes me think that the Internet will be a great place to see oddball entertainment for a while. And it'll probably make folks like Burton and Aniston some money in the short-term. But broadband or no broadband, there will always be something special about the Big Screen or a national TV audience. In entertainment, at least, the Internet is likely to remain a great farm team for the real show.




Grover covers the media industry from his post as Los Angeles bureau chief. Catch his column on Fridays for BW Online
EDITED BY PAUL JUDGE

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