"Somebody is going to figure out the strategy of marrying traditional media to this new-media model, to the way people are now consuming content, on a massive scale," Funny or Die chief executive officer Dick Glover said an in interview. "We're doing it in our little world. We're doing OK."
Since the dawn of the Internet, entertainment companies have struggled to make money on the Web. Walt Disney Co.'s interactive unit has lost money for 12 consecutive quarters. The company said on Nov. 7 that it had formed a partnership with Google Inc.'s YouTube to create short, family-friendly videos. YouTube is investing about $100 million to add channels in collaboration with celebrities such as Amy Poehler, Ashton Kutcher, and former basketball star Shaquille O'Neal.
Mark and Michael Polish, the writer/director team behind Twin Falls Idaho and The Astronaut Farmer, have turned a modest profit from For Lovers Only, a feature they launched on Apple Inc.'s iTunes and video-on-demand.
"The bottom line is, you have to have the right product because you really depend on word-of-mouth," Mark Polish said in an interview. "Are they going to like it and link it to Facebook or Tweet it?"
Funny or Die's ethos was established with its first Internet video, The Landlord. The two-minute sketch featured McKay's 2-year-old daughter Pearl as a foulmouthed landlady who intimidates a tenant played by Ferrell. Shot with no budget in 60 minutes at Ferrell's house, The Landlord attracted 78 million views, according to the website.
The success generating traffic enticed stars willing to work for free for the exposure Funny or Die gave them with young, Web-savvy audiences. The money came later, as marketers bought ads on the site and film studios hired Funny or Die to create videos for the stars of upcoming films.
