Aside from ESPN securing the exclusive broadcasting rights to the American Football League, another major initiative involved a partnership with Igreat.
It's all about content.
Simon planned to move a vast archive of video content—news, sports, music, awards, and more—from Daenerys Television, particularly from the recently acquired Metropolis ABC Group, onto Igreat's YouTube platform.
However, this wouldn't include TV shows that still brought in syndication revenue. Those would only be licensed to streaming platforms at a much higher price in the future.
In fact, Simon had been pushing this initiative even before the acquisition of Metropolis ABC.
Over the past few years, all of the fashion shows and special interviews accumulated by Fashion TV had gradually been uploaded online since Igreat launched a dedicated YouTube video platform in April of this year.
As the internet industry flourished, traditional media grew increasingly wary of this space. Their concerns came down to competition and the fear of being displaced. If it weren't for Simon stepping in with a firm decision, this shift wouldn't have been easy. Just as Tinkobell had been trying to bring licensed music to the Broadcast platform, it wasn't as simple as it seemed, leading to a reliance on pirated music as a workaround.
When companies and industries grow large enough, they often become resistant to change.
This is one of the main reasons why reforms face so much resistance.
In most cases, the result is either breaking and rebuilding or complete elimination. Simon had a simple response to those within Daenerys who opposed the collaboration with Igreat: "Do you want to be replaced by someone else, or will you replace yourself?"
After a day of discussions with the top executives of Daenerys Television, they finalized the formation of a dedicated content partnership team to interface with Igreat.
The actual work would be handled by Daenerys, while Igreat would provide the platform.
Daenerys would create specialized channels on YouTube for programs from ABC, ESPN, A&E, and other Metropolis ABC networks, such as *Good Morning America* or *Nightline*. Over time, the extensive archives of video content stored by Metropolis ABC would be digitized and edited into five-minute segments as per YouTube's rules, before being uploaded.
Since YouTube, launched by Igreat in April, primarily featured music videos, film trailers, and limited content from Fashion TV, it was still relatively underdeveloped.
Much like the original platform, YouTube was positioned as a user-generated content site, not a streaming service like Netflix.
However, digital cameras (DV) had only just started becoming affordable for everyday consumers. Tinkobell's digital camera, the iRec, originally scheduled for release this fall, had been delayed due to technical issues. While Super 8 cameras and similar products were popular in the West, they were film-based, making it difficult for the average user to convert footage to digital.
As a result, YouTube wasn't yet ready to rely on user-generated content.
For now, it could only partner with large media corporations.
This massive upload of Metropolis ABC's archived content was expected to increase the total video hours available on YouTube by more than tenfold. This was the strength of Metropolis ABC, an established media giant. While much of the content might be outdated, it would function like a digital library, where users could always find something interesting, especially as Igreat continued to improve its search and recommendation algorithms.
For Daenerys, this content wouldn't be provided for free.
Igreat had already been experimenting with advertisements on YouTube, and Daenerys Entertainment would earn a share of the ad revenue as the content provider.
However, the revenue wouldn't be substantial.
Igreat was still in a phase of rapid growth, and its top priority was user acquisition, not profit maximization. YouTube's ad policies were strictly controlled.
Simon, who personally tested Igreat's services regularly, made it clear that YouTube would never become one of those platforms where a two-minute video would be preceded by a minute and a half of ads. To him, such an approach wasn't about maximizing profit but rather an infuriating experience. He had been so disgusted by certain websites in the past that, even after they improved, he never returned to them.
Moreover, Simon's vision for YouTube—now and for years to come—was not to make it a cash cow but rather to use it to complement Igreat's brand, offering services that increased user stickiness within the Igreat product ecosystem.
Google, for example, though many of its products—like Maps, Translate, Gmail, and Android—appeared free, consistently invested heavily in these services, making them the best in class. These products, while not direct revenue drivers, helped Google maintain a loyal user base and fend off potential competitors, ultimately creating one of the most profitable tech giants.
Manhattan.
At ABC's headquarters on West 66th Street.
The meeting on content cooperation between Daenerys and Igreat lasted until 4 p.m. After finalizing the details, the executives dispersed, and Simon and Robert Iger headed to the post-production center to check on *American Idol*.
Following the merger, Daenerys began integrating the *American Idol* post-production team with ABC's production crew. This was intended to streamline resources and improve departmental collaboration.
Since its September premiere, *American Idol* had consistently maintained viewership of over 30 million, making it ABC's top priority this year. Simon himself carved out time each week to keep up with the show, receiving preview episodes for review before they aired.
The show's ad revenue alone was projected to exceed $600 million this season. After subtracting production and marketing costs, the show's net profit could account for about 10% of Daenerys Entertainment's total profits. This didn't even include revenue from international licensing and merchandising.
Even with a multitude of successful projects, *American Idol* had become one of the most valuable assets within Daenerys Entertainment.
Simon and Iger spent about an hour in the post-production center. Despite it being Sunday, the place was bustling with activity. By 5 p.m., the staff showed no sign of stopping, debunking the myth often propagated that Western workers dropped everything at the end of the workday.
Part of this was due to the demanding production schedule—two episodes per week required extra effort. Another factor was the generous bonuses tied to the project's success, making overtime much more palatable.
In both good and bad ways, many Chinese perceptions of the West were as outdated as the notion that all Chinese people still wore queues.
Daenerys Entertainment was well-known for its generous compensation packages.
If you give a horse plenty of hay, it'll run faster.
As a result, while overtime was never mandatory, employees across the company were willing to put in the extra hours. For a hit show like *American Idol*, the team was even more dedicated, knowing their hard work would be richly rewarded.
Simon and Iger had other matters to attend to, so they didn't stay for overtime. Just as they were about to leave, *American Idol* producer Shane Derrick stopped them. Derrick was a veteran of Daenerys Entertainment's TV division, having been a key figure in the production of *Survivor* years earlier.
"Here's the thing," Derrick began, addressing Simon. "The winter break is coming up, and while *American Idol* will go on hiatus, we'll need to keep up the marketing. We discussed it this morning and thought it would be great to release an official *American Idol* theme song. What do you think?"
Derrick directed his question to Simon, clearly hoping for something more.
Robert Iger chimed in with a smile, "Simon, I think this is a great idea, and it shouldn't be too difficult for you, right?"
Over the years, Simon had released only a few songs, but each had become a classic hit.
On Tinkobell's Broadcast platform, songs like "Young and Beautiful," "Bach's Last Day," and "Blizzard" still topped the charts.
Naturally, both Iger and Derrick believed that if Simon handled the *American Idol* theme song, it would generate massive attention and keep the show's momentum going through the winter break.
For Simon, this task was indeed simple.
Seeing their hopeful expressions, Simon quickly nodded. "Sure, I'll take care of it."
There was no need for thanks—Derrick couldn't help but add, "Boss, since we'll also need to shoot a music video, it'd be best if it's ready within a week."
Simon nodded again.
In truth, if he wanted to, he could have written the song in 20 minutes. But there was no need to rush things and draw unnecessary attention.
With that settled, Simon and Iger left the post-production center. Iger took Simon to the top floor of ABC's red-brick headquarters, where an office had been prepared for him.
After a quick look around, Simon sat with Iger in the reception area. Iger brought up another issue. "I've spoken with David Letterman. He's willing to bring *The Late Show* to ABC after his CBS contract expires next year. The only hurdle is salary, but that's not a major issue. The real question is, what do we do with *Nightline*? Ted Koppel has been with ABC for decades and is highly respected in the media industry. If we cancel the show outright, it could spark controversy. Letterman also hinted that we should handle the *Nightline* situation first, as he doesn't want to be blamed for pushing Koppel out."
Simon and Iger were discussing the overhaul of ABC's late-night programming.
This was something Simon had decided on even before the Metropolis ABC merger.
The three major broadcast networks had three hours of prime time programming, followed by late-night shows at 11 p
.m. NBC and CBS both had late-night talk shows, while ABC aired a news program, *Nightline*.
The difference between the three was stark, particularly in terms of revenue.
NBC's *The Tonight Show with Jay Leno* brought in $150 million annually, and CBS's *The Late Show with David Letterman* earned around $50 million in profit. Though *The Late Show* lagged behind *The Tonight Show* at the moment due to its shorter run, Simon knew that in time, the two shows would become equally popular and equally profitable.
In contrast, *Nightline* contributed a paltry $10 million annually to ABC.
If that were the only issue, it wouldn't be so bad.
But Simon saw late-night talk shows as powerful promotional platforms.
Each night, talk show guests promoted new movies, TV shows, and books—exactly the kind of platform Daenerys Entertainment needed for its wide range of content.
ABC's *Nightline* clearly didn't serve this purpose.
So, Simon was determined to revamp ABC's late-night programming. Even if he couldn't recruit Jay Leno or David Letterman, he would build a new show from scratch.
After listening to Iger's concerns, Simon asked, "What do you think we should do?"
Iger replied, "Right now, *Nightline* airs at 11 p.m. and runs for an hour. I think we could shorten it to 30 minutes. NBC and CBS both start their late-night shows at 11:35 p.m. If we shorten *Nightline*, we can have Letterman's show follow it."
"Why not air *Nightline* after the late-night show?"
"Late-night shows run for an hour. If we push *Nightline* back to midnight, it would become irrelevant," Iger explained with a wry smile. "At that point, everyone will see that we're trying to push Koppel out and cancel the show."
Simon understood Iger's predicament.
In this industry, personal relationships and public perception often limited one's ability to act freely.
This was another example of institutional inertia.
For large companies, unless it directly impacted their bottom line, they often turned a blind eye to longstanding issues.
A late-night show at 11 p.m. is entirely different from one at midnight. Many people are willing to stay up until 11, but by midnight, most have already gone to bed. If *Nightline* were pushed back, its already mediocre ratings would plummet.
Without ratings, the show would lose money, and it would eventually become obsolete.
That would essentially force Ted Koppel, a long-serving and highly respected journalist, to resign.
If he stayed, no one would look good.
But pushing out a veteran host with decades of experience and connections would likely lead to backlash against ABC, painting the network as heartless and profit-driven. If viewers reacted negatively or boycotted the new late-night show, its ratings would suffer too.
That's why David Letterman had made it clear that *Nightline* needed to be dealt with first.
After a moment of thought, Simon said, "Here's what we'll do. You can tell Ted that I personally guarantee *Nightline* will remain on air, regardless of its profitability. Of course, I think the show could use some reform to attract more viewers, don't you?"
What Iger had really wanted was Simon's personal assurance.
With that promise, no one would object to any changes. If *Nightline* continued to lose money, Koppel would still be under pressure, but this was the best solution available.
As for reforms, they were inevitable.
Now that Daenerys had taken over Metropolis ABC, many things would need to change to revitalize the old media giant.
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