Warner Bros. is investing $18 million in YouTube channel Machinima. Machinima is known for producing content that is related to video game tutorials. Unfortunately Machinima had to lay off 30% of its staff this week, including the ad sales department. The reason why Warner Bros. is investing in Machinima is because it may give the studio access to a young male audience.
Warner Bros. is considering an investment in Machinima. The amount Warner Bros. is considering is between $10-$15 million. Machinima is known for creating video game content for online video streaming websites like YouTube.
Microsoft said that YouTube deal for Xbox One promotion with Machinima was a “typical marketing partnership”
Microsoft and Machinima was criticized for engaging in a controversial advertising deal. As part of the deal, Machinima offered a bonus to YouTube producers that glorified the Xbox One and featured at least 30 seconds of gameplay. It was believed that Microsoft asked Machinima producers not to mention that the video was sponsored. However, Microsoft denied that this was the case and said that they gave freedom to the producers about whether the marketing was sponsored or not.
Machinima is an online entertainment network that has clips and teasers from video games. Apparently Machinima was paid by Microsoft an extra $3 per 1,000 views for videos that mentions the Xbox One (up to 1.25 million views per channel) on top of their regular payments. Ars Technica published a report saying that Machinima’s partners cannot informer viewers that they were paid to promote the Xbox One on top of agreeing that they cannot speak negatively about the Xbox One.
Ridley Scott, the director of Blade Runner, and Machinima are partnering on 12 science fiction short films. Scott will not be directing the films, but his production company RSA will be working with Machinima to choose from a potential list of directors. RSA and Machinima are hoping that the short films may lead up to a new sci-fi franchise.
Machinima is a content company that is considered the number one video entertainment network for gamers. Their channel includes gameplay, videos, trailers, live streaming, etc. The cuts are impacting around 20 of the company’s 200 employees, mostly in the programming department. None of the senior executives were affected. A Machinima spokeswoman said that the company will continue to make hires in key areas including sales, marketing, and product.
After the Grand Theft Auto V trailer was released last month, it instantly passed millions of views. Machinima has recreated the GTA V trailer in LEGO form. They attempted to recreate the scenes as best as possible. Check out the LEGO trailer and the real trailer below:
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Microsoft Corporation has hit 26 million total views on YouTube since they launched their Halo: Forward Unto Dawn live action series. The series debuted on the Machinima YouTube channel last month. The miniseries has 5 parts and was launched this past October. The miniseries ties in with the release of Halo 4. 343 Industries spent $10 million producing the miniseries.