Hypnotic features a wide array of graphic styles and subject matter as seen here with Dignified Devil in Shirley Temple (left) and I Was a Strip Club Virgin (right). © Hypnotic.

Bernard sees the Internet going in the direction of sponsored entertainment. "As broadband develops, ads will become more compelling and more interactive." He feels that companies that can show higher penetration numbers will get support for content. Bernard also points to syndication as a very viable market. "Large portals dominate 90% of the online audience. Those companies will benefit," explains Bernard.

Brilliant Digital's 3D animation software can be applied to everything from games of chance to customer service. © Brilliant Digital Entertainment.

BDE: Technology First
Sponsored entertainment and syndication were also on the lips of the three other firms I spoke with. However, each is approaching these directions in different ways. Brilliant Digital Entertainment has always been a tools and technology-based firm; however a year ago when its software wasn't available to the public yet, the company was focused on producing and syndicating its content to various sites. Now the company is focusing on selling its b3d software to other companies to create content on the Web. However, the firm still creates content as a means of promoting its software's capabilities and increasing player downloads.

When asked about the future, company CTO Anthony Rose started by recapping what hasn't worked. Specifically with 3D animation on the Net, immersive worlds and chat rooms failed pretty early on. "Why haven't they worked? It could be a combination of poor graphics performance, clunky characters and so on," says Rose. "Webisodic content is very popular, however there's not revenue right now to support it." He adds that one of the main issues is broadband. Three years ago people predicted that it was just around the corner. So the true potential of content on the Web lies in the answer to -- when will consumers readily use broadband? However, when your TV and Internet merge, "If you can stream video of Gone with the Wind, why would you want to watch an animated version?" At this point, immersive content will become more desirable. Brilliant Digital is working on many ways to capitalize on this very idea. Currently, they are designing ways for people to send them personal pictures to have characters created in their likeness. This approach could be very attractive as a tour guide for personal and professional Websites or putting oneself directly into games.