Thugs on Film has proven to be a hit for Mondo Media. The beer-swilling, film reviewing mates are now found all over the Net. © 2001 Mondo Media.

Kay explains the key to its business relationships is "making it profitable for everyone." It starts with good content. "It's cost effective to go to the high-traffic sites," says Kay. More eyeballs on your content creates good buzz and buzz brings more eyeballs. Once their distribution channels where established, Mondo was able to interest advertisers into adding rich media ads in front of Mondo Mini Shows. Each show has a measurably targeted viewership, which is appealing to companies.

For the future, Kay sees advertising more integrated with content. With the onset of broadband, he feels the possibilities are endless for advertisers and content producers. However, the key for Mondo is "getting from here to there and positioning itself for the future."

Despite layoffs, AtomShockwave is still as confident as DJ Fu. © AtomShockwave.

A Change of Focus
Finally, we come to AtomShockwave. They too haven't really changed their business plan -- much. They will continue to be a games, films and animation destination Website. The major change that has come in the past year is a slow down in original content production. AtomShockwave's general manager and executive producer, Scott Roesche, says, "In the past year, original production has proven pretty costly." AtomShockwave had to cut back to focus on profitability.

About the future, Roesche says, "The big debate, these days, is over whether free content is a viable model." He believes it is, however ad sales can't support it currently. He sees brand integration as a way free content will survive in the present market. For example, AtomShockwave has a partnership with Ford, which integrates the Ford Focus into content like the game DJ Fu. In addition, both the AtomFilms and Shockwave sites leverage their current high traffic to sell ads that pay before each short. For the animation community, Roesche says, "Bare with the industry. The opportunity for talented artists too will be there."

The Internet has proven to be a savage land for hopeful entrepreneurs and the space has slowed down to let dreams catch up with reality. Anthony Rose makes a good point about the habits of people and new technology: "Technology runs way ahead of what people actually want. We can often produce things faster than people can get use to, like in the case of e-commerce. But people just don't want to change their habits. In retrospect, their habits are pretty sensible and these pipe-dreams were really silly. Who wants to sit in an uncomfortable chair waiting for something to download for two hours?"

With a new emphasis on casual, fun gaming, AtomShockwave recently launched skateboardin', record mixin' DJ Fu (left) and a wacky wild West world with Tamale Loco. © AtomShockwave.

Rick DeMott is a freelance writer, working in Los Angeles.