Talent Agency Does a Web Content Deal

Top talent firm Endeavor Agency, home of “Titanic” director James Cameron and “Ally McBeal” creator David E. Kelley, is expected to announce today an exclusive agreement to create Internet-only programming with Orange County new-media company Broadband Interactive Group.

The two companies will form an editorial board to oversee the venture, seeking help from some of Hollywood’s creative heavyweights for a medium that could transform traditional filmmaking.

The agreement to produce entertainment programming over the Internet adds the two companies to a burgeoning field. But the crowd still faces a serious problem--few consumers have a connection to the Internet fast enough to make the programs look as good as television shows.

Only 5% of all online households have broadband, or high-speed, connections, according to Jupiter Communications, a research firm. By 2003, experts expect the percentage to grow to 23%.

But in the meantime, entertainment and Internet companies don’t want to get a late start.

Endeavor and BIG executives say their deal marks a significant leap both for Hollywood’s artistic mainstream, which has been hesitant to fully embrace the online arena, and for the young Aliso Viejo company. BIG is using cutting-edge technology to attract the youth set to its Web portal.

Marty Adelstein, a partner at Endeavor, declined to say which of its clients will be working on online projects. “The opportunity will be there for anyone who wants to do it,” he said.

In exchange for access to its talent base, Endeavor will get an undisclosed amount of equity in the technology company.

“It’s a really safe deal for Endeavor because it doesn’t cost them anything out of pocket and they get to ride on the coattails of an Internet company with some very big backers,” said Patrick Keane, a senior Jupiter Communications analyst.

Broadband Interactive Group, BIG for short, is backed by Henry Samueli and Henry T. Nicholas III, founders of computer chip maker Broadcom Corp. BIG already merges television with the Internet and creates programs and Webcasts on extreme sports, targeting young viewers.

Among other clients, the Beverly Hills talent agency also represents Charlie Rose and Channel Four, the British broadcasting company.

BIG and Endeavor executives have been in talks “seriously” since September, said Matt Jacobsen, BIG’s chief executive.

Analysts say the agreement is crucial for BIG, which is hoping to leverage its connection to Broadcom’s cutting-edge technologies to expand beyond extreme sports.

“For Endeavor, it has all the signs of a cover-your-butt deal,” said Malcom MacLachlan, a media e-commerce analyst with research firm International Data Corp. “Once broadband access happens in a big way, no one in Hollywood wants to be left behind.”

Dozens of companies are scrambling to create Internet programming to take advantage of the enormous bandwidth provided by cable modems and other high-speed access devices. So far, however, many of the Hollywood-spawned offerings are short films that have poor picture quality.

The Endeavor-BIG venture joins an already crowded field, ranging from independent shop IFilm.com to the DreamWorks SKG and Imagine Entertainment joint venture, Pop.com. In addition, dozens of entertainers are trying to carve out their own niches.

Director Tim Burton and the creators of “South Park” have signed deals to develop short cartoons for Shockwave.com. Actor Robin Williams is producing a half-hour talk show exclusively for Audible.com. Set to launch in April, the weekly show mixes humor and chats with stars like Whoopi Goldberg and Billy Crystal.

And in February, Icebox.com will launch shows created by dozens of screenwriters and producers, including “Seinfeld” co-creator Larry David. Icebox.com, backed by the Santa Monica incubator ECompanies, has 16 shows planned, each of which will present a new two- to five-minute episode each week.