Digital technology and dollar signs

But a number of young creators -- many of them working outside of Hollywood's orbit -- have been feverishly experimenting with new ways to tell stories and generate revenue. An office worker in Connecticut created the catty entertainment commentary show "What the Buck" on YouTube, and suddenly found he was making more from the site's "partner program," which offers creators a cut of ad revenue, than he was at his desk job, which he promptly quit. Lance Weiler accents his suspense films with cellphone and Web-based "alternate reality games" that enable players to explore the story and interact with characters after they've left the theater. Robert Greenwald, a Culver City-based documentarian, has raised hundreds of thousands of dollars online to support his left-leaning films and Internet videos on such topics as the mortgage crisis and the war in Afghanistan. And Gregg and Evan Spiridellis are building a new kind of animation studio in Venice, where they produce a series of viral videos about current events and politics, and sell subscriptions to a vast collection of customizable digital greeting cards. This month, they'll debut their latest video for President Obama at the Radio and TV Correspondents Assn. Dinner in Washington.

Business models for content on the Internet are still evolving. But it's already becoming clear that $100-million movies like "Land of the Lost," or even $10-million independent films, may not represent the future of the industry. And new technologies like YouTube, the iPhone and next-generation gaming consoles are opening up all sorts of new, creative possibilities. The artists and business people who will succeed in this new environment are those who are paying attention to the changing behaviors and tastes of this new digital audience -- rather than trying to ignore them or, worse, explaining why they are wrong.