Business Entertainment Channel Introduction


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Business Entertainment Channel Introduction

  1. 1. Business Entertainment Channel IntroductionAnyone, Anywhere, Anytime, on Anything: How often does a concept come along that offersthe entertainment industry these objectives? Today, there is more promise than ever forchannel capacity. The entertainment community reads daily in a variety of trade journalsthat the “Information Highway” is soon to be a kind of silver bullet that will allow them accessto every conceivable kind of marketplace. But this is still a promise waiting to be kept. Ourproposal, put forth here, provides a way and a means of getting the business ofentertainment into the spotlight cheaper, better, and faster than “anything” ever before.Overview Every day, entertainers have a deluge of facts to confront in an ever-changing industry. In the past two decades, the world of conventional entertainment has been transformed by technological innovation with established networks (ABC, CBS, NBC) giving ground to new and remarkably fast-growing networks (ESPN, UPN, CNBC). For entertainers, as well as content distributors, trying to keep abreast of uncertain change while still promoting themselves, it is a tremendous challenge. How will the business of entertainment be conducted in this our first decade of the twenty-first century? This introduction will address the challenges ahead and how they can be successfully exploited. One of the most important, if not the most significant, changes in the past decade has been in the area of communications infrastructure. Voice, audio, and video applications have radically changed in less than a generation. Yet, while development of new channels has been significant in the broadcast and telecommunications industries, the technological changes themselves have not produced the future that the information highway promised us. For instance: Marketing an artist is still done largely using traditional advertising techniques; that is, mass marketing though broadcast channels using established television, radio and print media. Even dot.coms have adapted themselves to this method. Which begs the question: “If Internet technology was intended to by-pass traditional channels (e.g., radio and television) —why are they using them?” So to understand our solution we have to review the roots of mass marketing along with its assumptions. In the early part of the twentieth century, communications researchers began studying peoples attitudes as influenced by media. At the time, motion pictures were just starting to convey imagery and ideas to a broad audience. As a result, scholars were led to postulate a magic bullet theory of marketing. Also referred to as the stimulus-response theory, the magic bullet theory assumed that a given message reached every eye or ears in the same way or provoked essentially uniform responses… whose eye or ear did not matter.Copyright © 2006 • McGraw Broadcast Communications 1
  2. 2. Business Entertainment Channel Introduction People were thought to inherit basically the same instincts, so social or psychological differences between people seemed rather unimportant. People were collectively viewed as the masses. Marketing to a particular group, let alone an individual consumer, was never considered. It was on this foundation that mass marketing began, and advertising promotion began to grow. So, for everyone, the underlying assumption has always been this: the larger audience one has to market a given product, the greater likelihood of that products success. That equation still resonates today throughout the business and entertainment world. However, how easy is it for promoters in this day and age to establish a song, a movie, or a game? What financial and logistical considerations must be made if an organization is to successfully promote an artist/entertainer? A couple of decades ago, the Internet only existed for a handful of government agencies attempting to share information. These days, anything not marketed on the Internet risks losing share to the competition. In another five years, will the general business community have to face another new, explosive advertising medium, and if so, how will they be prepared to deal with it? Again, the traditional way to advertise is to use established channels. Television, radio, print media, and now Internet all aimed at reaching broad audiences. It is also expensive. The path an agent must follow generally begins by contracting a “advertiser” whose “associates” go about creating a concept to brand the art/artist. Then, once the concept is signed-off on; promotion begins, and then advertising begins; closely following, a production/ post-production company implementing the concept. The concept is eventually translated into entertainment; perhaps a DVD with a game segment included. We find-out about it during a prime-time event on a major network, a one-minute spot on the radio during the afternoon rush hour, or a full-page ad in a popular magazine or trade journal. In most cases, if the DVD is successful, a web log (Blog) is established and the process is repeated. For large entertainment companies like Sony, this path, as laid out using traditional broadcasting channels, is taken for granted as a cost-of-doing- business. Although for emerging art and entertainment, the fact remains that it is practically impossible to use these same traditional media venues because the costs (and risks) of launching “new ideas” are staggering. Yet the goal is the same for both established as well as emerging entertainers: maximizing the reach of a branded message. Reach is the distance and the numbers of people who want to buy entertainment content.Copyright © 2006 • McGraw Broadcast Communications 2
  3. 3. Business Entertainment Channel Introduction So, in this new century, all entertainers, as well as businesses and professional people, are faced with two equally difficult but opposing tasks: getting their name and brand to market more quickly than ever before while reaching the broadest possible audience as directly as possible. The reason for the former is abbreviated product (i.e., games, movies and music) life cycles largely driven by consumers (the masses) demanding more arts and entertainment than ever before. The latter translates into ever- growing advertising budgets to market to those very consumers. Even the cost of the technology that provides established businesses the maximum reach is more-and-more expensive to buy. So, for any entertainment segment it is becoming increasing more difficult then ever to successfully bring content to market ―especially using traditional means. Yet it has been the widespread demand for so-called “new media” that has directly shaped fundamentally new processes in the entertainment industry. Audio, video, computer, and telecommunications systems seem to be proliferating in complex ways to meet not so complex needs. So, with all the new stuff that’s-out-there, can it be harnessed to help solve this demand? With the development of powerful microprocessors in this decade, sophisticated communication systems including fax, cell, video distribution, desktop computer, video teleconferencing, and IP consumer services have literally changed the face of the way business is conducted today. What this serves to signify is that all technical boundaries are being challenged, and in their place, non-traditional connections must be created between media forms so we can manage them. In essence, complexity is becoming rampant since there are more systems performing independent tasks. Rather, what we are beginning to see the need for is the emergence of a single system to manage multiple-tasks concurrently. Yes, technological control will be a key determinant for the business of entertainment in this new millennium.Agenda To meet the needs for the next decade and to exploit the emerging variety of new media forms for entertainment we must look at the advantages of a non- traditional broadcast and presentation system (NTB/PS) network. A non- traditional marketing approach seeks to establish an entertainment channel: • To market directly to the consumer (one-to-one marketing) • To efficiently market by managing the cost of outside advertising and production/post production (the-middle-men) • To distribute advertising costs (partnership)Copyright © 2006 • McGraw Broadcast Communications 3
  4. 4. Business Entertainment Channel Introduction • To achieve maximum market penetration (reach) • To gain brand momentum (market share) • To allow entertainers to achieve content and message saturation (predictability and repeatability) In short: We see the need for the emergence of a single system to manage multiple-mono-media (Computer, Telco, TV). So what we propose is a distribution network in conjunction with development and implementation of a non-traditional broadcast and presentation system (NTB/PS). Hereafter referred to as Business Entertainment Channel (BEC).Start-up Obviously there is no question that the coming decade will present tough challenges, as well as outstanding opportunities to build strong and profitable relationships in the entertainment industry. But, what and where exactly is the entertainment marketplace of the future going to be? How are we going to position ourselves and with whom? Our goal is to provide a network platform to distribute content. The BEC will be provisioned to carry out complex interactive telecommunications tasks throughout the United States and internationally. Our primary reason for starting this endeavor is competitive reality, coupled with significant possibility and profitability. How then will our Business Entertainment Channel empower entertainers to market games, music and movies today and in the future with as much flexibility as possible? Well, as all entertainers are aware, an album, game or movie’s success can (if not does) start at the grass-roots level before becoming so popular that it becomes part of the publics collective conscience (mass appeal). So the unique benefits of the non-traditional network concept include: • A Business Entertainment (distribution) Channel (BEC) consisting of a national broadcast center with affiliates at-the-grass-roots. • Affordability —the BEC will create operational improvements exceeding one thousand percent of those currently charged separately by the broadcast and telecommunications industries as basic services. • Opportunity —in all markets, price signals change.Copyright © 2006 • McGraw Broadcast Communications 4
  5. 5. Business Entertainment Channel Introduction Having analyzed the marketplace, we have come to the following conclusions: • There exists a broad misperception in entertainment today that suitable telecommunications access is already available (that is, that the technology is usable and is just the cost of doing business). • There is not an accurate understanding of how existing systems can work together in a systematized fashion. • There is misinformation put forth by telecommunications providers seeking to protect their market share and rate payment for each of their basic services provisioned individually and separately. • No one seems to be effectively promoting any idea of how entertainment can move toward technical modernization affordably and efficiently.“Oz” Our innovation is based on a relatively simple idea: Use existing technology to radically reduce the cost of mass marketing so that entertainers can much more easily afford it. Our goal is to provide not only “the ways” but also “the means” where artists and gamers have an opportunity to showcase talent and promote careers. This idea uses existing technology, but systematized in a much more technologically efficient and cost-effective way. And by shortening the cycle time that it takes for content to reach an audience, it could literally become the over-night sensation provider. Given the misleading information scattered around by telecommunications providers about the obstacles to using existing technology more effectively, it is not really unreasonable to conclude why there is no single business utilizing all of the systems available (concurrently) to them at present. The reason for this is that no one has ever thought that a single (communication) method could be provided which would create a working environment greater than the sum of its separated (telecommunications) parts. At the core of the BEC is an already patented technology: BROADCAST AND PRESENTATION SYSTEM AND METHOD (U.S. Patent # 5,577,042). This Non-Traditional Broadcast and Presentation System (NTB/PS) is the outgrowth of a proof-of-concept project that started a-little-over ten years ago in Cincinnati, Ohio. Initially nicknamed the Cloverleaf it is a system that capitalizes on the technical concept of managing bandwidth. As provided by the carriers, bandwidth is the fuel applications need in order to move on the information highway.Copyright © 2006 • McGraw Broadcast Communications 5
  6. 6. Business Entertainment Channel Introduction Bandwidth enables users to process huge amounts of voice, video, and data communications. The bandwidth equation for carriers-at-present is this: The more bandwidth you buy, the faster your application will move on “our” information highway. What the carriers don’t say is they separate voice, video, and data applications in “their” network just as they are separated in your computer. But unlike your computer: Carriers have sub- segmented applications even further into “networks within their network” which means they are provisioned and charged separately. This has created an “overlay” of many networks within their (overall) network. On top of that, they do not provide you with a multiple connection device so you can conveniently “switch” with and between their numerous network applications. So, when you buy more bandwidth, you’re not getting more applications. A metaphor would be: “No matter how fast you drive, you can only drive one way.” By controlling your egress to just one application at-a-time the carriers only allow you to go THEIRWAY at-a-time. Without you realizing it, an “OURWAY—BEST EFFORT” (BE) becomes the only way. You only get... well… their ‘best effort’. Not one carrier system in the marketplace today has telecommunications network-access controls built in as part of their design. On-the-other-hand our equation is this: “Create a control plane application that consolidates all applications into a single network —an Information Superhighway. In effect: The systematization of all the networks into a WHOLE network greater than the sum of currently separated network applications. Cheaper. Better. Faster. The Cloverleaf is an electronic (business) model, much like a literal (highway) cloverleaf —it provides a common denominator for reconciling differences between comparatively incompatible traffic (operating systems are different roadways). The method primarily champions a single service (multiple) application line rather than current (single) service lines. In other words, the Cloverleafs affiliates will get multiple, affordable services that the telecommunications providers would charge as expensive, individual services. Setting aside any allowances for the obvious economies of scale or efficiencies the Cloverleaf system would bring to its users, consolidation alone (eliminating multiple connection fees) would create savings in the neighborhood of 100 percent of those currently being offered to the consumer.Copyright © 2006 • McGraw Broadcast Communications 6
  7. 7. Business Entertainment Channel IntroductionObjectives We propose to provide technology to establish an interactive entertainment network that will provide a platform for up and coming talent to directly market within this segment. We feel that the availability of a suitable location for a headquarters should be provided to promote the Cloverleaf technologys utility. Therefore, the BECs headquarters, including the national broadcast center, we believe, should be located in ________________ for the following reasons: • Facilities. • ________________ is an affordable primary location. • Arts and entertainment already established in the area After the initial start-up, qualifications for the many prospective affiliates (individual licenses) can begin a rapid build-up in major metropolitan areas. Next, our efforts will concentrate on identifying and developing an entire business and professional entertainment market potential. This project is not a small undertaking. Each (market) should foster its own unique opportunities. We believe that the services we would help an affiliate offer will be viewed favorably by the targeted markets, with potential for strong growth in many other markets. However, after reviewing the available technology, and the lack of anyone else offering this idea in the marketplace, we believe that this plan will be highly successful. This project offers: • A clear path for entertainers to successfully reach broader audiences for lower costs. • A plan that provides “time-to-market” with patented technology. • A non-traditional broadcast/communication network center (distribution infrastructure) from which affiliate sites can leverage entertainment and advertise product and service offerings. • A strong investment opportunity to participate in either the broadcast center development or development at the affiliate level.Strategy Our strategy for gaining revenue is expected to result from the following sources: • Usage fees charged to promoters using the BEC at the network level (percentage of product or advertiser sales).Copyright © 2006 • McGraw Broadcast Communications 7
  8. 8. Business Entertainment Channel Introduction • Usage fees charged to entertainers at the affiliate level (percentage of product or advertiser sales). • Line fees charged to entertainers at the affiliate level. • In-house production facilities (offered to clients seeking these services at the local and national level). • In-house distribution facilities (offered to clients seeking these services at the local and national level). • Licensing and syndication fees* *Note: We will start by promoting sophisticated communication tools. The Cloverleaf will be the primary vehicle for sales broadcast and communication. It will be important to remember that an affiliate will be very attractive to the entertainment community, that it will be profitable from its inception. In an age of technological miniaturization, when the term downsizing is becoming part of our collective vocabulary, an affiliate will make the world itself smaller, serving as a bridge to remote markets that may have once been deemed too far away.Tactics To gain immediate market presence and market share using non-traditional mass-marketing techniques and venues, the BEC will introduce its NTB/PS technology as a Mecca for artists, entertainers and gamers’ for presentation (at the local or national level). In turn, establishing its reputation as the location for communications technology that promotes content in all its forms. At its most fundamental level, an affiliate will provide a true forum for advanced multiple mono-media entertainment presentations —specifically, global presentations that will enable entertainers to seamlessly conduct business in todays ever expanding global marketplace. Therefore, the plan consists of three tactics: 1. Build the Business Entertainment Channel National Broadcast Center. This must be done first since it is the means of distributing the message. The Cloverleaf will be headquartered in the broadcast center to serve as a pipeline for affiliates. 2. Establish the BEC network of affiliates nationwide. Affiliates and the broadcast center go hand-in-hand. Each needs the other in order to be successful. 3. Build service bureau business. The broadcast center will have production and posting services in-house to provide BEC affiliates an easy means of producing product and advertising and dispensing content to consumers.Copyright © 2006 • McGraw Broadcast Communications 8
  9. 9. Business Entertainment Channel IntroductionSummary Todays entertainment faces an ever-increasing need to get their content to market as quickly as possible. However, up and coming content providers have no affordable means of advertising themselves or their art once they are in the marketplace. The fact is that to bring an artists message to the public is practically impossible, offering control to the promoter and entertainer only at a steep price. What this proposal offers is not only a solution to the business of entertainment but also a tremendous investment opportunity. As a result of our analysis, we have identified the following: • A market (Business Entertainment) • An absence in the marketplace of an enabling technology (Cloverleaf) • A plan to capitalize on this absence (BEC) • A lack of competition We believe that this business venture is a strategically advantageous investment opportunity. We encourage you to thoughtfully review our business plan.Copyright © 2006 • McGraw Broadcast Communications 9