Futurescape Web TV and social TV reports – essential insights for digital business development and creative approaches

ABOUT THE BIRTH OF ONLINE TV Creative and commercial strategies for a new entertainment medium Inform your digital strategy with Key questions answered comprehensive coverage of the fast-growing market for original  How is the boom in Internet video Web TV and transmedia shows, viewing building an audience for their funding, production and original Web TV shows? success.  How are Hollywood studios, British broadcasters and production  Key data and market trends to inform companies in both countries strategic planning, forecasting and pioneering new online series? business development  What are the essential insights from  How US Web TV studios are funded the most significant successes and failures in Web shows?  Detailed analysis of revenue sources for Web shows: advertising,  What new online formats and forms of sponsorship, commissioning, download interactivity are emerging? sales and more  How do shows find and build an  Comparative budgets: per season and audience? per-minute  What kinds of distribution, marketing  Detailed profiles of major Web TV and promotion are in use? comedy and drama series: rapidly compare formats and commercial  Which famous actors and directors are models, including branded embracing the creative and entertainment commercial opportunities in Web TV?  Comprehensive listing of Hollywood  What kinds of productions are they studios‟ digital divisions and Web TV making? production companies - and what kinds of shows they make - for  And which brands are backing them? competitive analysis  Listings of major brands that 100 pages / 40,000 words, 15 tables, 14 sponsored American and European Web show business profiles. shows, revealing which advertisers are active in the sector and what genres they sponsor Second edition, August 2009.  Comparative budget data and revenue sources to assist production budgeting Fast digital delivery as a PDF. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

In the report Who should read this?  Covers original Web TV scripted comedy and drama shows in the USA  Business development executives, and UK digital executives and commissioners in studios,  15 tables: online video viewing broadcasters, and Web video and figures, studio funding, production social networking sites budgets, episode lengths, self-declared Web show viewing figures  Branded entertainment specialists  Listings of key market players: in advertising and media buying 58 studio digital units and Web show agencies producers: studio and production company listings for BBC, CBS, Channel 4, Disney, Fox, NBCU,  Innovative brand managers Paramount, Sony, Warner Bros and 49 production companies seeking new opportunities for their brand portfolio in the online video  Advertiser and sponsor listings for space US and European Web series: sole sponsors and multiple product integration  CEOs, senior executives and producers in television and new  Brand sponsors referenced in the media production companies report include Carl‟s Jr, CIBA Vision, Ford, Red Bull, Sprint, Suave, Tampax, Tide, Toyota and many more The Birth Of Online TV enables you and your team to get up to speed with  14 in-depth Web show business the fast-moving Web TV sector. profiles: full creative and commercial details, each with a colour still from the production, plus 23 further significant US, UK and European shows Our buyers include global listed advertising agencies, broadcasters, Hollywood studios and producers:  13 major trends for the future of the AT&T, BBC Worldwide, Digitas, Web show market Disney, Eutelsat, Fox, HBO, ITV, MediaCom, Ogilvy, Publicis, RTE,  4 industry expert interviews Warner Bros.  Itemised analysis of funding and revenues sources for shows, with Futurescape's research is regularly examples quoted in media and marketing  Live links to all Web shows and publications such as Variety's Video production companies to take you Business, Broadcast, Televisual, TV direct to their Web sites Week, MediaPost and Campaign.  Methodology: the analysis is based on production company information, authoritative industry sources and original research To order your copy online visit: www.futurescape.tv © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Full Media Coverage: Second Edition Quoted in Variety, HuffPo and more publications Click on the red links to see the original articles online. While the future of television is continually being debated, the news media are starting to analyse the significance of Web shows for the entertainment and advertising industries. As Futurescape is a key source of independent research on the sector, the second edition of our pioneering report The Birth Of Online TV is receiving even wider coverage than before, both trade and consumer. There‟s a comprehensive write-up by Jennifer Netherby in Variety's Video Business. Greg Mitchell, editor of Editor & Publisher (the main trade magazine for the US newspaper industry), quotes our findings in his Huffington Post article, After Emmys: Are Web Series a New Threat to Primetime TV? Other entertainment industry press includes:  The Business Week Internet television blog  The Informa newsletter New Media Markets (subscription only)  The digital edition of Cynthia Turner‟s e-mail newsletter Cynopsis  Media news specialist MediaBistro  IPTV news site TVover.net © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Web shows as branded entertainment, funded by major advertisers, is the focus for Brand-e.biz and Product Placement News. In consumer media, Keanu Reeves and other stars appearing in or making Web series is the hook for Home Media Magazine and the home theatre blog Wired At Home. The relationship between a Web show and its fans, which we‟ve written about extensively in our WeVision report, is evident in this screenshot from Twitter (left). American soap star Crystal Chappell retweets the TVover.net article mentioning her forthcoming series Venice - and her fans pass it on. The original release is here on PRWeb. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Full Media Coverage: First Edition What do Web shows cost? Daisy Whitney used the production cost analysis from The Birth of Online TV for a fascinating comparison of current Web shows in her New Media Minute video. What does it really cost to produce a Web video series? $200 per minute or $2000? Or maybe $20,000? The numbers may surprise you. This week's "New Media Minute" breaks down a range of costs for Web series such as “Dorm Life,” “Sanctuary” and “Foreign Body” and compare those price tags to traditional TV. Click to see the video © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Online TV myths Gavin O‟Malley at MediaPost, essential reading for media planners and buyers, writes: “Thanks to viral marketing, engaging and well-produced content will distribute itself online, right? Wrong, according to a new report from Futurescape, a London-based digital entertainment R&D firm, which details several myths related to original Web content production in the U.S. and U.K.” He goes on to discuss in detail three of the myths we identified in our report The Birth of Online TV: 1) Good content will automatically go viral (it actually requires promotion) 2) Internet shows are cheap (in fact, there is a wide range of budgets) 3) The industry is still in an experimental phase (complete end-to-end production models are already in place) Read the full article here © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

SAMPLE PAGES FROM THE BIRTH OF ONLINE TV WEB SERIES BUSINESS PROFILE – In The Motherhood Synopsis US comedy about three mothers, starring Leah Remini, that invited women to send in their true-life experiences for the script; sponsored by Sprint and Suave. Production company Conceived by Mindshare Entertainment, video by Science + Fiction, interactivity by FanLib. Commissioner / sponsor / revenue  Co-sponsored by Sprint and Unilever‟s Suave.  Unilever promoted the Suave range of hair, skin and deodorant products: Suave is “a brand for the average mom who puts her family first.”  Mobile operator Sprint promoted family safety, family calling, entertainment services. Budget  Approx $1m. Number of episodes and length 5 X 5 mins. TX dates and schedule  Show premiered 11 May 2007 (also on The Ellen DeGeneres Show), with subsequent episodes on 22 May, 29 May, 5 June and 12 June. Key innovative and interactive features  Show invited target audience of mothers to contribute script ideas from their own real-life experiences, with site users voting which ideas were best.  Characters had Sprint Digital Lounge music playlists. Distribution  Show site www.inthemotherhood.com  Online: MSN | Suave | Sprint site | Sprint TV (mobile) | FanLib for contributions.  Television: Clips and episodes shown on The Ellen DeGeneres Show. Promotion / marketing  The Ellen DeGeneres Show also featured Remini and invited viewers to send in ideas. Success  Claims 5.5 m video views in first season and that during the campaign the site was the fifth most popular site for mothers on the Web.  Second season started in February 2008.  Developed by ABC for broadcast TV version in 2009. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

SAMPLE PAGES FROM THE BIRTH OF ONLINE TV Online TV funding, revenue sources and sponsorship Funding for studios Until early 2008, Web show studios and production companies were launching with ever- increasing funding and support from major investors. Due to the recession, there has been little activity since the second half of 2008. Significant exceptions are Agility Studios, which launched in November 2008 with “several million” dollars from Mantucket Capital, and DECA, which managed to secure a remarkable $10m second round in January 2009, from previous investors Mayfield Fund, General Catalyst and Atomico, together with newcomer Rustic Canyon Ventures. Michael Eisner‟s Vuguru secured a major deal with Rogers Communications in October 2009. More details are in the studio and production company profiles and summarised below. Table: Significant studio funding deals (high to low) Studio / production co Funding Investors $23m Spark Capital, Goldman Next New Networks  $8m – launch Jan 2007 Sachs, Velocity Interactive,  $15m – March 2008 Saban Media, Bob Pittman $15m Mayfield Fund, General DECA  $5m – launch Sept 2007 Catalyst, Atomico, Rustic  $10m in January 2009 Canyon Ventures $9m Greylock, LinkedIn CEO Revision3  $1m – launch Sept 2006 Reid Hoffman, entrepreneur  $8m – June 2007 Marc Andreessen NBCU, Hearst, Greycroft, Worldwide Biggies $9m – launch Aug 2007 Platform Equity, Prism VentureWorks $6m – March 2008 (two MK Capital, Velocity Generate years after launch) Interactive $2m – July 2009 Eqal $5m – launch April 2008 Spark Capital, Marc Andreessen and others Independent Comedy $5m – launch 2007 Angel investors Netwk Tudor Investment 60Frames $3.5m – launch July 2007 Corporation, Pilot Group, SpotRunner, UTA $2.2m ConsensusOne Ventures For Your Imagination  $1.2m – launch Jan „07  $1m – March 2008 Electric Farm Sold 10% stake for $2m in Granada American Entertainment August 2008 Agility Studios “Several millions” – launch Mantucket Capital Nov 2008 Vuguru “Multimillion dollar” – Oct Rogers Communications „09 (two years after launch) Source: Futurescape © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

SAMPLE PAGES FROM THE BIRTH OF ONLINE TV Production in action Show and season lengths Very short forms vs narrative There is a widespread preconception that online viewers will not watch video for more than a few minutes. Says Mark Karlan, media strategist at Lowe Worldwide, New York: “We know people‟s attention spans online are short.” But is this true? And why are so many producers shooting episodes at more than five minutes? Geoff Goodwin, head of the multi-platform teen service BBC Switch, sums up the assumption about length: “[People say] „Oh, they‟ve got 19 things in their room, so we‟re only going to be able to get them for 3.8 minutes, so we need to do [episodes at] that length.‟ “But videogames are as long as they‟ve ever been. Sit down and play Halo and the promise is you‟re there for weeks. Look at the Harry Potter films and Lord of the Rings, some of the popular media for this generation. It‟s long and getting longer.” The assumption that episodes have to be one to five minutes long comes at least in part from the content on video sharing sites such as YouTube, which are very often at that length. Yet it is important to bear in mind that YouTube caps video length at 10 minutes. It is not possible to upload a longer clip. And many YouTube contributors are not working in scripted narrative formats, but producing video blog entries that do not require 15- minute running times. Another consideration is the commercial pressure to keep it short. Kathleen Grace, co- creator of The Burg, sums up the tension between advertiser requirements and narrative. “The ad industry says three to five minutes because you can get more impressions and views with shorter content. But we've had very successful episodes that are longer. Our general barometer for The Burg and The All-For-Nots has been if we got bored while watching it. If it feels tight and moves along then we don't worry about the number of minutes it is. People will watch five minutes, 15 minutes, or even 22 minutes online as long as it's compelling.” This was certainly true of one of the biggest successes so far, Dr Horrible‟s Sing-Along Blog. The superhero musical is arguably closer to a condensed feature film than a TV- style series, as it runs for 45 mins total, and was released in three, 15 minute episodes. Online viewers were first able to watch it streaming via Hulu. Balancing the competing demand of advertisers – for more impressions via a larger number of short episodes – with a producer‟s aim to deliver a strong narrative via longer episodes, is one of the key challenges that must be addressed for online television to progress commercially. It may be that a format will emerge, analogous to the broadcast television sit-com, that manages to resolve the issue. Or there may be several formats that each work with a different commercial model. For instance, a single sponsor may find a longer episode format entirely acceptable if it delivers a good audience and the sponsor‟s product is featured effectively. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Table of Contents – The Birth Of Online TV EXECUTIVE SUMMARY 6  Proven successes and star power  Differing strategies at Hollywood studios  Mixed fortunes for Web TV studios  UK market sustained by the BBC, Bebo and Channel 4  The sector is still seeking advertiser commitment  Advertisers do support specific interests  Proven sources of revenue have emerged  Emerging relationships between Web TV and broadcast TV  Evolving formats WHAT THE REPORT COVERS 10 Criteria for including studios and production companies Criteria for including shows Industry experts interviewed  Brad Curtis – Science + Fiction  Geoff Goodwin – BBC Switch  Kathleen Grace – Dinosaur Diorama Productions  Garrett Law – Attention Span Media WHY ONLINE TV IS BOOMING 12 The new Internet video environment  Ubiquitous broadband means video viewing is soaring  Table: Viewing online video at home  Who is viewing?  Table: US online viewing by age ranges  Tables: US demographics of Internet users visiting video-sharing sites  Falling television viewing?  Table: Internet access reducing television viewing globally  Audience aggregators – YouTube, MySpace, Bebo  Internet TV platforms  Video search engines  New funding, revenue and advertising opportunities  Plunging production costs The new production and funding environment  From independent filmmaking to online television  The Hollywood writers‟ strike – the catalyst for online television? The new producers behind the boom  Studios 2.0  Independent production companies  Talent-led production  New entrants  Talent agencies Major studios’ digital divisions  CBS Interactive  Disney-ABC‟s Stage 9  Disney-ABC‟s Take180 © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Fox Television Studios‟ 15 Gigs  NBC Universal Digital Studio  Paramount Digital Entertainment  Sony‟s Crackle.com  Warner Bros‟ Studio 2.0 British broadcasters and production companies  The BBC  Channel 4  Independent production companies ONLINE TV FUNDING, REVENUE SOURCES AND SPONSORSHIP 24 Funding for studios  Table: Significant studio funding deals Revenue for shows Advertising and sponsorship  Ad-supported  Branded entertainment  Product placement  Sponsorship deal after start of production  Table: Sponsorship fees and revenues Commissions  Broadcaster commission – online-only  Broadcaster commission – online and TV  Broadcaster commission after online launch  Broadcaster distributes after online launch  New studio commissions  Social networking site commission  Social networking site distribution Other revenue  Destination site  Download sales  Viewer contributions  DVD sales  Format sales  International distribution  Social networking site direct payment  Merchandise PRODUCTION IN ACTION 33 Budgets  More for the money  Can established producers produce to low budgets?  Budget inflation  Table: Total show budgets per season  Table: Per-minute show budgets – low to high  Profitability Production: show and season lengths  Very short forms vs narrative © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Table: Episode running times  How many episodes?  Total running time  How many seasons? Production: interactivity  Interactivity within shows – Signs of Life  Interactivity from the viewers – In The Motherhood, Where Are The Joneses?  Interactivity from the community – KateModern  Community interactivity – safety net or straitjacket? FINDING AND BUILDING THE AUDIENCE 42 Distribution  Own site vs third-party sites  Distribution deals  Table: Types of third-party distributors and revenue  What windows are emerging?  What is the shelf life of an online show? Marketing and promotion  A continuing role for offline promotion  Promotion via live events  The big bang launch – promotion via broadcast television  The slow burn promotion  Preparing to go viral – but avoiding the “viral fallacy”  Table: Video viewers sharing content Online and television – competing or co-operating?  From online to television  Co-ordinating online with television What about copyright? HOW TO EVALUATE SUCCESS? 49  Creative criteria  R&D criteria  Commercial criteria  Recommissions – proven success  Engagement criteria  Evaluating popularity  Video viewing statistics  Table: Self-declared show viewing figures  Public statistics  Limitations of viewing figures  Social networking and online buzz TRENDS 53 Shows and production  Increasingly well-known talent involved  Mainstream interests addressed by Web productions  Simultaneous production for online and television  TV shows reaching out to audiences online  Web-only spin-offs from TV series  Rise of the online soap  Producers aim for global breakout hits © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Episodes are becoming longer  More simultaneous distribution via online, mobile and television Funding  Branded entertainment is the most effective funding model – so far  More selective product integration  The new funders become the new gatekeepers  New funding intermediaries challenge ad and digital agencies EXPERT INTERVIEWS 59  Brad Curtis – In the Motherhood  Geoff Goodwin – Wannabes and Signs of Life  Kathleen Grace – The Burg  Garrett Law – Dorm Life WEB SERIES BUSINESS PROFILES: BUDGETS, SPONSORS, INTERACTIVITY 71  Angel of Death  The Burg  Clark and Michael  Crescent Heights  Dr Horrible‟s Sing-Along Blog  Dorm Life  Dubplate Drama  In The Motherhood  It‟s a Mall World  Prom Queen  Quarterlife  Signs of Life  Web Therapy  Where Are The Joneses? FURTHER NOTABLE SERIES IN 2008-09 90  US productions  UK productions  European productions WEB TV STUDIO AND PRODUCTION COMPANY BUSINESS PROFILES 94 Web TV studio profiles  60Frames  Agility Studios  DECA  Filmaka  Generate  Independent Comedy Network Web TV production company profiles  Ag8  Alloy Entertainment  Attention Span Media  Avalon TV  BermanBraun Interactive  Big Fantastic  Break Media  Conker Media  Dinosaur Diorama Productions © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Electric Farm Entertainment  Endemol Digital Studios (UK)  Endemol USA  EQAL  FM78.TV  For Your Imagination  FremantleMedia's FMX  Fuel Industries  Funny or Die  Go Go Luckey  GoTV Networks  Hollywood Disrupted  IAC companies  Imagination  Intelligent Life Productions  Iron Sink Media  Joe Digital  KoldCast Studios  MWG Entertainment  My Damn Channel  Next New Networks  Nu Media Studios and Management  RDF Digital  Reveille  Revision 3  Safran Company  Science + Fiction  Shimmer Productions  Strike.TV  SXM  Virtual Artists  Vuguru  Worldwide Biggies ADVERTISER AND SPONSOR LISTINGS 103-104  Sole sponsors of American Web shows, listed by brand  Multiple sponsorship and brand integration in American shows  Sole sponsors of European Web shows, by brand  Multiple brand integration and product placement in European shows © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

To order your copy online visit: www.futurescape.tv © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

ABOUT UK WEB SHOWS NOW “Far-sighted indies are already carving a new niche in Web-only content, as the report from research company Futurescape reveals.” Broadcast deputy editor Emily Booth Discover how British producers Key questions answered are pioneering new online TV formats and business models  How are British broadcasters and producers gaining a competitive edge The UK is already a key territory for the by innovating original online TV show creation of highly innovative Web formats that work? television and transmedia formats and the commercial models for their production.  How are pioneering producers, brands and broadcasters developing and UK Web Shows Now is the only business applying the new business report to cover the market‟s original Web opportunities in creating online shows? TV series, made-for-mobile shows and online feature films, across scripted  What kind of programmes and comedy and drama, entertainment and interactivity are being made to attract factual genres. The report provides: the teen and young adult Internet audience?  Key data on market trends, growth, budgets and commissioning to inform  Which production companies are strategic planning, forecasting and leading the market – and why? business development  How can brands bypass broadcasters  In-depth coverage of shows as to reach viewers online? branded entertainment: fully-funded by a single brand or featuring multiple  What new production models are product placement emerging, in which production companies collaborate with other  Detailed profiles of 39 major Web TV partners? comedy, drama, entertainment and factual series so you can rapidly 150 pages / 48,000 words, 17 tables, 39 compare their formats and commercial Web show business profiles. First models published November 2008, updated October 2009.  Comprehensive listing of independent production companies making online TV shows, for competitive analysis Fast digital delivery as a PDF. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

In the report Who should read this?  Covers British original Web TV and  Business development executives, transmedia scripted comedy and digital executives and drama, entertainment and factual commissioners in studios, shows, including branded broadcasters, and Web video and entertainment productions social networking sites  8 key findings on the market-leading production companies, the competitive environment and brands bypassing  Branded entertainment specialists broadcasters in advertising and media buying  17 tables: commissions, budgets, agencies advertiser-funded shows, brands sponsoring shows, UK Web show production companies and their series  Innovative brand managers (6 pages), companies with several seeking new opportunities for their shows or seasons, recommissioned brand portfolio in the online video shows space  In-depth business profiles for 31 Web TV shows, 5 made-for-mobile series, 3 feature films: full creative  CEOs, senior executives and and commercial details producers in television and new  62 colour stills and screenshots of media production companies show Web sites  Listings of key market players: UK Web Shows Now gives you and 49 production companies, 6 brand your team a thorough understanding integration agencies and 13 government and other relevant of the UK's dynamic Web TV market organisations, each with a live link to and its innovative formats. take you direct to their Web site  Growth of the market from 2007, Our buyers include global with breakdowns for scripted, advertising agencies, broadcasters, unscripted and mobile shows, Hollywood studios and producers: commissions by broadcasters and social networking sites, and self- AT&T, BBC Worldwide, Digitas, commissions by independent Disney, Eutelsat, Fox, HBO, ITV, production companies MediaCom, Ogilvy, Publicis, RTE, Warner Bros.  Brand sponsors referenced in the report include Cadbury, Colgate, Ford, Jacob‟s Creek, Nokia, O2, Orange, Toyota and many more Futurescape's research is regularly quoted in media and marketing  Case study: The production process publications such as Variety's Video for Nokia‟s international multiplatform Business, Broadcast, Televisual, TV drama Somebody Else‟s Phone Week, MediaPost and Campaign.  In-depth interview with Luke Taylor, co-founder of leading Web show production company Big Balls Films  Methodology: the analysis is based on production company information, authoritative industry sources and original research To order your copy online visit: www.futurescape.tv © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Full Media Coverage “As traditional TV funding comes under threat, the Web offers a way forward. Far-sighted indies are already carving a new niche in Web-only content, as the report from research company Futurescape reveals.” Emily Booth, deputy editor, Broadcast Click on the links below to see the original articles Extensive media coverage for the research included news article and the editor‟s column in Broadcast. Plus other news articles in New Media Age, Brand Republic, Netimperative, and The Stage, which emphasises brands bypassing broadcasters for online product placement opportunities. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sample Pages from UK Web Shows Now Web series business profile – The Secret World Of Sam King Drama series about Sam King, a fictional junior employee working in the real offices of Universal Music UK, who sets up his own, secret record label. Production  Produced by: Indie TV production company Monkey Kingdom and Universal Music‟s production arm, Globe Productions  Commissioned by: Bebo  Production company Web site: www.monkeykingdom.com Advertising and sponsorship  Universal Music – the company‟s artists, such as The Automatic and Sam Sparro, appear in cameos on the show  Virgin Mobile and Sony Ericsson: some episodes have been shot on location at the Ibiza Rocks festival, sponsored by Sony Ericsson, and at Virgin‟s V Festival Key innovative and interactive features  Whole production includes three content strands:  The Secret World Of Sam King drama on Bebo  Katie‟s Love-In: a music TV show on Bebo presented by Sam‟s love interest, Katie o Negotiations are in progress for this show to transfer to broadcast television, in a 30-minute or five-minute version, the latter fitting into the schedule after US shows that are too short to fill one hour of broadcast time in UK television  Johnny‟s radio podcast, a weekly radio show DJed by Sam‟s friend  Dual storylines: Sam setting up his record label in a glamorous setting and also a “traditional domestic drama” about personal relationships, closer to Bebo members‟ own lives  In Sam‟s blog, the character talks to Bebo members about his fictional label and how they can take part in it, inviting them to help him make decisions via online polls  Multiple competitions, including choosing the record label‟s logo and an opportunity to become Sam‟s intern and help him on Bebo  Guest appearances by major artists, including The Jonas Brothers, The Pussycat Dolls Web site www.bebo.com/samking Premiere date and schedule  August 2008, new episodes weekdays, 3pm, also weekly preview and recap episodes  Season one ran for three months, approx 65 episodes x 3 – 5 mins  Season two has been commissioned for 2009 Notes The Secret World Of Sam King is designed to “appeal to creative Bebo users with broad-ranging interests – all connected to music” (David Joseph, chief executive, Universal Music UK). The label claimed in mid-October that 5.4m people had watched the show, which was averaging 100,000 viewers a day on Bebo and more on YouTube. The show is part of a broader initiative by Bebo to improve its music offering in competition with MySpace – in June 2008, the company extended its Open Media strategy to include music companies as well as broadcasters, enabling record labels to make their own pages and keep the advertising revenue. The storyline is featured on the teen entertainment site beRed, owned by Bebo‟s owner AOL – www.bered.com Producer Monkey Kingdom also makes the Orange Unlit music Web show and BBC Switch‟s Sound television music show, while Universal Music‟s Globe Productions also co- produces the Britannia High teen music drama with ITV Productions. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sam King screenshots Sam King on Bebo (top) and Sony Ericsson sponsor page © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sample Pages from UK Web Shows Now DIGITAL STRATEGY: SUPER-INDIES INVEST IN ONLINE PRODUCTION Start-ups In Futurescape‟s first report on the state of the Web show market, The Birth of Online TV, we revealed a significant scale of investment in new American studios and production companies dedicated to making original online television. Start-ups such as Lonelygirl15 producer Eqal, Next New Networks and Revision3 between them attracted at least $52m in funding from a range of sources, including the venture fund Spark Capital and Atomico, the investment company started by Skype founders Niklas Zennström and Janus Friis. The British scene is significantly different. Web show production as a whole has from the outset been entwined with the well-established independent television production sector. Many of the shows are made by existing indies and commissioned by the terrestrial broadcasters with whom they already have a relationship. There are a number of UK start-ups aiming to produce primarily for the Internet, but they appear to be much smaller than their American counterparts. The only one with publicly-declared launch funding (as opposed to production funding) is Be Entertainment. It has gained support out of a £250,000 digital media development fund set up by the development agency Invest Northern Ireland and the media development agency Northern Ireland Screen. What is striking about the start-ups is that most of them appear to have firm foundations, regardless of their size, in that they have either completed productions to their credit or they have some funding for development, either from a supporting company or from some form of production finance. The individuals involved have a track record in the film or television industry, or have moved quickly to establish one. Table: Web production company start-ups in 2007 – 2008 Company Support Be Entertainment Support from Invest Northern Ireland and Northern Ireland Screen, plus continuing production of Sofia‟s Diary Fortune Cookie Backed by established creative media group Everybody‟s Greenroom Entertainment Completed student sitcom Fresh! for BBC Switch, working on sitcom for BBC Wales Shimmer Productions Awarded €25,000 for an interactive project from the EU MEDIA fund Silk Press Productions Has self-funded soap Spinning Jenny as its first production Te Papa Films Has completed online romantic comedy feature film All Bar Love Teen Star Inc Making sponsored student vox pops series Meet the Freshers, distributed via Bebo Touch Illumina Multiplatform joint venture between Touch Productions and All3Media‟s Illumina Digital, with a major BBC commission © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sample Pages from UK Web Shows Now PRODUCTION TRENDS Which production companies are in the market? Although Web show production mainly consists of external commissions by broadcasters and advertisers from established independent production companies, plus some in-house commissions, not all indies have yet entered the market. In the following table, we summarise all parties – indies, broadcasters and others – that have made any Web shows, together with indies starting up to do so. Table: UK Web show producers Producer Show Title Genre Description Commissioner Academy Somebody Drama Global drama Nokia Films / Big Else's Phone about a model, Balls Films film director and PR executive in London, Los Angeles and Shanghai Avalon Mouth To Comedy-drama Follows the BBC3 Television Mouth career of the fictional girl band Cat‟s Eyes Baby Cow / Where Are Interactive Road trip Ford Imagination The Joneses? comedy mockumentary about a sister and brother travelling Europe to find their numerous siblings via their sperm-donating father BBC Switch The 5.19 Entertainment Talk show about In-house Show fashion, celebrity and music with chat, sketch comedy and guest gigs by new bands BBC Switch Them Factual Documentary In-house series about the UK‟s different teen “tribes” BBC Switch To Be Interactive The drama is In-house Continued... drama created between BBC Switch and “young budding actors, screenwriters and directors” © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Table of Contents – UK Web Shows Now INTRODUCTION 7  New medium, new business  The UK Web show market as pioneer EXECUTIVE SUMMARY 8 Key findings  The market leaders: Big Balls Films, Endemol and Conker Media  Indies are moving to seize new business opportunities  Broadcasters are confronting social networks competing for online viewers  Competition is intensifying for teen and young adult viewers  Major brands are bypassing broadcasters and commissioning shows directly  New, collaborative production models are emerging  Shows are becoming increasingly complex to make  Productions are increasingly ambitious Does the downturn support online television? Challenges for online production GROWTH OF THE UK WEB SHOW MARKET 2007 - 09 15 Drivers for growth  Broadband penetration rising  HD production costs falling  In-browser viewing has triumphed  Increasing online viewing Growth in scripted and unscripted productions  Table: Scripted and unscripted productions 2007 – 08  2007 scripted shows  2007 unscripted shows  2007 mobile shows  2008 scripted shows  2008 unscripted shows  2008 mobile shows  2008 feature films  2007 – 09 multiplatform productions  2007 – 09 external and internal commissions  Table: External and in-house commissions 2007 – 09 2009 production predictions  External commissions  In-house commissions and in development 2007 – 09 scripted show budgets  Table: Scripted show budget range 2007 – 08  Minimum scripted market size for 2009  Table: Minimum scripted show budgets for 2009 © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

DIGITAL STRATEGY: SUPER-INDIES INVEST IN ONLINE PRODUCTION 24 Start-ups  Table: Web production company start-ups in 2007 – 2008 Investments by super-indies and others  Table: British television companies investing in Web show producers, 2008  The significance of the deals Endemol – the major British web show producer  Table: Endemol‟s productions  Endemol‟s digital ambitions and digital media fund  John De Mol – at the heart of British Web show production All3Media – positioning itself for the digital future  Table: All3Media companies and digital production Other potential investors in British producers  FremantleMedia Talent Fund  NBC Universal  Saban Capital Group Commercial innovation  Company structures and partnerships  London – already a Web show production hub  Outside London COMMISSIONING COMPETITION HEATS UP 32 The BBC’s £1.3m fund for online drama  BBC online drama since 2005  How much drama for £1.3m? Competition in the teen to young adult market  BBC Switch and BBC3 vs Channel 4 vs Bebo BBC Switch in-house commissions  The 5.19 Show  To Be Continued  Them BBC Switch external commissions  Meta4orce  Fresh!  Myths  TxtME BBC3 commissions  Upstaged  Bryony Makes A Zombie Movie  Mouth To Mouth Channel 4 commissions  Dubplate Drama  Bite  Runners © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Year Dot  Central Station  4IP Digital Production Fund  Children‟s multimedia content fund Social networking sites as commissioners Bebo commissions  Bebo Originals  KateModern  Sofia‟s Diary  The Gap Year  The Secret World Of Sam King  Chelsey: OMG! Bebo partner projects  The Leon Jackson Show  A Message From Earth  Meet The Freshers The Bebo production method MySpace commissions  Beyond The Rave  Faintheart  I Luv Chieftown Other commissioners  MSN commission: Kirill  iVillage (NBCU) commission: Parentshood  ITV commissions  BSkyB commissions  Other broadcasters‟ commissions  Babelgum commissioning  Broadcasters licensing shows In-house commissions from indies  Be Entertainment  Channel X  Fourth Passenger  Silk Press Productions  Shimmer Productions  So Television  Talkback Thames Producers vs broadcasters for distribution ADVERTISERS FUND INCREASINGLY AMBITIOUS PRODUCTIONS 48 Advertiser-funded commissions  Table: Advertiser-funded shows from Ford, Nokia and others Ford-sponsored shows  Where Are The Joneses?  Bite  Neon Candy © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Mobile-sponsored shows  The Cell  Orange Unlit  Somebody Else‟s Phone ADVERTISING AND PRODUCT PLACEMENT 50 The product placement learning curve  Table: Major brands sponsoring Web shows  Product integration fees  Results: Golddigga in Sofia‟s Diary PRODUCTION TRENDS 53 Which production companies are in the market?  Table: UK Web show producers Web show market leaders  Table: Production companies with several shows or seasons Successful productions  Table: Shows that have been recommissioned  Distribution rights acquired by a third party  Table: Self-reported viewing figures Risk and reward in creating new shows  Low risk broadcaster commissions  Indies and risk  Managing risk with the Bebo method Global traffic: Web show exports and imports  Exports  Imports GOVERNMENT AND THE PUBLIC SECTOR: ACCELERATOR OR BRAKE? 66  Anticipating and stimulating market growth  Increasing government support and intervention  How might the Digital Britain plan affect Web video?  Will government regulate online video?  Will government restrict Web show advertising?  Regulation vs innovation?  Public sector Web show funding  Support for the sector to develop  Project development and training courses INTERVIEW: LUKE TAYLOR, CO-FOUNDER, BIG BALLS FILMS 72 © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

WEB SERIES BUSINESS PROFILES: BUDGETS, SPONSORS, INTERACTIVITY 76 Web shows  Bite  Bryony Makes A Zombie Movie  Chelsey: OMG!  Dubplate Drama  The 5.19 Show  Fresh!  The Gap Year  The Gloryhunter  KateModern  Katie & Co  Kirill  The Leon Jackson Show  Meet The Freshers  A Message From Earth  Meta4orce  Mouth To Mouth  Neon Candy  Orange Unlit  The Secret World Of Sam King  Signs Of Life  Sofia‟s Diary  Somebody Else‟s Phone  Case study: The production process for Somebody Else‟s Phone  Spinning Jenny  Them  To Be Continued  Toyboize  Upstaged  Wannabes  Where Are The Joneses?  Year Dot Mobile TV shows  The Belly Dancing Mobi-Diaries  The Cell  The Gym  The Hot Desk  When Evil Calls Online feature films  All Bar Love  Beyond The Rave  Faintheart Shows awaiting release  Block X  Central Station  Extinction Sucks  Flatmates  I Luv Chieftown  Myths  Noostar  Parentshood  Runners © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

 Shimmer Productions projects  TxtME WEB SHOW PRODUCER LISTINGS AND LINKS 132  Academy Films  All3Media  Avalon Television  Baby Cow  BBC Switch  Be Entertainment  Big Balls Films  Big Kid  Bloc Media  Channel X  CogApp  Conker Media  Endemol UK  Eqal  FMX  Fortune Cookie  Fourth Passenger  Globe Productions  Greenroom Entertainment  Hammer Films  Hat Trick  Hub TV  Illumina Digital  Imagination  Intelligent Digital  ISO Design  Livity  Mobstar Media  MoMedia  Monkey Kingdom  Navelgazing  Off The Fence  Pure Grass Films  RDF Digital  Red Mullet  RSA Films  Shimmer Productions  Silk Press Productions  So Television  Talkback Thames  Te Papa Films  Teen Star Inc  Touch Illumina  UMTV  Vertigo Films  World of Wonder © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

SELECTED MEDIA AND BRAND INTEGRATION AGENCIES 144  Brandirector  Endemol New State  Kameleon Worldwide  MindShare  Vizeum GOVERNMENT AND ORGANISATION LINKS 145  BERR  DCMS  EU MEDIA fund  Film London  InSync  Invest Northern Ireland  London Development Agency  NESTA  Northern Ireland Screen  Pact  Power To The Pixel  Skillset  Yorkshire Screen FURTHER READING 146  Futurescape  Broadcast  PaidContent ABOUT THE AUTHORS 147  Acknowledgements  Copyright notice © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

ABOUT WEVISION “Great, very insightful and very useful.” Jim Louderback, CEO, Revision3 Web TV studio The production company behind Diggnation Discover how top Web TV shows Key questions answered and transmedia productions create compelling audience  What are the four essential steps in engagement that increases building an effective interactive Web advertising effectiveness by TV production? implementing social media  What are the benefits of community principles. interactivity for producers, commissioners and advertisers? The four-step WeVision model is based on detailed analysis and case studies  How do leading Web series of successful, innovative Web TV significantly differ from broadcast TV productions and it: shows in their content, viewer experience, technology and funding?  Explains how successful shows  What are their business models - mitigate risk by: funding, distribution and revenue? o Targeting niche online communities  How can building interactivity into a with engagement that works Web show make content piracy irrelevant? o Covering costs before production begins by matching the show and  What are the key interactive its community with sponsors techniques for engaging online audiences?  Provides a combined creative and business development strategy:  What is the role of charismatic talent ensure both sides of a show‟s in motivating Internet communities? development process are always in sync 37 pages / 14,000 words, 12 colour Web site screenshots, 6 in-depth case studies.  Reveals the future of interactive Web Published May 2009. series with examples of the real-time format now being pioneered Fast digital delivery as a PDF. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

For studios, broadcasters, For producers social networks and advertisers While you are conceptualising an online  Build a digital strategy for effective series, the model offers insights into how interactive projects you can most effectively identify the  Understand content, interactivity and prospective online audience, together with engagement architecture for Web TV strategies for engaging them. This then enables you to build a solid business case  Access examples of successful Web to justify your show‟s value to potential show sponsorship sponsors and commissioners. During production, use it to make sure the whole Apply the WeVision model as a reality production team keeps sharply focused on check when commissioning or sponsoring both the creative and commercial new shows. Does the production company opportunities in interacting with Web pitching to you genuinely understand its viewers. prospective online audience and how to interact with them to maximise the show‟s chances of success? Rapidly identify and Who should read this? correct a concept‟s shortcomings and old- fashioned TV-centric thinking before you  Business development executives, commit funding and resources. digital executives and commissioners in studios, broadcasters, and Web In the report video and social networking sites  4-step paradigm for Web TV show  Branded entertainment specialists in creative and business success advertising and media buying agencies  Predicting the future of online TV:  Innovative brand managers seeking the highly interactive real-time format new opportunities for their brand portfolio in the online video space  6 highly detailed, multi-page case studies of successful and innovative  CEOs, senior executives and producers American and British Web show in television and new media production productions, made by major companies production companies and start-ups  Shows include multiple genres: WeVision is an essential business tool comedy, drama, talk, reality, real-time format for Web show conceptualisation, commissioning, sponsorship and  All with their business model fully production. described and with live links to take you to the shows‟ Web sites  12 colour Web site screenshots Our buyers include global advertising agencies, broadcasters, Hollywood studios  Brand sponsors referenced in the and producers: AT&T, BBC Worldwide, report include Adagio Teas, Digitas, Disney, Eutelsat, Fox, HBO, ITV, Blackberry, Clinique, Herbal Essences, MediaCom, Ogilvy, Publicis, RTE, Warner Microsoft‟s Xbox Live, Orange and Bros. more  Diagram: effectiveness of product integration in teen drama Sofia‟s Diary Futurescape's research is regularly quoted in media and marketing  Methodology: The paradigm is publications such as Variety's Video derived from Futurescape‟s research Business, Broadcast, Televisual, TV Week, into over 50 original Internet TV MediaPost and Campaign. productions for our reports The Birth Of Online TV and UK Web Shows Now. To order your copy online visit: www.futurescape.tv © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

WeVision in Variety's Video Business magazine The WeVision paradigm - that top Web shows succeed by creating interactive relationships with online viewers – was covered in this in-depth article from Variety's Video Business magazine. Study: Interactive Web series more successful DIGITAL: Social media used to attract viewers, advertisers MAY 6 | DIGITAL: What do top Internet video series The Guild, Diggnation, The Gap Year and Sofia‟s Diary all have in common? They use social media to engage their audiences, making the viewing experience more interactive and luring in viewers and advertisers, according to a new case study, “WeVision: The Four Steps to Online Media Success,” from digital media research company Futurescape. Click to read the full article. © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sample Pages from WeVision: Introduction Social entertainment is the new opportunity for television online WeVision – a paradigm for original online media Mass media organisations face serious challenges in making the transition from legacy businesses to digital. Nowhere is this more evident than with the struggle to identify the future of television programming on the Internet. This report reveals the original Web TV series – talk shows, sitcoms, reality and real- time productions – with innovative formats that are pioneering effective online business models and meeting the entertainment needs of the new global audience. WeVision is a unique framework for a new medium that is distinct from broadcast television. It describes the business and creative principles for how online media should engage, communicate and connect with their viewers. WeVision is a four-step process: Match advertisers with the show and its community Engage with an enthusiastic community Inspire engagement via charismatic figures Co-create the show with the community How the model solves commercial issues for mass media on the Internet: Copying and piracy The entertainment value of these shows is rooted in social interactivity, amongst community members and between fans and producers. It is impossible to copy or pirate an interactive experience. Revenue The series address very specific communities that can be matched with brands and engaged via product integration. Advertising becomes relevant again. A model based on success The paradigm is derived from Futurescape‟s research into more than 50 original Internet TV productions for our pioneering reports The Birth Of Online TV and UK Web Shows Now. These American and British series come from major broadcasters, international production companies and Web TV studios, and are based on familiar television genres: factual, reality, scripted comedy and drama. We identified series we consider to be successful according to two criteria.  They attracted major sponsors or  They have been produced for more than one season © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

We then made an in-depth analysis of successful productions to find their common features. These are detailed in the case studies of Diggnation, The Guild, Sofia’s Diary and The Gap Year. Two more series demonstrate the potential of the Internet-native real-time format: Orange Unlit and Frankmusik. Diggnation has now run into 200 episodes since 2005. The Guild has completed two seasons, with sponsorship from Sprint and Microsoft, including an innovative distribution deal across Microsoft platforms. Sofia’s Diary is an internationally popular format that is continually being licensed for new versions, from Chile to China. The premiere season of The Gap Year attracted no fewer than 14 major sponsors. The real-time formats, Orange Unlit and Frankmusik, were chosen to illustrate the interactive potential of Internet shows. Even though they are arguably “experimental,” each gained a major sponsor: Orange for Unlit, Blackberry for Frankmusik. Case studies The case studies include:  Commercial models for media on the Internet  Advertising effectiveness  A history of the production process  Key innovative features unique to Internet media  Social interactivity and online community engagement Diggnation  US tech and pop culture talk show based on the popular news recommendation Web site Digg.com and its community, produced by start-up Web TV studio Revision3 The Guild  Independently-produced US sitcom about online games players, created by actor Felicia Day of Buffy the Vampire Slayer, distributed on Microsoft platforms Sofia’s Diary  Breakthrough multiplatform drama format about a teen girl facing the challenges of life in a new city, licensed around the world by Sony Pictures Television International The Gap Year  Global reality travel show following backpackers on a six-month world trip, made by super-indie Endemol for international social networking site Bebo Real-time shows: Orange Unlit and Frankmusik  Orange Unlit – concert series following singer-songwriter Jont on tour, performing gigs in people‟s homes  Frankmusik – reality-gig format challenging rising pop star Frankmusik to play gigs at venues suggested by fans, relying on them for transport and accommodation © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Sample WeVision Screenshots Page: Sofia’s Diary Bebo home page – clearly described as sponsored production Merchandise as key revenue source – book promoted on Bebo home page © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Table of Contents – WeVision INTRODUCTION 3 A NEW PARADIGM FOR ONLINE MEDIA SUCCESS 5  Mass media‟s challenges on the Internet  The solution: online content that is native to the Internet THE FOUR STEPS – MATCH, ENGAGE, INSPIRE, CO-CREATE 6  Overview  The paradigm‟s benefits  Social interactivity: its key role in online TV shows  Techniques for interactivity  Essential shared values STEP 1: Match advertisers with the show and its community 8 STEP 2: Engage with an enthusiastic community 9  Community first, production second  Identify a nascent community  Communities mean niche audiences – and good business  A show and community example  How many niche audiences? STEP 3: Inspire engagement via charismatic figures 11  Personal authenticity and passion are essential  Adapting the model for fiction STEP 4: Co-create the show 12  Co-creation is an iterative process  How co-creation benefits companies  Solving mass media‟s Internet challenges: copying and revenue INNOVATION: THE REAL-TIME FORMAT 16  How the real-time format is innovative  Engaging the audience continuously  Niche audiences – but valuable for sponsors  How fiction can be a real-time format  Making the production process into a drama  Creating fiction as a real-time format  How the real-time format matches long-term viewing trends CHALLENGES AND LIMITATIONS FOR THE WEVISION PARADIGM 18  Measuring viewing for effectiveness  Can the model work outside large markets?  Are there international ad budgets to match international audiences?  Is product integration too time-consuming for agencies and advertisers?  How much can the model scale?  Limits to authenticity and limits to contributions CASE STUDIES 21–38  Case Study 1: Diggnation – tech / pop culture talk show  Case Study 2: The Guild – sit-com about online gamers  Case Study 3: Sofia’s Diary – global teen drama format  Case Study 4: The Gap Year – backpacking reality travel show  Case Studies 5 & 6: Orange Unlit and Frankmusik – real-time formats © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

Discounts are available for buying more than one title at the same time Please contact sales@futurescape.tv for full details To order your copies online visit: www.futurescape.tv © Futurescape Ltd 2009 – www.futurescape.tv Web TV and Transmedia Research and Reports

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Futurescape Web TV and social TV reports – essential insights for digital business development and creative approaches

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Futurescape Web TV and social TV reports – essential insights for digital business development and creative approaches — Document Transcript