The analysis is made by the Author. Analysis based on purely public data from the case company. The structure of the analysis is based on so called Business Model Canvas and strategy as a visual model The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances. Rovio is a global industry-changing entertainment media company headquartered in Finland, and the creator of the globally successful Angry Birds™ characters franchise. Angry Birds, a casual puzzle game, became an international phenomenon within a few months of its release. Angry Birds has expanded rapidly into multifaceted entertainment, publishing, and licensing to become a beloved international brand. www.rovio.com

1. Entertainment Company
Business Model Canvas -
Case Rovio
Strategy Case Study
1© Jukka Ala-Mutka / jukkaam.com / @jukkaam

2. From games to
entertainment
company
2
Case Rovio Entertainment
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

3. Rovio Entertainment Ltd
• Rovio is a global industry-changing entertainment media
company headquartered in Finland, and the creator of the
globally successful Angry Birds™ characters franchise.
• Angry Birds, a casual puzzle game, became an international
phenomenon within a few months of its release.
• Angry Birds has expanded rapidly into multifaceted
entertainment, publishing, and licensing to become a
beloved international brand.
• www.rovio.com
3
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

4. Rovio did over 50 games
before they change their
strategy towards
entertainment company
4© Jukka Ala-Mutka / jukkaam.com / @jukkaam

5. Reference brands
• Hello Kitty
• http://en.wikipedia.org/wiki/Hello_Kitty
• http://www.hellokitty.com/
• SpongeBob SquarePants
• http://en.wikipedia.org/wiki/SpongeBob_SquarePants
• http://spongebob.nick.com/
• Disney’s brands e.g. Cars
• http://en.wikipedia.org/wiki/Cars_(franchise)
• http://cars.disney.com/
5© Jukka Ala-Mutka / jukkaam.com / @jukkaam

6. Typical products of
entertainment company
• Comic Books, Films & music
• Theme park rides
• Video games
• Merchandise
• T-Shirt, poster, board games, dolls & plush toys,
deal with fast food restaurants, food &
bewerages, electronics, clothing, school supplies,
jewelery, etc.
6© Jukka Ala-Mutka / jukkaam.com / @jukkaam

7. Revenue (profit)
• 2015: 142 million (-13 m€)
• 2014: 158 million (10 m€)
• 2013: 173 million (36 m€)
• 2012: 152 million (77 m€)
• 2011: 75 million (47 m€)
• 2010: 6.5 million (3 m€)
• Comparison:
• By 2008, Hello Kitty was responsible for half of Sanrio's
$1 billion revenue and there were over 50,000 different
Hello Kitty branded products in more than 60 countries.
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 7
Source:
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-
reports-2013-financial-results
http://www.independent.co.uk/news/world/asia/top-cat-how-hello-kitty-
conquered-the-world-831522.html
Movie, Box
office 347
million
USD
(10/2016)

8. We’re creating long lasting
business, and strongly believe
our entertainment strategy will
consolidate Rovio’s position as
one of the world’s most beloved
brands”, added Mikael Hed,
Rovio’s CEO.
8
Case Rovio Entertainment
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

9. Entertainment company’s customers
• Customers are grouped into five
groups as follows:
• Four groups based on customer life
cycle and one group is a partner
network.
• Customer’s life cycle is the key
concept for products and
games.
• Brand awareness in each group is vital
and also the links between customer
groups.
• For example grandparents buys Angry
Birds toys to their grandchild.
9© Jukka Ala-Mutka / jukkaam.com / @jukkaam

10. Value Proposition & Key Products
• Key Products are targeted
according to customer’s life
cycle
• Children & school aged are
linked with parents and
grandparents
• Mobile Games are mainly
targeted to teens and adults
• Brand awareness creates an
attractive platform for sales
growth for partners
10© Jukka Ala-Mutka / jukkaam.com / @jukkaam

11. Value Proposition linked to Key
Activities, Partners and Resources
11© Jukka Ala-Mutka / jukkaam.com / @jukkaam

12. Angry Birds has exceeded
2 billion downloads so far,
making it the most
downloaded game brand
ever.
12
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

13. Rovio thinks the pirates are
helping promote its brand
— “so long as the product
is well made.”
13
https://econsultancy.com/blog/8841-angry-birds-maker-doesn-t-sweat-piracy
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

14. Must-Win Battle #1: Brand Awareness
14© Jukka Ala-Mutka / jukkaam.com / @jukkaam

15. We built the biggest
animation studio in the
Nordics for the production
of animated TV content,
bringing to market 42
Angry Birds Toons
episodes in its first year.
15
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

16. © Jukka Ala-Mutka / jukkaam.com / @jukkaam 16
https://www.youtube.com/watch?v=hXeso-I9AFc&feature=youtu.be

17. Must-Win Battle #2: The Story
17© Jukka Ala-Mutka / jukkaam.com / @jukkaam

18. Rovio Entertainment is
partnering with great
companies of consumer
products business: Hasbro
(toys), Pez (candy), Natrol
(multivitamins),… with
existing base over 500
companies.
18
http://www.rovio.com/en/news/blog/316/rovio-entertainment-expands-its-consumer-products-initiatives
http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

19. Rovio’s Consumer Products
business continued to
perform strongly,
accounting for 47% of total
revenue in 2013.
19
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

20. Must-Win Battle #3: Quality and sales
volume via partners
20© Jukka Ala-Mutka / jukkaam.com / @jukkaam

21. June 17, 2013 - Hasbro,
Inc. and Rovio
Entertainment today
announced an expanded
licensing agreement =>
new toys and games are
planned for fall 2013
21
http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

22. Must-Win Battle #4: Growth capability
(Process)
22© Jukka Ala-Mutka / jukkaam.com / @jukkaam

23. Must-Win Battles
23
1# Global
visibility (Brand
awareness)
2# The Story
(Loyalty)
3# Quality of
Partners
(Partners)
4# Growth
(Process)
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

24. Instead of costing a dollar
or two to download, Rovio's
new game, Angry Birds Go,
will be what's dubbed "free
to play…. our future
direction, where we are
thinking more of games as
free-to-play"
24
http://www.inc.com/christine-lagorio/angry-birds-go-follow-the-money.html
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

25. Costs & Revenues
• Free-to-play games give players access to a
significant portion of content for free
• The Key revenue source should be merchandise
with partners via resellers (Costs & Revenues)
• Also high volume of regular players are targets
for advertisements
25© Jukka Ala-Mutka / jukkaam.com / @jukkaam

26. The whole BMC Model
26
© Jukka Ala-Mutka / jukkaam.com / @jukkaam

27. Customer-driven approach to
business modeling
12
3
4
56
78
9
1. Customers
2. Value Proposition
3. Revenue Streams
4. Channels
5. Customer
Relationships
6. Activities
7. Resources
8. Partners
9. Cost Structure
27© Jukka Ala-Mutka / jukkaam.com / @jukkaam

28. Author
@jukkaam
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 28
Contact:
https://jukkaam.com/businesscard
Serial entrepreneur,
speaker, scientist and
consultant
Contact me for
assignments:
• Consulting & Training
• Keynote Speaker
• Board Member
• Co-Founder