Blaine Graboyes DVDA 2002 Standards, Applications and Technologies Conference
The DVD Services Model My Experiences at ZUMA DIGITAL and Beyond
Blaine Background <ul><li>Born 1972 in Abington, Pennsylvania </li></ul><ul><li>Vermont from 1991-1996 at Bennington Colle...
ZUMA Background <ul><li>Original Motto: “If it’s DVD, we do it!” </li></ul><ul><li>Began with 3 people and 1 Sonic System ...
ZUMA Clients <ul><li>Entertainment </li></ul><ul><ul><li>Columbia Tri-Star </li></ul></ul><ul><ul><li>Criterion </li></ul>...
ZUMA Clients <ul><li>Museum / Fine Art </li></ul><ul><ul><li>The Guggenheim </li></ul></ul><ul><ul><li>The Whitney </li></...
What is a Service Model? <ul><li>Service = Being a Vendor = Work For Hire </li></ul><ul><ul><li>As opposed to “Being a Col...
Advantages of Services Model <ul><li>Wide range of potential clients </li></ul><ul><li>Maximize investments in staff and e...
Disadvantages of Services Model <ul><li>Must stay focused on VENDING SERVICES AND PRODUCTS TO EXISTING CLIENTS </li></ul><...
ZUMA Success <ul><li>Compete on Creative and Quality, not Cost </li></ul><ul><ul><li>Strategic creative gets down to busin...
ZUMA Failures <ul><li>Co-development / Original Production </li></ul><ul><ul><li>I’m Your Man was fun and cool, but expens...
Blaine Graboyes Today <ul><li>Independent New Media Producer </li></ul><ul><li>Based in Hollywood, CA </li></ul><ul><li>Re...
Great Minds DVD <ul><li>Based on Fast, Cheap and Out of Control </li></ul><ul><li>Interview 4-6 leaders in different field...
Great Minds on the Services Model <ul><li>Lessons of marketing apply in all areas </li></ul><ul><ul><li>What I have learne...
Lifetime Value of a Client <ul><li>Calculate the lifetime value of a client </li></ul><ul><ul><li>If you continue to provi...
Thanks & Bibliography <ul><li>Much of this content and message is from: </li></ul><ul><ul><li>Guerrilla Creativity by Jay ...
Joining the Inner Circle <ul><li>The inner circle is the basis of repeat business </li></ul><ul><li>You cannot gate crash ...
Final Word on Creativity <ul><li>Creativity should be measured solely by how well it contributes to your overall profitabi...
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NIST / DVDA 2002

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Presentation titled "The DVD Services Model: My Experiences At ZUMA Digital and Beyond" given by Blaine Graboyes on June 4, 2002 at The National Institute For Standards And Technology for the DVD Association "Standards, Applications and Technologies Conference"

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NIST / DVDA 2002

  1. 1. Blaine Graboyes DVDA 2002 Standards, Applications and Technologies Conference
  2. 2. The DVD Services Model My Experiences at ZUMA DIGITAL and Beyond
  3. 3. Blaine Background <ul><li>Born 1972 in Abington, Pennsylvania </li></ul><ul><li>Vermont from 1991-1996 at Bennington College </li></ul><ul><li>Graduated in 1995 with B.A. in Mathematics, Sculpture and the Philosophy of Science </li></ul><ul><li>Founded first company, Ionic Laboratories, in Vermont with 4 friends from college </li></ul><ul><li>Moved Ionic to New York City in 1996 </li></ul><ul><li>Introduced to DVD by Rob Siedel, then of WAMO </li></ul><ul><li>Ionic closed and ZUMA founded in 1996 </li></ul>
  4. 4. ZUMA Background <ul><li>Original Motto: “If it’s DVD, we do it!” </li></ul><ul><li>Began with 3 people and 1 Sonic System </li></ul><ul><li>Closed in 2001 with 25 people and over 35+ DVD authoring systems, 6 encoders, etc. </li></ul><ul><li>Entertainment, Business and Museum clients </li></ul><ul><li>Developed software such as ActiveDVD™ </li></ul><ul><li>Yearly revenues of $3,000,000+ </li></ul><ul><li>Monthly expenses of $200,000+ </li></ul>
  5. 5. ZUMA Clients <ul><li>Entertainment </li></ul><ul><ul><li>Columbia Tri-Star </li></ul></ul><ul><ul><li>Criterion </li></ul></ul><ul><ul><li>Miramax </li></ul></ul><ul><ul><li>MTV </li></ul></ul><ul><ul><li>Showtime </li></ul></ul><ul><ul><li>Sony Music </li></ul></ul><ul><ul><li>Palm Pictures </li></ul></ul><ul><ul><li>WWF </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>GUESS </li></ul></ul><ul><ul><li>Kenneth Cole </li></ul></ul><ul><ul><li>TIAA-CREF </li></ul></ul><ul><ul><li>NASDAQ / Primex </li></ul></ul><ul><ul><li>TBWA / Chiat / Day </li></ul></ul><ul><ul><li>Clinique </li></ul></ul><ul><ul><li>Nickelodeon </li></ul></ul><ul><ul><li>CNBC </li></ul></ul>[previous and partial list]
  6. 6. ZUMA Clients <ul><li>Museum / Fine Art </li></ul><ul><ul><li>The Guggenheim </li></ul></ul><ul><ul><li>The Whitney </li></ul></ul><ul><ul><li>The Groninger </li></ul></ul><ul><ul><li>Shirin Neshat </li></ul></ul><ul><ul><li>La Monte Young </li></ul></ul><ul><ul><li>Yoko Ono </li></ul></ul><ul><ul><li>Nam June Paik </li></ul></ul><ul><ul><li>Moriko Mori </li></ul></ul><ul><li>Business </li></ul><ul><ul><li>JWT </li></ul></ul><ul><ul><li>BBDO </li></ul></ul><ul><ul><li>Grey </li></ul></ul><ul><ul><li>Disney </li></ul></ul><ul><ul><li>McDonalds </li></ul></ul><ul><ul><li>A&E </li></ul></ul><ul><ul><li>Lifetime </li></ul></ul><ul><ul><li>Merrill Lynch </li></ul></ul>[previous and partial list]
  7. 7. What is a Service Model? <ul><li>Service = Being a Vendor = Work For Hire </li></ul><ul><ul><li>As opposed to “Being a Collaborator” or “Original Developer or Producer” </li></ul></ul><ul><ul><li>Focus on problems faced by target clients </li></ul></ul><ul><ul><li>Develop products and services to solve them </li></ul></ul><ul><li>Basics of DVD Services </li></ul><ul><ul><li>Project Management and Client Services </li></ul></ul><ul><ul><li>Creative / Technical Direction, Design and Art </li></ul></ul><ul><ul><li>Video and Audio Encoding </li></ul></ul><ul><ul><li>DVD Authoring, Output and Quality Assurance </li></ul></ul>
  8. 8. Advantages of Services Model <ul><li>Wide range of potential clients </li></ul><ul><li>Maximize investments in staff and equipment </li></ul><ul><li>Diverse projects = diverse opportunities </li></ul><ul><ul><li>Including opportunities to break out of the Services Model into Original Development?!?! </li></ul></ul><ul><li>Technical and creative capabilities are constantly challenged and expanded </li></ul><ul><li>Able to quickly adjust to market changes </li></ul>
  9. 9. Disadvantages of Services Model <ul><li>Must stay focused on VENDING SERVICES AND PRODUCTS TO EXISTING CLIENTS </li></ul><ul><ul><li>Calculate lifetime value of client (later slide) </li></ul></ul><ul><ul><ul><li>Difficult to focus on two competing areas of business </li></ul></ul></ul><ul><li>Constant need to upgrade staff and gear </li></ul><ul><li>Your company will be branded as a service company, and not an “Original Developer” </li></ul><ul><ul><li>Difficult to establish strong brand in fierce market </li></ul></ul><ul><li>Prices paid for your services tend downward </li></ul>
  10. 10. ZUMA Success <ul><li>Compete on Creative and Quality, not Cost </li></ul><ul><ul><li>Strategic creative gets down to business </li></ul></ul><ul><ul><li>In business, Creativity = Creating Profits </li></ul></ul><ul><li>Pick a market through research and focus </li></ul><ul><ul><li>Research is both empirical and experiential </li></ul></ul><ul><li>Brand yourself / your company and stick to it </li></ul><ul><ul><li>ZUMA brand = innovative, streamlined, quality </li></ul></ul><ul><li>Develop unique services and methodologies </li></ul><ul><ul><li>Library Drives for storing/archiving client assets </li></ul></ul><ul><li>Develop proprietary products and services </li></ul><ul><ul><li>ActiveDVD™, LibraryDVD™, Web-connected </li></ul></ul>
  11. 11. ZUMA Failures <ul><li>Co-development / Original Production </li></ul><ul><ul><li>I’m Your Man was fun and cool, but expensive </li></ul></ul><ul><li>Sponsorships and discounts </li></ul><ul><ul><li>Must be very carefully managed and EXPLOITED </li></ul></ul><ul><li>Expand to new and distant markets </li></ul><ul><ul><li>Chicago, Detroit, Los Angeles </li></ul></ul><ul><li>Facilitate competitors growth via Services </li></ul><ul><ul><li>Replicators, production companies and service bureaus may become your competitors </li></ul></ul>
  12. 12. Blaine Graboyes Today <ul><li>Independent New Media Producer </li></ul><ul><li>Based in Hollywood, CA </li></ul><ul><li>Represented by ICM Talent Agency </li></ul><ul><li>Relationship with bitMAX for production </li></ul><ul><li>Focus on top-tier movie and music projects </li></ul><ul><li>Build relationships with above-the-line talent, as opposed to movie studios and distributors </li></ul><ul><li>Pursuing projects using R.LaBarge Model </li></ul>
  13. 13. Great Minds DVD <ul><li>Based on Fast, Cheap and Out of Control </li></ul><ul><li>Interview 4-6 leaders in different fields </li></ul><ul><li>Persuasion, Perception and Deception </li></ul><ul><li>Subjects include Jay Conrad Levinson, Joel Bauer, and Mike Caro </li></ul><ul><li>Being produced for DVD, TV, Web, et cetera </li></ul>
  14. 14. Great Minds on the Services Model <ul><li>Lessons of marketing apply in all areas </li></ul><ul><ul><li>What I have learned from Jay, Joel and Mike </li></ul></ul><ul><ul><ul><li>Creativity in Business = Creating Profits </li></ul></ul></ul><ul><ul><ul><li>Clients care about value, not price </li></ul></ul></ul><ul><ul><ul><li>You are not your target audience </li></ul></ul></ul><ul><ul><ul><li>In the beginning, everything is even money </li></ul></ul></ul><ul><ul><ul><li>To overcome the odds, your decisions must matter </li></ul></ul></ul><ul><ul><ul><li>Good players beat bad players </li></ul></ul></ul><ul><ul><ul><li>You do not get paid to win projects, you get paid to make the right decisions </li></ul></ul></ul>
  15. 15. Lifetime Value of a Client <ul><li>Calculate the lifetime value of a client </li></ul><ul><ul><li>If you continue to provide acceptable products and services, how long will the customer patronize your business? </li></ul></ul><ul><ul><li>How much will the customer spend in the average year? Including certain sales increases. </li></ul></ul><ul><ul><li>What is the total value of this customer? </li></ul></ul><ul><ul><li>Now also add, goodwill, relationships, etc. </li></ul></ul><ul><li>Keep this number in your head! </li></ul>
  16. 16. Thanks & Bibliography <ul><li>Much of this content and message is from: </li></ul><ul><ul><li>Guerrilla Creativity by Jay Conrad Levinson </li></ul></ul><ul><ul><ul><li>Houghton Mifflin Company </li></ul></ul></ul><ul><ul><ul><li>ISBN# 0-618-10468-2 </li></ul></ul></ul><ul><ul><li>Caro’s Fundamental Secrets of Winning Poker by Mike Caro </li></ul></ul><ul><ul><ul><li>Cardoza Publishing </li></ul></ul></ul><ul><ul><ul><li>ISBN#0-940685-57-4 </li></ul></ul></ul><ul><ul><li>Joel Bauer at www.infotainer.com </li></ul></ul>
  17. 17. Joining the Inner Circle <ul><li>The inner circle is the basis of repeat business </li></ul><ul><li>You cannot gate crash your way into the inner circle </li></ul><ul><li>If you are not in the inner circle, you can be sure that your competitors are </li></ul><ul><li>Your competitor’s are people who do not have stars in their eyes, simply profits on their minds </li></ul><ul><li>Your offering must compare favorably and actually be better in some way than what the competitor offers. This refers to quality, service and value. </li></ul>
  18. 18. Final Word on Creativity <ul><li>Creativity should be measured solely by how well it contributes to your overall profitability. If it helps you sell at profit, it is creative, and if it doesn’t, it’s not creative. That makes creativity easy to measure. Awards and compliments have nothing to do with creativity. </li></ul>

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