Online Video & Internet Mechanics

nline Video Internet Mechanics

A PRESENTATION BY BERTRAM GUGEL 2

ONCE UPON A TIME... August 1998, 15.000 Views/Day 3

... FAST FORWARD TO TODAY. 25 Million Views since November 2009 4

Kittens & Kids are so cute ... 26m 56m 164m 24m 44m 74m 46m 109m 14m ... BUT, what about professional content? 5

Internet Mechanics 10 Rules 6

1. The Internet doesn‘t care about YOUR RIGHTS! § 7

Ask WARNER MUSIC Oct. 9th, 2006 „Google and Warner Music Group Announce Agreement to Oﬀer Google Video Users WMG's Music Video Content.“ Dec. 22nd, 2008 „Warner Music Group Corp. said it began removing its songs and videos from Google Inc.'s YouTube video- sharing Web site this weekend, after the two sides failed to renegotiate a licensing deal.“ Sep. 29th, 2009 „Warner Music Comes Back to YouTube“

What happened? Warner left millions of Dollars on the Table! http://www.tubemogul.com/blog/2009/09/on-youtube-its-the-music-labels-and-then-everyone-else/

The alternative ... JK Wedding‘s Video generated 50 millions views.

What happened? „In the last week, over a year after its release, Chris Brown's "Forever" has again rocketed up the charts, reaching as high as #4 on the iTunes singles chart and #3 on Amazon's best selling MP3 list.“ JK Wedding Video Sony made thousands of Dollars http://googleblog.blogspot.com/2009/07/i-now-pronounce-you-monetized-youtube.html http://www.wired.com/epicenter/2009/07/we-wont-get-boyled-again-sony-chris-brown-monetize-wedding-dance-video/#ixzz0fWYhFlpQ

2. The Internet doesn‘t (ﬁnancially) reward ONE HIT WONDERS ... 1 12

2. The Internet doesn‘t (ﬁnancially) reward ONE HIT WONDERS ... 26m 56m 164m 24m 44m 74m 46m 109m 14m 13

... but it‘s easy to connect with your audience AND BUILD A FOLLOWING! Design a show! Test and reﬁne your production! Put it in the wild! Enjoy! 14

... but it‘s easy to connect with your audience AND BUILD A FOLLOWING! 15

... but it‘s easy to connect with your audience AND BUILD A FOLLOWING! 150.000 5.000 Digitsshow „THANK YOU to all of our fans for helping us reach 9 Million Views!!! 600k in the last four days! You guys rock!“ 16

3. The Internet is a piece of technology so THINK OUTSIDE THE BOX. 17

Example: DEMAND MEDIA Algorithms define what videos to produce & their estimated value Editors refine the suggested video titles Produces log in online and sign up to produce the video. Finally the video‘s checked, put online and monetized through ads. http://www.wired.com/magazine/2009/10/ff_demandmedia/all/1

Results?  421,255,914 Video views  55 million unique users  261,179 Rating  3 Billion social media  300,854 Comments interactions  138,951 Videos  1 Billion cummulative video streams  442,014 Subscribers $17 million a year to writers, editors, and video producers

4. The Internet will strip your content of its CONTEXT Metadata Player Seeding Site VIDEO SEO Ads 20

4. The Internet will strip your content of its CONTEXT Microchunk it Reduce the content to its simplest form. Put it out there without walls around it or Free it strings on it. Syndicate it Let anyone take it and run with it. Put the monetization and tracking Monetize it systems into the microchunk. http://www.avc.com/a_vc/2005/11/the_future_of_m.html 21

so put monetization into your CONTENT Ford @ Roommates 22

so put monetization into your CONTENT Wii @ Nerd Perfect 23

A big opportunity for established producers! 8,8 M Views 130 M Views 3,8 M Views 7,4 M Views = No Partner – no reach! 75k Views 24

So please get it right next time and follow ALL SUGGESTIONS! Microchunk it Reduce the content to its simplest form. ✓ Free it Put it out there without walls around it or strings on it. Syndicate it Let anyone take it and run with it. ✓ Monetize it Put the monetization and tracking systems into the microchunk. http://www.avc.com/a_vc/2005/11/the_future_of_m.html 25

5. The Internet will TALK BACK! 26

so you better LISTEN ... Tara Stiles Yoga @ YouTube 27

so you better LISTEN ... 1.581.954 Views 6.346 Ratings 3.579 Comments 1 Comment for every 450 Views ... and JOIN the conversation!28

THERE‘S A NEW USER INTERACTION PARADIGM. PAST PRESENT FUTURE A g g r Own Production Coop eration e g a t i o n . Users relax Users suggest Users create and consume! and comment! and amend! 29

6. The Internet often oﬀers INDIRECT REWARDS. 30

6. The Internet often oﬀers INDIRECT REWARDS. Soulja Boy @ YouTube 31

But may have quite an IMPACT. Soulja Boy vs. Sony BMG early 2008 32

But may have quite an IMPACT. ‣ Ø 550.000 Video Views/Day ‣ 226 Million Video Views on YouTube ‣ Universal Music Deal ‣ #1 Billboard-Charts USA 33

7. The Internet favors DIGTITAL NATIVES! 00101011011110 00110101010101 11101010010101 34

MEET FRED > 25 Mio users/month A 13 year old YOUTUBE star... ...is generating more clicks than the BILD.de video content. 35

Early Star: Rocketboom 700 views/day „The Rise of the Video Blog“ Distribution deal with Sony Pictures TV Rolling Stone 1 Video format 250.000 views/day 1 page 100.000 views/day Werbung, Sponsoring $80.000 in advertising 12 Video formats 4 Video formats 1 page 12 pages AppleTV, TiVo, PS3, PSP, ... 2004 2006 2008 36

Online Acitivities commmand a strong FOLLOWING 3,5M Views @ YouTube 37

MEET MACHINIMA @ YouTube 2,5M Views per Day 938.744.906 Total Views 6.529.271 Comments 7.600 Videos on YouTube 38

8. The Internet DEMANDS ADOPTION! 39

Plan and produce for diﬀerent USAGE SCENARIOS! 3m 50 cm 10 cm 40

Enable INTERACTION! 41

Adapt existing content IN A CREATIVE WAY! >60m Views @ YouTube 42

9. The Internet oﬀers new DISTRIBUTION MEANS! 43

THE NEW DISTRIBUTION PARADIGM. From a few EXCLUSIVE distribution channels to U B I Q U I T Y . iPod vending machine 44

There‘s help: Web Video Networks 300 Million Views for NNN‘s Shows in 2009 70 Million Views for Revision3‘s shows with 1,5Bn minutes watched 70% (NNN) and 50% (R3) more sponsors and deals in 2009 vs. 2008 Both added new shows to their portfolio http://www.nextnewnetworks.com/post/16222/press-release-our-2009-milestones http://www.prnewswire.com/news-releases/revision3-continued-to-lead-internet-television-in-2009-with-over-15-billion-minutes-of-video-served-83336552.html

10. The Internet forms a NEW VALUECHAIN 46

THE NEW VALUE CHAIN PARADIGM. TRADITIONAL Production Packaging Ad inventory Distribution Access/Device Consumption EMERGING Production Repurposing Aggregation Distribution Ad Inventory Access/Device Consumption Traditional Player New Player Audience 47

GOT IT?

THANK YOU. Contact Bertram Gugel M: +49 179 22 1 77 63 info@gugelproductions.de www.gugelproductions.de

Online Video & Internet Mechanics

by Bertram Gugel on Mar 09, 2010

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Online Video & Internet Mechanics — Presentation Transcript