Seth Shapiro @ Media Future Media

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Seth Shapiro @ Media Future Media

  1. 1. Media Strategy Building Businesses for 2012 and Beyond Seth Shapiro Los Angeles  New York  Amsterdam
  2. 2. Media Strategy Building Businesses for 2012 and Beyond Case Studies and Future Possibilities2 010 New Amsterdam Media LLC
  3. 3. Clients and Partners
  4. 4. Life of startups: "We have a great idea !!" ... now how do we make a living??
  5. 5. Business Models... a business model is the method of doing business by which a company can sustain itself-- that is, generate revenue. The business model spells-out how a company makes money byspecifying where it is positioned in the value chain.... Broadcasting is a good example... The broadcaster is part of a complex network of distributors,content creators, advertisers... and listeners or viewers. Who makes money and how much is notalways clear at the outset. – Michael Rappa, http://digitalenterprise.org
  6. 6. Business Models... a business model is the method of doing business by which a company can sustain itself-- that is, generate revenue. The business model spells-out how a company makes money byspecifying where it is positioned in the value chain.... Broadcasting is a good example... The broadcaster is part of a complex network of distributors,content creators, advertisers... and listeners or viewers. Who makes money and how much is notalways clear at the outset. – Michael Rappa, http://digitalenterprise.org Business Model = "We pay the bills by..."
  7. 7. Will Broadband Kill Old Media?No: will change or die... Telegraaf owns Hyves, Comcast is #1US cable co and #1 broadband providerPeople get fired. Divisions die – smart teams adaptHuge advantage studying new and old games
  8. 8. The Walt Disney Company• Worlds #1media company by revenue• Member US Dow 30• 80% ownership of worlds most lucrative sports entity: ESPN• Ownership of worlds valuable cable franchises: ESPN• Ownership of Big 4 US network: ABC (via Cap Cities acquisition)• Other TV networks including Disney Channel, ABC Familiy,• Motion picture holdings including Walt Disney Pictures, Touchstone, Buena Vista, Miramax• 11 Disney Theme Parks around the world• Ownership of major IP brand Marvel Entertainment• Major products brand and retailer via Disney Consumer Products• Walt Disney Internet Group• Disney Music Group• Radio Disney• Disney Interactive Media Group
  9. 9. News Corporation• Worlds # 3 media company by revenue• Ownership of Big 4 US network: FOX• TV networks including FX Networks, FOX News, FOX Sports, Big Ten Network, FOX Business, FOX College Sports, FUEL TV, Speed Channel, FOX Movie Channel• TV production, distribution and holdings including 20 Century Fox Television, Fox Broadcasting Company, FOX Studios, FOX International Channels, BSkyB, STAR TV, TV5 Riga, Foxtel, bTV, SKY Italia, Tata SKY, SKY Deutschland• Motion picture holdings including Twentieth Century FOX, FOX Searchlight,• Internet holdings including MySpace, AmericanIdol.com, IGN, GameSpy, FOX.com, AskMen.com• Newspapers: Wall Street Journal, New York Post, Barrons, News of the World. The Sun, The Times (UK)• Books: HarperCollins 9
  10. 10. Comcast/NBCUniversal• Worlds largest television distributor• Largest Broadband distributor in the US• #3 US home telephone provider• Ownership of Big 4 US network: NBC (via 2011 acquisition)• Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E! Entertainment, Versus, G4, The Golf Channel• Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen, Hallmark• Major provider of online video services including XFinity• Owns Spanish language broadcast Telemundo• 5 Universal Theme Parks• Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity, Mandalay, Morgan Creek• Universal Media Studios• NBC Universal Television DistributionConfidential – do not distribute 10
  11. 11. Digital Business 2012 Brief History: how did media become a business? Subscription: recurring payments Advertising: subsidized payments New Services: what we consume Analytics: data aggregation, analysis, action New Platforms: how we consume Conclusion2010 New Amsterdam Media LLC
  12. 12. Digital Business 2012 Brief History of 20th century media Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  13. 13. Traditional Media Business models2010 New Amsterdam Media LLC
  14. 14. Traditional Media Business models Print2010 New Amsterdam Media LLC
  15. 15. Traditional Media Business models Print Content: News, magazines, books, trade pub2010 New Amsterdam Media LLC
  16. 16. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery2010 New Amsterdam Media LLC
  17. 17. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film2010 New Amsterdam Media LLC
  18. 18. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production2010 New Amsterdam Media LLC
  19. 19. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows2010 New Amsterdam Media LLC
  20. 20. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television2010 New Amsterdam Media LLC
  21. 21. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming2010 New Amsterdam Media LLC
  22. 22. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite2010 New Amsterdam Media LLC
  23. 23. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music2010 New Amsterdam Media LLC
  24. 24. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music Content: Recordings and performances2010 New Amsterdam Media LLC
  25. 25. Traditional Media Business models Print Content: News, magazines, books, trade pub Distribution: Presses, delivery Film Content: Motion Picture Production Distribution: Exhibition, regional/platform windows Television Content: Programming Distribution: Broadcast, cable, satellite Music Content: Recordings and performances Distribution: Replication, delivery2010 New Amsterdam Media LLC
  26. 26. The Big Six
  27. 27. The Big SixWalt Disney Company Disney Pictures Buena Vista Pictures Touchstone ESPN ABC WDIG (Internet Group) Disneyland ParksTime Warner HBO Warner Bros Turner Networks Warner Music New Line (formerly) AOLViacom CBS Paramount MTV Networks Showtime NIckelodeon BET CMT Comedy CentralNews Corporation FOX Companies FX Networks FOX News Foxtel Wall Street Journal NY Post London Times (formerly) DIRECTVComcast/NBC Universal Comcast Cable, NBC, MSNBC, CNBC, Universal Parks Telemundo, USA Networks, BravoSony Columbia Tri Star Sony Pictures Sony Music Sony Computer Sony Electronics[various assets in MP production, MP distribution, TV production, TV distribution, theme parks, consumer electronics, games, music labels etc.]
  28. 28. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  29. 29. Model 1: Broadcast• The birth of radio/TV• 20 Century Model• Low Supply/High Demand• Free to User• Mass audience• Subsidized by Platform (RCA) and Brands (GE)
  30. 30. Model 1: Broadcast• The birth of radio/TV• 20 Century Model• Low Supply/High Demand• Free to User• Mass audience• Subsidized by Platform (RCA) and Brands (GE)
  31. 31. Model 1: Broadcast• The birth of radio/TV• 20 Century Model• Low Supply/High Demand• Free to User• Mass audience• Subsidized by Platform (CE) and Brands (Adv)
  32. 32. Model 1: Broadcast TV
  33. 33. Broadcast Business Model How is success measured?• Volume• Ratings driven• Advertisers pay per spot• Mass ad market generally based on CPM model• Arguably peaks in US w 1983 M*A*S*H Finale (60r/77s)
  34. 34. And then...
  35. 35. And then...
  36. 36. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  37. 37. Subscription 2.0
  38. 38. Model 2: Cable Subscription• Cable customers pay monthly fee• Monthly fees allow cable to fund programming• Monthly fees = consistent cash to producers• Allows for mass and niche audiences
  39. 39. Model 2: Cable Subscription • Cable customers pay monthly fee • Monthly fees allow cable to fund programming • Monthly fees = consistent cash to producers • Allows for mass and niche audiencesCable = + : Expanded choice - : High price, mediocre experience
  40. 40. Cable = + : Expanded choice - : High price, mediocre experience
  41. 41. Case Study: Dealing with broadcast vs. cableCable = + : Expanded choice - : High price, mediocre experience
  42. 42. Cable model vs. niche content
  43. 43. Cable model vis. Producers >100 million subs x $100 p/m $10 billion in sub fees p/m Assume 50% cable rev goes to programming Approximate $5 billion per month to networks from MVPDs
  44. 44. 23 million subs "SO WHAT? x $100 p/m Who cares... $2.3 billion in sub fees p/m Its old business." Assume 50% cable rev goes to programming Approximate $1 billion per monthto networks from cable
  45. 45. 23 million subs "SO WHAT? x $100 p/m Who cares... $2.3 billion in sub fees p/m Its old business." Assume 50% cable rev WRONG goes to programming Approximate HUGE OPPORTUNITY $1 billion per month FOR CREATIVES ANDto networks from cable ENTREPRENEURS
  46. 46. American Movie ClassicsAMC is a cable television channel that primarily airs movies, along with a limited amount of original programming. The letters originallystood for American Movie Classics; however since 2002, the full name has been deemphasized as a result of a major shift inprogramming.[1][2] AMC is owned by Rainbow Media Holdings, LLC,[3] a subsidiary of Cablevision Systems Corporation, and signed onOctober 1, 1984.AMC was originally a premium cable channel that aired classic movies during the afternoons and early evenings, largely pre-1950s, in acommercial-free, generally unedited, uncut, and uncolorized format;[4] the channel was originally a joint venture between Rainbow Mediaand Tele-Communications, Inc. It was not uncommon for the channel to host a Marx Brothersmarathon, or show such classics such as the original Phantom of the Opera. In 1987, the channelfirst became available on basic cable television systems.[4][5] By 1989, the channel had 39 million subscribers in the United States.[5] --- From Wikipedia, the free encyclopedia
  47. 47. >100,000,000 US Pay TV Households... and roughly 88 million get AMC
  48. 48. AMC is in app 88 million US households $.23 sub/m x 12 x 88,000,000 HH app. $155 million
  49. 49. Goes to HBO, Showtime, NBC, CBS... US $2.3 million x 13 episodes US$30,000,000 (est.) "Period Drama" 1.9 rating = No Way
  50. 50. Hmm... AMC is in 88million homes..
  51. 51. " I need $30M" Then, goes to AMC:"You get .23 cents a house..." US $2.3 million "... what if I can double that?" x 13 episodes US$30,000,000 (est.) $.23 sub/m x 12 x 88,000,000 HH $155,532,000 "Small rating.... but I will build you an audience!"
  52. 52. Broadcast model vs. niche contentUS $2.3 millionx 13 episodesUS$30,000,000 (est.) "period drama" 1.9 rating = No Way
  53. 53. Cable model vs. niche contentUS $2.3 millionx 13 episodesUS$30,000,000 (est.) "period drama" Brand Building = "OK!"
  54. 54. Cable model vs. niche contentUS $2.3 millionx 13 episodesUS$30,000,000 (est.) Brand Building = "OK!"
  55. 55. Matthew Weiner (born 29 June 1965) is an American writer, director and producer of television drama. He is the creator, executiveproducer, head writer, and show runner of the AMC television series Mad Men. He is also noted for his work on the HBO series TheSopranos, on which he served as a writer and producer during the shows fifth and sixth seasons. Weiner has received eight EmmyAwards for his work on Mad Men and The Sopranos as well as three Golden Globe Awards for Mad Men. Mad Men has won the EmmyAward for Outstanding Drama Series three consecutive years (2008, 2009, 2010); the Sopranos (with Weiner as executive producer) wonthe same award twice (2004, 2007). Weiner was named one of the 2011 Time 100 Most Influential People In The World.
  56. 56. And then...
  57. 57. Subscription 3.0
  58. 58. Cable stocks were rocked this past week in the wake of industry leader Comcast’s third-quarter earnings report as jittery investors fretted over subscriber losses. By Jon Hemingway -- Broadcasting & Cable, 10/27/2007
  59. 59. Comcast Nears TV Everywhere LaunchComcast plans to launch its TV Everywhere nationally in the next 30 -60 days. So says COOSteve Burke, who spoke earlier today at the Bank of America/Merrill Lynch confab.He also reiterated that TV Everywhere aims to help MSOs and programmers preserve theirrespective business models, which rely on a combination of subscriptions and advertisingdollars."We have the exact same interests that the content providers have in making sure that we getahead of the steamroller that is the Internet," Burke said. "So many other businessesin the media space didnt get ahead of it."
  60. 60. Cable Show Los Angeles, May 2010 Brian Roberts, CEO, Comcast
  61. 61. Cable Show Los Angeles, May 2010 Brian Roberts, CEO, Comcast
  62. 62. Cable Show Los Angeles, May 2010
  63. 63. Cable Show Los Angeles, May 2010
  64. 64. COMCAST• Largest US TV distributor (app. 24,000,000 HH)• US FCC approves acquisition of NBC/Universal in early 2011• Major initiatives in digital,VOD, content, re-engineering of broadcast
  65. 65. COMCAST• Largest US TV distributor (app. 24,000,000 HH)• US FCC approves acquisition of NBC/Universal in early 2011• Major initiatives in digital,VOD, content, re-engineering of broadcast
  66. 66. Comcast/NBCUniversal• Worlds largest television distributor• Largest Broadband distributor in the US• #3 US home telephone provider• Ownership of Big 4 US network: NBC (via 2011 acquisition)• Cable networks including CNBC, MSNBC, SyFy, Bravo, USA Network, E! Entertainment, Versus, G4, The Golf Channel• Part interest innetworks including A&E, the History Channel, Lifetime, Oxygen, Hallmark• Major provider of online video services including XFinity• Owns Spanish language broadcast Telemundo• 5 Universal Theme Parks• Universal Pictures, Imagine Entertainment, Amblin, Spyglass, Relativity, Mandalay, Morgan Creek• Universal Media Studios• NBC Universal Television DistributionConfidential – do not distribute 49
  67. 67. DIRECTV • Largest US satellite distributor, #2 all in • 19,000,00 US HH • DTV announces 3 3D channels partnered with Panasonic2010 New Amsterdam Media LLC
  68. 68. DIRECTV • Largest US satellite distributor, #2 all in • 19,000,00 US HH • DTV announces 3 3D channels partnered with Panasonic2010 New Amsterdam Media LLC
  69. 69. DIRECTV n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD customers on channel 103... n3D customers will have access to exclusive, original 3D programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and Encounter in the Third Dimension. n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13. In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104, which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11.2010 New Amsterdam Media LLC
  70. 70. DIRECTV n3D™ powered by Panasonic, is now available at no additional cost to millions of DIRECTV HD customers on channel 103... n3D customers will have access to exclusive, original 3D programming such as Guitar Center Sessions with Peter Gabriel and Jane’s Addiction, as well as additional titles such as,Dinosaurs: Giants of Patagonia, Wild Safari: A South African Adventure and N Wave Picture’s S.O.S Planet, African Adventure: Safari in the Okavango and Encounter in the Third Dimension. n3D will also offer special events such as this weekend’s running of the NASCAR Coke Zero 400, the local broadcast of the Yankees-Mariners series on July 10-11 and DIRECTV’s exclusive, national broadcast of FOX Sports 2010 MLB All-Star Game in 3D on July 13. In addition to n3D, DIRECTV is also launching DIRECTV Cinema™in 3D on channel 104, which is currently offering IMAX titles Deep Sea 3D and Under the Sea 3D and n3D On Demand on channel 105, which is currently delivering replays of ESPN’s 3D coverage of the 2010 FIFA World Cup matches. DIRECTV also launched ESPN 3D on channel 106 on June 11.2010 New Amsterdam Media LLC
  71. 71. European MSOsU.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs withleast one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. andIreland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a3D channel.France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that werecarried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in Maywith French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of yearGermany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. DeutscheTelecoms IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VODNetherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recentlyannounced plans to carry SBS 3D channel Net 5Italy RAI: providing 3D programming for SES Astra pan-European 3D channelPortugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cupmatches that was carried on MEO, which has also aired some 3D tennis in 3D.Spain In March, satellite service Hispasat transmitted the countrys first soccer match in 3D to a cinema and in April Canal + Spainoffered a 3D concert to subscribers.Switzerland UPC Cablecom aired the U.S. Masters in 3D in AprilCzech Republic In June, UPCs Czech system launched HD+, 3D channel created by SAT PlusEstonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programmingPoland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3DRussia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channelPan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some specialevents, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
  72. 72. European MSOsU.K. BSkyB: various live sports, music and cultural events; in April launched a 3D channel to over 1,000 pubs and clubs withleast one live sporting events per week. Sky 3D channel available to Sky customers with HD box and 3D set in the U.K. andIreland. BBC hopes to air parts of the 2012 London Summer Olympics in 3D. Discovery Europe has received a license for a3D channel.France France Télévisions: French Open 3D in May. TF1 offered 3D coverage of several FIFA World Cup matches that werecarried on IPTV and satellite providers Orange: some 3D tennis matches in 2008 and 2009, launched a 3D service in Maywith French Open coverage. Canal+ broadcast 12 World Cup Games in 3D this summer, has announced plans to launch a3D service before Christmas. Numéricable launched demo channel in Sept with a VOD 3D service planned by end of yearGermany Sky Deutschland to launch 3D channel in Germany and Austria; will also be carried by Kabel BW. DeutscheTelecoms IPTV service aired 3D hockey game in April; recently began 3D movies/docs on VODNetherlands UPC: U.S. Masters golf coverage in 3D in April. Ziggo: aired 3D political debate in 3D in June. Recentlyannounced plans to carry SBS 3D channel Net 5Italy RAI: providing 3D programming for SES Astra pan-European 3D channelPortugal ZON aired two warm-up soccer matches before the World Cup . RTP offered 3D coverage of some FIFA World Cupmatches that was carried on MEO, which has also aired some 3D tennis in 3D.Spain In March, satellite service Hispasat transmitted the countrys first soccer match in 3D to a cinema and in April Canal + Spainoffered a 3D concert to subscribers.Switzerland UPC Cablecom aired the U.S. Masters in 3D in AprilCzech Republic In June, UPCs Czech system launched HD+, 3D channel created by SAT PlusEstonia In May cable operator STV launched a 3D channel STV HD1, featuring sports and other programmingPoland UPC : 3D demo on June 1; multichannel provider "n" has launched nSports 3DRussia NTV-Plus broadcast World Cup games in 3D this summer; partnership with Panasonic to launch 3D channelPan European Luxembourg-based SES Astra has launched 3D demo channel and Eurosport has offered 3D coverage of some specialevents, including the French Open in May, which was transmitted to over 3,000 retail stores throughout Europe.
  73. 73. Subscription 3.0Extremely vulnerable to churn... especially in the Torrent era.
  74. 74. Subscription 3.0
  75. 75. Subscription 3.0• #2  market  cap  company  in  the  US• Apple  is  the  world’s  #1  brand• Reinvented  the  music  business•  Pioneered  the  legal  video  download  market•  Steve  Jobs  is  largest  shareholder  of  the  Walt  Disney  Company•
  76. 76. Subscription 3.0 Possible Apple TV subscription service faces uphill battleTwo  major  TV  networks  are  considering  joining  Apples  plan  to  offer  TV  subscriptions  over  the  Internet  in  a  venture  that  could  put  Apple  in  direct  competition  with  cable  and  satellite  providers.  Disney  and  CBS  are  both  taking  a  liking  to  the  deal,  according  to  sources  speaking  to  the  Wall  Street  Journal.  However,  the  rumored  details  of  the  service  may  keep  other  networks  away,  and  with  cable  providers  looking  at  a  potential  hit  in  the  wallet  from  the  service  (and  even  buying  broadcast  networks),  it  faces  an  uphill  battle  before  seeing  the  light  of  day.News  about  Apples  plans  leaked  in  November,  with  multiple  industry  insiders  saying  that  Apple  may  eventually  launch  the  subscription  service  for  a  $30  monthly  fee  which  would  allow  subscribers  to  watch  whatever  TV  they  like.  
  77. 77. Subscription 3.0• Founded  in  1997  as  subscription  DVD  delivery  service  (3  at  a  time)• Monthly  fee:  unlimited  rentals.  no  due  dates,  late  fees,  shipping  fees• Propped  up  Ylagging  DVD  sales  for  studios• Provides  non-­‐premiere  movies  and  some  TV  shows• Focus  on  recommendation  engine  and  “likes”• App.  10%  of  the  company’  titles  are  available  via  streaming• No  immediate  window  releases• Expensive  deals  with  Miramax  and  other  studios• No  HBO,  recent  Showtime  withdrawal
  78. 78. Analysis• First  to  exploit  preference  analytics• Unlocked  massive  value  in  catalog  titles• Largely  a  partner  for  studios• Largely  a  competitor  for  distributors• Focus  on  recommendation  engine  and  “likes”• Recently  became  largest  subscription  service  in  the  US,  with   approximately  20,000,000  subscribing  households
  79. 79. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  80. 80. • Most  popular  destination  for  television  content  online  in  US• Originally  launched  as  advertising-­‐driven  site:  has  migrated  to   subscription• Joint  venture  of  NBC,  FOX  and  later  ABC• Clean  user  interface;  great  user  experience• Initially  viewed  as  a  great  victory  over  pirate  TV  sites.    
  81. 81. Analysis• Great  friction  with  the  ad  sales  divisions  of  its  parent  networks• Ad  load/rev  imbalance;  Hulu  ad  model  much  less  proYitable  than  TV• Complaints  from  leading  show  producers  re  syndication• $2  billion  IPO  canceled• Limited  international  rights
  82. 82. Viacom and Hulu Part WaysBy BRIAN STELTERMarch 2, 2010In the first major fracture between television show owners and the wildly popularHulu.com, Viacom will remove “The Daily Show With Jon Stewart,” “The ColbertReport” and other Comedy Central programs from the video site next week....Viacom’s decision is a serious loss for Hulu. This week “The Daily Show” is listed as the third-most-watched show on the site.The three-year-old Hulu dominates the mushrooming market for online full-episode TV viewing, withmore than 44 million monthly visitors... monthly video view totals have surged from 580 million lastSeptember to 1.01 billion last December.But Hulu is unprofitable, according to analysts.
  83. 83. Economics of Television2002 2009 Source: Kagan
  84. 84. TV Economics$500,000 (per episode) Show Costsx 22 (episodes per order)$11,000,000$.13 sub/m Network Revenuex 12x 99,700,000 HH$ 155,532,000(Price erosion analysis) Potential Loss$.01 sub/mx 12x 99,700,000 HH$ 11,964,000 (delta)
  85. 85. Analysis:Advertising Model DOs and DONTs
  86. 86. DO NOT: Who are these people??
  87. 87. DO:
  88. 88. Ad Model: The Future• Advertising is in transition: moving from CPM to Niche• Are you buying diapers in the morning, or your third BMW?• One high value customer is better than 100 low value customers• Advertiser value must change from a proxy for audience sizeto a measure of customer value
  89. 89. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  90. 90. Analytics
  91. 91. Analytics
  92. 92. Analytics"If youre not paying, you are the product being sold"
  93. 93. Analytics TiVo’s still watching you, but by region nowIt’s  no  secret  TiVo  has  been  watching  its  subscribers.  But  now  the  DVR  company  has  announced  it’s  giving  advertisers  up-­‐to-­‐the-­‐minute  info  on  what  users  are  watching  (and  fast-­‐forwarding  through)  based  on  speciYic  geographic  regions.As  a  web-­‐enabled  DVR/TV  guide  service,  TiVo  already  collects  a  wealth  of  data  on  its  users’  viewing  habits  on  a  national  level.  Today’s  announcement  is  an  expansion  of  those  efforts  by  repackaging  this  data  for  advertisers  and  content  providers  on  a  local  level.It  works  by  logging  the  second-­‐by-­‐second  activities  of  TiVo  subscribers...    this  info  could  give  advertisers  and  broadcasters  an  idea  of  what  kind  of  programming  (or  commercials)  are  making  an  impression  in  a  given  region.  TiVo  also  says  the  information  gleaned  could  help  local  broadcasters  pinpoint  when  viewers  lose  interest  in  a  given  program.
  94. 94. The MTV VMA Twitter Tracker Shows 1.5 Million TweetsAnd CountingSep 12, 2010If  you  are  watching  the  MTV  Video  Music  Awards  right  now,  chances  are  that  either  you  or  someone  you  know  is  also  Tweeting  about  it.  Some  trending  topics  on  Twitter  right  now  are  “lip  synching”  (Oh,  Bieber)  and  “Drake  better  win”...      As  of  this  writing,  there  are  1.3  million  Tweets  about  the  MTV  VMAs  in  the  past  three  hours  since  it  started.  The  Twitter  tracker  ranks  artists  by  number  of  Tweets  per  minute.  At  one  point,  Taylor  Swift  was  dominating  with  3,517  Tweets  per  minute,  followed  by  Kanye  West  (3,009)  and  Lady  Gaga  (857).  It  changes  all  the  time,  obviously,  depending  on  who  is  on  stage....  All  in  all,  it  is  very  entertaining,  almost  more  so  than  the  VMAs  themselves.
  95. 95. Analytics• Brand value is huge asset• Communication is essential• Always aim to add value• "Being the product being sold" does not build loyalty• In this regard Content (brand) is still King
  96. 96. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  97. 97. New Platforms• Location Based Services• Social TV• Demographic Niche (3D TV)
  98. 98. Look for Growth: Location Based Services ...How do you monetize a check in?
  99. 99. Look for Growth: Location Based Services New  York  aims  to  be  the  Next  Top  Digital  City  in   AmericaMay  16,  2011  6:53  PM  EDTAt  City  Hall,  May  16,  New  York  City  Mayor  Michael  Bloomberg  released  a  report  that  outlines  the  plans  for  the  city  to  form  partnerships  with  social  media  companies.    Through  ofYicial  partnerships  with  Twitter,  Facebook,  and  NY-­‐based  startups  Foursquare  and  Tumblr,  New  York  City  aims  to  be  the  top  digital  city  in  America.  The  citys  Yirst  chief  digital  ofYicer,  Rachel  Sterne,  joined  Mr.  Bloomberg  in  presenting  the  Road  Map  for  the  Digital  City,  and  how  to  expand  its  online  presence.A  comprehensive  90-­‐day  review  on  the  usage  of  web,  social  media  and  mobile  tech  in  New  York  City  and  surveys  on  public  and  private  sector  organizations  as  well  as  individual  users  were  conducted.
  100. 100. Look for Growth: Location Based Services
  101. 101. Look for Growth: Content via CommunityFacebook Check-In Service Rewards Users With Music DownloadsMobile check-in services are hot right now, and technology firm Neurotic Media is hoping to capitalize on thatwith a new service that lets users get free access to digital music when checking into various locations viaFacebook.The service is called Music Check-In Incentives... Its a "white-label" service aimed at companies that want tooffer visitors downloadable music when they check into certain venues using Facebooks Check In feature.... a user checks into a location using Facebook on their mobile phone; the owner of that establishment usingNeurotic Medias service can then immediately reward that check in with a free music download, or a playlist,or credits that users can apply to any song they wish on iTunes or other digital retailers.The participating company then gets to post a message on the users Facebook Wall, notifying them of thecheck in and the reward provided... will soon apply to other social networks with their own geo-locationsystems (think Foursquare).The music industry is still searching for a way to merge location-based mobile technology with musicpromotion. This is an easy solution for that. Record stores can give away free tracks to anyone checking in attheir location in hopes of driving subsequent sales of the corresponding album. Concert venues can rewardcheck ins with a free sample of a song from an upcoming act. Bands can offer a scavenger hunt-likeexperience, rewarding fans who check into secret locations with new or unreleased tracks as a way to hype anupcoming album or tour.
  102. 102. Look for Partnerships: Social TV
  103. 103. Look for Partnerships: Social TVTV brands and manufacturers are also working aggressively to create partnerships with thecontent providers in order to keep consumers interested and happy with continually updatedmaterial, Patel added. “The arrival of Internet-enabled TV models is part of the ongoing evolutionand enhancement of TV sets,” he said. “Because innovation is a must in order to drive consumeradoption and replacement, the TV industry has embarked on a path of enhancing the consumerexperience through interaction with their TV sets.”North America and Western Europe will make up the largest consumption market for IETVs from2010 to 2014. Japan will be the third largest market only until 2012, after which it will drop to fifthplace.
  104. 104. Look for Partnerships: Social TV Motorola Study Finds Consumers Would Pay for Social Media Features on TVSurveyed video-consumption habits among 7,500 consumers in 13 countries: the U.S., Australia, China, France,Germany, Japan, Nordics, Russia, Singapore, South Korea, Turkey, United Arab Emirates and the U.K. /About a quarter of TV viewers surveyed expect to upgrade to 3DTVs in the next 18 months, while 75% either currently own anHD set or plan to buy one in the same time frame, according to research from Motorola Mobility.Motorola Mobility’s Global 2010 Media Engagement Barometer also found that consumers around the world are veryinterested in using social-media features on their TVs — with 58% of people who have used social media during a TVprogram saying they would change their service provider if it were offered as an integrated service.The study found 42% of viewers globally have had an e-mail conversation, engaged in an instant message chat orused a social network to discuss a program or video while they were watching it. Of this group, 22% said that social-media multitasking is a regular part of their viewing experience and 61% would be prepared to pay more for a servicethat offered these capabilities.The Media Engagement Barometer study, conducted by research agency Vanson Bourne, surveyed video-consumption habitsamong 7,500 consumers in 13 countries: the U.S., Australia, China, France, Germany, Japan, Nordics, Russia, Singapore,South Korea, Turkey, United Arab Emirates and the U.K.
  105. 105. Look for Partnerships: Smart TV Ensequence Hits Yahoo Connected TVs Interactive TV Firm Targets Over-the-Top Video PlatformsBy Todd Spangler -- Multichannel News, 5/16/2011 12:01:00 AMEnsequence is taking its interactive TV expertise beyond cable and satellite.The New York-based company has historically specialized in developing interactive applications for pay-TV providers andprogrammers. Now it is extending its focus to deliver ITV apps to connected-TV devices, as well."Were going to be wherever our programmer customers want us to be," Ensequence vice president of marketing and productmanagement Kevin Hurst said. "What were hearing is, programmers want to take the interactivity they have on cable and take iteverywhere."Ensequence targeted the Yahoo platform because its currently the most widely deployed, Hurst said. According to Yahoo,nearly 10 million TV sets from Samsung, LG, Vizio, Sony and Toshiba have shipped with the widget software. He added,however, that Yahoo doesnt track exactly how many are connected to the Internet.Ensequences customers include NBC Universal, MTV Networks, ESPN, Showtime Networks, The Walt Disney Co., TurnerBroadcasting System, HBO, Comcast, Time Warner Cable, Canoe Ventures, Dish Network, DirecTV and Verizon.
  106. 106. guest to the season four prem rated show Look for Partnerships: Smart TV PALO ALTO, Calif. – February 1 IntoNow and MTV to Deliver New Ways for Fans to Discover and Interact With MTV Shows Jersey Shore and My Life as Liz technologFirst-of-its-kind Jersey Shore exclusive live tagging contest will send a lucky fan and a focused on enhancing the wayguest to the season four premiere and party for MTV’s highest rated show of all time.Beginning on February 17, 2011, IntoNow users who tag six premiere airings this conten announced a partnership witseason of Jersey Shore will be entered for a chance to win a trip for two to the seasonfour premiere which includes travel, hotel accommodations and admission to the seasonfour premiere party. Networks“We’re really excited by all the enthusiasm we’ve receivedVIA.B), that will provide new w around IntoNow and arethrilled to be working with MTV to offer our users and fans something unique,” saidAdam Cahan, founder and CEO of IntoNow. “This is just the beginning of what we want favorite shto be able to offer our users at IntoNow. MTV came up with a great idea, and we’re reallyinto being able to offer viewers new ways to interact with their favoriteShore will have the cha Jersey shows.” premiere a season four of Jersey Shore. An get an insid favorite television sho Beginning on February 17, 20 premiere
  107. 107. Look for Partnerships: Social TV"People no longer wait for their show. Their shows wait for them. We see new digital devices asnew ways to connect consumers with their content. Consumers are turning to these devices tomake their lives more functional. Our challenge is to use these devices to stay relevant toconsumers...It’s not just about great content, it also requires a great user interface – example, Apple’s iTunes.We have to create simple ways to find the content and lower the barriers to their use. This requiresa new kind of convergence, one with content providers, consumer electronics companies,distributors and advertisers. TextThis is not eroding our audience. These new platforms drive consumers back to the programs.People are watching even more TV. The more ways that are available, the more their appetitegrows. This is just the beginning.-- Anne Sweeney, Co-chair, Disney Media Networks
  108. 108. Look for Demographic Trends: 3DTV
  109. 109. Nov. 9, 2010
  110. 110. Nov. 9, 2010
  111. 111. Index Strength in ME, BRIC, SA
  112. 112. Under Index: Aust/NZ, Japan, ScandanaviaJust two per cent of UK consumers are planning on purchasinga 3D television over the next 12 months, according to newresearch by Deloitte.
  113. 113. Something New: Social Benefit Platform
  114. 114. conspiracyforgood.com
  115. 115. Digital Business 2012 Broadcast Subscription Advertising New Services Analytics New Platforms Conclusion2010 New Amsterdam Media LLC
  116. 116. Conclusions• Go where your audience lives• Fight for scale• Fight for authenticity• Skate where the puck is going• Know who you are
  117. 117. “Nobody knows anything.” - William Goldman2010 New Amsterdam Media LLC
  118. 118. "Anything new, anything worth doing, cant be recognized." - Picasso2010 New Amsterdam Media LLC
  119. 119. seth@newAMSmedia.com DANK U WEL! Los Angeles  New York  Amsterdam

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