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Top Ten tips for making money in digital - very draft

Top Ten tips for making money in digital - very draft

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Monetising digital content top 10 tips Presentation Transcript

  • 1. Monetising Money from Making Digital Content! Digital PlatformsSuccess! Top 10 Tips For & Rights The Production Show, 2011!Monetising Digital Content!Top 10 Tips for Success !
  • 2. Who Am I - Spirit digital media Customer-centric digital content propositions that take advantage of current audience behaviours: 1. Exploiting 3rd Party IP (B2B)License external IP and exploit through digital channels. 2. Creating New IP (B2B) Create / partner and crowd-source new ideas. Web series, applications & games. Key Attributes •  Data driven •  Customer Acquisition / Retention models •  Multi-platform •  Multi-business model Based upon 8 years working at Endemol(Content),3 years at Freeserve (portal/ISP) and cable TV (subscriber management) 2Monetising Digital Content!Top 10 Tips for Success !
  • 3. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9. Build Partnerships 10. FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 4. 1. Understanding Digital – dynamics of digital You don’t need to be a digital ‘native’ to understand digital, but……..digital is: 1.  Economically ‘Efficient’ - easily replicable, easily distributed 2. Massively expands choice (and reduces scarcity) - content becomes commodified 3. Deflationary - analogue dollars vs. digital pennies 4.  Decentralises control - highly fragmentedMonetising Digital Content!Top 10 Tips for Success !
  • 5. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10.  FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 6. 2. What Digital Rights do Producers Have? Basic Version – see web reference for more detail •  Commercial web/wap site •  Non-exclusive VOD from 6 months after broadcast * •  Download to Own (DTO) held back by 30 days after broadcast •  Commercial clip rights held back by 30 days after broadcast •  Digital merchandising rights e.g. games, ringtones etc. * Returning series, 1st series held back until after the end of 3rd series Web reference: http://www.pact.co.uk/business_affairs/terms_of_trade/Monetising Digital Content!Top 10 Tips for Success !
  • 7. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10.  FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 8. 3. Understand Key Trends Technological Change •  Broadband, powerful devices, open platforms, frictionless payments Audience Behaviour Change •  Increase in on-line & mobile consumption of content; co-viewing Business Models •  Rise of on-line advertising & consumer transactions, product integration & placement etc. Democratisation of production •  Bedrooms producers can compete with international production cosMonetising Digital Content!Top 10 Tips for Success !
  • 9. Digital Trends – affecting TV now Technological Change Business Model Changes 1.  Video On Demand 7.  Video advertising 2.  Connected TV 8.  Virtual Goods 3.  Portable Devices & App Stores 9.  The Return of Pay / Subscription Audience Behaviour 10. Experience Economy 4. Multi-Tasking 5.  The Water-Cooler is On-Line Services, not Products 6.  Social Recommendations 11. Data Democratisation of Production & Distribution 12. Digital Distribution/Syndication 13. Original Digital ContentMonetising Digital Content!Top 10 Tips for Success !
  • 10. Changing Audience Behaviour Broadband Access 100s of TV channels Co-Viewing Digital Radio 3D iTunes / iPods TV on Mobiles PVRs Wireless Homes Social Networks Smart Phones Twitter Casual Games Connected TVsMonetising Digital Content!Top 10 Tips for Success !
  • 11. AB: …..but TV Viewing increases TV viewing in 2009: -  3 hours 45 min/day, +4% on 2004 -  Boosted by PVRs (37% h/h penetration) & HD TVs (5m homes) -  15% of all viewing is on the PVR -  Old viewers (65+ watch >5 hours per day) -  92% digital TV penetration -  Multi-channel TV > terrestrial viewing for the first time -  "In many cases television is complemented by social media” -  Radio listening is down 5% since Guardian: 19th August 2010 2004 Source: OfcomMonetising Digital Content!Top 10 Tips for Success !
  • 12. AB: …..and so the watercooler is now onlineMonetising Digital Content!Top 10 Tips for Success !
  • 13. On-line Video Advertising is Still Small in the UK On-line ‘video on demand’ advertising is still small, but growing fast New advertising formats are being developed to combine video advertising with interactivity & engagement Google ‘Shutters’ Ad FormatMonetising Digital Content!Top 10 Tips for Success !
  • 14. New Sources of Revenue: virtual goods Virtual Goods in US US virtual goods US virtual goods market 2009 market 2011 US $1.1billion US $2.1billion social games only: $835m in 2010 (mkt = $1.6b) Asian market is bigger than US (China & Korea)Monetising Digital Content!Top 10 Tips for Success !
  • 15. New Sources of Revenue: virtual goods, examples Xbox Live – points to buy digital goods: downloads, game extras, update avatar. $1 Billion in sales for Rock Band and Guitar Hero, each. In 2008-2009, downloads of songs for Rock Band topped Habbo Hotel has the rest of the top 10 combined. 185m registered users For Zynga, when FarmVille launched its & $80m revenue, 90% Valentines Exchange in February 2010, from virtual goods more than 220m virtual gifts were sent or Habbo Hotel, which received within 18 hours. "Thats more than sells more furniture the number of Valentines cards Hallmark (virtual!) than IKEA sells in a year”Monetising Digital Content!Top 10 Tips for Success !
  • 16. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10. FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 17. Digital Hits - YouTube YouTube By •  Views •  Subscribers By •  Today •  This week •  This month •  All time A mixture of traditional media brands (Xfactor, Leona Lewis, Top Gear, Channel4, Cheryl Cole) and digital grown brands (Charlieissocool, Mrweebi, Dingledoodie).Monetising Digital Content!Top 10 Tips for Success !
  • 18. Digital Hits – YouTube examples •  What the Buck?! •  Fred •  Annoying Orange •  Annoying Orange vs Fred! •  Charlie is so cool like (UK)Monetising Digital Content!Top 10 Tips for Success !
  • 19. Digital Hits - video YouTube Hits: Fred 536m views w/wide 900k views in last week Fred: The Movie, premiered on Nickelodeon Sep 18 2010 and drew an audience of 7.6m, 1.8m subscribers making it the number 1 children’s cable tvMonetising Digital Content! movie of 2010Top 10 Tips for Success !
  • 20. Digital Hits - games Facebook Hits: •  Farmville, 62m players / month •  Lead developers such as Zynga, EA, Playdom & Crowdstar •  And now ‘branded’ games such as FIFA Soccerstars & Corrie NationMonetising Digital Content!Top 10 Tips for Success !
  • 21. Digital Hits - apps Apps Chart – UK October 2010 •  Lots of games •  Few real TV show apps •  Cut The Rope is the newest ‘hit’ selling over 1m apps on iPhone in 10 days (w/wide) •  Talk of Angry Birds being optioned for a movie!Monetising Digital Content!Top 10 Tips for Success !
  • 22. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9. Build Partnerships 10. FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 23. 5. Monetising Digital - A, B, C, D of revenues Advertising Revenues: Consumer Revenues: -  Banners -  Participation -  Pre/mid/end rolls on video -  Virtual goods -  Sponsorship -  Mobile apps -  Product Placement -  Social games & gaming -  Search •  Subscriptions, PPV Broadcaster Revenues Distribution & Data Revenues •  Commissions •  Secondary VOD, DTO •  VOD catch up •  International VOD, DTO •  Other ancillary revenues •  Data collection & salesMonetising Digital Content!Top 10 Tips for Success !
  • 24. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10. FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 25. 6. The Digital Wheel of Value The TV Wheel of Value (Fremantle Model) Internaonal   Formats   Home   Telephony   Ent/DVD   Online   Progamme/   Mobile   Brand   Sponsorship   Consumer   Live   Gaming  Monetising Digital Content!Top 10 Tips for Success !
  • 26. The Digital Wheel of Value marketing TV   Publishing   Web  Sites   Social   Networks   Social   Games   Digital   Content   Mobile   Brand   Apps   Graphic   Novels   eCommerce   Home   Internaonal   Sponsorship   money Ent/DVD  Monetising Digital Content!Top 10 Tips for Success !
  • 27. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9. Build PartnershipsMonetising Digital Content!Top 10 Tips for Success !
  • 28. The watercooler is now online – X-factor example; Facebook 1.8m fans Over 1K comments per update External web & social sites Promoting Xtra FactorKaraokeapplication!Monetising Digital Content!Top 10 Tips for Success !
  • 29. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10. FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 30. Analyse & Iterate idea build iterate analyseMonetising Digital Content!Top 10 Tips for Success !
  • 31. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10.  FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 32. Collaborative Team Working Need to combine the expertise of the worlds of TV & Digital……and not to keep them separate, otherwise we will never keep up with the consumer Major problems occur from: •  Lack of understanding of each other •  Lack of respect for each other’s skills •  TV is still so big in comparison to digitalMonetising Digital Content!Top 10 Tips for Success !
  • 33. Top 10 Tips For Success 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5. Understand the revenue streams: A, B, C, D: –  Advertising; Broadcasters; Consumers; Distributors 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9.  Build Partnerships 10.  FuturologyMonetising Digital Content!Top 10 Tips for Success !
  • 34. Futurology / Projects, Not Campaigns As with all consumer behaviours, it wasn’t long before advertisers began to notice this spirit of community and self-sufficiency, and draw the twin concepts of transparency and dialogue into their marketing. As this evolves, contemporary marketing is evolving from a campaign-led approach in which messages are pushed out over a finite time scale, to the creation and sustaining of ongoing projects, many aimed at demonstrating the brand’s inherent decency. Referenced examples: Levis, Dulux 3Monetising Digital Content! 4Top 10 Tips for Success !
  • 35. Futurology / The Future of TV The Nielsen Three Screen Report, released in Q1 2010, reported that 59% of Americans are now surfing the Internet and watching TV at the same time – a figure likely to increase as devices which can access the web become more affordable and widespread. More and more people are turning TV downtime into an opportunity for online socialising around their favourite shows, and enhancing their viewing with streams of live content through phones and PCs. Referenced Examples: Straling.tv, ITV Live, Connected TV 3Monetising Digital Content! 5Top 10 Tips for Success !
  • 36. Futurology / Post-Digital Post-digital is born out of the insight that whilst brands and advertisers may be serving an ever-increasing portion of their communications through digital channels, this only emphasises the need for the central messages to resonate on a tangible, human level. Put simply, something means a whole lot more if you can see, touch or engage with it in the real world. Referenced Examples: Chalkbot, Macy’s, RFID tags, Oxfam 3Monetising Digital Content! 6Top 10 Tips for Success !
  • 37. Futurology / Gamification In part, it’s not anything new; companies have been issuing loyalty cards for years. Accrue 10 punches or stamps and win a free coffee. Fly 50,000 miles with our airline and get a free ticket. Earn levels with your commitment that come along with prizes like being able to spend time in the lounge, or upgrade your seat and change your flight without fees. These are rewards measures built in to customer relationship management systems to encourage repeat customers and healthy business volume. 3Monetising Digital Content! 7Top 10 Tips for Success !
  • 38. Futurology / Social Economy One major success story of the year has been Groupon, described by Forbes as ‘the fastest growing company in web history’ and on track to pass $500m in revenues this year. The site, which offers daily discount deals that kick in when enough people sign up to buy, has spawned some 700 copy-cats around the world. Now Groupon has partnered with eBay to extend its daily deal from its own 15 million email subscribers to eBay’s 69 million monthly unique users. 3Monetising Digital Content! 8Top 10 Tips for Success !
  • 39. Questions em: mail@petercowley.com tw: @petercowleyMonetising Digital Content!Top 10 Tips for Success !