iPopping Digital-Media Value Creation Opportunities, by Richard D. Smith, SMITH-TRG

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iPopping \'Digital-Media Opportunities to Create Strategic Business Value\' by Richard D. Smith, SMITH-TRG. $5 Trillion global market. From content creation to distribution to end-user.

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iPopping Digital-Media Value Creation Opportunities, by Richard D. Smith, SMITH-TRG

  1. 1. February 2010 SMITH -TRG BUSINESS PERFORMANCE & VALUE CREATION CONSULTANTS A Copyright 2010 SMITH-TRG, All rights reserved. iPopping By: Richard D. Smith ‘Digital-Media Opportunities to CEO, SMITH-TRG RDSmith@SMITH-TRG.com Create Strategic Business Value’ SMITH-TRG
  2. 2. February 2010 contents Copyright 2010 SMITH-TRG, All rights reserved.  introduction  MEDIA LANDSCAPE  OPPORTUNITY  WHY ACT NOW? SMITH-TRG
  3. 3. February 2010 WHO WE ARE begins with WHO WE WERE. Copyright 2010 SMITH-TRG, All rights reserved. A digital-media venture development and value creation consulting firm. Launched second venture as technology sector imploded, drastically changing the playing field. Many packed it in. Others didn‟t have the vision, passion or „Attention Economy‟ experience. We did. And, we embraced it. Our consulting, IT/telecom & digital-media roots uniquely enable us to assist carrier and media industry/sector/segment CXO‟s develop and execute business value creation strategies . As you can tell, our past has a great deal to do with our present. As well as our future. SMITH-TRG
  4. 4. February 2010 OUR value view. . . Copyright 2010 SMITH-TRG, All rights reserved. "Achieving consistently superior value growth is the single accomplishment that most clearly distinguishes great companies from all others. It is the hallmark of exceptional leaders. In our experience, a focus on value is our key to helping clients‟ achieve superior performance, and it therefore forms the basis of everything we do”. - Richard D. Smith, SMITH-TRG SMITH-TRG
  5. 5. February 2010 WHAT we have done. . . Advised 4 global consumer electronics innovation leaders on – Copyright 2010 SMITH-TRG, All rights reserved.  strategy  product portfolio(s) & pipeline  high-impact & high-value B2B deals  M&A  retail store transformation & expansion  emerging smartphone & multi-touch screen markets  new wireless application platforms & related services Developed X-Otica a digital-media enabled retail store of the future – basis for world‟s most successful (revenue per square foot) retail chain SMITH-TRG
  6. 6. February 2010 plus . . . Advised wireless carrier, IT, consumer product, media Advised 4 global consumer electronics & entertainment, hospitality, – innovation leaders on automotive, advertising, Copyright 2010 SMITH-TRG, All rights reserved. and marketing companies on digital-media  strategy Assisted mall operators and retail chains ROI optimize  product portfolio(s) & pipeline place based „Digital Out-of-Home‟ networks  high-impact & high-value B2B deals Authored book, AD-MIRED, „Media‟s Power to Create  M&A Value‟, 2006 Business  retail store transformation & expansion Advised Seoul Korea on „Digital-Media City‟ (DMC),  emerging smartphone future multi-billion dollar city of the & multi-touch screen markets Foundedwireless Media (AIM2)platforms & related  new Audient application a audience interactive mobile-marketing, „Advertainment‟ content, and services wireless advertising venture Developed X-Otica a digital-media enabled retail store of the future – video-messaging, Founded Saint CRISPIN a global basis for world’s most successful (revenue per square foot) (precursor to „video-mail‟) venture, sold to F-500 retail chain SMITH-TRG
  7. 7. February 2010 WHAT we believe. . . Copyright 2010 SMITH-TRG, All rights reserved. “The greatest value creation opportunity will fall to those who give the end-user consumer what they want…really, really want. And that is: an integrated, easy to use, video media experience, anytime, anywhere, and on any platform.” - Richard D. Smith, SMITH-TRG Author, AD-MIRED, 2006 book SMITH-TRG
  8. 8. Copyright 2010 SMITH-TRG, All rights reserved. M E D IA LAN D S CAP E SMITH-TRG February 2010
  9. 9. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Market Size $5 Trillion Global annual value SMITH-TRG
  10. 10. February 2010  Content creators  Media companies  Aggregators (network) Copyright 2010 SMITH-TRG, All rights reserved. Value Chain  Aggregators (broadcast)  Back-office Apps  Network service providers Pieces  Carriers (domestic/global)  Infrastructure (IT/services)  Portals (music/video/books) From content creation to  Devices (hardware) distribution to end-user  Devices (software)  Apps providers  End-user (media consumer)  End-user (business) SMITH-TRG
  11. 11. February 2010 Market Copyright 2010 SMITH-TRG, All rights reserved. Players Anyone, small to large, in and/or around digital- media eco-system markets SMITH-TRG
  12. 12. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 A Market Mover Snapshot Vision. Innovation. Value Creation. SMITH-TRG
  13. 13. February 2010  Shares trading $45 to $55 Copyright 2010 SMITH-TRG, All rights reserved.  Retail store chain (26) in 2005 need of re-invention (Revenue per Sq. Ft. $1,000) Apple 5 Year Snapshot  Product portfolio & pipeline decisions required  Value growth plan pending SMITH-TRG
  14. 14. February 2010 FANATI C I S M Copyright 2010 SMITH-TRG, All rights reserved. “I think fanaticism is underrated. I‟m a fanatic about the engineering groups. Steve (Jobs) is a fanatic about the user experience and the design.” - Bill Gates, Microsoft Advice for entrepreneurs, enterprise game changers SMITH-TRG
  15. 15. February 2010  Shares reach $199  Retail chain transformed, Copyright 2010 SMITH-TRG, All rights reserved. revenue per Sq. Ft. $4,000 2007  iPhone launched, AT%T Vision & Value Progress exclusive & user revenue share deal reached  Product portfolio/roadmap established SMITH-TRG
  16. 16. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 2009 (Apple officially a computer hardware & software company) Strategically morphing itself into a media company SMITH-TRG
  17. 17. February 2010 iPhone Copyright 2010 SMITH-TRG, All rights reserved. A "zero" revenue contributor three years ago. Fourth-quarter 2009, iPhone revenue up 90% year over year to $5.6 billion. SMITH-TRG
  18. 18. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 iPhone & iPod contribution . . . $9 billion of total $13.5 billion in quarterly revenue. Two thirds of total! SMITH-TRG
  19. 19. February 2010  Shares trading @ $200+/- Copyright 2010 SMITH-TRG, All rights reserved.  Earnings per share up 562% 2010  Shareholder equity up 428% 5th Yr. Value Delivered  Cash on hand up 411%  Retail chain 250+ stores world-wide, still $4,000 iPad launched revenue per Sq. Ft. SMITH-TRG
  20. 20. February 2010 Apple Copyright 2010 SMITH-TRG, All rights reserved. Systematically tilts wireless Value Strategy playing field to their advantage. “Apple extracts more and Apple designed iPad chip, dubbed more of the value, while A4, marks strategy shift first carriers get more and signaled by 2008 purchase more of the costs.” of start-up P. A. Semi. - Craig Moffett, Senior Analyst Berstein Research SMITH-TRG
  21. 21. February 2010 iPad (again Apple demonstrates) Copyright 2010 SMITH-TRG, All rights reserved. “To create greater business value – One does not have to be first to create, just first to innovatively perfect what has been created.” Richard D. Smith SMITH-TRG
  22. 22. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Mobile Value Growth Sector SMITH-TRG
  23. 23. February 2010 Global Carriers Copyright 2010 SMITH-TRG, All rights reserved. Forecasted Wireline & Wireless Revenues Transport Revenues $1.65T 2007 vs. 2012 $2.2T Trends Dial-up Broadband % share Wireline % share 3% 8% 42% 2% 11% 31% Wireless % share 47% 56% (does not include satellite carriers) Source: Verizon study SMITH-TRG
  24. 24. February 2010 U.S. Wireless Growth Copyright 2010 SMITH-TRG, All rights reserved. 2005 vs. 2009 U.S. Subscribers Penetration 194.4M 66% 276.6M 89% Wireless (% of U.S. Population) Wireless Only Households 7% 20% Annual Total Rev. $108.5B $151.2B Annual Data Rev. $8.5B $37.0B Annual Minutes of Use 1.26T 2.23T Annual SMS Messages 52.2B 1.36T (Source: CTIA) SMITH-TRG
  25. 25. February 2010 Google enters mobile space. . . Copyright 2010 SMITH-TRG, All rights reserved. Introduces Android SMITH-TRG
  26. 26. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Why? 5 Billion Cellphones world-wide (Global population 6.8 Billion) Strategic Global Growth SMITH-TRG
  27. 27. February 2010 Smartphone Copyright 2010 SMITH-TRG, All rights reserved. Landscape iPhone has 13.7% share & 74% user satisfaction rating RIM has 20.9% share & 2nd place positive user rating with 43% SMITH-TRG
  28. 28. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 “Within five years 90 percent of mobile traffic will be from Forecast Internet-enabled laptops and smart phones”. - John Chambers, Cisco SMITH-TRG
  29. 29. Copyright 2010 SMITH-TRG, All rights reserved. OPPORTUNITY SMITH-TRG February 2010
  30. 30. Copyright 2010 SMITH-TRG, All rights reserved. Reinvention From M&A to SMITH-TRG February 2010
  31. 31. February 2010 „06 Pixar & Disney Merge A proprietary technology & digital content value-creation deal Copyright 2010 SMITH-TRG, All rights reserved. SMITH-TRG
  32. 32. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Pending M&A NBC-Universal-Comcast “Will competition be sustainable with $30B Merger the largest video and broadband provider controlling huge quantities of content?” - H. Waxman (D-Calif.) SMITH-TRG
  33. 33. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Motorola to spin-off wireless Future Spin-Off handset & TV box business into new public company Q1, 2011 SMITH-TRG
  34. 34. February 2010 New Strategy Copyright 2010 SMITH-TRG, All rights reserved. Content focused company Enterprise AOL acquired StudioNow a Nashville based video Reinvention production firm. Paid $36.5M cash & stock SMITH-TRG
  35. 35. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 From High-Impact Deals to Media Applications SMITH-TRG
  36. 36. February 2010 Apple’s exclusive Copyright 2010 SMITH-TRG, All rights reserved. AT&T carrier deal expires in 2012. Will the deal winner be Verizon, T-Mobile, ? SMITH-TRG
  37. 37. February 2010 Apps market Copyright 2010 SMITH-TRG, All rights reserved. larger than Apple 2 and Android. . . X Small businesses as applications developers (**iPhone 200,000 apps) Downloads! SMITH-TRG
  38. 38. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 Mobile Advertising High growth Apps market SMITH-TRG
  39. 39. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 In-Cinema „Big-Screen‟ real-time interactive advertising! Doable? Yes! Exist today? No! SMITH-TRG
  40. 40. February 2010 Imagine Copyright 2010 SMITH-TRG, All rights reserved. Interactively engaging viewing audiences with „Advertainment‟ content in Traditional, IMAX or Digital Cinemas. There are 38,600 movie theatre screens in the U.S.. In 2009, 1.4 billion patron admissions. SMITH-TRG
  41. 41. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 From Multi-Touch Screens to Niche TV Platforms SMITH-TRG
  42. 42. February 2010 Digital Signage, Out-of-Home Copyright 2010 SMITH-TRG, All rights reserved. Ad Networks Multi-Touch Wall Screens the next generation of place-based signage. The U.S. retail industry is comprised of nearly 1.1 million establishments with annual sales of nearly $4.5 trillion. As retailers struggle in today‟s economy, digital signage is increasingly finding its place as a branding and merchandising tool near point-of-sale. SMITH-TRG
  43. 43. February 2010 Niche Media Platforms Copyright 2010 SMITH-TRG, All rights reserved. Commercial use TV/Screen applications SMITH-TRG
  44. 44. Copyright 2010 SMITH-TRG, All rights reserved. WHY ACT NOW? SMITH-TRG February 2010
  45. 45. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 A $5 Trillion Target of Opportunity (global media sector on growth curve) SMITH-TRG
  46. 46. Copyright 2010 SMITH-TRG, All rights reserved. February 2010 It‟s about building your. . . W H Y ACT N O W ? SMITH-TRG
  47. 47. February 2010 SMITH-TRG BUSINESS ADVISORS. VALUE CREATORS. Copyright 2010 SMITH-TRG, All rights reserved. We assist. . .  CEO‟s to create business Thank you!  value CXO Stakeholders to solve business performance problems  Innovators to develop more successful „customer-centric‟ propositions  Business Developers to maximize return on their investments www.SMITH-TRG.com
  48. 48. February 2010 OUR digital-media PRACTICE Enterprise leaders in the digital-media space are known for being Copyright 2010 SMITH-TRG, All rights reserved. many things. Patient is not one of them. Consequently, they want someone who understands creating strategic business value in the media space, they desire „trusted- business advice‟ and new competitive advantage solutions, and they want and desire them today! Fortunately, with two decades of international telecommunications, wireless, and digital-media industry experience, SMITH-TRG excels, not just at developing executable strategies specifically for the client, but developing them quickly. SMITH-TRG

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