Your SlideShare is downloading. ×
0
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
BOE  New Media Ecoystem 2011  Apr 15
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

BOE New Media Ecoystem 2011 Apr 15

1,105

Published on

Business of Entertainment …

Business of Entertainment
New Media Ecosystem: Technology and Economics

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,105
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Factors that affect evolution of the ecosystem are both technological and economic. We will talk about the New Media Ecosystem from content generation to content consumption
  • Who we are – Cogentic Advisors Terminology and Scope
  • RRY – focus on mix of M&E and CE for 23 years. Understand standards from work w/Pro-MPEG; was an engineer GWA – brings a unique look into how money people see the industry, but he started out in engineering as well Together, we bring a unique perspective to both technology and economics, appreciated by our clients both large and small; technical and investors
  • New media means non-linear: Interactive; Internet; Mobile; App Specific. Traditional Media was a ONE-TO-MANY. Internet makes it MANY-TO-MANY. Mobile and Personalization makes it MANY-TO-ONE. Ecosystem are all the players in the value chain; many more exist now…. ASK – How many have a Facebook page? Posted pics? Videos? >>> They are content creators in the value chain. Set the stage first, then focuses on Motion Picture and Post-Production industry
  • Consumption changes: Quantity and method of consumption Mobile Video Social Integration RRY: What is happening; how it happens (technology) >> GWA: Why it happens (economics)
  • Consumption changes: Amount of time spent; number of devices; number of formats Mobile Video: Changes a lot, more in Far East vs USA – broadband in Korea vs USA (we’re 15-20 th in the world) Social Media: Makes for a discontinuous shift in the amount of content Netflix represents large percentage of internet traffic during peak periods. Video will be 90% of internet traffic by 2015.
  • Point out the increasing percent of media that is digital Show the roughly slowing exponential growth in consumption Analog vs DTV; Internet vs TV; Wireless and Games Is it possible to consume 160hrs/wk in 2060 (50 yrs)? Multi-tasking, consumption in cars, elevators, etc… Consume multi-streams of content simultaneously.
  • 275M users by 2011 = roughly the size of US population But that represents only 5% of mobile subscriptions… Why? - Ad hoc video consumption - No viable services for video … look at failure of Qualcomm FLO - Emerging market has feature phones, vs smartphones – this is changing
  • Accelerated timeline of social media businesses Encroachment into our world … consider Second Life – both fraud in real $$, plus a real-life marriage and divorce case From “internet time” in 2000’s to “social media time” in 2005-2010’s Social media saturation. Article on Facebook depression in teens… may be crazy, but point is made
  • Technology Drivers: Enable something to be possible, not viable Economic Drivers: Enable a business to be built around a value proposition Need both for a change to occur… for “critical mass to be achieved”
  • Summarize: Technology and Market More bandwidth > better content > more on the pipe …. Will always be a race Mobile … What do people always have within 3’ of themselves? How many people have their mobiles with them? Interactivity … How to engage with others Social Media Integration … Fancy way of saying interacting with others and content simultaneously
  • Key point: What do general users have at home for $50 price point (in USA) This decides what can be done as a general rule - Streaming @ 6Mbps: 2010 to 2012 … with adaptive streaming (Move Networks, now Echostar/Dish; Akamai; Microsoft) bitrate is < 1Mbps for HD - Full home HD-DVR on multi-stream (4 streams): 2012 to 2015 … can be done now for SD
  • UTILITY POINTS: Speed * “Value” where “Value” = 1/Cost. Utility points = Speed/Cost Ratio Japan: 65 * 1/1 >> 65 utility points (33X better utility vs USA for same price) Korea: 50 * 1/1 >> 50 utility points (25X better utility vs USA for same price) USA: 6 * 1/3 >> 2 utility points
  • Smartphones growing at a doubling every two years Smartphones are still a fairly small percentage of WW phones, since feature phones still dominate in volume Video capabilities of these devices depend both on bandwidth of wireless and format of video Average wait time and quality are a trade-off users make
  • Screen-size drives video usage iPad will be overtaken between 2012-2013 Download vs Streaming: All will depend on usage models and carrier behavior >> but that is economics
  • Connected home drive connected TVs Samsung in mid 2010, Google TV released 4Q-2010, Sony/Google TV released 2010-Oct-16 CBS Interactive bought Clicker in 2011-Mar >> why? Proliferation of content means FINDING it is critical Technology trivia: If CONTENT is King; METADATA is the Bank Even with many choices of boxes (Boxee, Apple TV, Google TV, etc), people still connect PC > TV directly
  • Interactive content (some examples on phones and PCs) Others in the SMPTE conference (2010-Nov) spoke on various Interactive Content (like Todd Collart’s talk on BD-Live) eBooks and Tablets are a big consumer electronics driver
  • Interacting with content can be a means of interacting with: BRANDS (which is used by Advertisers) – see Augme example, which can drive user interaction and purchasing OTHER PEOPLE (seen at DEMO2011, Viafoura, makes news interactive via live debate on split-screen) INTERACTIVITY has multiple purposes – to entertain, to educate, to engage >> all can be monetized
  • DECE / Ultraviolet – critical to both the CE and M&E industry A major change driver is STANDARDS >> they create economies of scale For a standard to work, it requires participation by critical mass, across the whole ecosystem And for it to work with consumers, it will require even more… active promotion and consistency of messaging
  • Market behavior changes based on what can be done. Price points affect the behavior – more than quality alone. Evolution is always from a broad experience (broadcast) to a singular one, to a social one
  • Market behavior changes based on what can be done. Price points affect the behavior – more than quality alone. Evolution is always from a broad experience (broadcast) to a singular one, to a social one
  • ->Ad dollars are moving where the eyeballs are but its important to note that CPM rates still diverge widely across mediums largely due to targeting ability ->Terrestrial to Digital (Broader and more flexible options) ->Analog to IP (More interactive capability) ->Walled Garden to a la carte (OTT being one a la carte option, also DVR’s, VOD is a la carte, meaning better tuned options) -> Pre-defined schedule to at will consumption (meaning more time flexibility) -> One-way to Interactive/Social (Meaning more of an experience around media consumption/viewing) -> Proliferating device options (More ways at more places to consume) -> 3 Dimensions: Time, Space and Choice Point out the increasing percent of media that is digital Show the roughly slowing exponential growth in consumption Analog vs DTV; Internet vs TV; Wireless and Games The economics of consumption: Reduced cost of digital is not always true… multiple formats… note that ¾ of bandwidth is now metadata When content proliferates, finding it is part of the battle – except for the most dominant brands Changing Consumption Patterns – Terrestrial to Digital Radio and a la carte digital consumption, Broadcast to Digital TV,
  • ->Now have time and resources to consume -> Can be on the leading edge because no legacy infrastructure to depreciate -> While Cable/Satellite are relatively saturated in mature markets, IPTV is a spot of growth Technologies track demand, as well as enable. More formats, and more devices. Increasing role of IPTV. Service providers will continue to win from this trend. Mention that initially, MPEG-2 required 18-45Mbps for HDTV; which with adaptive streaming over H.264 can be done in 0.8-2Mbps Initially, people thought the cable would wipe out broadcast; that IPTV would wipe out cable. People watch commercials on DVRs; still go to theaters even with PPV … consumption is based on value and convenience
  • Online video growth means that advertisers want to reach this population The online video viewer tends to be more upwardly mobile and influential Much of this video viewing will be done on mobile devices as time goes on Video ads will become more and more personalized as analytics become more effective
  • Spending per hour over the past three years has fallen somewhat asymptotically Artifact of the economy, but also reduced production costs billed back to US advertisers Advertisers want value for their TV and online spending – thus, targeting is critical, and privacy vs targeting will become an issue
  • Mobile video has high growth, but the total revenue is about 1/10 that of the US theatrical revenue Most people will watch longer form content on tablets (media run-time is roughly proportional to size of screen) Advertising is becoming more entertaining and is posted for mobile consumption Links to social networking are becoming more pervasive, intended to engage audiences
  • However, Global Mobile Video is a totally different story. Much faster in other countries.
  • Social media drives high growth … for the winners
  • Mobile marketing and interactive spend rises
  • Note that these transactions are updated. Kit Digital is an example of technology companies used by service businesses being consolidated. Pure content deals are proportional to the brand recognition – and these are becoming fewer in number Prediction: More acquisitions will be driven by metadata extraction, personalization and CRM technology
  • Opportunities: Technology > new media; Economics > new business models Challenges: Technology innovation drives fragmentation; Economic forces drive consolidation Ultimately – Consumers drive the New Media Ecosystem, since they are at the heart of the food-chain
  • Everything blurs – Video can be consumed on game consoles; Netflix on a plethora of devices Some behaviors reflect this – there are many who are not buying Boxee and other platforms, but connecting PCs to TVs Cloud storage (both Ultraviolet, Disney Rights Locker, and Amazon) will be a major trend – but can also be detrimental if fragmentation holds
  • Experimental business models: Some are not likely to succeed; others may be surprising DirecTV announced their premium VOD service 2011-Apr-14: theater owners object violently Bring up examples from virtual worlds and the valuation of Zynga. Facebook is delivering targeted ads now. In 2010, eMarketer estimates they sold $1.86B of ads.
  • RRY: Content Providers, Publishers, Aggregators, Ad Networks, Agencies, Ad Campaign Management, CDNs GWA: Video Platform Providers, Ad Management Platforms, Audience Measurement/Data Analytics, Broadband Service Providers
  • Personalization as tied to the DEVICE – people do not want to give personal data away on mobile devices Willingness to give away PERSONAL INFORMATION: Younger people are okay with both technology and lack of privacy This is only natural – younger people are used to ad overload, enjoy social interaction to a greater degree >> they want experiences
  • Technology Success Factors: Flexibility and Connectivity Business Success Factors: Capital and Workflow Efficiency; Standards and Economy of Scale
  • Reconfigurable SOA: Lessons from Enterprise IT. Workflow systems. Integration of Back-End Commerce (CRM, Analytics, eCommerce) Why this helps: Flexible system, able to reconfigure to address multiple formats, business models, workflows Integration and Middleware: Essential for tying metadata to content for search/discovery and commerce (personalization) Middleware between Technology Systems: Integration across multiple vendors, tools, locations, business rules, standards, and types of content
  • Sony introduced at NAB2010: Architecture for the next 10-15 years of Post-Production This system uses concepts from enterprise IT operations – creates Services, which can be called like subroutines in a program Services can be upgraded without re-doing entire system; they can be connected flexibly to perform multiple tasks Scalable; efficient; visibility across network – can have distributed processes and functions Content management and metadata for production-oriented workflows
  • What drives Post Production? Studios – theatrical release and windowing. Shift is toward advertising, and increasingly toward online/mobile What is the market structure? Large = 70% revenue by 1.5% of companies/Medium = 23% revenue by 25% companies/Small = 7% revenue by 73.5% of companies What changes from 2010 to 2014? Medium sized post houses acquire smaller ones, nearly doubling in quantity as a percentage Total number of post houses shrinks from 1700 to 1400 (nearly 20% decline in number of post houses)
  • Change always accelerates – and increases number of choices >> finding things becomes hard >> discovery/search is critical Economy is in flux – greater competition for the same consumer dollar, in the presence of economic downturn >> capital efficient, flexible systems Transitions create opportunity – but only if providers give consumers what they want >> quality and flexibility of experience drive success
  • Factors that affect evolution of the ecosystem are both technological and economic.
  • Transcript

    • 1. © The Business of Entertainment LLC
    • 2. THE NEW MEDIA ECOSYSTEM: Making Sense of Technology and Economics
      • Robert R Yamashita Cogentic Advisors
      • Glen W Anderson Cogentic Advisors
      © The Business of Entertainment LLC
    • 3. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 4. The Speakers
      • Robert Yamashita (Managing Director, Cogentic Advisors) – Prior to co-founding Cogentic, Mr. Yamashita held executive roles in the converged New Media ecosystem for over 15 years (Sony, THX, C-Cube Microsystems) and has ten years of management consulting in corporate and technology strategy, including experience as a Principal Consultant in digital media strategy at PricewaterhouseCoopers. His recent projects have included digital asset technology and strategy for major Hollywood studios, CE companies and various technology startups. While with Sony Electronics, Mr. Yamashita was a co-founder and director of the Pro-MPEG Forum. Mr. Yamashita has extensive industry experience in strategic planning, alliance management, business development and marketing at consumer electronics, semiconductor and communications companies (Sony, C-Cube Microsystems, Rockwell, TRW LSI Products) and holds a B.S. with Honors from the California Institute of Technology.
      • Glen Anderson (Managing Director, Cogentic Advisors) - Glen was most recently in investment banking with Oppenheimer & Co. in New York and prior with Jefferies & Co. in San Francisco, focused on telecom, networking and media. Prior to his career in investment banking, Glen worked in the commodity trading business in New York, the venture capital industry in Europe and the hedge fund industry in Chicago. Glen has been close to technology his entire career beginning as an engineer in Motorola's mobile devices business, supporting the design of revolutionary products such as the Motorola StarTAC and the Multiple Application Phone - the world's first "smart-phone". He has been a technology consultant to Lehman Brothers, the New York Stock Exchange and Midway Games, and consultant to Sprint Wireless and Comcast, among others in technology and organizational strategy. Glen holds a B.S. Magna Cum Laude in Engineering, and an MBA with Honors from The University of Chicago. Glen holds series 7, 24, 63, 79, 86 and 87 securities licenses.
      © The Business of Entertainment LLC
    • 5. Cogentic Advisors © The Business of Entertainment LLC Business Performance Acceleration ™
    • 6. Terminology and Scope
      • Traditional Media
        • Theatrical Release Movies; DVDs; Blu-ray
        • Broadcast (Cable, Satellite, Terrestrial) of linear titles
      • New Media Content
        • Internet Content: Websites, Blogs, Interactive Titles, Social Media
        • Games and Media-Based Applications
        • Mobile Content and Apps: Mobile A/V; User Generated Content; Paid/Free Apps
      • New Media Ecosystem
        • Additional participants and platforms that support the creation, management, distribution, and consumption of new media
      • Scope of Presentation
        • While the new media ecosystem is described, sections on Opportunities and Challenges, and the Key Success Factors focus mostly on the Motion Picture and Post Production industry
      © The Business of Entertainment LLC
    • 7. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 8. New Media: A Changing Landscape
      • Changes in How We Consume Media
        • Hours of digital media consumption on the rise
        • Users want to consume content on all device s they own
      • Mobile Video Users
        • Content and applications optimized for mobile devices
        • New and different consumption and business models
      • Social Media Integrates with Traditional Media
        • Highly interactive communities
        • Proliferation of User Generated Content (UGC)
        • Real-time community aggregation around content
      © The Business of Entertainment LLC
    • 9. Our Media Consumption is Evolving
      • Increased
      • Consumption
      • 10hr/wk 1920
      • 20hr/wk 1940
      • 40hr/wk 1970
      • 80hr/wk 2010
      20 yrs 30 yrs 40 yrs © The Business of Entertainment LLC
    • 10. Mobile Video Users Source: eMarketer Global Mobile Video Users (2008-2014) © The Business of Entertainment LLC
    • 11. Social Media / Content-Based Communities Rapid market penetration and evolution ATTRIBUTION: http://www.simplyzesty.com/social-media/decade-social-media/ © The Business of Entertainment LLC
    • 12. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 13. Change Drivers: Technology
      • Broadband Penetration and Utility
      • Mobile Devices: Smartphones and Tablets
      • Connected Home to Connected TV
      • Interactive Content
      • Social Media Integration
      • Standards-Based Converged Experience
      © The Business of Entertainment LLC
    • 14. Broadband Penetration Rates
      • 2011
      • 55% households at least 6Mbps (one HDTV stream)
      • 20% have over 24Mbps (multiple HD streams)
      • 2015
      • 85% of homes will have broadband, with 65% over 24Mbps
      © The Business of Entertainment LLC
    • 15. Broadband Utility: Speed vs. Price
      • Leaders
      • Japan, South Korea
      • High Speed; Low Price
      • Average
      • Europe, North America
      • Medium Speed, Low Price
      • Emerging
      • Eastern Europe, Mexico
      • Low Speed; High Price
      LEADERS EMERGING AVERAGE © The Business of Entertainment LLC
    • 16. Mobile Devices: Smartphones
      • Smartphone shipments overtake PC by 2012
      • Units shipped in 2010 about 250M
      • Forecast nearly 500M units to ship in 2012
      © The Business of Entertainment LLC
    • 17. Mobile Paradigm Shift: Tablets
      • iPad release in 2010 created a seachange
      • More users will watch video on tablet devices than other mobile products
      • Linux devices include Google Android; PalmOS
      • Linux-based devices will represent 61% of market in 2015
      © The Business of Entertainment LLC
    • 18. Connected Home > Connected TV
      • The Evolution of Television
      Source: Parks Associates, IPTV and the Digital Home © The Business of Entertainment LLC
    • 19. Interactive Content (examples)
      • Interactive eBook: YUDU Pro
      Metabeam Interactive App © The Business of Entertainment LLC
    • 20. Interactive Content (examples) © The Business of Entertainment LLC Mobile Image Recognition; 2D Tags; QR Codes Split-Screen Live Video Debate Source: Augme Technologies Source: Viafoura, Inc.
    • 21. Standards-Based Interoperability
      • DECE / Ultraviolet
      • Over 60 member companies
      • CE, Studios, Retailers
      • Rights in the Cloud
      • Buy Once, Consume Anywhere
      © The Business of Entertainment LLC
    • 22. Change Drivers: Economic
      • Changing Consumption Patterns
      • Emerging Market Pay TV Growth
      • Growth and Monetization of IP Video
      • Mobile Video Consumption and Revenue
      • Social Media Growth
      • M&A: Consolidating nascent, fragmented markets
      © The Business of Entertainment LLC
    • 23. Experiential Continuum … © The Business of Entertainment LLC Time Quality Variety Place Mobile Devices DVR’s and IP Video IPTV, HDTV, Social Media Content in the Cloud
    • 24. Changing Consumptions Patterns …
      • Increased
      • Consumption
      • 10hr/wk 1920
      • 20hr/wk 1940
      • 40hr/wk 1970
      • 80hr/wk 2010
      20 yrs 30 yrs 40 yrs © The Business of Entertainment LLC
    • 25. Emerging Markets and IPTV are Creating Growth in Traditional Consumption Channels… Source: ABIresearch
      • Increased consumer interest in personalized video viewing experience, interactive and premium content and 3D digital video
      • Increased demand from service providers for sophisticated and versatile digital video processing systems required to deliver video to subscribers on a number of different devices in a number of different formats
      • As the IPTV market matures, many innovations are emerging, including Over-the-Top Video applications to supplement video-on-demand offerings; technical upgrades for DVRs, High-definition programming, MPEG-4/H.264, first class system integration and adaptive streaming
      © The Business of Entertainment LLC
    • 26. IP Video is Growing Rapidly…
      • In 2010, 66.7% of U.S. Internet users, or 147.5 million people, will watch some form of online video content at least once per month.
      • By 2014, the number of U.S. online video viewers will represent 77 percent of Internet users, or 193.1 million people.
      • U.S. online video ad spending will jump 48.1 percent in 2010, reaching $1.5 billion.
      • By 2014, U.S. spending on video advertising is expected to reach $5.5 billion.
      © The Business of Entertainment LLC
    • 27. With Monetization On Par With Traditional TV… Near Parity is expected 2011 © The Business of Entertainment LLC
    • 28. Mobile Video Consumption is Soaring…
      • The population of mobile video viewers in the US will reach 56.7 million in 2014
      • Mobile video revenues will roughly triple between 2009 and 2014, rising from $436 million to $1.34 billion
      U.S. Mobile Video Revenue Source: eMarketer © The Business of Entertainment LLC
    • 29. Creating Huge New Markets…
      • Global Mobile Video Revenue
      U.S. Mobile Video Revenue Source: eMarketer © The Business of Entertainment LLC
    • 30. With Social Media a Potentially Disruptive Force… © The Business of Entertainment LLC
    • 31. Generating Interactive Marketing Spending © The Business of Entertainment LLC
    • 32. M&A, While Down… World U.S.
      • Few recent deals
        • HuffingtonPost.com by AOL ($315 million)
        • DivX by Sonic Solutions ($325 million), then Sonic Solutions by Rovi ($763 million)
        • Marvel Entertainment, Inc. by The Walt Disney Company ($4.2 billion)
        • Busch Entertainment by Blackstone Capital Partners ($2.7 billion)
        • Kit Digital – ioko ($78M); KickApps ($45M); Polymedia ($34M); Kewego ($27M); Kyte ($6M)
      © The Business of Entertainment LLC
    • 33. Continues to Transform Digital Media…
      • Despite fewer high-dollar deals in 2010, the total number of deals has been rising steadily since 2009
      • Industry consolidation is being driven by the industry/sector boundaries and the migration of other industries to “smart” digital media products
      • Consistent with prior years, the most active Media and Entertainment sectors were Internet Software & Services (B2B and B2C): 247 total deals, or 35% of total M&E volume
        • Source : Ernst & Young Global Technology M&A Update
      © The Business of Entertainment LLC
    • 34. Recent Major Transactions © The Business of Entertainment LLC Source: Covington | Associates
    • 35. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 36. Opportunities :: Challenges (2010-2014) © The Business of Entertainment LLC OPPORTUNITIES CHALLENGES Proliferation of Consumption Options
      • Accelerated Timeline
      • Shortened Production Cycles
      • Compressed Release Windows
      New Business Models
      • Complex Interactions
      • Ecosystem Interactions
      • Transactions and Personalization
      New Monetization Opportunities
      • Maintaining Interoperability
      • Content
      • Commerce
      • Community
    • 37. Proliferation of Viewing Options “ Too Many Choices” OTT Video Internet Enabled TV Games Tablet And Mobile Images from Fast Company - 2010-Oct-21 © The Business of Entertainment LLC
    • 38. Accelerated Timelines
      • Shortened Production Cycles
      • Integration of UGC into news, live TV, online, IPTV
      • Response to compressed release windows
      • Response to faster adoption of new technologies
      • Compressed Release Windows
      • Steadily shrinking due to proliferation of online options
      • Need to monetize “long-tail” content to achieve ROI
      © The Business of Entertainment LLC
    • 39. Shortened Production Cycles
      • Many sources of content
      • Live feeds
      • User Contributed / UGC
      • Archive
      • Competition for eyeballs
      • UGC on internet
      • Hyper-syndication
      • Multiple output formats
      © The Business of Entertainment LLC
    • 40. Compressed Release Windows Even though box office revenue rises, release windows shrink Source: MPAA Website © The Business of Entertainment LLC
    • 41. New Business Models … an example From watching movies with Facebook credits (virtual currency) … to $30 PPV to watch movies at home 60 days after theatrical release © The Business of Entertainment LLC
    • 42. Leading to Complex Interactions
      • Example:
      • Interactions in the Online Video Advertising Ecosystem
      © The Business of Entertainment LLC
    • 43. Personal Info –vs- Targeting © The Business of Entertainment LLC
      • The more personal the device, the less willing consumers are to give personal data
      • For TV ads, 1 in 5 is willing to provide personal data for better targeting
      • Consumers do not want mobile ads
      • Adults over 55 are twice as likely to object to providing personal data as 18-34 yr olds
      • Only 1 in 3 young adults (18-34) truly object to providing personal data for relevance
      • 1 in 4 aged 18-34 proactively desire relevance
      Source: Parks Associates
    • 44. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 45. Technology Success Factors © The Business of Entertainment LLC CHALLENGE TECHNOLOGY REQUIREMENT
      • Accelerated Timeline
      • Shortened Production Cycles
      • Compressed Release Windows
      • Reconfigurable SOA and Processes
      • Advanced Parallel Workflow Systems
      • Integrated Back-End Commerce Systems
      • Complex Interactions
      • Ecosystem Interactions
      • Transactions
      • Flexible and Robust System Interfaces
      • Secure, Configurable Media Delivery Systems
      • Integrate Commerce Metadata with Content
      • Maintaining Interoperability
      • Content
      • Commerce
      • Community
      • Middleware to Bridge Systems
      • Flexible Auto-Transcoding; New Authoring Tools
      • Rights Management and Payment Processing
      • Social Media Integration; Scalable Enterprise IT
    • 46. Business Success Factors © The Business of Entertainment LLC CHALLENGE BUSINESS REQUIREMENT
      • Accelerated Timeline
      • Shortened Production Cycles
      • Compressed Release Windows
      • Capital Efficiency
      • Multi-Source Distributed Business Models
      • Increase Enterprise IT and Workflow Management
      • Complex Interactions
      • Ecosystem Interactions
      • Transactions
      • New Workflow and Revenue Tracking
      • Intelligent Taxonomies for B2B Supply Chain
      • Integrate e-Commerce and Analytics for B2C
      • Maintaining Interoperability
      • Content
      • Commerce
      • Community
      • Standards-Based Experience
      • Leverage the work of DECE
      • Prepare for more focus on back-end integration
      • Focus on new ways to engage communities
    • 47. Service Oriented Architecture (example) © The Business of Entertainment LLC Sony Media Backbone Conductor
      • SOA facilitates integration
      • A/V files shared on Media Bus
      • Reconfigurable services on demand
      • Functional workflow management
      Source: Sony Electronics
    • 48. Post Production Market: 2010-2014
      • Market Concentration
        • Large Post Houses account for 70% of total revenue
        • Medium Size account for 23% of total revenue
        • Small Post Houses represent about 7% of total revenue
        • Very small number of large companies dominate
      • Number of Companies
        • Large Post Houses: 1.6% in 2010; 1.5% in 2014
        • Medium Sized Companies: 15.4% in 2010; 28.5% by 2014
        • Small Post Houses: 83% in 2010; 70% in 2014
        • Consolidation: Med-sized acquire smaller post houses
      Sources: IBIS World, Morgan-Stanley, PwC, Annual Reports
      • Market Structure
        • Driven by Studio Release Windows
        • 80% of revenue derived from Film & TV Production
        • 15% of revenue derived from Advertising
        • Mix shifts toward Online and Mobile Advertising
      NUMBER OF POST PRODUCTION COMPANIES (by company size) © The Business of Entertainment LLC
    • 49. Agenda
      • INTRODUCTION
      • CHANGING LANDSCAPE OF NEW MEDIA
      • DRIVERS OF CHANGE : Technology, Economic
      • OPPORTUNITIES / CHALLENGES
      • KEY SUCCESS FACTORS: Technology, Business
      • CONCLUSIONS
      © The Business of Entertainment LLC
    • 50. Conclusions
      • Rate of Change is Accelerating in the Ecosystem
        • Drivers Multi-format/multi-device; Mobile; Social Network
        • Implication Content Discovery and Search increasingly important
      • Economic Landscape in Flux
        • Drivers Increasing competitive forces; economic downturn
        • Implication Capital efficiency and leveraging workflow systems
      • With Transition Comes Opportunity
        • Drivers Content is no longer “king,” consumers demand flexibility
        • Implication Quality and flexibility of experience determines who wins
      © The Business of Entertainment LLC
    • 51. THE NEW MEDIA ECOSYSTEM: Making Sense of Technology and Economics
      • Robert R Yamashita Cogentic Advisors
      • Glen W Anderson Cogentic Advisors
      © The Business of Entertainment LLC
    • 52. © The Business of Entertainment LLC

    ×