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  • 1. Making money on the web A review of business models
  • 2. What do we mean by Business models?
    • In the most basic sense, 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 by specifying where it is positioned in the value chain.
    • eCommerce will give rise to new kinds of business models. But the web is also likely to reinvent tried-and-true models.
    • Auctions - The Web has popularized the auction model and broadened its applicability to a wide array goods and services.
    • Nine basic models – we can expect more…
  • 3. The nine models Broker Advertising Infomediary Retail Manufacturer Affiliate Community Subscription Pay as you go
  • 4. Broker
  • 5. Infomediary
  • 6. Retail
  • 7. Manufacturer
  • 8. Affiliate
  • 9. Community
  • 10. Subscription
  • 11. Pay as you go
  • 12. Advertising
  • 13. Doom and Gloom!
  • 14. Media scare stories..
  • 15. Online Advertising
    • Still showing growth
    • First half 2009 - £1.75 billion
    • Up 4.6% YOY on a like for like basis
    • Overall ad industry declined 16.6%
    • Online advertising is now 23.5% of the total market
    • It is now bigger than TV advertisng
  • 16. … and what about Mobile
  • 17. Its all about Apps 100,000 Apps available in the iTunes App store 2 billion downloaded 65% are games
  • 18. Where next
    • Facebook and Twitter don’t make money
    • But those working with them do…
    • Content is going to have to be paid for
    • But how since none of us want to!
  • 19. THANK YOU
  • 20. Why Multi-platform and why now?
  • 21. What do we mean multi-platform?
    • No strict definition
    • Cross platform vs. multi-platform
    • Is it about the platform or the purpose of the content
    • Is it about migration or creation?
    • Who controls the content the viewer or the broadcaster?
    • How do siloed industries that never speak to each other cope in this new world ?
  • 22. What are the key drivers of change?
    • Channel proliferation
    • Audience fragmentation
    • Broadband and wireless internet
    • Independent production
    • Convergence – 4Play
    • You Tube
    • iPlayer
    • Consumer attitudes – digital natives
  • 23. Channel proliferation and audience segmentation
  • 24. The 3 parameters of exponential online growth 1. Individual Ingenuity and Creativity 2. Increasing Speed of Connectivity 3. Decreasing Cost of Data Storage 9/10 households can get broadband 6/10 have it
  • 25. Independent Production
    • The Broadcast Act 1990 – 25% of all production has to come form independents
  • 26. Convergence
  • 27. You Tube You Tube is the 4 th most popular website in the UK September 2009
  • 28. iPlayer
  • 29. The rise of online video
    • UK internet traffic to video websites has increased by 41% in the last twelve months (Feb)
    • 29% YOY to end of July….
  • 30. The rise of online video
    • Video is a core component of the online landscape in the UK
    • Since early 2006 when You Tube was in its infancy traffic has increased 37-fold
  • 31. The rise of online video
    • iPlayer was the 20th most popular site in the UK in July 2009 overtaking MySpace taking 26% more traffic than it
    • UK internet searches for iPlayer have trebled over the last 12 months
    • It was the second most popular video site in July with over 13% of traffic
    • During July 4 of the top twenty websites were from the BBC
    • Even the Sky player saw 300% increase in traffic pushing it up to 16th in Entertainment category
  • 32. Content remains king
  • 33. Social Networking vs. Online Video
  • 34. The rise of the Digital Native
  • 35. The rise of the Digital Native
    • You want freedom in everything they do, from freedom of choice to freedom of expression
    • You love to customize, personalize
    • You are the new scrutinizers
    • You look for corporate integrity and openness when deciding what to buy and where to work
    • You want entertainment and play in their work, education, and social life
    • You are the collaboration and relationship generation
    • You have a need for speed - and not just in video games
    • You are the innovators.
  • 36. The key to Digital Natives
  • 37. What does this all mean?
    • Vanilla is dead…
    • You want your content whenever and wherever
    • Broadcasters have made it available across all available channels
    • They have made it as engaging, interactive and bite –size because your attention span is short
    • … and you have grasped the opportunity to shape and share with your communities
    • With this in mind the old rules of content creation have changed forever
  • 38. What does this all mean?
    • Its no longer just the quality of the story…
    • But the quality of the storytelling…
    • … and reaching a commercially viable audience
    • … by using the right mix of channels
    • … understanding their characteristics
    • But never forget - without great ideas it just become an efficient delivery process
    • Just like Royal Mail!
  • 39. THANK YOU