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Entertainment Company
Business Model Canvas -
Case Rovio
Strategy Case Study
1© Jukka Ala-Mutka / jukkaam.com / @jukkaam
From games to
entertainment
company
2
Case Rovio Entertainment
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Rovio Entertainment Ltd
• Rovio is a global industry-changing entertainment media
company headquartered in Finland, and the creator of the
globally successful Angry Birds™ characters franchise.
• Angry Birds, a casual puzzle game, became an international
phenomenon within a few months of its release.
• Angry Birds has expanded rapidly into multifaceted
entertainment, publishing, and licensing to become a
beloved international brand.
• www.rovio.com
3
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Rovio did over 50 games
before they change their
strategy towards
entertainment company
4© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Reference brands
• Hello Kitty
• http://en.wikipedia.org/wiki/Hello_Kitty
• http://www.hellokitty.com/
• SpongeBob SquarePants
• http://en.wikipedia.org/wiki/SpongeBob_SquarePants
• http://spongebob.nick.com/
• Disney’s brands e.g. Cars
• http://en.wikipedia.org/wiki/Cars_(franchise)
• http://cars.disney.com/
5© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Typical products of
entertainment company
• Comic Books, Films & music
• Theme park rides
• Video games
• Merchandise
• T-Shirt, poster, board games, dolls & plush toys,
deal with fast food restaurants, food &
bewerages, electronics, clothing, school supplies,
jewelery, etc.
6© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Revenue (profit)
• 2015: 142 million (-13 m€)
• 2014: 158 million (10 m€)
• 2013: 173 million (36 m€)
• 2012: 152 million (77 m€)
• 2011: 75 million (47 m€)
• 2010: 6.5 million (3 m€)
• Comparison:
• By 2008, Hello Kitty was responsible for half of Sanrio's
$1 billion revenue and there were over 50,000 different
Hello Kitty branded products in more than 60 countries.
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 7
Source:
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-
reports-2013-financial-results
http://www.independent.co.uk/news/world/asia/top-cat-how-hello-kitty-
conquered-the-world-831522.html
Movie, Box
office 347
million
USD
(10/2016)
We’re creating long lasting
business, and strongly believe
our entertainment strategy will
consolidate Rovio’s position as
one of the world’s most beloved
brands”, added Mikael Hed,
Rovio’s CEO.
8
Case Rovio Entertainment
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Entertainment company’s customers
• Customers are grouped into five
groups as follows:
• Four groups based on customer life
cycle and one group is a partner
network.
• Customer’s life cycle is the key
concept for products and
games.
• Brand awareness in each group is vital
and also the links between customer
groups.
• For example grandparents buys Angry
Birds toys to their grandchild.
9© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Value Proposition & Key Products
• Key Products are targeted
according to customer’s life
cycle
• Children & school aged are
linked with parents and
grandparents
• Mobile Games are mainly
targeted to teens and adults
• Brand awareness creates an
attractive platform for sales
growth for partners
10© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Value Proposition linked to Key
Activities, Partners and Resources
11© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Angry Birds has exceeded
2 billion downloads so far,
making it the most
downloaded game brand
ever.
12
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Rovio thinks the pirates are
helping promote its brand
— “so long as the product
is well made.”
13
https://econsultancy.com/blog/8841-angry-birds-maker-doesn-t-sweat-piracy
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Must-Win Battle #1: Brand Awareness
14© Jukka Ala-Mutka / jukkaam.com / @jukkaam
We built the biggest
animation studio in the
Nordics for the production
of animated TV content,
bringing to market 42
Angry Birds Toons
episodes in its first year.
15
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 16
https://www.youtube.com/watch?v=hXeso-I9AFc&feature=youtu.be
Must-Win Battle #2: The Story
17© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Rovio Entertainment is
partnering with great
companies of consumer
products business: Hasbro
(toys), Pez (candy), Natrol
(multivitamins),… with
existing base over 500
companies.
18
http://www.rovio.com/en/news/blog/316/rovio-entertainment-expands-its-consumer-products-initiatives
http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Rovio’s Consumer Products
business continued to
perform strongly,
accounting for 47% of total
revenue in 2013.
19
http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Must-Win Battle #3: Quality and sales
volume via partners
20© Jukka Ala-Mutka / jukkaam.com / @jukkaam
June 17, 2013 - Hasbro,
Inc. and Rovio
Entertainment today
announced an expanded
licensing agreement =>
new toys and games are
planned for fall 2013
21
http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Must-Win Battle #4: Growth capability
(Process)
22© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Must-Win Battles
23
1# Global
visibility (Brand
awareness)
2# The Story
(Loyalty)
3# Quality of
Partners
(Partners)
4# Growth
(Process)
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Instead of costing a dollar
or two to download, Rovio's
new game, Angry Birds Go,
will be what's dubbed "free
to play…. our future
direction, where we are
thinking more of games as
free-to-play"
24
http://www.inc.com/christine-lagorio/angry-birds-go-follow-the-money.html
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Costs & Revenues
• Free-to-play games give players access to a
significant portion of content for free
• The Key revenue source should be merchandise
with partners via resellers (Costs & Revenues)
• Also high volume of regular players are targets
for advertisements
25© Jukka Ala-Mutka / jukkaam.com / @jukkaam
The whole BMC Model
26
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Customer-driven approach to
business modeling
12
3
4
56
78
9
1. Customers
2. Value Proposition
3. Revenue Streams
4. Channels
5. Customer
Relationships
6. Activities
7. Resources
8. Partners
9. Cost Structure
27© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Author
@jukkaam
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 28
Contact:
https://jukkaam.com/businesscard
Serial entrepreneur,
speaker, scientist and
consultant
Contact me for
assignments:
• Consulting & Training
• Keynote Speaker
• Board Member
• Co-Founder

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Business Model Canvas of Entertainment Company - Case Rovio Entertainment

  • 1. Entertainment Company Business Model Canvas - Case Rovio Strategy Case Study 1© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 2. From games to entertainment company 2 Case Rovio Entertainment © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 3. Rovio Entertainment Ltd • Rovio is a global industry-changing entertainment media company headquartered in Finland, and the creator of the globally successful Angry Birds™ characters franchise. • Angry Birds, a casual puzzle game, became an international phenomenon within a few months of its release. • Angry Birds has expanded rapidly into multifaceted entertainment, publishing, and licensing to become a beloved international brand. • www.rovio.com 3 http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 4. Rovio did over 50 games before they change their strategy towards entertainment company 4© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 5. Reference brands • Hello Kitty • http://en.wikipedia.org/wiki/Hello_Kitty • http://www.hellokitty.com/ • SpongeBob SquarePants • http://en.wikipedia.org/wiki/SpongeBob_SquarePants • http://spongebob.nick.com/ • Disney’s brands e.g. Cars • http://en.wikipedia.org/wiki/Cars_(franchise) • http://cars.disney.com/ 5© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 6. Typical products of entertainment company • Comic Books, Films & music • Theme park rides • Video games • Merchandise • T-Shirt, poster, board games, dolls & plush toys, deal with fast food restaurants, food & bewerages, electronics, clothing, school supplies, jewelery, etc. 6© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 7. Revenue (profit) • 2015: 142 million (-13 m€) • 2014: 158 million (10 m€) • 2013: 173 million (36 m€) • 2012: 152 million (77 m€) • 2011: 75 million (47 m€) • 2010: 6.5 million (3 m€) • Comparison: • By 2008, Hello Kitty was responsible for half of Sanrio's $1 billion revenue and there were over 50,000 different Hello Kitty branded products in more than 60 countries. © Jukka Ala-Mutka / jukkaam.com / @jukkaam 7 Source: http://www.rovio.com/en/news/press-releases/495/rovio-entertainment- reports-2013-financial-results http://www.independent.co.uk/news/world/asia/top-cat-how-hello-kitty- conquered-the-world-831522.html Movie, Box office 347 million USD (10/2016)
  • 8. We’re creating long lasting business, and strongly believe our entertainment strategy will consolidate Rovio’s position as one of the world’s most beloved brands”, added Mikael Hed, Rovio’s CEO. 8 Case Rovio Entertainment http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 9. Entertainment company’s customers • Customers are grouped into five groups as follows: • Four groups based on customer life cycle and one group is a partner network. • Customer’s life cycle is the key concept for products and games. • Brand awareness in each group is vital and also the links between customer groups. • For example grandparents buys Angry Birds toys to their grandchild. 9© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 10. Value Proposition & Key Products • Key Products are targeted according to customer’s life cycle • Children & school aged are linked with parents and grandparents • Mobile Games are mainly targeted to teens and adults • Brand awareness creates an attractive platform for sales growth for partners 10© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 11. Value Proposition linked to Key Activities, Partners and Resources 11© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 12. Angry Birds has exceeded 2 billion downloads so far, making it the most downloaded game brand ever. 12 http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 13. Rovio thinks the pirates are helping promote its brand — “so long as the product is well made.” 13 https://econsultancy.com/blog/8841-angry-birds-maker-doesn-t-sweat-piracy © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 14. Must-Win Battle #1: Brand Awareness 14© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 15. We built the biggest animation studio in the Nordics for the production of animated TV content, bringing to market 42 Angry Birds Toons episodes in its first year. 15 http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 16. © Jukka Ala-Mutka / jukkaam.com / @jukkaam 16 https://www.youtube.com/watch?v=hXeso-I9AFc&feature=youtu.be
  • 17. Must-Win Battle #2: The Story 17© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 18. Rovio Entertainment is partnering with great companies of consumer products business: Hasbro (toys), Pez (candy), Natrol (multivitamins),… with existing base over 500 companies. 18 http://www.rovio.com/en/news/blog/316/rovio-entertainment-expands-its-consumer-products-initiatives http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 19. Rovio’s Consumer Products business continued to perform strongly, accounting for 47% of total revenue in 2013. 19 http://www.rovio.com/en/news/press-releases/495/rovio-entertainment-reports-2013-financial-results © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 20. Must-Win Battle #3: Quality and sales volume via partners 20© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 21. June 17, 2013 - Hasbro, Inc. and Rovio Entertainment today announced an expanded licensing agreement => new toys and games are planned for fall 2013 21 http://www.rovio.com/en/news/press-releases/315/hasbro-and-rovio-enter-into-expanded-angry-birds-licensing-agreement/2013 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 22. Must-Win Battle #4: Growth capability (Process) 22© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 23. Must-Win Battles 23 1# Global visibility (Brand awareness) 2# The Story (Loyalty) 3# Quality of Partners (Partners) 4# Growth (Process) © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 24. Instead of costing a dollar or two to download, Rovio's new game, Angry Birds Go, will be what's dubbed "free to play…. our future direction, where we are thinking more of games as free-to-play" 24 http://www.inc.com/christine-lagorio/angry-birds-go-follow-the-money.html © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 25. Costs & Revenues • Free-to-play games give players access to a significant portion of content for free • The Key revenue source should be merchandise with partners via resellers (Costs & Revenues) • Also high volume of regular players are targets for advertisements 25© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 26. The whole BMC Model 26 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 27. Customer-driven approach to business modeling 12 3 4 56 78 9 1. Customers 2. Value Proposition 3. Revenue Streams 4. Channels 5. Customer Relationships 6. Activities 7. Resources 8. Partners 9. Cost Structure 27© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  • 28. Author @jukkaam © Jukka Ala-Mutka / jukkaam.com / @jukkaam 28 Contact: https://jukkaam.com/businesscard Serial entrepreneur, speaker, scientist and consultant Contact me for assignments: • Consulting & Training • Keynote Speaker • Board Member • Co-Founder