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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 th...
Rovio did over 50 games
before they change their
strategy towards
entertainment company
4© Jukka Ala-Mutka / jukkaam.com /...
Reference brands
• Hello Kitty
• http://en.wikipedia.org/wiki/Hello_Kitty
• http://www.hellokitty.com/
• SpongeBob SquareP...
Typical products of
entertainment company
• Comic Books, Films & music
• Theme park rides
• Video games
• Merchandise
• T-...
Revenue (profit)
• 2015: 142 million (-13 m€)
• 2014: 158 million (10 m€)
• 2013: 173 million (36 m€)
• 2012: 152 million ...
We’re creating long lasting
business, and strongly believe
our entertainment strategy will
consolidate Rovio’s position as...
Entertainment company’s customers
• Customers are grouped into five
groups as follows:
• Four groups based on customer lif...
Value Proposition & Key Products
• Key Products are targeted
according to customer’s life
cycle
• Children & school aged a...
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.co...
Rovio thinks the pirates are
helping promote its brand
— “so long as the product
is well made.”
13
https://econsultancy.co...
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
Angr...
© 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
(...
Rovio’s Consumer Products
business continued to
perform strongly,
accounting for 47% of total
revenue in 2013.
19
http://w...
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...
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# Gro...
Instead of costing a dollar
or two to download, Rovio's
new game, Angry Birds Go,
will be what's dubbed "free
to play…. ou...
Costs & Revenues
• Free-to-play games give players access to a
significant portion of content for free
• The Key revenue s...
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. Chann...
Author
@jukkaam
© Jukka Ala-Mutka / jukkaam.com / @jukkaam 28
Contact:
https://jukkaam.com/businesscard
Serial entrepreneu...
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Business Model Canvas of Entertainment Company - Case Rovio Entertainment

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The analysis is made by the Author. Analysis based on purely public data from the case company.
The structure of the analysis is based on so called Business Model Canvas and strategy as a visual model
The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances.

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

Published in: Business, Technology
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Business Model Canvas of Entertainment Company - Case Rovio Entertainment

  1. 1. Entertainment Company Business Model Canvas - Case Rovio Strategy Case Study 1© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  2. 2. From games to entertainment company 2 Case Rovio Entertainment © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  3. 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. 4. Rovio did over 50 games before they change their strategy towards entertainment company 4© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  5. 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. 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. 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. 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. 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. 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. 11. Value Proposition linked to Key Activities, Partners and Resources 11© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  12. 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. 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. 14. Must-Win Battle #1: Brand Awareness 14© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  15. 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. 16. © Jukka Ala-Mutka / jukkaam.com / @jukkaam 16 https://www.youtube.com/watch?v=hXeso-I9AFc&feature=youtu.be
  17. 17. Must-Win Battle #2: The Story 17© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  18. 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. 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. 20. Must-Win Battle #3: Quality and sales volume via partners 20© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  21. 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. 22. Must-Win Battle #4: Growth capability (Process) 22© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  23. 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. 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. 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. 26. The whole BMC Model 26 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  27. 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. 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

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