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

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

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

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

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