Monetising Digital Platforms & Rights

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Monetising Digital Platforms & Rights presentation delivered by Peter Cowley and Justin Judd at Vision+Media on Wednesday 14th September 2011

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Monetising Digital Platforms & Rights

  1. 1. Making Money from Digital Platforms & Rights Monetising Digital Platforms & Rights 14th September 2011 Cut Down Version for Public DistributionMonetising Digital Platforms & Rights!
  2. 2. Monetising Digital Platforms & Rights What The Blurb Said: • Current examples; what’s working & what’s making money •  What rights do you own and what can you exploit? •  What sells on new platforms? •  Opportunities in: •  social media •  broadband •  Video on Demand •  IPTV, mobile •  non-broadcast corporate •  ad-funded and branded content •  Collaborative teamwork of TV and interactive production •  International opportunities •  Future trends in the marketMonetising Digital Platforms & Rights!
  3. 3. Who We Are Peter Cowley •  Founder & CEO, Spirit digital media •  peter@spiritdigitalmedia.com •  Twitter: @petercowley Justin Judd •  MD, i-Rights •  Justin.judd@i-rights.co.ukMonetising Digital Platforms & Rights!
  4. 4. Trends & Insights 1.  Understand Digital! 2.  Know Your Rights 3.  Understand Key Trends 4.  Understand who has made money in digital content? 5.  Understand the revenue streams: A, B, C, D 6.  The Digital Wheel of Value 7.  Build a customer/fan base 8.  Analyse & Iterate 9. Build Partnerships 10. FuturologyMonetising Digital Platforms & Rights!
  5. 5. Understanding Digital – dynamics of digital You don’t need to be a digital ‘native’ to understand digital, but……..digital is: 1.  Economically ‘Efficient’ - easily replicable, easily distributed 2. Massively expands choice (and reduces scarcity) - content becomes commodified 3. Deflationary - analogue dollars vs. digital pennies 4.  Decentralises control - highly fragmentedMonetising Digital Platforms & Rights!
  6. 6. Web 2.0 - tail •  The web can give obscure titles a new lease of life •  But it tends to enhance the global market for top performing titles •  It tend to punish mediocrity •  This risks content investment •  The risk profile of TV, audio and games content may become more like that of feature filmsMonetising Digital Platforms & Rights!
  7. 7. Digital Overview – 3 ways to make money 1.  I pay 2.  You Pay 3.  Someone Else Pays Reference: A, B, C, D of revenue streamsMonetising Digital Platforms & Rights!
  8. 8. Digital Trends – affecting TV now Technological Change Business Model Changes 1.  Video On Demand 7.  Video advertising 2.  Connected TV 8.  Virtual Goods 3.  Portable Devices & App Stores 9.  The Return of Pay / Subscription Audience Behaviour 10. Experience Economy 4. Multi-Tasking 5.  The Water-Cooler is On-Line Services, not Products 6.  Social Activities: chatter, 11. Data recommendations etc. Democratisation of Production & Distribution 12. Digital Distribution/Syndication 13. Original Digital ContentMonetising Digital Platforms & Rights!
  9. 9. Monetising Digital - A, B, C, D of revenues Advertising Revenues: Consumer Revenues: -  Banners -  Participation -  Pre/mid/end rolls on video -  Virtual goods -  Sponsorship -  Mobile apps -  Product Placement -  Social games & gaming -  Search •  Subscriptions, PPV Broadcaster Revenues Distribution & Data Revenues •  Commissions •  Secondary VOD, DTO •  VOD catch up •  International VOD, DTO •  Other ancillary revenues •  Data collection & salesMonetising Digital Platforms & Rights!
  10. 10. Analyse & Iterate Learn from your customers! idea 66%+ of social game development comes after a game launches on Facebook build iterate analyseMonetising Digital Platforms & Rights!
  11. 11. Collaborative Team Working Need to combine the expertise of the worlds of TV & Digital……and not to keep them separate, otherwise we will never keep up with the consumer Major problems occur from: •  Lack of understanding of each other •  Lack of respect for each other’s skills •  TV is still so big in comparison to digital To succeed production companies need to: •  Audience insight •  Adapt their culture •  Invest in the right skillsMonetising Digital Platforms & Rights!
  12. 12. Part Two Digital SuccessMonetising Digital Platforms & Rights!
  13. 13. Digital Hits – the rise of the branded app James Oliver app •  created a land grab for Food on the mobile: Nigella, Gordon etc.Monetising Digital Platforms & Rights!
  14. 14. Digital Hits – co-viewing, Million Pound Drop Play along web app •  Up to 8% conversion rate from TV/Web (versus 1% for Come Dine With Me) •  No monetisation, but adds to TV show engagement etc. grows base of Facebook users etc. •  Brand exploitation via other games…..Bet365 and others Money Drop On Bet365Monetising Digital Platforms & Rights!
  15. 15. Digital Hits - video YouTube Hits: Fred 536m views w/wide 900k views in last week Fred: The Movie, premiered on Nickelodeon Sep 18 2010 and drew an audience of 7.6m, 1.8m subscribers making it the number 1 children’s cable tvMonetising Digital Platforms & Rights! movie of 2010
  16. 16. Digital Hits – eBooks John Locke Story: •  First author to sell more than a million electronic books on the American Kindle platform without a publishing deal •  Now signed a physical book deal with Simon & SchusterMonetising Digital Platforms & Rights!
  17. 17. Digital Hits – virtual world Moshi Monsters Story: •  Mind Candy developed Perplex City, an ARG •  Tried to launch kids cuddly toys in shops linked to virtual world •  Virtual world stalled until it became social and marketed via TV •  Now global hit: 50m users •  Just about to release single on iTunes: ‘Monshi Dance’ Radio interviewMonetising Digital Platforms & Rights!
  18. 18. Summary •  Making money from digital platforms & rights is an immature business…..but the dynamics need to be understood •  Terms of Trade gives the TV market some structure and producers some rights! •  Audiences are heavily fragmented, but can be now be reached via social media and hyper-syndication •  Lots of change, but how so we make money from content production? •  Economic climate makes it particularly hard at the moment •  There are some great success stories, but having a ‘hit’ show makes making money easier to achieve •  Partner with experts: distribution, advertising sales, technical…Monetising Digital Platforms & Rights!
  19. 19. Making Money from Digital Platforms & Rights Monetising Digital Platforms & Rights 14th September 2011Monetising Digital Platforms & Rights!

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