Making Money from Digital Platforms & Rights Monetising Digital Platforms & Rights 14th September 2011 Cut Down Version for Public DistributionMonetising Digital Platforms & Rights!
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!
Who We Are Peter Cowley • Founder & CEO, Spirit digital media • firstname.lastname@example.org • Twitter: @petercowley Justin Judd • MD, i-Rights • Justin.email@example.comMonetising Digital Platforms & Rights!
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!
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!
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!
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!
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!
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!
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!
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!
Part Two Digital SuccessMonetising Digital Platforms & Rights!
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!
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!
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
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!
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!
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!
Making Money from Digital Platforms & Rights Monetising Digital Platforms & Rights 14th September 2011Monetising Digital Platforms & Rights!