FITC Hollywood 2006


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Presentation titled "Publishing, Flash and the PSP: Real World Perspective" given by Blaine Graboyes at FITC Hollywood 2006

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FITC Hollywood 2006

  1. 1. Publishing, Flash and the PSP <ul><li>Introduction / Overview </li></ul><ul><li>PlayStation Portable </li></ul><ul><li>Flash for the PSP </li></ul><ul><li>Distribution Economics </li></ul>Real World Perspective
  2. 2. Hi, my name is Blaine <ul><li>Media Architect </li></ul><ul><ul><li>Creative + Technical + Business </li></ul></ul><ul><ul><li>13 Yrs of New Media Production Experience </li></ul></ul><ul><li>President - Silver Platter </li></ul><ul><ul><li>The Indie UMD Label </li></ul></ul><ul><ul><li> </li></ul></ul><ul><li>Consultant - Scope Seven </li></ul><ul><ul><li>Entertainment, Games, Education </li></ul></ul><ul><ul><li> </li></ul></ul>
  3. 3. Silver Platter <ul><li>Silver Platter is the first independent UMD label. Founded in the summer of 2005 by industry professionals, we saw a unique opportunity to acquire, convert and release a diverse range of content selected specifically for handheld viewing. </li></ul>
  4. 4. The DC Video wins IGN Award <ul><li>“...sets a new standard” is what the most respected site in gaming has to say </li></ul>
  5. 5. #1 Download @ Sony Connect
  6. 6. Scope Seven <ul><li>Scope Seven is a privately held media production and design company, providing world-class technical and creative services to select companies in the entertainment, games and education industries. </li></ul><ul><li>Recent Clients Include: </li></ul><ul><ul><li>Warner Bros., Mattel, Lions Gate, New Line, LeapFrog, New Line, BBC, Fox, SBG / bEQUAL </li></ul></ul><ul><li>Development Platforms: </li></ul><ul><ul><li>DVD, HD-DVD, Blu Ray, DVD Games, DVR & Settop Box Games, PSP, Broadband Games </li></ul></ul>
  7. 7. video/games <ul><li>video-rich games </li></ul><ul><li>casual interactive entertainment </li></ul><ul><ul><li>DVD Games </li></ul></ul><ul><ul><li>DVR Games </li></ul></ul><ul><ul><li>Broadband Games </li></ul></ul><ul><ul><li>Next-Gen Consoles </li></ul></ul><ul><ul><li>Virtual Worlds </li></ul></ul><ul><ul><li>Interactive TV </li></ul></ul>
  8. 8. Universal Awareness
  9. 9. PSP Overview <ul><li>Designed and built by Sony (SCEI) </li></ul><ul><li>333MHz processor with 32MB RAM </li></ul><ul><li>Photo, Music, Video, Games and Online </li></ul><ul><li>480x272 progressive scan display (16x9 ratio) </li></ul><ul><li>Playback from UMD Disc or Memory Stick </li></ul><ul><li>Built-in WiFi LAN (802.11b) & Web Browser </li></ul><ul><ul><li>Ad-hoc and Infrastructure Modes </li></ul></ul><ul><li>Stereo Speakers, USB 2.0, Memory Stick, irDA, IR Remote -- GPS, Camera, Keyboard and other capabilities forthcoming </li></ul>
  10. 10. The DC Video UMD
  11. 11. Sony’s Plans for the PSP <ul><li>PS1 has sold 100 million units and PS2 is on track to also sell 100 million units </li></ul><ul><li>Sony plans to sell 100 million PSPs </li></ul><ul><ul><li>17 million PSPs are in the market as of today </li></ul></ul><ul><li>Current pricing is $199 for the Core Pack </li></ul><ul><ul><li>Future pricing is expected to be $100 in 2007 </li></ul></ul>
  12. 12. Who is the Audience? <ul><li>We know the audience is not watching feature-length movies and instead is away from home ...on a skateboard , in a car, plane, or with friends </li></ul><ul><li>Whether 16 or 30 years old, they are looking for an entertainment experience that is as fun to watch for 5 minutes as an hour and over again </li></ul><ul><ul><li>Primary Targets guys 16 years old </li></ul></ul><ul><ul><li>guys 30+ years old </li></ul></ul><ul><ul><li>Secondary Targets families / parents </li></ul></ul><ul><ul><li>girls 16 to 35 years old </li></ul></ul>
  13. 13. PSP Target Owner = 16 Yrs Old Source: Sony DADC
  14. 14. Made for our Audience <ul><li>Silver Platter licenses & produces content specifically for the mobile media market </li></ul><ul><ul><li>Designed for “ media snacking ” and combining innovative, easy-to-navigate menus with professionally optimized audio and premium video encoding – Silver Platter delivers the highest quality UMDs, packed with Bonus Features at the fairest price possible for mobile media consumers. </li></ul></ul>
  15. 15. PSP Multimedia Usage Photos Games Music Video Source: Sony DADC
  16. 16. PSP Audience Preferences <ul><li>NDP Report on 55k PSP owner’s intent: </li></ul><ul><ul><li>nearly 2/3 own Universal Media Discs (UMD) </li></ul></ul><ul><ul><li>more than 2/5 say the ability to watch media on their PSPs was a very important factor in purchasing </li></ul></ul><ul><ul><li>media appears to be entrenched, making the right content key to capturing and retaining these consumers </li></ul></ul><ul><ul><li>1/3 of PSP users who don't own UMDs said they are likely to purchase a UMD in the near future </li></ul></ul><ul><ul><li>PSP users state the main barrier to purchasing UMDs is price, followed by the available selection </li></ul></ul><ul><ul><li>average customers say they don't necessarily care about the format in which content is provided </li></ul></ul>
  17. 17. Web 2.0 Pioneers <ul><li>UMD is web technology on a little disc </li></ul><ul><ul><li>MPEG-4 video </li></ul></ul><ul><ul><li>JavaScript for menus </li></ul></ul><ul><ul><li>XML for playlists </li></ul></ul><ul><li>Innovations developed for PSP translate to computers, phones and future devices </li></ul><ul><li>Business will evolve to digital distribution </li></ul><ul><ul><li>Sony Connect - </li></ul></ul>
  18. 18. Flash for PSP : Overview <ul><li>Capability as of September 2006 </li></ul><ul><li>Engine Options </li></ul><ul><ul><li>Native Player </li></ul></ul><ul><ul><ul><li>Firmware 2.7 and above </li></ul></ul></ul><ul><ul><ul><li>Shipped April 23, 2006 </li></ul></ul></ul><ul><ul><ul><li>Supports Flash Player 6 (details…) </li></ul></ul></ul><ul><ul><li>Oregan Networks </li></ul></ul><ul><ul><ul><li>Custom Render Engine </li></ul></ul></ul><ul><ul><ul><li>Available for Current Projects </li></ul></ul></ul><ul><ul><ul><li>Supports Flash Player 7 (details…) </li></ul></ul></ul>
  19. 19. Native Player : Overview <ul><li>Enabled within native System Setup </li></ul><ul><ul><li>Only supported via Web Browser </li></ul></ul><ul><li>Supported Features </li></ul><ul><ul><li>Flash Player 6 (6,0,72,27) </li></ul></ul><ul><ul><li>Mouse, Keyboard, Data Input, Fonts, Sound </li></ul></ul><ul><li>Non-Supported Features </li></ul><ul><ul><li>Clipboard, Video Playback, Context Menu, Printing, Live Connect, FCS/FMS, XMLSocket, Transparent Backgrounds </li></ul></ul>
  20. 20. Native Player : Issues <ul><li>Frame rate between 18-24 fps </li></ul><ul><li>Large size Flash contents cannot be played </li></ul><ul><ul><li>The size of the content should be within 1.5 MB </li></ul></ul><ul><li>External file loading different from PCs </li></ul><ul><ul><li>Load completion must be confirmed. </li></ul></ul><ul><li>PSP has 5 font sizes, same as the Browser </li></ul><ul><li>Mouseout Event may not occur as expected </li></ul><ul><li>Restrictions deep nesting ActionScript </li></ul><ul><li>Speedometer Test </li></ul><ul><ul><li> </li></ul></ul>
  21. 21. Oregan Networks : Overview <ul><li>3rd Party Flash Render Engine </li></ul><ul><ul><li>Developer & Licensing Fees apply </li></ul></ul><ul><ul><li> (Reed Hinkel - contact) </li></ul></ul><ul><li>Supported Features </li></ul><ul><ul><li>Flash 7.0 content rendering </li></ul></ul><ul><ul><li>ActionScript 2.0 support </li></ul></ul><ul><ul><li>JavaScript to ActionScript control API </li></ul></ul><ul><ul><li>Highly optimised integer-based code for maximum performance on embedded platforms </li></ul></ul><ul><ul><li>Small Executable Footprint - 500 KB </li></ul></ul>
  22. 22. Some Flash PSP Websites <ul><li>Newgrounds </li></ul><ul><ul><li> </li></ul></ul><ul><li>ARComics </li></ul><ul><ul><li> </li></ul></ul><ul><li>PSP Cave </li></ul><ul><ul><li> </li></ul></ul><ul><li>PSP 411 </li></ul><ul><ul><li> </li></ul></ul><ul><li>Fingertime </li></ul><ul><ul><li> </li></ul></ul>
  23. 23. Newgrounds PSP Stats <ul><li>Thanks to Tom Fulp at </li></ul><ul><ul><li>500,000 visitors per day </li></ul></ul><ul><ul><li>Largest and oldest Flash portal </li></ul></ul><ul><ul><li>Since launching PSP portal - May’06 </li></ul></ul><ul><ul><li>139,594 Wallpaper downloads for the PSP </li></ul></ul><ul><ul><li>670,585 Video downloads for the PSP </li></ul></ul><ul><ul><li>5,000+ page serves to PSP, each day (1%) </li></ul></ul><ul><ul><ul><li>Include Flash streaming portal </li></ul></ul></ul>
  24. 24. PSP Flash Possibilities <ul><li>Instant Messenger </li></ul><ul><li>Games (Download & Online) </li></ul><ul><li>Education and Training </li></ul><ul><ul><li>Andover Prep SAT Course from Silver Platter </li></ul></ul><ul><li>GPS Accessory - Available Fall 2006 </li></ul><ul><li>PSP Keyboard - Coming Spring 2007 </li></ul><ul><ul><li>FITC Contest for Keyboard Development </li></ul></ul><ul><li> Contest </li></ul><ul><ul><li> </li></ul></ul>
  25. 25. PSP Video Options <ul><li>Download </li></ul><ul><ul><li>MPEG-4 </li></ul></ul><ul><ul><ul><li>MP4 & AVC (w/ or w/o DRM) </li></ul></ul></ul><ul><li>Streaming </li></ul><ul><ul><li>LocationFree TV from Sony </li></ul></ul><ul><ul><li>Neuros PSP Video Streaming Device </li></ul></ul><ul><li>Flash Video </li></ul><ul><ul><li>Not Supported via Native Player </li></ul></ul><ul><ul><li>Playback from UMD / MemStick via Oregan </li></ul></ul>
  26. 26. Silver Platter Flash Plans <ul><li>Andover Prep SAT Course for PSP </li></ul><ul><ul><ul><li> </li></ul></ul></ul><ul><ul><li>Developing in Flash for PSP and Phones </li></ul></ul><ul><ul><li>Scheduled for Fall 2007 Release </li></ul></ul><ul><ul><li>Interactive SAT Training </li></ul></ul><ul><ul><ul><li>Video + Q&A, Scored Tests, Flashcards, Vocabulary </li></ul></ul></ul><ul><li>Flash UMD Titles </li></ul><ul><ul><li>Video, Games, Travel Guides, Comics, etc. </li></ul></ul><ul><li>Flash PSP Utilities (tbd) </li></ul>
  27. 27. PSP Programming <ul><li>Tutorial by FLUFF </li></ul><ul><li>Flash Audio Player for PSP </li></ul><ul><ul><li>Play an external MP3 file from Memory Stick </li></ul></ul><ul><li>Original Project - </li></ul><ul><ul><li>Code Sample: </li></ul></ul><ul><ul><li>mySound = new Sound(); </li></ul></ul><ul><ul><li>mySound.loadSound(&quot;file:/PSP/MUSIC/test.mp3&quot;,true); </li></ul></ul><ul><ul><li>total = mySound.getBytesTotal(); </li></ul></ul><ul><ul><li>loaded = mySound.getBytesLoaded(); </li></ul></ul><ul><ul><li>trace(total); </li></ul></ul><ul><ul><li>trace(loaded); </li></ul></ul><ul><ul><li>trace(mySound.getBytesLoaded()); </li></ul></ul><ul><ul><li>trace(mySound.duration); </li></ul></ul><ul><ul><li>; </li></ul></ul>
  28. 29. Silver Platter Product Lines <ul><li>UMD is a standard that can be applied to a wide range of content and genres </li></ul><ul><ul><li>UMD Video </li></ul></ul><ul><ul><li>UMD Flash Games </li></ul></ul><ul><ul><li>UMD Comic Books </li></ul></ul><ul><ul><li>UMD Magazines </li></ul></ul><ul><ul><li>UMD Audio Books </li></ul></ul><ul><ul><li>UMD Travel Guides </li></ul></ul><ul><ul><li>PSP Digital Downloads </li></ul></ul><ul><ul><li>Future Devices... </li></ul></ul>
  29. 30. Worldwide Sales <ul><li>We sell UMDs wherever there are PSPs: </li></ul><ul><ul><li>Online Merchants </li></ul></ul><ul><ul><li>North America </li></ul></ul><ul><ul><li>UK & European Union </li></ul></ul><ul><ul><li>Japan </li></ul></ul><ul><ul><li>South Korea (fall) </li></ul></ul><ul><ul><li>Australia (summer) </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>UMDlab Retail </li></ul></ul>
  30. 31. Distribution Outlets <ul><li>Silver Platter manufactures at Sony in USA & Austria and provides finished goods to: </li></ul><ul><ul><li>Direct clients include; Videogame Stores, Airport Kiosks, Apparel Stores, Cell Phone Stores, Comic Shops, Core Stores, etc. </li></ul></ul><ul><ul><li>Image Entertainment - top 30 traditional </li></ul></ul><ul><ul><li>Infinity Enterprises - UK & EU exclusive </li></ul></ul><ul><ul><li>Ally Video - action sports stores </li></ul></ul><ul><ul><li> - Online </li></ul></ul><ul><ul><li>Championvisions - Japan </li></ul></ul>
  31. 32. Silver Platter Online <ul><li> </li></ul><ul><ul><li>Commerce </li></ul></ul><ul><li> </li></ul><ul><ul><li>Downloads </li></ul></ul><ul><li>PSP Formatted </li></ul><ul><li>10k visitors per day </li></ul><ul><ul><li>50% from PSPs </li></ul></ul><ul><li>B2B Site Coming </li></ul><ul><ul><li>Wholesale Orders </li></ul></ul>
  32. 33. Retail Business Structure <ul><li>Licensing Deal </li></ul><ul><ul><li>Licensee provides original master </li></ul></ul><ul><ul><li>Distributor handles all aspects of production </li></ul></ul><ul><ul><li>Licensee receives a % of sales, minus fees </li></ul></ul><ul><li>Distribution Deal </li></ul><ul><ul><li>Licensee produces finished goods </li></ul></ul><ul><ul><li>Distributor purchases and resells finished goods </li></ul></ul><ul><ul><li>Licensee receives an amount per unit </li></ul></ul>
  33. 34. Pros and Cons <ul><li>Licensing Deal </li></ul><ul><ul><li>Easy for Licensee </li></ul></ul><ul><ul><li>Not always able to control details </li></ul></ul><ul><ul><li>Success based on volume in retail </li></ul></ul><ul><li>Distribution Deal </li></ul><ul><ul><li>Licensee responsible for all aspects </li></ul></ul><ul><ul><li>More control = More work </li></ul></ul><ul><ul><li>Potential for larger income from direct sales </li></ul></ul>
  34. 35. MSRP Distribution Pricing <ul><li>Silver Platter UMD Video MSRP $15.95 </li></ul><ul><ul><li>Retail Price $15.95 </li></ul></ul><ul><ul><li>Wholesale (50%) $7.98 </li></ul></ul><ul><ul><li>Distributor (25%) $5.98 NET SALE </li></ul></ul><ul><ul><li>HOLDBACKS Accounting $5.86 (2%) </li></ul></ul><ul><ul><li>Marketing $5.57 (5%) </li></ul></ul><ul><ul><li>_______ Manufacturing $3.57 ($2.00)____ </li></ul></ul><ul><ul><li>__ NET PROCEEDS PER UNIT $3.57_____________ </li></ul></ul><ul><ul><li>Licensee Royalty $1.78 </li></ul></ul><ul><ul><li>Silver Platter Margin $1.78 </li></ul></ul>
  35. 36. MSRP UK Licensing <ul><li>Silver Platter UMD Video MSRP £7.99 </li></ul><ul><ul><li>Retail Price £7.99 </li></ul></ul><ul><ul><li>Dealer Price (60%) £3.20 NET SALE </li></ul></ul><ul><ul><li>Manufacturing £2.20 (£1.00) </li></ul></ul><ul><ul><li>__ GROSS PER UNIT £2.20_____________ </li></ul></ul><ul><ul><li>CONVERSION RATE $1.75 </li></ul></ul><ul><ul><li>HOLDBACKS Accounting $3.77 (2%) </li></ul></ul><ul><ul><li>__ NET PROCEEDS PER UNIT $3.77_____________ </li></ul></ul><ul><ul><li>Licensee Royalty $1.88 </li></ul></ul><ul><ul><li>Silver Platter Margin $1.88 </li></ul></ul>
  36. 37. Self Distribution with PayPal <ul><li>Silver Platter UMD Video MSRP $15.95 </li></ul><ul><ul><li>Retail Price $15.95 </li></ul></ul><ul><ul><li>Shipping & Handling $5.00 </li></ul></ul><ul><ul><li>Direct Sale $20.95 NET SALE </li></ul></ul><ul><ul><li>HOLDBACKS PayPal Processing $19.83 ($1.12) </li></ul></ul><ul><ul><li>Fulfillment $14.83 ($5.00) </li></ul></ul><ul><ul><li>Shipping $12.83 ($2.00) </li></ul></ul><ul><ul><li>Accounting $12.57 (2%) </li></ul></ul><ul><ul><li>Marketing $11.31 (10%) </li></ul></ul><ul><ul><li>_______ Manufacturing $9.31 ($2.00)____ </li></ul></ul><ul><ul><li>__ NET PROCEEDS PER UNIT $9.31 _______________ </li></ul></ul><ul><ul><li>Licensee Royalty $4.65 </li></ul></ul><ul><ul><li>Silver Platter Margin $4.65 </li></ul></ul>
  37. 38. MSRP Pricing for iTunes <ul><li>Silver Platter Video MSRP $1.99 </li></ul><ul><ul><li>Retail Price $1.99 </li></ul></ul><ul><ul><li>Wholesale (70%) $1.39 </li></ul></ul><ul><ul><li>Distributor (25%) $1.04 NET SALE </li></ul></ul><ul><ul><li>HOLDBACKS Accounting $.02 (2%) </li></ul></ul><ul><ul><li>Marketing $.05 (5%) </li></ul></ul><ul><ul><li>__ NET PROCEEDS PER UNIT $.98_____________ </li></ul></ul><ul><ul><li>Licensee Royalty $.49 </li></ul></ul><ul><ul><li>Silver Platter Margin $.49 </li></ul></ul>
  38. 39. MSRP Pricing for DVD-Video <ul><li>M3DVD Royalty MSRP $19.95 </li></ul><ul><ul><li>Retail Price $19.95 </li></ul></ul><ul><ul><li>Wholesale (fixed) $11.20 NET SALE </li></ul></ul><ul><li>HOLDBACKS Manufacturing $9.70 ($1.50) </li></ul><ul><li>__ NET PROCEEDS PER UNIT $9.70_____________ </li></ul><ul><ul><li>Licensee Royalty $6.79 </li></ul></ul><ul><ul><li>based on (70%) - to be split between 3 partners </li></ul></ul><ul><li>Distributor reserves the right to withhold up to 25% of royalty payable as a reserve against future returns, to be paid back within six months of the withholding </li></ul>
  39. 40. Contact Info <ul><li>Blaine Graboyes </li></ul><ul><ul><li>Media Architect </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul>