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nline Video
Internet
Mechanics

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A PRESENTATION BY BERTRAM GUGEL
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ONCE UPON A TIME...
August 1998, 15.000 Views/Day
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... FAST FORWARD TO TODAY.
25 Million Views since November 2009
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Kittens & Kids are so cute ...
26m 56m 164m
24m 44m 74m
46m 109m 14m
... BUT, what about professional content?
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Internet Mechanics
10 Rules
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1. The Internet doesn‘t care about
YOUR RIGHTS!
§
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Ask WARNER MUSIC
Oct. 9th, 2006 „Google and Warner Music Group Announce
Agreement to Offer Google Video Users WMG's Music
Video Content.“
Dec. 22nd, 2008 „Warner Music Group Corp. said it began removing its
songs and videos from Google Inc.'s YouTube video-
sharing Web site this weekend, after the two sides
failed to renegotiate a licensing deal.“
Sep. 29th, 2009 „Warner Music Comes Back to YouTube“

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What happened?
Warner left millions of Dollars on the Table!
http://www.tubemogul.com/blog/2009/09/on-youtube-its-the-music-labels-and-then-everyone-else/

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The alternative ...
JK Wedding‘s Video generated 50 millions views.

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What happened?
„In the last week, over a year after its release, Chris Brown's "Forever"
has again rocketed up the charts, reaching as high as
#4 on the iTunes singles chart and
#3 on Amazon's best selling MP3 list.“
JK Wedding Video
Sony made thousands of Dollars
http://googleblog.blogspot.com/2009/07/i-now-pronounce-you-monetized-youtube.html
http://www.wired.com/epicenter/2009/07/we-wont-get-boyled-again-sony-chris-brown-monetize-wedding-dance-video/#ixzz0fWYhFlpQ

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2. The Internet doesn‘t (financially) reward
ONE HIT WONDERS ...
1
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2. The Internet doesn‘t (financially) reward
ONE HIT WONDERS ...
26m 56m 164m
24m 44m 74m
46m 109m 14m
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... but it‘s easy to connect with your audience
AND BUILD A FOLLOWING!
Design a show!
Test and refine your production!
Put it in the wild!
Enjoy!
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... but it‘s easy to connect with your audience
AND BUILD A FOLLOWING!
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... but it‘s easy to connect with your audience
AND BUILD A FOLLOWING!
150.000
5.000
Digitsshow
„THANK YOU to all of our fans for helping us reach
9 Million Views!!! 600k in the last four days!
You guys rock!“
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3. The Internet is a piece of technology so
THINK OUTSIDE THE BOX.
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Example: DEMAND MEDIA
Algorithms define what videos to produce & their estimated value
Editors refine the suggested video titles
Produces log in online and sign up to produce the video.
Finally the video‘s checked, put online and monetized through ads.
http://www.wired.com/magazine/2009/10/ff_demandmedia/all/1

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Results?
 421,255,914 Video views  55 million unique users
 261,179 Rating  3 Billion social media
 300,854 Comments interactions
 138,951 Videos  1 Billion cummulative video
streams
 442,014 Subscribers
$17 million a year to writers, editors, and
video producers

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4. The Internet will strip your content of its
CONTEXT
Metadata
Player
Seeding
Site
VIDEO
SEO
Ads
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4. The Internet will strip your content of its
CONTEXT
Microchunk it Reduce the content to its simplest form.
Put it out there without walls around it or
Free it strings on it.
Syndicate it Let anyone take it and run with it.
Put the monetization and tracking
Monetize it systems into the microchunk.
http://www.avc.com/a_vc/2005/11/the_future_of_m.html 21

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so put monetization into your
CONTENT
Ford @ Roommates
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so put monetization into your
CONTENT
Wii @ Nerd Perfect
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A big opportunity for
established producers!
8,8 M Views 130 M Views
3,8 M Views 7,4 M Views
= No Partner – no reach!
75k Views
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So please get it right next time and follow
ALL SUGGESTIONS!
Microchunk it Reduce the content to its simplest form.
✓ Free it Put it out there without walls around it or
strings on it.
Syndicate it Let anyone take it and run with it.
✓ Monetize it Put the monetization and tracking
systems into the microchunk.
http://www.avc.com/a_vc/2005/11/the_future_of_m.html 25

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5. The Internet will
TALK BACK!
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so you better
LISTEN ...
Tara Stiles Yoga @ YouTube
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so you better
LISTEN ...
1.581.954 Views
6.346 Ratings
3.579 Comments
1 Comment for every 450 Views
... and JOIN the conversation!28

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THERE‘S A NEW USER INTERACTION PARADIGM.
PAST PRESENT FUTURE
A g g r
Own Production Coop eration e g a t
i o n .
Users relax Users suggest Users create
and consume! and comment! and amend!
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6. The Internet often offers
INDIRECT REWARDS.
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6. The Internet often offers
INDIRECT REWARDS.
Soulja Boy @ YouTube
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But may have quite
an IMPACT.
Soulja Boy vs. Sony BMG
early 2008
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But may have quite
an IMPACT.
‣ Ø 550.000 Video Views/Day
‣ 226 Million Video Views on YouTube
‣ Universal Music Deal
‣ #1 Billboard-Charts USA
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7. The Internet favors
DIGTITAL NATIVES!
00101011011110
00110101010101
11101010010101
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MEET FRED
> 25 Mio users/month
A 13 year old YOUTUBE star...
...is generating more clicks than the BILD.de video content.
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Early Star: Rocketboom
700 views/day „The Rise of the Video Blog“ Distribution deal with Sony Pictures TV
Rolling Stone
1 Video format 250.000 views/day
1 page 100.000 views/day Werbung, Sponsoring
$80.000 in advertising
12 Video formats
4 Video formats
1 page 12 pages
AppleTV, TiVo, PS3, PSP, ...
2004 2006 2008
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Online Acitivities commmand a
strong FOLLOWING
3,5M Views @ YouTube
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MEET
MACHINIMA @ YouTube
2,5M Views per Day
938.744.906 Total Views
6.529.271 Comments
7.600 Videos on YouTube
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8. The Internet
DEMANDS ADOPTION!
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Plan and produce for different
USAGE SCENARIOS!
3m
50 cm
10 cm
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Enable
INTERACTION!
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Adapt existing content
IN A CREATIVE WAY!
>60m Views @ YouTube
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9. The Internet offers new
DISTRIBUTION MEANS!
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THE NEW DISTRIBUTION PARADIGM.
From a few EXCLUSIVE distribution channels to U B I Q U I T Y .
iPod vending machine
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There‘s help:
Web Video Networks
300 Million Views for NNN‘s Shows in 2009
70 Million Views for Revision3‘s shows with 1,5Bn minutes watched
70% (NNN) and 50% (R3) more sponsors and deals in 2009 vs. 2008
Both added new shows to their portfolio
http://www.nextnewnetworks.com/post/16222/press-release-our-2009-milestones
http://www.prnewswire.com/news-releases/revision3-continued-to-lead-internet-television-in-2009-with-over-15-billion-minutes-of-video-served-83336552.html

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10. The Internet forms a
NEW VALUECHAIN
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THE NEW VALUE CHAIN PARADIGM.
TRADITIONAL
Production Packaging Ad inventory Distribution Access/Device Consumption
EMERGING
Production Repurposing Aggregation Distribution Ad Inventory Access/Device Consumption
Traditional Player New Player Audience
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GOT IT?

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THANK YOU.
Contact
Bertram Gugel
M: +49 179 22 1 77 63
info@gugelproductions.de
www.gugelproductions.de